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MENTAL MODEL · M3458

Human Capital Theory

Human Capital Theory
BusinessHigh supportEconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

A theory developed by Gary Becker that treats investments in education, training, health, etc. as investments in human capital. These investments can enhance an individual's productive capacity and income level, similar to physical capital investment, with cost and benefit characteristics.

SCAFFOLDING EFFECT

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Analysis of educational investment. It provides a theoretical basis for understanding the economic value of education to individuals and society. In educational policy, it supports the promotion of human capital accumulation and economic growth by evaluating returns on human capital investment, designing incentive mechanisms, and optimizing the allocation of educational resources.

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Treat education/health/skills as investable capital, whose returns are reflected in productivity and income, advocating investment in 'people'.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Human_capitalZH · Explicit
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