Issues related to development and management of social sector and services
Significance of Human Capital
- For individuals and families: Higher earnings and improved standard of living
- Generational returns: Benefits of human capital transcend private returns, extending to others and across generations.
- For societies
- Building social capital:enhances social cohesion and equity while strengthening people’s trust in institutions.
- Incremental results on Human Capital: Societies need sufficient human capital in the form of competent people who have themselves been educated and trained as professors and other professionals to produce other human capital.
- For countries
- Human capital complements physical capital in the production process as people with higher human capital can use the physical capital more effectively and adapt faster to technological change
- Education provides knowledge to understand changes in society and scientific advancements, thus, facilitate inventions and innovations.
- People are more productive when they are healthier and appropriately trained. This contributes substantially towards increasing labour productivity and economic growth of a nation
- It is a central driver of sustainable growth and poverty reduction.