Question

How does investment in human capital contribute to economic growth?

Answer 1

1:Investment in human capital is believed to be positively related to economic growth. It leads to efficient utilisation of the material inputs and capital. With increase in productivity, output increases at an increasing rate and hence economic growth accelerates.
2:Human capital is the fundamental source of economic growth. It is a source of both increased productivity and technological advancement.Human capital is described as the skills, training, and health acquired through on the job training and education.

3:Economists have long believed that investments in education, or “human capital,” are an important source of economic growth.