Principles of Macroeconomics / Unit 4 MAC 0310 short lesson, about 20 seconds
Human Capital
Captions available
The idea
Human capital is the knowledge, skill and experience workers bring. Like physical capital it is built by investing now and paid back later.
In practice
A year in school costs a year of earnings and raises earnings for decades.
Where people slip
Growth accounting finds human capital at least as important as physical capital, which is why rebuilt economies recover faster than destroyed ones.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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