Human Capital

The idea has old roots but was formalized by economists Theodore Schultz and Gary Becker in the 1960s, with Becker’s “Human Capital” (1964) as the landmark. “Capital” is from Latin “capitalis,” from “caput,” head — literally the “head” count of wealth-generating stock.

  1. noun phrase · /HYOO-mun KAP-ih-tul/

    The economic value of a person’s skills, knowledge, health, and experience.

    A handle for treating your own abilities as an asset to invest in — and, more controversially, for putting people on the same ledger as machines and money.

    Taking the lower-paying job with better training was really an investment in her human capital.

    Distinct from social capital, the value that lives in your relationships and networks; human capital is what you carry inside your own head and hands.