Human Capital Theory: Foundations of a Field of Inquiry

Abstract

This review of human capital theory begins in 1776 and ends in the 1960s, when the theoretical and empirical foundations of the field were articulated and established. The review is organized to provide a general reference to human capital theory, its historical development, and its major methodological approaches. While human capital research has not been limited to education, it usually includes empirical measures of education and produces results that affect educators and education policy. Review of the foundation studies that were conceived by Nobel prize laureates and historically prominent economists supports the position that educators should draw their own informed conclusions and define the agenda of future human capital research.