What is human capital?

An early discussion with the phrase "human capital" was from Arthur Cecil Pigou : There is such a thing as investment in human capital as well as investment in material capital. So soon as this is recognised, the distinction between economy in consumption and economy in investment becomes blurred.

Why is human capital important?

The concept of human capital recognizes that not all labor is equal. But employers can improve the quality of that capital by investing in employees. This can be done through the education, experience, and abilities of employees. All of this has great economic value for employers and for the economy as a whole.

What is human capital in corporate management?

In corporate management, human capital is one of the three primary components of intellectual capital (which, in addition to tangible assets, comprise the entire value of a company). Human capital is the value that the employees of a business provide through the application of skills, know-how and expertise.