Difference between human capital and human capital formation with video and example?
Human capital refers to the total stock of skill and expertise of all persons engaged in the process of production in a nation at a particular point of time.
On the other hand, enhancing the existing stock of human capital as well as making additions to it in the form of skilled and education force is referred as human capital formation. Human capital formation is done by providing educational services, health facilities, on the job training to the population.
For example, if the number of skilled persons in a labour force increases form 1 crore to 1.5 crore, then, at present
Human capital formation = 0.5 crore
Human capital = 1.5 crore
On the other hand, enhancing the existing stock of human capital as well as making additions to it in the form of skilled and education force is referred as human capital formation. Human capital formation is done by providing educational services, health facilities, on the job training to the population.
For example, if the number of skilled persons in a labour force increases form 1 crore to 1.5 crore, then, at present
Human capital formation = 0.5 crore
Human capital = 1.5 crore