GOOD HEALTH AND ECONOMIC GROWTH: A HUMAN CAPITAL PERSPECTIVE ON GENERATION Z

Abstract:Good health is a foundational determinant of human capital formation and long-termeconomic prosperity, a relationship widely emphasised in classical and modern growthliterature. Grossman’s Human Capital Theory (1972) conceptualises health as a form ofcapital that enhances productivity and lifetime earnings, while Bloom and Canning (2000)highlight the macroeconomic benefits of improved population health on national output. Inthe context of rapid technological, demographic, and labour-market transitions, this health–growth nexus has gained renewed relevance, particularly for Generation Z—the cohort bornbetween the mid-1990s and early 2010s.This study examines the multidimensional relationship between good health andeconomic growth with special reference to Gen Z, underscoring how both physical andmental well-being influence productivity, learning outcomes, innovation capacity, andworkforce participation. Literature on cognitive development and health (Strauss & Thomas,1998) shows that healthier individuals exhibit better educational outcomes and adaptability—factors crucial for Gen Z navigating emerging digital and green economies.Conversely, recent studies documenting rising lifestyle diseases, mental-healthchallenges, and post-pandemic vulnerabilities among youth (WHO, 2022; OECD, 2023)indicate potential constraints on economic performance. The paper argues that strategicinvestments in healthcare, preventive programmes, digital health literacy, and youth-centricpolicies can strengthen human capital and accelerate inclusive growth. Overall, the findingsreaffirm that a healthy Gen Z population is not only a social imperative but also a criticaldriver of sustainable economic development, as supported by extensive health-economicsliterature.