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Human capital is an intangible asset of an organization. Firms always try to properly utilize their workforce through comprehensive human capital development.The main concern of an entrepreneur is not only to achieve business goals but also achieve long term survival and sustainability. This study is designed to investigate the role of human capital in labour productivity in district Lahore. For analyzing this relationship, cross sectional study is conducted and data is collected from 243 firms, which include manufacturing, trading and service sector.The empirical analysis reveals that all the sectors have heterogeneous effect of human capital on labour productivity. Education appears to be significant and positively related to labour productivity in all the sectors with greater effect in manufacturing sector. Skills and training have also noticeable effect on labour productivity. The descriptive analysis shows heterogeneous results in different sectors. Moreover, variance inflated factors and correlation matrix is also determined to detect the multicollinearity problem and there is no correlation among variables. The results of the study suggest that firms as well as government should invest more in human capital is developing skills in labour force so that it can become more productive. The study recommends that government should also provide more funds for the promotion of technical education in these countries.
Nabila Asghar, Muhammad Hassan Danish, Hafeez ur Rehman. (2017) Human Capital and Labour Productivity A Case Study of District Lahore, Journal of the Punjab University Historical Society, Volume 30, Issue 1.
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