Education And Human Capital Essay
Education, Skills and Human Capital Literature Review
An individual’s level of education and the skills they possess are considered to be two out of three components of human capital with the third being their early abilities (Blundell et al., 1999). A term that was once heavily criticised as it was perceived as relating people to ‘slaves and machines’, human capital is now used by social scientists on a daily basis (Becker, 1994). Similar to opening a bank account, buying shares in a company and a firm’s expenditure on productive machinery, investment in human capital can provide rewarding returns. The returns could be in the form of increased output where firms spend on training employees giving them the skills necessary to increase their productivity or increased income where an individual undertakes further levels of education.
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