Explore BrainMass

Explore BrainMass

    investment in human capital

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What is meant by investment in human capital? Use this concept to explain (a) wage differentials, and (b) the long-run rise of real wage rates in the United States.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:18 pm ad1c9bdddf
    https://brainmass.com/economics/investments/meant-investment-human-capital-159390

    Solution Preview

    Investment in human capital are activities that increase workers' productivity. Most commonly, this is education and training. Healthcare could certainly qualify as well. Sick people aren't going to be very productive.

    Within an economy workers who represent greater human capital will command higher wages. They can take specialized jobs which often allow them to be more productive. There are fewer of them for any particular specialized job, since higher education is always specialized, and students pick different majors. Those who do are less ...

    Solution Summary

    The solution discusses what is meant by investment in human capital.

    $2.49

    ADVERTISEMENT