The role of health in human capital formation is as follows:

1. Healthier people have higher productivity because the health of a person helps him to realise his potential and the ability to fight illness. On the other hand, an unhealthy person becomes a liability for an organisation.
2. It improves the quality of life. A healthy person is able to do his work in a proper and efficient way.
3. A healthy person makes greater contribution to society as compared to an unhealthy person.
4. Good health enables a person to earn more and to be more regular in his work.