In examining the issue of human and social capital, as a necessary investment by specific public policies, as well as business, the basic thesis of this author is that investment in both social and human capital is something which needs to be encouraged. For example, studies show that the more business investment in both human and social capital the best return on earnings will be the result.
INVESTMENT IN HUMAN & SOCIAL CAPITAL
The purpose of this research paper is to examine the issue of human and social capital in terms of whether it is viewed as mostly a positive or negative type of investment. This author would submit the following thesis that investment in social and/or human capital (both social and capital provide equally positive benefits) is something, which should be encouraged. While it is true that investment in physical capacity is perhaps a better bet in terms of physical capacity not breaking down like human capital; nevertheless various studies show that the more business investment in both human and social capital the best return on earnings will occur. In addition, the greatest utility to be gotten from investments in both human and social capital appears to be in the realm of both post-secondary schools as well as higher education. It is generally agreed that social capital is capital nonetheless and that, according to Nitzan & Paroush (1980) the greater one's investment in human capital, the smaller the probability of error; and in fact this model investment in human capital plays the same role as a hedge against risk in the form of 'self-protection'; in turn on the social level, this implies that it is actually in the public interest to invest in members of society.
II. The Impact Of Economics On Sociology Or Vice-Versa
If one is to argue that business investment decisions in either social or human capital is something more beneficial than not then one cannot ignore the interdisciplinary ramifications of the impact of economics on contemporary sociology. To begin with, while traditional sociological theory states that any theory, which can be reduced to individual human action (in turn cannot be fodder for sociological study), nevertheless human capital theory (Becker, 1964) has probably influenced sociology more than any other economic theory (Baron & Hannan, 1994).
According to Baron & Hannan (1994) the core contribution of human capital theory, was to couch education, health, and other behaviors in investment terms. These investment terms included rates of return (and thus the life cycle), opportunity costs, funding of investments (capital constraints), and the ability of the investor to realize returns from the investment. For example, according to Baron & Hannan (1994) sociologists utilized the language of human capital to refer to personal characteristics that have value or implications in labor markets, without always specifying a structure of investment or depreciation. In turn, according to these same authors, the influence of schooling on earnings became labeled 'human capital' effect, despite many competing sociological accounts for the career consequences of education. Thus, in turn, sociologists examining labor markets felt that they must control for 'human capital variables' and the effects of education on careers came to be considered as an instance of human capital economics (Baron & Hannon, 1994). However, in the end, sociologists became disenchanted with the utilization of economic terms in discussing sociological theory and practice.
After much debate and consideration sociologists decided they were much more comfortable in drawing conclusions about the trend in the impact of economics on sociology. To give you several examples, according to Baron & Hannon (1994) although many sociologists disavow assumptions of profit maximization and hyperrationality, most assume that social behavior is strategic and goal-directed. From this vantage point recent sociological work has tried to not only situate but also examine economic actions and relations in their broader social context (Baron & Hannon, 1994). And here is where sociology may provide much greater insight into investments of a social or human nature in terms of capital. By specifying how historical, cultural, political, social, and psychological forces impact business leaders in terms of making certain business ...
If one is to argue that business investment decisions, in either social or human capital is something highly beneficial then one cannot ignore the interdisciplinary ramifications of the impact of economics on contemporary sociology. According to Becker (1964) human capital theory has probably influenced sociology more than any other economic theory.