Question

Relationship between human capital and productivity in the society

Answer 1

Answer:

Human capital and productivity are directly related in the society. The more a government or any organisation invests in human capital the more the productivity is increased. This further leads to economic growth. This is one of the reasons why any organisation promotes skills and knowledge among their employees.

In order to increase productivity, each worker must be able to produce more output. This is referred to as labor productivity growth. The only way for this to occur is through an in increase in the capital utilized in the production process. This increase can be in the form of either human capital or physical capital.