The enhanced earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation.
Which of the following options is true in regards to the above statement?
Answer & explanation
Correct answer: option 1
When benefits are more than the cost, it leads human capital formation. The enhanced earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation.