What does "human capital" represent in health economics?

The concept of "human capital" in health economics refers to the economic value that an individual's skills, knowledge, experience, and health contribute to their productivity and overall economic output. This idea emphasizes that an individual's health and education are vital assets that can enhance their ability to participate effectively in the workforce. When people are healthy and possess relevant skills, they can perform better in their jobs, leading to increased productivity and economic growth. By investing in health and education, societies can improve the well-being of their citizens and, consequently, the economy as a whole.

In the context of healthcare, understanding human capital highlights the importance of improving individual health outcomes, as a healthier population tends to have lower healthcare costs, increased lifetime earnings, and a higher quality of life. This perspective is critical for policymakers and healthcare providers when considering the allocation of resources and interventions aimed at fostering both individual and public health outcomes.