Human Capital, Economic Growth and Wages in India: An Interrelationship

There is a broad consensus in the academic literature that human capital is an important determinant of productivity and other economic outcomes, both at the individual and at the aggregate level and that its role is particularly crucial in today's knowledge driven economy in bringing change in technology and diffusion of technology. Human capital is broad and multifaceted concept encompassing types of investment in health and education of the people. In this context the study aims at examining the impact of different levels of education on the economic growth of 17 major states of India for the period 1999-00. At the level of the industry, it is likely that educated workers are likely to reap more financial benefits than the uneducated. So an attempt has also been done to test the relationship between wages of the workers and their education levels in major industry groups of India.