What is 'human capital'?

All of this coincided with the emergence in academe of the idea of "human capital ": the notion that the more skilled the work force, the more productive it tends to be. Denis P. Doyle et al. Recent Examples on the Web Right now the reporting on human capital is all narrative, which is hard for investors to work with.

Who developed the concept of 'human capital' in economics?

Then Theodore Schultz also contributed to the development of the subject matter. The best-known application of the idea of "human capital" in economics is that of Mincer and Gary Becker. Becker's book entitled Human Capital, published in 1964, became a standard reference for many years.

What is the difference between specific and general human capital?

Following Becker, the human capital literature often distinguishes between "specific" and "general" human capital. Specific human capital refers to skills or knowledge that is useful only to a single employer or industry, whereas general human capital (such as literacy) is useful to all employers.

Should you invest in human capital?

For employees, obtaining an education is the most obvious investment in human capital. Neither employers nor employees have any assurances that their investments in human capital will pay off.