Human capital is the skills, knowledge, and experience that people bring to work. It is not a person. It is what a person can do. A surgeon's training, a programmer's coding ability, and a chef's palate are all forms of human capital.

Economists treat human capital like physical capital. It requires investment. Education, training, and healthcare all build it. It depreciates if unused. A worker who leaves a field for years may find their skills stale. It earns a return in the form of higher wages.

Countries with strong human capital grow faster. They innovate, adapt, and attract investment. Countries that neglect education and health fall behind. The gap between skilled and unskilled workers has widened in many economies, which is one reason inequality has risen.

How it is built

• Formal education
• On-the-job training
• Healthcare and nutrition
• Migration and work experience
• Lifelong learning