What does the statement mean "investment in human capital"?
Answer:
Opportunity and social costs are involved with investments of HC. Going to college is an investment but you could have gone to the labor force and had a jump for seniority by fours years. This income could have been invested and added to future earnings. Stay in school and you could possibly obtain higher earnings due to the education value.
Society benefits as you are a more educated individual and your choices could be more beneficial. i.e. voting, not going to jail, etc...
The labor force would advance by more educated individuals and innovations. Look at the areas of low education compared to higher educated areas. The aggregate produces a wide margin.
Thats a political catch phrase that helps get elected.
Capital should be invested where it gets the best returns. Investing in human capital gets good returns for the government because a "high capital" human pays more taxes.
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