Megha kumari, Academic content writer of Economics at Edumarz
HUMAN CAPITAL is the accumulation of skills and knowledge by the human. Education is consider as the main source of accumulation of skills and knowledge. But except education there are a different sources through which human gain human capital.
Different sources of human capital are:-
- Education: First and most important source of human capital. By investing in education people increase their future income.
- Health : Health is another important source of human capital. As a healthy human can work better and increase their future income. A sick person has low productivity, but if they spend on health their productivity can increase.
- On-the-job-training : Firms spend on training of workers to improve their productivity. Firms spend money by sending employees on training, but it will double the productivity of employees.
- Migration : People use to migrate or move to other cities or country in search of good firm that give high salary to them. By migrating people spend on transportation, high cost of living. These are all fulfilled by increased income of people. So migration is also a source of human capital.
Information: A People used to acquire knowledge through different sources. Expenses incurred in gaining information from labour markets, education or health. This expenditure is also a source of human capital.