Human Capital Formation in India — Chapter Summary

Human capital is the stock

Human capital is the stock of skills, knowledge, health, and abilities embodied in people. It is intangible and inseparable from its owner.

Education

Education, health, on-the-job training, migration, and information are the main sources of human capital formation.

Spending on education is like investment

Spending on education is like investment because it increases future income and improves a person's opportunities, social standing, decision-making, a

Good health increases the supply

Good health increases the supply of healthy labour, reduces absence from work, and improves productivity. Preventive medicine, curative medicine, soci

Training received at the workplace increases

Training received at the workplace increases worker efficiency and productivity. Firms spend on it because the gains from higher productivity are grea