Human Capital Formation Flashcards
List sources of Human Capital formation
- exp on health
- Exp on education
- On the job training
- Exp on information
- Exp on migration
Explain Exp on education
Labour skill of an educated person is more than that of an uneducated person.
This exp is just like exp on capital goods by companies.
It helps in raising income and increasing the standard of living of the people
It also helps in economic growth and development in the following ways:
1. It helps in understanding the changes happening in the society and scientific advancements.
2. It helps in increasing the earning capacity and social standing and pride.
3. Technical skills also help in improving the human capital which helps in increasing the economic growth. It helps in making better use of resources.
4. It helps in adopting to new technologies.
5. It stimulates inventions and innovations.
Explain exp on health
Good health and good sanitation facilities can have a good impact on the human labour force.
2 obj - improvement in quality of life and increase in productive labour force
Poor health and undernourishment has a direct effect on the quality of labour force and can result in loss of productivity.
Adequate food and proper nourishment along with proper sanitation facilities can lead to improvement in human capital.
Forms of health exp are :
Curative - intervention of medicine
Preventive- vaccine
Social - spreading of health literacy
Provision of clean drinking water
Sanitation facilities
On the job training
It is fast without much cost
It helps in adapting to newer technologies.
Obj - increases productivity which causes an increase in reg production of goods and productivity of labour.
Diff forms
In the firm itself under the supervision of the skilled worker
Off campus
After the on job training, the firm insists the workers to work for them for a specific period of time to recover the benefits of enhanced productivity owing to training.
Return of expenditure in the form of enhanced productivity is more than the cost of it.
Exp on migration
Exp on info
Need for govt intervention in health and education sector
Exp on health and education can have a substantial long term impact and they cannot be reversed.
Ex: a child is admitted in a school or a health care centre and the required services are not provided by the institution then a lot of Damage would take place before the decision of shifting the child to a diff institution is made.
Consumers may not have complete information abt the services and its cost.
Providers may take advantage, may take monopoly power and may get involved in exploitation.
Ex : polio vaccine
Education still a distant dream why ?
In 1950, it was noted in the directives of the constitution that Children of all ages up to 14 should be provided free and compulsory education. Had we done this literacy rate would have been 100 % by now.
The literacy rate of adult and youth have been increasing. However, the absolute number of illiterates is as much as total population it was at the time of independence.
Put light on gender equity
The differences in literacy rate between male and female have been narrowing.
There is a positive shift seen in gender equity.
But still there is a need for promotion of women education:
1. It contributes to economic independence and social status of women.
2. Women education is imp because it will help to improve women’s knowledge on fertility, well-being and health of women.
Govt expenditure on education
Govt spends more on elementary education:
Govt spends more on elementary education that is primary education. The share of higher education that is tertiary education ( institution, universities etc) have been the least.
Tertiary education is very important:
On an average govt spends more on elementary education. The average expenditure spent on one person is higher than that of elementary education. This does not mean financial resources need to be shifted from tertiary to elementary. As we expand the education system, we need more teachers trained in the higher education sectors. The expenditure on all the levels of education should be increased.
Educational opportunities have been diff across states:
It’s as high as ₹ 34651 in Himachal Pradesh and as low as ₹4088 in Bihar.
Educational achievements in India
Adult literacy rate - refers to the ratio of literate adult population to the total adult population.
In teh case of males- it has increased from 61.9 to 82 %
In the case of females: it has increased from 37.9 to 66% which is still less than the satisfaction level.
Primary completion rate refers to the percentage of the people who have completed their last year of primary
Males- 78 to 93
Females- 61 to 96 %
Youth literacy rate refers to the percentage of people, aged 15-24 who can with understanding, read and write a short , simple statement on their everyday life.
Males - 76.6 to 93
Females - 54.2 to 90 %
Importance or role of HCF
Increase in GDP: an educated and healthy person earns more income, will contribute more to the production process and hence will lead to an increase in gdp of the country.
Effective use of physical capital : N educated and healthy person will effectively use physical capital to increase its efficiency and productivity.
Innovation invention and technological improvements:
Eduction provides knowledge abt the changes taking place in the market and scientific advancements. It also helps in adopting to new technologies.
It stimulates inventions and innovations.
Life expectancy : good health and proper nourishment along with proper sanitation facilities help to increase the productivity of the labour force also helps to improve the quality of life which in turn has a positive impact on the life of the person.
Quality of life : hcf helps in raising th e income of the person. It helps in increasing the earning capacity and social standing and pride. It also improves the lifestyle of the person.
Control of population growth: educated people have smaller families when compared to illiterate people .
Higher productivity and production : technical skills help in increasing the productivity of th e labour force which in turn helps in increasing the production of goods and services.
Modernisation of atiitude: education also has an impact on the mental outlook of the person, it changes the person completely.
Importance or role of HCF
Increase in GDP: an educated and healthy person earns more income, will contribute more to the production process and hence will lead to an increase in gdp of the country.
Effective use of physical capital : N educated and healthy person will effectively use physical capital to increase its efficiency and productivity.
Innovation invention and technological improvements:
Eduction provides knowledge abt the changes taking place in the market and scientific advancements. It also helps in adopting to new technologies.
It stimulates inventions and innovations.
Life expectancy : good health and proper nourishment along with proper sanitation facilities help to increase the productivity of the labour force also helps to improve the quality of life which in turn has a positive impact on the life of the person.
Quality of life : hcf helps in raising th e income of the person. It helps in increasing the earning capacity and social standing and pride. It also improves the lifestyle of the person.
Control of population growth: educated people have smaller families when compared to illiterate people .
Higher productivity and production : technical skills help in increasing the productivity of th e labour force which in turn helps in increasing the production of goods and services.
Modernisation of atiitude: education also has an impact on the mental outlook of the person, it changes the person completely.
