Discuss the following as a source of human capital formation — Expenditure on migration.

Question

Accepted Answer

People migrate in search of jobs that bring them higher salaries than what they may get in their native places or countries. Migration involves cost of transportation, higher cost of living in the migrated places and psychic costs of living in a new socio-cultural setup. But the increased earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation.