What is the Role of Health in Human Capital Formation?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The role of Health in Human Capital Formation is extremely significant because good health is essential for individuals to engage in productive activities. Poor health, on the other hand, can lead to decreased productivity, and reduced earnings. Thus, investing in healthcare can lead to a boost in human capital formation.

Role of Health in Human Capital Formation

Health plays a key role in a person’s performance, as good health can result in a good performance. Good health is when your physical, mental, and social well-being is good. Thus, you don’t have any disease or medical condition. In such a state, you can:

  • Perform your duties well and work at your full potential.
  • Contribute to the development and growth of the economy.
  • Become an asset to your organization.
  • Your efficiency naturally increases with good health, positively affecting your productivity.
  • Good physical health equals good mental health, which is the most significant factor in the happiness quotient of an employee.
  • If an employee is mentally relaxed and happy, they will put extra effort into their work.
  • Poor health can lead to significant medical expenses and loss of income due to illness.


What is the Role of Health in Human Capital Formation?

The Role of Health in Human Capital Formation is crucial as individuals who are healthy have a higher potential for success and are capable of giving their best efforts. Good health enables a person to perform efficiently at work and use their full potential. This is because an unhealthy person will not be able to deliver good results and will eventually become a liability to any organization.

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