ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Human Capital? The term human capital refers to the economic value of a worker’s experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Detailed explanation-2: -Human capital is the accumulated knowledge (from education and experience), skills, and expertise that the average worker in an economy possesses. Typically the higher the average level of education in an economy, the higher the accumulated human capital and the higher the labor productivity.

Detailed explanation-3: -Human capital consists of the knowledge, skills, and health that people accumulate throughout their lives, enabling them to realize their potential as productive members of society. We can end extreme poverty and create more inclusive societies by developing human capital.

Detailed explanation-4: -Human capital and human development are interrelated concepts but they are not identical. While human capital refers to the stock of a nation’s human skills and expertise at a particular point of time human development refers to holistic development and well being of a nation’s human capital.

Detailed explanation-5: -Human capital theory emphasizes how education increases the productivity and efficiency of workers by increasing the level of cognitive stock of economically productive human capability, which is a product of innate abilities and investment in human beings.