The majority of people spend huge amounts to acquire information relating to the labour market and other markets like education and health.
For instance, people want to know the level of salaries associated with various types of jobs, whether the educational institutions provide the right type of employable skills land at what cost. This type of information is required to make decisions regarding investments in human capital and efficient utilisation of the acquired human capital stock.
Expenditure incurred for acquiring information relating to the labour market and other markets is also a source of human capital formation.
In simple words, people spend money to acquire information for the following reasons:
- To know the labour market (about salary, types of jobs available, schools and colleges for the right type of employable skills based education) and other markets like education and health.
- They spend on the above information to take decisions regarding investments in human capital and for efficient utilization of acquired human capital stock.
