Human capital theory proposes that investing in education and training increases workers' skills and productivity, which benefits the economy. Workers with more skills, knowledge, and experience gained through education and training are more valuable as they increase productivity and economic growth. Both individuals and countries can become wealthier by developing their workforce's human capital through education, experience, and skills training, which leads to higher wages and productivity.

2. Educational
Credentials and Worker’s
increased Training and
schooling increased skills
Human capital theory
proposes that investment in
education and training to gain
new skill increases the
productivity of workers that
in turn benefits the economy.
Success is related to the
worker’s level of competence
Human Capital

3. Some labor is in fact more productive than
other labor because more resources have
been invested into educating and training
that labor.
Workers that have skills, knowledge, and
experience which represent capital, are
valuable to the job market because they
increase productivity which in turn
progresses the economy.

4. Education, work experience, skill development and training increase
worker’s productivity, which explains the reason some people earn higher
wages than other, and why some countries are wealthier than others.
Skill training is the initial investment cost with expected future returns

5. References
• Ramachandra, A. (1998) Human Capital Theory. Human
Resource development.
• Freidman, B. (1998). Delivering on the Promise: How to
Manage and Retain Human Capital. New York: Free
Press.
• Crocker, R. (2006). Human Capital Development and
Education. Canadian Policy Research.
• Sorkin, A. S.(1997). Research in Human Capital and
Development, vol. I1. Stanford, CA: Jai Press.