Distinguish, differentiate, compare and explain what is the Difference between Physical and Human Capital. Comparison and Differences.

Difference between Physical and Human Capital

1. In terms of Nature: Physical Capital is tangible and can be easily sold in the market like any other commodity. Human Capital is intangible, built in the body and mind of its owner. It is not sold in the market, only its services are sold.

2. In terms of Ownership: Physical Capital is separable from its owner. Human Capital is inseparable from its owner.

3. In terms of Mobility: Physical Capital is completely mobile between countries except some artificial trade restrictions. Human Capital is not perfectly mobile between countries as movement is restricted by nationality and culture.

4. In terms of Formation: Physical Capital can be built evert-through imports.
Human Capital creates only private benefit.

5. In terms of Benefit: Physical Capital is to be done through conscious policy formulations. Human Capital creates both private and social benefits.

About Author: Jeniffer Fleming