Practicing Success
The owner of a bus, need not be present in the place where it is used; whereas, a bus-driver should be present when the bus is used for transportation. Which feature of human capital is being talked about in this statement? |
Intangibility Inseparability Social process Immobility |
Inseparability |
The owner of a physical capital, say a bus, need not be present in the place where it is used; whereas, a bus-driver, who possesses the knowledge and ability to drive the bus, should be present when the bus is used for transportation of people and materials. Human capital is intangible; it is endogenously built in the body and mind of its owner. Whereas this not the case with physical capital. The physical capital is separable from its owner, whereas, human capital is inseparable from its owner. |