. What do you mean by Human Capital Formation


Best Answer

Explanation :

  • 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.

 

 

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