HUMAN CAPITAL

Human capital refers to the production factors, coming

from human beings, we use to create goods and services.
Our knowledge, skills, habits, and social and personality
attributes all form part of the human capital
is described as the skills, training, and health acquired
through on the job training and education.
Michael Pakistan Park defines it as,
''The skill and knowledge of human beings.
Measuring human capital
For statistical purposes, human capital can be measured in
monetary terms as the total potential future earnings of the
working age population.
Factors that determine human capital
•Skills and qualifications
•Education levels
•Work experience
•Social skills – communication
•Intelligence
•Emotional intelligence
•Judgement
•Personality –
•Habits and personality traits
•Creativity. Ability to innovate new working practices/products.
•Fame and brand image of an individual. e.g. celebrities paid to endorse a
product.
•Geography – Social peer pressure of local environment can affect
expectations and attitudes.
human capital and its impact
Education
as a major important issue in a community and is one of the basic
human needs for the betterment of skills. People invest in their
own personal income in order to gain useful skills and knowledge.
There are differences in wages in a competitive economy that
reflects the difference in levels of human resource development.
Agriculture
It plays a critical role in agricultural growth and development
because human beings occupy the center of production, distribution
and consumption. Agricultural education and training,
agricultural extension are all. Agricultural education and training
covers a broad range of formal and informal activities that build
knowledge capacity within the agriculture sector through higher
education, diploma and certificate levels, vocational and in-service
training and informal knowledge and skill acquisition
industries
High-quality human capital (educated people) is an asset which
plays a key role in industries, growth domestic production, GNP,
industrial enterprises and etc... Governments cannot afford without
investment on human capital in economic growth and development.
Development of Skills
One of the reasons for the lack of developing countries is the lack of
investment in human capital
Our country consists of a traditional and classical ideology that
cannot provide the necessary skills for all types of people in rural
areas. Hence the agricultural industries and labor activities are faced
with the lack of skills in technological developing. Therefore,
investment in human capacities is required for developing of
economics in underdeveloped countries, adoption of modern
technology can improve the productive capacities
Raises Per capital income
With increases in production and establishment of
industrial enterprises, per capita income of the people
rises and continues to increase national capital.
Improving the standard of life welfare
Human resource development can pave the way for
improving people's overall quality of life in general. This
can be achieved by improving the three components of
the Human Development Index (HDI), namely increasing
per capita income, educational achievements and
increasing life expectancy