Question

What is the role of health in human capital formation?

Answer 1

• A country can get returns in human capital just like return from investment in physical capital.
• This investment in human capital is through healthcare, training and education.
• The productivity is higher from people who are healthier and better educated.
• A healthier and educated person not only helps himself by earning higher incomes, but society also gains indirectly as people who are not healthy are also able to garner the advantages from a healthier population.
• A child who receives proper healthcare can give greater returns to society in the future.
• It is found that children who receive heavy investments in health (through proper diet, nutrition) and education, have educated parents. This is the result of comprehending the importance of good health and education by the parents who are healthy and educated.
• A country like Japan has very little resources, yet they are a very developed country, this is the result of investment on its people by Japan, through healthcare and education.
• These educated citizens of Japan made efficient utilization of other resources like capital and land.
• Health is an important indicator in deciding the quality of population in a country.