Human Capital
The economic value of a person's knowledge, skills, and experience that contributes to their productive capacity.
What is Human Capital?
Human capital refers to the accumulated economic value of an individual's education, skills, training, experience, and health — the productive capacity embedded in people. It is an intangible asset that drives earnings and economic growth. Investments in human capital, including education and vocational training, typically yield measurable returns for individuals, firms, and national economies.
Example
Economists estimate a four-year college degree increases lifetime earnings in the US by $800,000 to $1 million relative to a high school diploma. This return on human capital investment varies significantly by field of study, institution, and labor market conditions.