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Human Capital Formation In India

Question
CBSEENEC11009185
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Discuss the following as a sources of human capital formation:
Expenditure on migraiton.

Solution

Expenditure on Migration : People migrate in search of jobs that fetch them higher salaries than what they may get in their native places. Unemployment is the reason for the rural- urban migration in India. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher salaries that they may get in such countries. Migration in both these cases involves cost of transport, higher cost of living in the migrated places and socio psychi costs of living in a strange socio-cultural setup. The enhanced earnings in the new place outweigh the cost of migration, hence expenditure on migration is a source of human capital formation.

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