Answer:
Human capital refers to the knowledge, skills, and abilities that individuals acquire through education, training, and work experience. It plays a significant role in determining wages, as individuals with higher levels of human capital are generally more productive and thus able to command higher wages in the labor market.
Employers are willing to pay more for workers who have valuable skills and expertise that can contribute to the success of their organization. The more specialized and in-demand a worker's skills are, the more they can expect to earn. Additionally, workers with more education and training tend to have higher earnings than those with less education.
Furthermore, investments in human capital, such as education and training, can improve a worker's productivity and increase their earning potential. As workers become more skilled and knowledgeable, they can perform their jobs more efficiently, leading to higher wages.
Overall, human capital is a critical determinant of wages, as it influences a worker's productivity and value to employers in the labor market.
Step-by-step explanation: