Human Capital Formation In India — Economics STD 12 Commerce — Question

A skilled worker generates more income than an unskilled worker mainly because the productivity of an educated and skilled person is higher than an unskilled one. A skilled worker also commands higher earnings and gainful employment. This is because they cannot be substituted easily because, it takes years to generate a manpower which is skilled in a particular field. On the other hand, an unskilled worker like a rickshaw puller can be easily substituted and such workers easily compromise on lesser earnings.