Broadly, the concept of human capital is semantically the mixture of human and capital. In the economic
perspective, the capital refers to ‘factors of production used to create goods or services that are not
themselves significantly consumed in the production process’ (Boldizzoni, 2008). Along with the
meaning of capital in the economic perspective, the human is the subject to take charge of all economic
activities such as production, consumption, and transaction. On the establishment of these concepts, it can
be recognized that human capital means one of production elements which can generate added-values
through inputting it.
The method to create the human capital can be categorized into two types. The first is to utilize ‘human as
labor force’ in the classical economic perspective. This meaning depicts that economic added-value is
generated by the input of labor force as other production factors such as financial capital, land, machinery,
and labor hours. Until the monumental economic growth of the 1950’s, most of economists had supported
the importance of such quantitative labor force to create products. The other is based on the assumption
that the investment of physical capital may show the same effectiveness with that of human capital on
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education and training (Little, 2003). Considering that the assumption accepts as a premise, the human
capital expansively includes the meaning of ‘human as creator’ who frames knowledge, skills,
competency, and experience originated by continuously connecting between ‘self’ and ‘environment’.
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