Okuzeka
Economics vocabulary · Development and Inequality

Human capital

Meaning in economics, with examples

nounCommon term

In economics, human capital means: The knowledge, skills, health and experience of workers, seen as an asset that raises productivity and income in the same way as machines or buildings.

In Turkish: beşeri sermaye, insan sermayesi

How it is used

Used in growth and development economics and in policy reports: countries invest in human capital through education, training and health care. Human capital is built up, developed or lost, for example through brain drain.

Example sentences

  1. Investing in human capital, especially early childhood education, pays off over decades.

  2. Brain drain means the country is losing human capital that it paid to educate.

Common collocations

  • invest in human capital
  • human capital development
  • build human capital
  • human capital index
  • productivityHow much output is produced from a given amount of input, most often measured as output per worker or per hour worked.
  • economic growthAn increase in the amount of goods and services an economy produces over time, usually measured as the percentage change in real GDP.
  • labour forceAll the people who are either working or unemployed but actively looking for work; students, retirees and others not seeking jobs are left out.
  • sustainable developmentEconomic and social progress that improves living standards today while protecting the environment and natural resources, so that future generations can also meet their needs.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.