Impact of Covid-19 on Productivity of Human Capital

Abstract

The purpose of this research is to study how the pandemic will affect technology, allocating resources, including human capital accumulation, and how policies may be structured to boost the productivity of human capital and inclusion.

The severity of the COVID-19 pandemic will drastically change the way humans work and how they spend with widely disparate effects across individuals around the globe. The movement of resources to much more productive businesses usually boost overall production. In this regard, significant resource reallocation further towards digital companies may occur. However, a protracted crisis requiring continued policy assistance to safeguard employment and livelihoods may cause resources to be diverted to less productive companies, stifling determinants of economic development. The pandemic also prompted increased investment in intangibles, mainly digital technology, due to the necessity to decrease in-person connections, which has probably helped alleviate productivity losses caused by virus-fighting efforts.