Although it is obvious that people acquire useful skills and knowledge,
it is not obvious that these skills and knowledge are a form of
capital, that this capital is in substantial part a product of deliberate
investment, that it has grown in Western societies at a much faster rate
than conventional (nonhuman) capital, and that its growth may well be
the most distinctive feature of the economic system. It has been widely
observed that increases in national output have been large compared
with the increases of land, man-hours, and physical reproducible capital.
Investment in human capital is probably the major explanation for
this difference.
Although it is obvious that people acquire useful skills and knowledge,
it is not obvious that these skills and knowledge are a form of
capital, that this capital is in substantial part a product of deliberate
investment, that it has grown in Western societies at a much faster rate
than conventional (nonhuman) capital, and that its growth may well be
the most distinctive feature of the economic system. It has been widely
observed that increases in national output have been large compared
with the increases of land, man-hours, and physical reproducible capital.
Investment in human capital is probably the major explanation for
this difference.
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