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Adela García-Aracil, Cecilia Albert


The theory of human capital holds that education directly augments individual productivity and therefore earnings. Human capital corresponds to any stock of knowledge or characteristics the worker has (either innate or acquired) that contributes to his or her productivity (Schultz 1961; Mincer 1974; Becker 1993). By forgoing current earnings and investing in education, individuals can improve the quality of their labor services in such a way as to raise their future market value. According to this view, human capital is akin to physical capital, the acquisition of which entails a present cost but a future benefit.

Year of publication 2017