Differences between Physical and Human Capital

Human capital is intangible and built in the body and mind of its owner. Whether a human being wants to raise earnings depends on his/her inner conscience. Human capital cannot be sold, but only its services can be sold in the market. It creates both private and social benefits. Following are the main differences between Physical and Human Capital.

Differences between Physical and Human Capital

Physical CapitalHuman Capital
It is tangible.It is intangible, built in the body and mind of its owner.
It is separable from its owner and can be sold in the market.It cannot be sold, but only its services can be sold in the market.
It is completely mobile between countries, barring some artificial trade restrictions.It is not perfectly mobile and is restricted by nationality.
It can be built through imports and creates only private benefits.It depends on a person’s conscience as to whether he/she wants to raise earnings. It creates both private and social benefits.

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