How do education and health help in human capital formation?
My guess: Just as a machine cannot function well if its parts are missing or broken, a company cannot thrive if its workers are sick or untrained. Healthy, knowledgeable workers contribute more to the workforce for several reasons: • Employee absenteeism is reduced, because fewer employees call out sick. • Productivity is not lost. • Employment agencies don’t have to be paid to send temporary replacements. • Insurance rates are not so high. • Compensation and disability payments are not as high or as frequent. • Employees with the appropriate education and training are capable of yielding a higher quality of production. • Knowledgeable workers — like people in uniform – enhance the image of the institutions which they represent.
