The Evolution of Approaches to Human Capital in Economics

Abstract

This paper traces the evolution of approaches to human capital in economics, finance and management. It is based on research reports focusing on: (a) the theory of human capital (Schultz, Mincer, Becker), (b) neoclassical (Spence, Arrow, Thurow) and radical (Bowles, Gintis) criticism of human capital theory, (c) human resource accounting, and (d) management. The main finding of the paper is that a terminological disagreement between proponents of various economic approaches stems from the fact that researchers sometimes use different theoretical backgrounds for studying and interpreting the human capital concept.

Keywords

• human capital
• neoclassical economics
• radical economics
• human resource accounting
• management