The Concept of Human Capital: The Evolution of Theory, Measurement Methodology, and Modern Criticism Human capital is an economic concept that considers the aggregate of knowledge, skills, abilities, health, and motivation of an individual that can be used to produce economic value and that require investments for their formation and development. It is not just a metaphor but a strict analytical category that has radically changed the view of the role of the person in economic growth. The Evolution of Theory: From Physical Capital to Intellectual The origins of the idea can be found in Adam Smith, who included "acquired and useful abilities of all inhabitants" in the composition of the main capital in "The Wealth of Nations" (1776). However, as a full-fledged theory, it formed in the second half of the 20th century thanks to the works of three Nobel laureates: Theodore Schultz (1960s) introduced the term into scientific circulation, studying the post-war reconstruction of the economies of Germany and Japan. He showed that their rapid growth could not be explained only by the accumulation of physical capital; the key role was played by the preserved knowledge, health, and skills of the population — human capital. Gary Becker (1964, "Human Capital") provided a microeconomic justification for the theory. He considered education, professional training, and healthcare as investments that bring future income in the form of higher wages. Becker mathematically calculated the rates of return on education, showing their high economic efficiency. Robert Lucas (1980s) integrated human capital into models of endogenous growth. He claimed that its accumulation (especially through education and innovation), not exogenous factors, is the main driver of long-term economic growth. Thus, the person stopped being a passive "resource" and became considered an active actor, possessing capital that requires investments and brings dividends. Structure and Types of Human Capital The theory ... Read more