human capital

noun

1. the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

   Education is an investment in human capital that pays off in terms of higher productivity.

human capital

noun

1. economics the abilities and skills of any individual, esp those acquired through investment in education and training, that enhance potential income earning

Word History and Origins

Origin of human capital¹

First recorded in 1795–1805

Example Sentences

In their framework, a child’s outcomes reflect inherited ability, parental investment in helping the child develop human capital, and a dose of luck.

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We found that human capital was the strongest predictor of mobility.

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Despite the challenges I faced growing up, I’m grateful for the teachers, mentors and moments that produced whatever human capital I have—and for a grandmother who embodied grit and resilience.

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Mr. Albertus’s own work, cited by Mr. Bird, finds that “land reform actually lowered levels of human capital accumulation” in Peru and that “under certain conditions it also has the potential to stunt urbanization, wealth accumulation, and ultimately education by encouraging land reform beneficiaries to remain in the countryside and employ their children on the farm rather than migrating to urban areas where opportunities for upward mobility are greater.”

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Mr. Sowell has argued that both human capital and culture drive mobility—more so, in his view, than discrimination or external barriers.

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