- Human capital is the stock of skill and productive knowledge embodied in people of a country.
- A common effect of investing in human capital is that it yields a good return in future. Higher incomes can be earned because of higher productivity of the more educated or the better trained persons, as well as the productivity of healthier people. Not only do the educated and the healthier people gain through higher incomes, indirectly the society also gains due to the advantages of a more educated or a healthier population.
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