We consider market failures because the financing of human capital investments is failure-prone, owing to issues like moral hazard that occur when human beings themselves are the vehicles for investment
This is the basic reason for the demand for public expenditure on education sector. The country as a macro institution can identify the market signals for labour requirement and invest on the production of that particular labour set till the demand is completely met. Though education has many benefit rather than monetary or internal benefits, employment opportunity influences the investment decision of humans as well as government. #LiDA103