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Role of Education and Health Care in Labor Productivity
The public benefit of education could be even higher, since education tends to increase wages not only to the educated, but also for other members of society. According to the neoclassical growth model, where the physical and human capital are complementary (for example, educated workforce can be effectively used for complex work equipment), higher workforce increases the average level of physical capital per employee, and thus the productivity of each worker, and hence the remuneration.
To sum up, to be able to raise labor productivity, it is necessary to improve the two prerequisites to be fulfilled. One of them, take care of the health status and be able to maintain working conditions that are detrimental to employees, as well as to be able to educate employees with additional knowledge. It can be said that health care and education is widely affecting labor productivity, but how it is affecting- to the good side or bad side, it is up to employer.
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