Human Capital Development

Economics S.S.S 3 First Term

WEEK 3

Human Capital Development

Performance Objectives

Student should be able to:

1. Define human capital.
2. Explain the factors affecting the efficiency of human capital
3. Distinguish clearly between human and physical capital
4. Define brain drain. 

Content

Definition of Human Capital

Human capital is the stock of habits, knowledge, social and personality attributes embodied in the ability to perform labour to produce economic value. Alternatively, it refers to the value that is added onto a company by an employee’s skill and competencies.

Human capital is an important factor of production, and employing individuals with the right education, experience, skills and training can improve efficiency, productivity and profitability. Companies can invest in their human capital by offering training…