Discuss the following as a source of human capital formation
Hard

Solution

(i) Health infrastructure

(ii) Expenditure on migration.

(i). Health Infrastructure: Health is an important medium of human capital formation. A healthy country will contribute more to GDP. Investment done on healthcare increases the productivity, and efficiency of the organization. The population will be able to better equip themselves. A country with better health will have access to labor all year round. Also, it will lead to better medical facilities and knowledge. Which will help towards managing a productive workforce.

(ii). Expenditure on Migration: Migration helps in the formation of human capital by utilizing the underdeveloped or inactive skills of an individual. Migration is done with the intent of earning more money and better opportunities in an area where abundant resources are available. It helps underdeveloped countries in acquiring technical skills and transferring knowledge to the people back in the country which helps in the growth of the human capital of the home country.

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