ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Human capital is an intangible asset not listed on a company’s balance sheet. Human capital is said to include qualities like an employee’s experience and skills. Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.

Detailed explanation-2: -Human capital is not perfectly mobile between countries as movement is restricted by nationality and culture. It is intangible, it cannot be sold in the market only the services of human capital are sold and hence the necessity of the owner of the human capital to be present in the place of production.

Detailed explanation-3: -Human capital is a stock concept because we are talking about a particular point of time whereas human capital formation is a flow concept because we are adding to the stock of human capital by developing new skills, training etc.

Detailed explanation-4: -Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.