What is the difference between human and physical capital?
I. Nature of depreciation differs
II. Mobility difference
III. Intangibility
IV. Separability
V. Nature of process
VI. Nature of benefits

I, II, III, IV, V, VI

Continuous use of machine leads to depreciation. This depreciation cannot be reduced. In the case of human capital, depreciation takes place with ageing but can be reduced, to a large extent, through continuous investment in education, health, etc. 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. Physical capital is tangible and can be easily sold in the market like any other commodity. Human capital is intangible; it is endogenously built in the body and mind of its owner The physical capital is separable from its owner, whereas, human capital is inseparable from its owner. The physical capital formation is mainly an economic and technical process. Human capital formation is partly a social process. Human capital creates both private and social benefits, whereas physical capital creates only private benefit.