How does investment in human capital contribute to growth?

Question

Accepted Answer

Human capital and economic growth go hand in hand:
- **Increase in the Productivity of Physical Capital:** Skilled workers handle productive assets to enhance productivity and ensure efficient utilisation of physical capital.
- **Innovation of Skills:** An educated person has potential to develop new skills and innovate new techniques.
- **High Participation Rate and Equality:** Human capital with higher technical skills increases participation in economic growth and development. Higher participation leads to greater social and economic equality.