Human capital on economic growth (Article) - Group B

Group B

Human Capital and Economic Growth

Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process. Human capital is the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. Human capital has a substantial impact on individual earnings. 

Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth. Increases in economic growth tend to improve the quality of life for a population.

Role of human capital in economic growth

• Country develops if the human capital is developed and leads to economic growth by adding to the GDP
• Knowledgeable and skilled workers can make better use of resources at their disposal.
• Improve quality life of society
• Create positive attributes. So human capital includes the education, technical training, or problem-solving skills that a person offers to skill developed and increase productivity.
• Eradicate of social backwardness and poverty

How to improve human capital?

• more education                    
• automating finances to improve efficiency
• expanding your horizons outside of your social and workplace
• obtaining more experience
• increasing participation in a multitude of activities or organizations
• improving your communication skills
• improving your health, and expanding your network.