Human & Social Capital
I. Non-economic forms of
capital, #1: Human Capital (economics, 1960s) (Drawing on the work of Theodore W.
Schultz, et al.)
A. Investments in people
B. Acquisition of knowledge and skill with economic value
C.
Differentials in occupational pay reflect differentials in education
D.
Education and training (on-the-job) = investments
E.
Human capital, then = skill, knowledge, and similar attributes that affect
human capabilities for productive work and output
F.
All investment entails expenditure, but not all expenditures are investments in
human capital
1.
Pure consumption vs.
2.
Pure investment
G. Four major categories of investment
1. Health
2. On-the-job training
3.
Formal education
4.
Adult education
H. Focus on Formal Education (as investment)
1.
Costs (expenditures): both to society overall, and to students (all are making
an investment)
a. Personnel
b. Physical plant and grounds
c. For students: “foregone income”
Schools are a
key institution for the creation of human capital, and human capital plays a
key role in differentiation & stratification.
II. Non-economic forms of
capital, #2: Social Capital (Drawing
on the work of James Coleman, Pierre Bourdieu, et al.)
A. Differs from physical & human capital
B. Social capital consists in and arises from the relations
between & among people
C. Networks either have closure or do not have closure
1. A network with closure:
(Adapted from Coleman & Hoffer, 1987)
2. Human capital is in the “nodes” (A, B, C, D)
3. Social capital is in the lines connecting the
nodes
D. Social Capital in the Family
1.
Parents’ human capital has a large impact on their kids’ lives
2.
But not if the family’s social capital is weak
3. Deficiencies in social capital
a.
Structural deficiency
b.
Functional deficiency
5.
Distinction between traditional disadvantage and family deficiency
a.
Traditional disadvantage = low human capital
b.
Family deficiency = low social capital
