Human Capital

Definition

Human capital refers to the skills, knowledge, education, training, and experience possessed by individuals that contribute to their productivity and economic value. It includes both formal education (such as degrees) and informal learning (such as on-the-job training).

Related terms

Labor Force Participation Rate: The labor force participation rate measures the percentage of working-age population actively participating in either employment or seeking employment.

Education Attainment: Education attainment refers to the highest level of education completed by individuals, such as high school diploma, bachelor's degree, or advanced degrees.

Skill-Biased Technological Change: Skill-biased technological change refers to technological advancements that disproportionately benefit individuals with higher skills and education, leading to increased wage inequality.