An Indian doctor takes up a job in another country for a higher salary. Which pair of statements applies to this case?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Migration is a source of human capital formation as the doctor’s higher earnings outweigh its costs; such manpower should be utilised in India.
First part: doctors and engineers move abroad for higher salaries. The higher earnings outweigh the costs of migration, such as psychic costs, so migration is a source of human capital formation.
Second part: human capital is not perfectly mobile between countries, as nationality and culture restrict movement. India has a rich stock of scientific and technical manpower, and the need is to utilise it in India.
NCERT (2026-27): “4.3 Sources of Human Capital … 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 psychic costs of living in a strange socio-cultural setup. The enhanced earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation.” “Box 4.1: Physical and Human Capital … The two forms of capital differ in terms of mobility across space. Physical capital is completely mobile between countries except for some artificial trade restrictions. Human capital is not perfectly mobile between countries as movement is restricted by nationality and culture. …” “4.8 Conclusion … India has a rich stock of scientific and technical manpower in the world. The need of the hour is to better it qualitatively and provide such conditions so that they are utilised in India.” |