Development
Human Capital
Definition
The economic value of a worker's skills, knowledge, health, and experience — education and training that increase productivity and earnings.
Explanation
Human capital theory (Gary Becker, Nobel 1992) treats education and health spending as investments with economic returns. The World Bank's Human Capital Index measures how much productivity a child born today can expect to achieve given their country's education and health systems. East Asian growth miracles were built on massive human capital investment.