Becker's Theory of Human Capital

Becker's Theory of Human Capital posits that investments in education, training, and health improve an individual's skills and productivity, much like investing in physical assets. These investments enhance a person's ability to contribute effectively in the workforce, leading to higher earnings and better job opportunities. Just as a company invests in equipment to increase output, individuals and societies invest in human capital to foster economic growth and personal success. This theory highlights how improving people's knowledge and abilities benefits both individuals and the economy as a whole.