Purchase Solution

investment in human capital

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

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

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 ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • investment in human capital

    141706 investment in human capital Investments in human capital are a key component to increasing economic growth, particularly in developing countries and in rural and urban America. Provide one example of an investment in human capital.

  • Investment In Human And Social Capital

    Thus the need for greater investment in human capital. And in turn Greenspan sees that the best investment to be made is investment in both post-secondary and higher education in terms of investment in human capital.

  • Human Capital Development

    The term human capital was first discussed by Arthur Cecil Pigou: "There is such a thing as investment in human capital as well as investment in material capital.

  • Developing country

    The expert discusses ways to boost trade, investment, human capital, etc. in developing countries.

  • Comparing human capital ROI

    Becker just says that we can think of education as in investment in "human capital" since it will increase our earnings later in life - but to be rational that investment has to pay off more than the opportunity/indirect costs of college + the direct/

  • Economic Growth and Clinical Outcomes

    Many researchers have "human capital accumulation is the prime engine for economic growth." The increase in survival of an infant will promote growth by raising the human capital investment in the future.

  • Measuring Human Capital

    Organizations measure their human capital's investment to determine their Return on Investment (ROI). Once they can measure it, they can judge how efficient and effective its human capital is.

  • Several analysis with, and about, Human Capital theory

    The first is that the human capital theory is still at work, and the individual is simply maximizing utility rather than income - so the investment in human capital for this individual pays off highest by working as an professor, even at a lower pay rate

  • Two Essential Elements of Human Capital Development

    I believe this is a very wise investment for companies in most cases and I believe we will see an increase in this type of human development as our economy shifts more and more towards the production of human capital intense services.

View More Related Solutions