what is meant by human capital formation ?

Question

i am student of class 11th english medium, subject is economics,
i am weak in this subject and would appreciate if i could get some
answers in short form to remember.
thanking you all. best regards.

Answer 1

It's an interesting concatenation of terms. Human capital is the term poetically applied to employees and sometimes contractors who work for a firm. It is an acknowledgment that they are a major, if not the major, asset of the firm.

Capital formation means recognizing that what a corporate entity ultimately is about is making money. And that a significant amount of that is not GETTING money, but MAKING money. Value added is another term. Wealth production. Not merely shifting assets from one owner to another, but adding something to them.

So human capital formation could refer to recruitment, but it could also be a good term to refer to public interest work in the field of education. For example, Yahoo for Good could be said to have been engaged in human capital formation the day they organized a bunch of Yamsters to go to Fremont High in Sunnyvale and renovate the outdoor science lab. That's how to celebrate a first birthday, isn't it?

Think about what makes human capital so valuable. The single most important thing is skill at the job, and the next most important thing is character, intelligence and skills of a more generalized nature. All of that is the responsibility of education, at least to get it started. It's actually a life-long process.

Answer 2

Leaving aside the problematic concept of wage-earner funds, there are the classic approaches of capital formation. But should the government not focus its tight resources on promoting long-term saving schemes? This has so far been the consensus of the recent debate on social and capital-formation policy. From here, there is a direct route to occupational pension provision. It undoubtedly deserves sustained funding. To create another type of scheme based on capital sharing for employees would be rather counter-productive, however. With five types of scheme that currently exist in Germany, occupational pension provision is already very complex and barely comprehensible for employees. Whoever wants to promote occupational pension schemes should start from here and create a suitable framework which would allow personal pension funds. These funds should be open to flexible contributions from both employees and employers. This would also make possible contributions related to earnings. Generally, the further expansion of earnings-related salary components could also be an option for the upcoming wage round.



The debate on invested pay schemes offers no solution to the problem, however. For capital formation, better instruments are available, especially when it comes to the all-important provision for old age. And it would be more helpful for low earners and the unemployed if – in the interest of boosting employment opportunities – the government were to continue deregulating the labour market, especially with regard to dismissal protection.

Answer 3

human capital formation plays crucial role in development of any country .the quality of population depends upon the investment made by the country in improving the standard of human as a resource. This important role starts with education ; that is, giving one knowledge and skills. Communication and transportation of or between states, people, government, people and state etc. is also important. Health is wealth. Education is not only important but also the mental and physical health of human beings is important. but getting education is still not economical . Getting job or occupation is also crucial. Infrastructure is needed as the country climbs the steps of development. One moves forward with the wheel of time hence creates new technology to get the burden of work lighter or smoother. All stones have to flipped so that there is no hold up or set back as one achieves success. Thus service, health, employment, education are the back bone of any country.