HUMAN CAPITAL F IN I - Prashanth Ellinancertbooks.prashanthellina.com/class_11.Economics... · HUMAN CAPITAL FORMATION IN INDIA 83 5.1 INTRODUCTION Think of one factor that has made

82 INDIAN ECONOMIC DEVELOPMENT

After studying this chapter, the learners will

• understand the concepts of Human Resources, Human CapitalFormation and Human Development

• have understood the links between investment in human capital,economic growth and human development

• have understood the need for government spending on education andhealth

• have learnt about the state of India’s educational attainment.

HUMAN CAPITAL

FORMATION IN INDIA

5

83HUMAN CAPITAL FORMATION IN INDIA

5.1 INTRODUCTION

Think of one factor that has made agreat difference in the evolution ofmankind. Perhaps it is man’s capacityto store and transmit knowledgewhich he has been doing throughconversation, through songs andthrough elaborate lectures. But mansoon found out that we need a gooddeal of training and skill to do thingsefficiently. We know that the labourskill of an educated person is morethan that of an uneducated personand hence the former is able to generate

more income than the latter and hiscontribution to economic growth is,consequently, more.

Education is sought not only as itconfers higher earning capacity onpeople but also for its other highlyvalued benefits: it gives one a bettersocial standing and pride; it enablesone to make better choices in life; itprovides knowledge to understand thechanges taking place in society; it alsostimulates innovations. Moreover,the availability of educated labourforce facilitates adaptation of new

“... the wisdom of expending public and private funds on education is not to bemeasured by its direct fruits alone. It will be profitable as a mere investment,to give the masses of people much greater opportunities than they can generallyavail themselves of. For by this means many, who would have died unknown,are enabled to get the start needed for bringing out their latent abilities”.

Alfred Marshall

Fig. 5.1 Adequate education and training to farmers can raise productivity in farms


technologies. Economists have stressedthe need for expanding educationalopportunities in a nation as itaccelerates the development process.

5.2 WHAT IS HUMAN CAPITAL?

Just as a country can turn physicalresources like land into physicalcapital like factories, similarly, it canalso turn human resources likestudents into human capital likeengineers and doctors. Societies needsufficient human capital in the firstplace — in the form of competentpeople who have themselves beeneducated and trained as professorsand other professionals. In otherwords, we need good human capitalto produce other human capital (say,doctors, engineers...). This means thatwe need investment in human capitalto produce more human capital out ofhuman resources.

Let us understand a little more ofwhat human capital means by posingthe following questions :

(i) What are the sources of humancapital?

(ii) Is there any relation betweenhuman capital and economicgrowth of a country?

(iii) Is the formation of humancapital linked to man’s all-rounddevelopment or, as it is now called,human development?

(iv) What role can the governmentplay in human capital formationin India?

5.3 SOURCES OF HUMAN CAPITAL

Investment in education is consideredas one of the main sources of humancapital. There are several other sourcesas well. Investments in health, on- the-job training, migration and informationare the other sources of human capitalformation.

Why do your parents spend moneyon education? Spending on education

by individuals is similar to spendingon capital goods by companies withthe objective of increasing futureprofits over a period of time. Likewise,individuals invest in education with theobjective of increasing their futureincome.

Like education, health is alsoconsidered as an important input forthe development of a nation as muchas it is important for the developmentof an individual.

Who can work better —a sickperson or a person with sound health?A sick labourer without access tomedical facilities is compelled toabstain from work and there is loss ofproductivity. Hence, expenditure onhealth is an important source ofhuman capital formation.

Work This Out

Take three families fromdifferent strata (i) very poor(ii) middle class and (iii)affluent. Study theexpenditure pattern of thefamilies on education ofmale and female children.


Preventive medicine(vaccination), curativemedicine (medicalintervention duringillness), social medi-cine (spread of healthliteracy) and provisionof clean drinking waterand good sanitation

are the various forms of healthexpenditures. Health expendituredirectly increases the supply of healthylabour force and is, thus, a source ofhuman capital formation.

Firms spend ongiving on-the-job-training totheir workers.This may takedifferent forms:one, the workersmay be trained

in the firm itself under the supervisionof a skilled worker; two, the workersmay be sent for off-campus training.In both these cases firms incur someexpenses. Firms will, thus, insist thatthe workers should work for a specificperiod of time, after their on-the-jobtraining, during which it can recoverthe benefits of the enhancedproductivity owing to the training.Expenditure regarding on-the-jobtraining is a source of human capitalformation as the return of suchexpenditure in the form of enhancedlabour productivity is more than thecost of it.

People migrate in search of jobsthat fetch them higher salaries thanwhat they may get in their native

places. Unemployment is the reasonfor the rural-urban migration in India.Technically qualified persons, likeengineers and doctors, migrate to othercountries because of higher salariesthat they may get in such countries.Migration in both these cases involvescost of transport, higher cost of livingin the migrated places and psychiccosts of living in a strange socio-cultural setup. The enhanced earningsin the new place outweigh the costs ofmigration; hence, expenditure onmigration is also a source of humancapital formation.

People spend to acquireinformation relating to the labourmarket and other markets likeeducation and health. For example,people want to know the level of salariesassociated with various types of jobs,whether the educational institutionsprovide the right type of employableskills and at what cost. This informationis necessary to make decisionsregarding investments in human capitalas well as for efficient utilisation of theacquired human capital stock.Expenditure incurred for acquiringinformation relating to the labourmarket and other markets is also asource of human capital formation.


Box 5.1: Physical and Human Capital

Both the forms of capital formation are outcomes of conscious investment decisions.Decision regarding investment in physical capital is taken on the basis of one’s knowledgein this regard. The entrepreneur possesses knowledge to calculate the expected rates ofreturn to a range of investments and then rationally decides which one of theinvestments should be made. The ownership of physical capital is the outcome of theconscious decision of the owner — the physical capital formation is mainly an economicand technical process. A substantial part of the human capital formation takes placein one’s life when she/he is unable to decide whether it would maximise her/his earnings.Children are given different types of school education and health care facilities by theirparents and the society. The peers, educators and society influence the decisionsregarding human capital investments even at the tertiary level, that is, at the collegelevel. Moreover, the human capital formation at this stage is dependent upon the alreadyformed human capital at the school level. Human capital formation is partly a socialprocess and partly a conscious decision of the possessor of the human capital.

You know that the owner of a physical capital, says a bus, need not be present inthe place where it is used; whereas, a bus-driver, who possesses the knowledge andability to drive the bus, should be present when the bus is used for transportation ofmen and materials. Physical capital is tangible and can be easily sold in the marketlike any other commodity. Human capital is intangible; it is endogenously built in thebody and mind of its owner. Human capital is not sold in the market; only the servicesof human capital are sold and hence the necessity of the owner of the human capital tobe present in the place of production. The physical capital is separable from its owner,whereas, human capital is inseparable from its owner.

The two forms of capital differ in terms of mobility across space. Physical capital iscompletely mobile between countries except for some artificial trade restrictions. Humancapital is not perfectly mobile between countries as movement is restricted by nationalityand culture. Therefore, physical capital formation can be built even through imports,whereas human capital formation is to be done through conscious policy formulationsin consonance with the nature of the society and economy and expenditure by thestate and the individuals.

Both forms of capital depreciate with time but the nature of depreciation differsbetween the two. Continuous use of machine leads to depreciation and change oftechnology makes a machine obsolete. In the case of human capital, depreciation takesplace with ageing but can be reduced, to a large extent, through continuous investmentin education, health, etc. This investment also facilitates the human capital to copewith change in technology which is not the case with physical capital.

Nature of benefits flowing from human capital are different from that of physicalcapital. Human capital benefits not only the owner but also the society in general. Thisis called external benefit. An educated person can effectively take part in a democraticprocess and contribute to the socio-economic progress of a nation. A healthy person,by maintaining personal hygiene and sanitation, stops the spread of contagious diseasesand epidemics. Human capital creates both private and social benefits, whereas physicalcapital creates only private benefit. That is, benefits from a capital good flow to thosewho pay the price for the product and services produced by it.


The concept of physical capital isthe base for conceptualising humancapital. There are some similaritiesbetween the two forms of capital; thereare some striking dissimilarities aswell. See Box 5.1.

Human Capital and EconomicGrowth: Who contributes more tonational income — a worker in a factoryor a software professional? We knowthat the labour skill of an educatedperson is more than that of anuneducated person and that the formergenerates more income than the latter.Economic growth means the increasein real national income of a country;naturally, the contribution of theeducated person to economic growth ismore than that of an illiterate person. Ifa healthy person could provideuninterrupted labour supply for alonger period of time, then health is also

an important factor for economicgrowth. Thus, both education andhealth, along with many other factorslike on-the-job training, job marketinformation and migration, increase an

Work These Out

‘An educated personcontributes more to theincome stream’. Find out themonthly salary earned by

— a mason— watchman in your

apartment/school— maid servant/dhobi— teacher/clerk in an

office— professor— doctor/engineer/an

executive

Fig. 5.2 Creating human capital: a school being run in make shift premises in a village


individual’s income generatingcapacity.

This enhanced productivity ofhuman beings or human capitalcontributes substantially not onlytowards increasing labour productivitybut also stimulates innovationsand creates ability to absorb newtechnologies. Education providesknowledge to understand changes insociety and scientific advancements,thus, facilitate inventions andinnovations. Similarly, the availabilityof educated labour force facilitatesadaptation to new technologies.

Empirical evidence to prove thatincrease in human capital causeseconomic growth is rather nebulous.This may be because of measurementproblems. For example, educationmeasured in terms of years ofschooling, teacher-pupil ratio andenrolment rates may not reflect thequality of education; health servicesmeasured in monetary terms, lifeexpectancy and mortality rates maynot reflect the true health status of thepeople in a country. Using theindicators mentioned above, ananalysis of improvement in educationand health sectors and growth in realper capita income in both developingand developed countries shows thatthere is convergence in the measuresof human capital but no sign ofconvergence of per capita real income.In other words, the human capitalgrowth in developing countries hasbeen faster but the growth of per capitareal income has not been that fast.There are reasons to believe that the

causality between human capital andeconomic growth flows in eitherdirections. That is, higher incomecauses building of high level of humancapital and vice versa, that is, high levelof human capital causes growth ofincome.

India recognised the importance ofhuman capital in economic growthlong ago. The Seventh Five Year Plansays, “Human resources development(read human capital) has necessarilyto be assigned a key role in anydevelopment strategy, particularly ina country with a large population.Trained and educated on sound lines,a large population can itself becomean asset in accelerating economicgrowth and in ensuring social changein desired directions.”

It is difficult to establish a relationof cause and effect from the growth ofhuman capital (education and health)to economic growth but we can see in

Fig. 5.3 Scientific and technical manpower: a richingredient of human capital


Table 5.1 that these sectors have grownsimultaneously. Growth in each sectorprobably has reinforced the growth ofevery other sector.

Two independent reports on theIndian economy, in recent times, haveidentified that India would grow fasterdue to its strength in human capitalformation. Deutsche Bank, a Germanbank, in its report on ‘Global GrowthCentres’ (published on 1.7.05)identified that India will emerge as one

among four major growth centres inthe world by the year 2020. It furtherstates, “Our empirical investigationsupports the view that human capitalis the most important factor ofproduction in today’s economies.Increases in human capital are crucialto achieving increases in GDP.” Withreference to India it states, “Between2005 and 2020 we expect a 40 per centrise in the average years of educationin India, to just above 7 years...”

World Bank, in itsrecent report, ‘India andthe Knowledge Economy—Leveraging Strengthsand Opportunities’,states that India shouldmake a transition tothe knowledge economyand if it uses itsknowledge as much asIreland does (it isjudged that Ireland usesits knowledge economyvery effectively), then theper capita income ofIndia will increase froma little over US $1000 in

TABLE 5.1

Select Indicators of Development in Education and Health Sectors

Particulars 1951 1981 1991 2001

Real Per Capita Income (in Rs) 3,687 5,353 7,321 10,306

Crude Death 25.1 12.5 9.8 8.1Rate (Per 1,000 Population)

Infant Mortality Rate 146 110 80 63

Life Expectancy 37.2 54.1 59.7 63.9at Birth (in Years)

36.2 54.7 60.9 66.9

16.67 43.57 52.21 65.20

Female

Male

Literacy Rate (%)

Fig. 5.4 Job on hand: transforming India into a knowledge economy


2002 to US $ 3000 in 2020. It furtherstates that the Indian economy has allthe key ingredients for making thistransition, such as, a critical mass ofskilled workers, a well-functioningdemocracy and a diversified scienceand technology infrastructure. Thusthe two reports point out the fact thatfurther human capital formation inIndia will move its economy to a highergrowth trajectory.

5.4 HUMAN CAPITAL AND HUMAN

DEVELOPMENT

The two terms sound similar but thereis a clear distinction between them.Human capital considers education andhealth as a means to increase labourproductivity. Human development isbased on the idea that education andhealth are integral to human well-beingbecause only when people have theability to read and write and the abilityto lead a long and healthy life, theywill be able to make other choiceswhich they value. Human capitaltreats human beings as a means toan end; the end being the increasein productivity. In this view, any

investment in education and health isunproductive if it does not enhanceoutput of goods and services. In thehuman development perspective,human beings are ends in themselves.Human welfare should be increasedthrough investments in education andhealth even if such investments do notresult in higher labour productivity.Therefore, basic education and basichealth are important in themselves,irrespective of their contribution tolabour productivity. In such a view,

Box 5.2: India as a Knowledge Economy

The Indian software industry has been showing an impressive record over thepast decade. Entrepreneurs, bureaucrats and politicians are now advancingviews about how India can transform itself into a knowledge-based economyby using information technology (IT). There have been some instances of villagersusing e-mail which are cited as examples of such transformation. Likewise,e-governance is being projected as the way of the future. The value of IT dependsgreatly on the existing level of economic development. IT can make existingassets and processes more effective and efficient but, first of all, a basicinfrastructure needs to be developed.

Work This Out

If a construction worker,maid-servant, dhobi or apeon in school has absentedherself/himself for long dueto ill health, find out how ithas affected her/his

(i) job security

(ii) wage/salary

What could be the possiblereasons?


every individual has a right to get basiceducation and basic health care, thatis, every individual has a right to beliterate and lead a healthy life.

5.5 HUMAN CAPITAL FORMATION IN

INDIA: GREAT PROSPECTS

In this section we are going to analysehuman capital formation in India. Wehave already learnt that humancapital formation is the outcomeof investments in education, health,on-the-job training, migration andinformation: of these education andhealth are very important sources ofhuman capital formation. We knowthat ours is a federal country with aunion government, state governmentsand local governments (MunicipalCorporations, Municipalities andVillage Panchayats). The Constitutionof India mentions the functions tobe carried out by each level ofgovernment. Accordingly, expendi-tures on both education and health areto be carried out simultaneously by allthe three tiers of the government.Analysis of health sector is taken upin the Chapter on infrastructure;hence, we will analyse only theeducation sector here.

Do you know who takes care ofeducation and health in India? Beforewe take up the analysis of the educationsector in India, we will look into the needfor government intervention ineducation and health sectors. We dounderstand that education and healthcare services create both private andsocial benefits and this is the reason forthe existence of both private and public

institutions in the education and healthservice markets. Expenditures oneducation and health make substantiallong-term impact and they cannot beeasily reversed; hence, governmentintervention is essential. For instance,once a child is admitted to a school orhealth care centre where the requiredservices are not provided, before thedecision is taken to shift the child toanother institution, substantial amountof damage would have been done.Moreover, individual consumers of theseservices do not have completeinformation about the quality of servicesand their costs. In this situation, theproviders of education and healthservices acquire monopoly power andare involved in exploitation. The role ofgovernment in this situation is to ensurethat the private providers of theseservices adhere to the standardsstipulated by the government andcharge the correct price.

In India, the ministries ofeducation at the union and state level,departments of education and variousorganisations like National Council ofEducational Research and Training(NCERT), University Grants Commission(UGC) and All India Council ofTechnical Education (AICTE) regulatethe education sector. Similarly, theministries of health at the union andstate level, departments of health andvarious organisations like IndianCouncil for Medical Research (ICMR)regulate the health sector.

In a developing country like ours,with a large section of the populationliving below the poverty line, many of


us cannot afford to access basiceducation and health care facilities.Moreover, a substantial section of ourpeople cannot afford to reach superspecialty health care and highereducation. Furthermore, when basiceducation and health care isconsidered as a right of the citizens,then it is essential that the governmentshould provide education and healthservices free of cost for the deservingcitizens and those from the sociallyoppressed classes. Both, the union andstate governments, have been steppingup expenditures in the educationsector over the years in order to fulfilthe objective of attaining cent per centliteracy and considerably increase theaverage educational attainment ofIndians.

things before the government. Thepercentage of ‘education expenditureof GDP’ expresses how much ofour income is being committed tothe development of education inthe country. During 1952-2002,education expenditure as percentageof total government expenditureincreased from 7.92 to 13.17 and aspercentage of GDP increased from0.64 to 4.02. Throughout this periodthe increase in education expenditurehas not been uniform and there hasbeen irregular rise and fall. To this ifwe include the private expenditureincurred by individuals and byphilanthropic institutions, the totaleducation expenditure should bemuch higher.

Elementary education takes amajor share of total educationexpenditure and the share of thehigher/tertiary education (institutionsof higher learning like colleges,polytechnics and universities) is theleast. Though, on an average, thegovernment spends less on tertiaryeducation, ‘expenditure per student’ intertiary education is higher than thatof elementary. This does not mean thatfinancial resources should betransferred from tertiary education toelementary education. As we expandschool education, we need moreteachers who are trained in the highereducational institutions; therefore,expenditure on all levels of educationshould be increased.

The per capita education expenditurediffers considerably across states fromas high as Rs 3,440 in Lakshadweep

5.6 EDUCATION SECTOR IN INDIA

Growth in Government Expenditureon Education: Do you know howmuch the government spends oneducation? This expenditure by thegovernment is expressed in two ways(i) as a percentage of ‘total governmentexpenditure’ (ii) as a percentage ofGross Domestic Product (GDP).

The percentage of ‘educationexpenditure of total governmentexpenditure’ indicates the importanceof education in the scheme of

Work This Out

Identify the objectives andfunctions of NCERT, UGC,AICTE and ICMR.


to as low as Rs 386 in Bihar. Thisleads to differences in educationalopportunities and attainments acrossstates.

One can understand the inadequacyof the expenditure on educationif we compare it with the desiredlevel of education expenditureas recommended by the variouscommissions. More than 40 years ago,the Education Commission (1964–66)had recommended that at least 6 percent of GDP be spent on education soas to make a noticeable rate ofgrowth in educational achievements.

In December 2002, theGovernment of India, throughthe 86th Amendment ofthe Constitution of India,made free and compulsoryeducation a fundamentalright of all children inthe age group of 6-14years. The Tapas MajumdarCommittee, appointed by theGovernment of India in 1998,estimated an expenditure ofaround Rs 1.37 lakh croreover 10 years (1998-99 to

2006-07) to bring all Indian children inthe age group of 6-14 years under thepurview of school education. Comparedto this desired level of educationexpenditure of around 6 per cent ofGDP, the current level of a little over 4per cent has been quite inadequate. Inprinciple, a goal of 6 per cent needs tobe reached—this has been accepted asa must for the coming years.

In the Union Budget 2000-05, theGovernment of India levied a 2 per cent‘education cess’ on all union taxes. Thegovernment estimated to get a revenueof Rs 4,000-5,000 crore and the entire

Fig. 5.5 Investment in educational infrastructure is inevitable

Work These Out

Prepare case studies of dropouts at different levels of schooling, say

(i) Primary dropouts

(ii) Class VIII dropouts

(iii) Class X dropouts

Find out the causes and discuss in the class.

‘School dropouts are giving way to child labour’. Discuss how this is a lossto human capital.


TABLE 5.2

Educational Attainment in India

Sl.No. Particulars 1990 2000

1. Adult Literacy Rate (per cent of people aged 15+)

1.1 Male 61.9 68.41.2 Female 37.9 45.4

2. Primary completion rate (per cent of relevant age group)2.1 Male 78 852.2 Female 61 69

3. Youth literacy rate (per cent of people aged 15+ to 24)3.1 Male 76.6 79.73.2 Female 54.2 64.8

amount was earmarked for spendingon elementary education. In additionto this, the government sanctioned alarge outlay for the promotion of highereducation and new loan schemes forstudents to pursue higher education.

Educational Achievements in India:Generally, educational achievementsin a country are indicated in terms ofadult literacy level, primary education

completion rate and youth literacyrate. These statistics for the years 1990and 2000 are given above in Table 5.2.

5.7 FUTURE PROSPECTS

Education for All — Still a DistantDream: Though literacy rates for both— adults as well as youth — haveincreased, still the absolute number ofilliterates in India is as much as India’s

Fig. 5.6 School dropouts give way to child labour: a loss to human capital


population was at the time ofindependence. In 1950, when theConstitution of India was passed bythe Constituent Assembly, it was notedin the Directives of the Constitutionthat the government should providefree and compulsory educationfor all children up to the age of14 years within 10 years from thecommencement of the Constitution.Had we achieved this, we would havecent per cent literacy by now.

Gender Equity — Better than Before:The differences in literacy ratesbetween males and females arenarrowing signifying a positivedevelopment in gender equity; still theneed to promote education for womenin India is imminent for variousreasons such as improving economicindependence and social status ofwomen and also because womeneducation makes a favourable impacton fertility rate and health care ofwomen and children. Therefore, wecannot be complacent about the

upward movement in the literacy ratesand we have miles to go in achievingcent per cent adult literacy.

Higher Education — a Few Takers:The Indian education pyramid issteep indicating lesser and lessernumber of people reaching the highereducation level. Moreover, the level ofunemployment among educatedyouth is the highest. As per NSSO data,in 2000, the unemployment rate ofeducated youth (Secondary Educationand above) was 7.1 per cent andunemployment of people with up toprimary education was only 1.2 percent. Therefore, the government shouldincrease allocation for higher educationand also improve the standard ofhigher education institutions, so thatstudents are imparted employableskills in such institutions.

5.8 CONCLUSION

The economic and social benefits ofhuman capital formation and humandevelopment are well known. Theunion and state governments in Indiahave been earmarking substantialfinancial outlays for development ofeducation and health sectors. Thespread of education and healthservices across different sectors ofsociety should be ensured so as tosimultaneously attain economicgrowth and equity. India has a richstock of scientific and technicalmanpower in the world. The need ofthe hour is to better it qualitatively andprovide such conditions so that theyare utilised in our own country. Fig. 5.7 Higher Education: few takers


1. What are the two major sources of human capital in a country?

2. What are the indicators of educational achievement in a country?

3. Why do we observe regional differences in educational attainmentin India?

4. Bring out the differences between human capital and humandevelopment.

5. How is human development a broader term as compared to humancapital?

6. What factors contribute to human capital formation?

Recap

Investments in education convert human beings into human capital; humancapital represents enhanced labour productivity, which is an acquired abilityand an outcome of deliberate investment decisions with an expectation thatit will increase future income sources.

Investments in education, on-the-job training, health, migration andinformation are the sources of human capital formation.

The concept of physical capital is the base for conceptualising human capital.There are some similarities as well as dissimilarities between the two formsof capital formation.

Investment in human capital formation is considered as efficient and growthenhancing.

Human development is based on the idea that education and health areintegral to human well-being because only when people have the ability toread and write and the ability to lead a long and healthy life, will they beable to make other choices which they value.

The percentage of ‘education expenditure of total government expenditure’indicates the importance of education in the scheme of things before thegovernment.

EXERCISES


7. Mention two government organisations each that regulate the healthand education sectors.

8. Education is considered an important input for the development ofa nation. How?

9. Discuss the following as a sources of human capital formation

(i) Health infrastructure

(ii) Expenditure on migration.

10. Establish the need for acquiring information relating to health andeducation expenditure for the effective utilisation of humanresources.

11. How does investment in human capital contribute to growth?

12. ‘There is a downward trend in inequality world-wide with a rise inthe average education levels’. Comment.

13. Examine the role of education in the economic development of anation.

14. Explain how investment in education stimulates economic growth.

15. Bring out the need for on-the-job-training for a person.

16. Trace the relationship between human capital and economic growth.

17. Discuss the need for promoting women’s education in India.

18. Argue in favour of the need for different forms of governmentintervention in education and health sectors.

19. What are the main problems of human capital formation in India?

20. In your view, is it essential for the government to regulate the feestructure in education and health care institutions? If so, why?

1. Identify how Human Development Index is calculated. What is theposition of India in the World Human Development Index?

2. Is India going to be a knowledge based economy in the near future?Discuss in the classroom.

3. Interpret the data given in Table 5.2.

4. As an educated person, what will be your contribution to the causeof education? (Example ‘Each one — teach one’).

SUGGESTED ADDITIONAL ACTIVITIES


5. Enlist the various sources that provide information regardingeducation, health and labour.

6. Read the annual reports of Union Ministries of Human ResourceDevelopment and Health and make summaries. Read the chapteron social sector in the Economic Survey .

Books

BECKER, GARY S. 1964. Human Capital. 2nd Edition, Columbia UniversityPress, New York.

FREEMAN, RICHARD. 1976. The Overeducated American. Academic Press, NewYork.

Government Reports

Education in India, Ministry of Human Resource Development, Governmentof India (for recent years) for various years.

Annual Reports, Ministry of Human Resource Development, Governmentof India.

Websites

www.education.nic.inwww.cbse.nic.inwww.ugc.ac.inwww.aicte.ernet.inwww.ncert.nic.inwww.finmin.nic.in

REFERENCES

Documents

HUMAN CAPITAL F IN I - Prashanth Ellinancertbooks.prashanthellina.com/class_11.Economics... · HUMAN CAPITAL FORMATION IN INDIA 83 5.1 INTRODUCTION Think of one factor that has made