Human capital

Human capital refers to the stock of knowledge and skills embodied in the ability of human persons to perform labor and create economic value. Classical economic theories emphasized three forms of capital - land, labor and capital stock - and treated labor as a largely fungible resource, more recent economic approaches beginning with neoclassical theories have recognized such diverse types of human capital as managerial expertise, the knowledge and experience of workers, skill levels, dexterity, motivation and a host of other conditions. There are various accounts and histories of the concept of human capital. One thing is clear, however, and that is that the concept is centrally important in all contemporary configurations of knowledge economies.