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The unique capabilities and expertise of individuals.
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.
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.
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.