what is the difference between physical and human capital?

Basis of Difference

Human Capital

Physical Capital

Consists of

It consists of the skill and knowledge of the human beings.

It includes all the physical tools and machinery used for production.


It is intangible in nature.

It is tangible in nature.

Wear and Tear

Human capital does not depreciate except the age which is renewed again with education and health.

While, physical capital is depreciated over time due to constant use.


Human capital creates both private as well as social benefits.

Physical Capital creates only private benefits.


Human capital has relatively restricted mobility due to cultural and nationality obstacles.

Physical capital is mobile.

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