Human capital
The present value of all the earnings still to come. For a young person it is usually the largest asset they have, and the one insurance exists to protect.
L2Level 2 of 3 · no narrower concepts
What it rests on, and what rests on it
Rests on it
Nothing rests on it yet.
Where it is used
No article names it yet.
In the model
- The glossary's “Human capital”
- The model's human capital & income dynamics module
- The model's principle “Simulate the life, not just the portfolio”
Sources
- Gary S. Becker, Human Capital, 1964.