The content is just an excerpt from the complete note for SS3 First Term Economics Lesson Note – Human Capital Development. Check below to download the complete DOCUMENT
WEEK 3
TOPIC: HUMAN CAPITAL DEVELOPMENT
CONTENT:
- Introduction to human capital development
- Meaning and definition of human capital development
Sub-Topic 1: Introduction to human capital development
According to modern growth theory, the accumulation of human capital is an important contributor to economic growth. Numerous cross-country studies extensively explore whether educational attainment can contribute significantly to the production of overall output in an economy. Although macro studies have produced inconsistent and controversial results (Pritchett 1996), several micro studies that look into the same problem have shown a consistently positive relationship between the education of the workforce and their labor productivity and earnings. General finding is that individuals with more education tend to have better employment opportunities, greater earnings, and produce more output than those who are less educated. These findings provide a strong rationale for governments and households to invest substantial portions of their resources on education, with the expectation that higher benefits will accrue over time.
Sub-Topic 2: Meaning and definition of human capital development
Human capital is the total stock or value of competencies, skills, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labour in order to produce economic value.
Factors Affecting the Efficiency of Human Capital
- Increased level of education: Provision of higher and specialized education increases the efficiency of human capital.
- On-the job training: Provision of formal and informal training programmes while employed, increase the skill of the workers and enhance the efficiency of human capital
- Improved health condition: Provision of better health facilities improve the health of the providers of labour, thereby enhancing their efficiency.
- Standard of living: An increase in the standard of living increases the efficiency of human capital.
Brain Drain and its effect on Nigeria Economy
Brain drain is the large-scale emigration, over a comparatively short period, of a large number of highly skilled intellectuals and technical labour to more favourable geographic, economic and professional environment. E.g., large scale movement of Nigerians health-care professionals to India, America and other high-income countries. It is also referred to as “capital flight”.
To gain full access to the note: DOWNLOAD FILE
