Discuss the following as a source of human capital formation:
(i) Health infrastructure
(ii) Expenditure on migration
Discuss the following as a source of human capital formation:
(i) Health infrastructure
(ii) Expenditure on migration
(i) Health Infrastructure: This refers to investment in health facilities to build a physically as well as mentally strong human capital. It is essential for increasing productivity. Preventive medicines (vaccination), curative medicine (medical intervention during illness), social medicine (spread of health literacy) and provision of clean drinking water and good sanitation are the various forms of expenditures on health infrastructure. These expenditures are considered to be important factors for human capital formation as they increase the supply of healthy labour force. Therefore, health infrastructure is a source of human capital formation.
(ii) Expenditure on Migration: People migrate in search of jobs with higher salaries than what they may get in their native places. People from rural areas migrate to urban areas in search of employment. Technically qualified persons, like engineers and doctors, migrate to other' countries because of higher earnings in such countries. Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychological costs of adapting to a new socio-cultural setup. The increase in earnings in the new place outweighs these expenditures of migration. Hence, expenditure on migration is a source of human capital formation.
(i) Health Infrastructure: This refers to investment in health facilities to build a physically as well as mentally strong human capital. It is essential for increasing productivity. Preventive medicines (vaccination), curative medicine (medical intervention during illness), social medicine (spread of health literacy) and provision of clean drinking water and good sanitation are the various forms of expenditures on health infrastructure. These expenditures are considered to be important factors for human capital formation as they increase the supply of healthy labour force. Therefore, health infrastructure is a source of human capital formation.
(ii) Expenditure on Migration: People migrate in search of jobs with higher salaries than what they may get in their native places. People from rural areas migrate to urban areas in search of employment. Technically qualified persons, like engineers and doctors, migrate to other' countries because of higher earnings in such countries. Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychological costs of adapting to a new socio-cultural setup. The increase in earnings in the new place outweighs these expenditures of migration. Hence, expenditure on migration is a source of human capital formation.
