Difference Between Labor and Human Capital
Labor vs Human Capital
Human capital is a term that refers to the people or the workforce who are available for various jobs. Labor is the work that the people do.
In economic terms, “labor” is the measure of the work that is done by human beings. Labor can also be said to be the ability to do work. Labor involves both physical as well as mental work.
“Human capital” also refers to the knowledge, competence, and ability of people to perform labor. Factors like formal education and training are important regarding human capital. Human capital is very much needed for the operation of any business. The success of a business depends on the human capital and, as such, all business firms invest in human capital for grooming good laborers.
An experienced, skilled, and expert human capital will only produce good labor. In labor, the efficiency and skills differ from one person to another. Most of the time, the labor force just does the work that has been assigned to them.
Labor can be said to be the aggregate of all mental and physical effort which is used for the creation of services and goods. Wages are also an integrated part of labor. Moreover, the wages differ from one type of labor to another.
When looking at the labor force of a nation, it is determined by the size of its population.
Labor is an active factor connected with production whereas factors like capital and other things are only passive.
Summary:
1.“Human capital” is a term that refers to the people or the workforce who are available for various jobs. “Labor” is the work that people do.
2.“Human capital” refers to the knowledge, competence, and the ability of people to perform labor.
3.The success of a business depends on the human capital and, as such, all business firms invest in human capital for grooming good laborers.
4.In labor, the efficiency and skills differ from one person to another. Most of the time, the labor force just does the work that has been assigned to them.
5.Labor can be said to be the aggregate of all mental and physical effort which is used for the creation of services and goods.
6.Labor is an active factor connected with production whereas factors like capital and other things are only passive.
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Your article is really very helpful for us and this article helps greatly in clearing confusion b/w labour and human capital.