. What do you mean by Human Capital Formation
- Human capital formation is a process of acquiring new knowledge, skills, and competencies through education, training, and experience.
- It is usually used to improve the productivity of an employee or a group of employees.
- Human capital formation has been a long-standing policy goal in many countries.
Final answer :
- Human capital formation refers to the investment of time and money into a person’s education, skills, and knowledge.
- It involves both investments in the education and training of our future workforce as well as in their health and well-being.
- This investment then pays off later when those skills are used in the market economy to earn higher wages.