what is human capital?
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Human capital is the stock of habits, knowledge, social and personality attributes embodied in the ability to perform labour so as to produce economic value. Human capital is unique and differs from any other capital. It is needed for companies to achieve goals, develop and remain innovative.
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Human capital
Human Capital is a measure of the skills, education, capacity and attributes of labour which influence their productive capacity and earning potential.
According to the OECD, human capital is defined as:
“the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances”.
Individual human capital – the skills and abilities of individual workers
Human capital of the economy – The aggregate human capital of an economy, which will be determined by national educational standard
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