Human capital, inequality and growth in transition economies

Human Capital , Inequality and Growth in Transition Economies

Introduction

Human Capital can be defined as the accumulation of competences and knowledge in individuals gained through education and experience , not forgetting their personality attributes . All these put together enable individuals effectivley perform profitable and revenue generating economic activities . Such competent persons in a society are at times reffered to as a workforce or laborforce . Some examples of investments in humans that result in human capital are education , health and training . As Becker says , human capital investments raise the earning ability of

individuals , improve health and add to an individuals ' good habits

The term inequality generally refers to disparities in access to opportunities or resources amongst individuals , groups or even countries . Some of the common causes of inequality are gender , race age , geographical location and even cultural practices . Inequality normally results in observable differences in levels of growth and development of individuals or from one society to another

Education is the process through which individuals are able to acquire basic skills necessary for life . It is the understanding and interpretation of knowledge that empowers individuals to develop a logical and rational mind . The rational mind is then is able to determine relationships amongts pertinent variables , thereby fostering understanding . Education involves completing curriculum based fixed time achievements , aimed at building professional capabilities . At the individual level , it develops the capabilities and potentials of the individual so as to prepare them to be successful in a specific society or culture . In this case therefore...