To familiarize everyone with key socioeconomic terms and concepts, we are launching this new social media series.
For this week, our buzzword is “human capital".
It refers to the knowledge, skills, and health that people invest in and accumulate over their lifetimes, allowing them to be productive members of society.
Source: World Bank (2019)
A PIDS study calculated that between 2018 and 2020, there was a decline in household spending on human capital. In particular, household spending on education decreased by 7.8 percent and on health by 18.2 percent. In the same period, government spending on health declined by 9.2 percent, while spending on education increased by 9.4 percent.
Know more about the potential long-term impacts of COVID-19 on human capital by reading “COVID-19-induced Human Capital Shocks, Lifetime Labor Productivity, and Inequality” available at https://www.pids.gov.ph/publication/discussion-papers/covid-19-induced-human-capital-shocks-lifetime-labor-productivity-and-inequality.
