Question

2-Most of us can easily relate education as being a dimension of human capital. Why do we consider health to be an important dimension as well? Are the two (education and health) endogenous? Why or why not?

Answer 1

Education can be considered as an important dimension to the human capital and this is because of the fact that education adds on value to the humans who are working under a particular segment of the business process. for instance education that acts on skill can get to give more output from the same amount of inputs received as that of the human capital with less education than before. this can be considered as a sign of improving efficiency with education and we all know the fact resources are scarce and therefore efficiency plays a major role and in this regard human capital with good levels of education is an asset. both education and health are endogenous as both get to grow hand in hand where good health and good education should be necessary for the well-being of an organisation where lack of either of the two might result in the in efficiency of the process.