Why it is difficult to prove cause and effect relation between human capital and economic growth

Question – Why it is difficult to prove cause and effect relation between human capital and economic growth?

Answer –

It is difficult to prove cause and effect relation between human capital and economic growth due to measurement issue. We can’t measure their impact on each other.

For example- Health is measured in terms of infant mortality rate, life expectancy but this may not reflect health status of the people in economy.

Education is measured in terms of literacy rate, gross enrolment ratio but this may not reflect the quality of education in economy.

It means, it is difficult to establish cause and effect relationship between them. However, growth in one sector has reinforced the growth in other sector.

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