What exactly is human capital? What is the role of human capital in economic development? Human capital is the sum of what makes an individual valuable and marketable (e.g. intelligence, athletic ability, education, and work experience, etc). Economies with higher levels of human capital are stronger than those with lower levels for a number of reasons: 1) it increases wealth; 2) it controls population growth, 3) it drives productivity, and 4) it explains inequality. We’ll explore each of these below.
The Role of Human Capital in Economic Development










