The Human (Capital) Side of Economics

Harvard FAS

Why are some nations rich and others poor, and why are some people in these nations wealthy and some impoverished? For much of modern history, the answers to these questions will involve the human side of economics—investment in human capital. The wealth of a nation was once its land and natural resources. But the wealth of a nation shifted to being its stock of human capital. Consider how wealthy individuals are in Singapore and Hong Kong, yet with scant land per resident. Human capital…