human capital

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Related to human capital: Human Capital Management

human capital

the productive investment of resources in human beings rather than in plant and machinery In economics, such investment in human resources is appraised in comparison with levels of economic return from other kinds of investment. Clearly, investment in human capital begins in the family and continues in school and HIGHER EDUCATION, and is also affected by such inputs as provision for health care.

As a body of economic theory and associated empirical research, the human-capital theory of G. Becker, Human Capital (1975), explains income differentials as, in part at least, a return to human capital, e.g. the correlation between the number of years of formal education and earnings is so explained. The conclusion is often reached by human capital theorists that the returns to education are high. Similarly, POVERTY is sometimes explained as arising from a lack of human capital.

Challenges to the arguments of human-capital theory arise from a number of different sources, especially that the returns associated with education in fact arise from other sources, i.e. education may act merely as a filter or 'S creen’, and native ability or family background actually account for a significant proportion of the correlations between education and earnings (see SCREENING AND SCREENING HYPOTHESIS). Compare FUNCTIONALIST THEORY OF SOCIAL STRATIFICATION. see also CULTURAL CAPITAL.

References in periodicals archive ?
Schultz (1961) emphasized the importance of human capital as a contributor to national wealth.
The Human Capital Groupa[euro](tm)s founder and senior partner Steve Hayes, who commenced discussions with HCI in early 2012, said that the company will utilise the targeta[euro](tm)s name, capabilities, and trademarks to boost its current leadership consulting, speaking and executive coaching portfolio.
The Role Played by Social Capital in Human Capital Formation
Managing or lowering the cost of human capital has tended to be the primary focus of many organizations as a means of improving profitability in the short term.
Echols' work on Human Capital investment, visit <http://www.
USTR could benefit from greater use of strategic human capital management principles in leadership and planning, considering that its small size and interagency trade leadership and coordination role give it a unique responsibility to lead the trade agenda.
Both the Krueger and Carneiro/Heckman chapters are grounded in economic theory, and both marshal a wealth of empirical evidence to support their arguments about what policies are likely and unlikely to increase human capital for those in the lower half of this distribution.
The book quickly explains the strategies of personnel management, which can be categorized into what has been called the "new science of human capital management," as posited by the authors.
These two trends--the mounting costs of caring for a growing elderly population and the increasing importance of human capital to the economy--have fundamentally altered the economics of family life.
Kathy and her team drive the human capital side of the business," says Johnston, who like Nardelli is a General Electric veteran.
Many have heard of the emergence and importance of Human Capital Management--or the paradigm shift of making the HR department less administrative and more strategic to the organization.

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