human capital

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Related to Human Capital Theory: Human Capital Management

Human capital

The unique capabilities and expertise of individuals.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Human Capital

The measure of the output an employee with a certain skill set is able to make. The concept of human capital was developed in the 1960s and is founded on the idea that hard work, education, and skill development all lead to more output. As a result, companies are encouraged to invest in human capital through various means such as education and bonuses for exceptionally good work, among others.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

human capital

the notion that human capabilities may be developed along the same lines as other forms of capital (e.g. PHYSICAL CAPITAL). Education and TRAINING are key elements of the human capital perpective. An economic perspective is typically applied to the analysis of human capital, and it is suggested that there are costs and returns to investments in human capital.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

human capital

the body of human knowledge that contributes ‘know-how’ to productive activity. The knowledge base of a nation is added to by research and disseminated by teaching through general education and vocational training. INVESTMENT in human capital results in new, technically improved, products and production processes that improve ECONOMIC EFFICIENCY, and it can be as significant as physical CAPITAL in promoting ECONOMIC GROWTH. See ECONOMIC DEVELOPMENT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Human capital theory assumes that education and training increase knowledge, skills, and productivities, and that individuals receive rewards of enhanced earnings for productivity in the labor market.
Brown (2015) observed the implications of human capital theory for higher education are evident in: "Rising tuition rates, declining state support, the rise of for-profit and online education, the remaking of universities through corporate "best practices," and a growing business culture of "competence" in place of "certificates" have cast the ivory tower" (22).
decreases the percentages of poverty among Mexican migrants significantly overall, with respect to those percentages of poverty in Mexico, as expected by Human Capital Theory, which hypothesizes that investments in migration increase the likelihood of finding a job that provides higher earnings and therefore decrease the likelihood of falling into poverty, these percentages also indicate a split among documented and undocumented Mexican immigrants in the U.S., the latter being more affected by poverty than the former.
In line with human capital theory, an investment period with lower earnings is followed by a period with higher earnings.
The early studies by Mincer (1958, 1974) and Becker (1964) were significant contributions to the human capital theory. The work by Mincer (1958) showed that training and skills positively influenced the incomes of workers.
One important feature of human capital theory is its distinction between specific and general or generic skills.
According to Olaniyan and Okemakinde (2008), one major problem in the application of the human capital theory is its failure to account for a growing gap between the level of knowledge gained and knowledge applied through a matching job.
These results provide support to the human capital theory explanation according to which education develops capabilities that increase worker's productivity.
The book also compares human capital theory within economics with the theory of fluid and crystallized intelligence of psychology and implies the possibility of creating a new interdisciplinary theory based on both.
The next section briefly draws on arguments made by human capital theory and labour market segmentation theory, and summarises the recent work carried out on Chinese ethnic-based labour market outcomes and disparities.
I use New Zealand as a case study of a neoliberal economic theory, Human Capital Theory (HCT), and the growing alliance with early childhood education (ECE).
The model developed in this paper draws on human capital theory to explain how newly founded business ventures achieve long-term growth and reduce their chances of failure.

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