Question

what is meant by human capital formation explain with example ?

Answer 1

Human capital formation is the process of transforming the people in a country into workers who are capable of producing goods and services. During this process, relatively unskilled individuals are given the tools they need to contribute to the economy. It is critical to the long-term economic growth of a country, and provides the same benefits as new technologies or more efficient industrial equipment. While this process takes time, it often results in a greater standard of living for the people within a country in just a few generations, or even sooner. This process can be achieved through the use of public health policies, education or training opportunities.
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Answer 2

Human capital is as important as physical capital for economic development. Human capital formation is the process of adding to stock of human capital over time. ... Expenditure on health can create more efficient and more productive human capital. Further, on-the-job-training helps workers to update skills.