What is human capital and what are its investment methods?

First, the definition of human capital.

The so-called human capital refers to the total value of labor (including manual labor and mental labor) attached to people's physical strength and intelligence. This definition can be understood and extended to at least the following six meanings:

First, human capital depends on people's physical strength and brain power, so all laborers with the ability to work have the attachment foundation of human capital; This is not only all employees of the enterprise, but all people who have the ability to work in the whole society have human capital, with more or less differences in ownership and no qualitative differences; Talent is the essence of human resources, so talent is also a person with excellent foundation of human capital attachment; Entrepreneurs and technological innovators have more excellent and scarce human capital attachment foundation; The study of human capital is not only the human capital of enterprises, but also the human capital of the whole society.

Second, people's physical strength and intelligence are formed by nutrition, health care, medical care and education, training and self-study. And they need to spend money, that is, invest. Investors should include individuals, families, countries and work units. All workers' working ability is obtained through this investment. Excellent athletes invest more physically, while entrepreneurs and technological innovators invest more intellectually, so they have different technical expertise.

Third, human capital is reflected by the value created by people's effective labor. People who lose their ability to work or who don't take part in labor lose their human capital because they can't create value. If the labor value of a person's life can exceed the investment cost, the human capital he owns will produce surplus value, that is, the income of human capital, otherwise the human capital will be lost; People keep learning in labor, enrich knowledge and experience, and make human capital increase in value, otherwise human capital will depreciate. Entrepreneurs and technological innovators are people whose income and human capital have increased greatly.

Fourth, according to the law of market economy, whoever invests will benefit, so the economic benefits created by human capital should be distributed to individuals, countries and work units according to the proportion of investment. Entrepreneurs and technological innovators who create higher returns on human capital should certainly get more economic income and social honor. What needs to be pointed out in particular is that the return rate of human capital investment is much higher than that of material capital investment, so people are generally more willing to invest in human capital.

Fifth, average salary, welfare, social security, etc. In the process of labor, the remuneration paid by society to all workers must be at least equal to their average investment cost, so as to maintain the labor ability (physical strength and intelligence) of workers. Otherwise, the social labor capacity cannot be maintained and gradually declines until the social labor force is exhausted. In practice, this acquisition of workers should be much higher than the average investment cost of individuals (generally higher than 15%), which is conducive to encouraging individuals to invest in human capital (mainly intellectual investment), improving the average amount of human capital in society, and thus promoting the continuous progress and development of society. China's strategy of rejuvenating the country through science and education is undoubtedly the best strategy to improve the human capital of the whole society.

Sixth, human capital is the whole process from childhood to old age, from investment, output to distribution, from acquisition and growth to reduction and disappearance. For social human capital, it is a systematic project of social and economic life such as accommodation, education, employment, medical care, health care, social security investment and economic development. Therefore, the theory of human capital has become the theoretical basis of human resources development, and it is a theory and practice that concerns the vital interests of the whole society and everyone, so it has attracted more and more attention from people from all walks of life. Especially by business people's attention and concern.

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Human capital refers to the capital formed by people's investment in education, vocational training, health and immigration.