Human capital formation chapter

Dear Student,
As physical capital is essential for economic development so is Human capital-
We know educated labour has more skill set than an uneducated person and eventually earns more income than the other. Economic growth is the gradual rise in the real national income of a country. The growth then generally led to development as a whole. If a healthy person can provide uninterrupted labour supply for a longer period of time then health, Human capital is also an important factor for economic growth. Thus both education and health, along with many other factors like on-the-job training, job market information and migration, increase an individual income-generating capacity. 
This enhanced productivity of a human being or human capital contributes substantially not only towards increasing labour productivity but also stimulates innovations and creat ability to absorb new technologies, Education provides knowledge to understand changes in society and scientific advancements, thus, facilitate inventions and innovations. Similarly, the availability of educated labour force facilitates adaptation to new technologies.
This evidence is enough to prove that not only physical capital but also Human Capital can lead to Economic Development.



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