An increase in the amount of human capital acquired by workers will lead to a rightward shift of the labor demand curve.

Question

Quizplus · Accepted Answer

An increase in the amount of human capital acquired by workers typically leads to a rightward shift of the labor supply curve, as it increases the number of workers who are qualified for certain jobs, not necessarily the demand for labor. The demand for labor could increase as a result of higher productivity from better-trained workers, but the immediate effect is on the supply side.

An Increase in the Amount of Human Capital Acquired by Workers