Chapter 1, Introduction : Why a Broad Conception of Human Capital Is Needed

Mainstream economics' concept of human capital unfortunately only emphasizes human cognitive development enabling growth in worker productivity and earnings. In light of recent research concerning neurodevelopment and early childhood development, it is apparent that the standard human capital has a far too limited conception of human capacities. Therefore, this book integrates the concepts of human capital and human development, an integration considering not only cognitive development but social, psychological, emotional, biological, and other noncognitive dimensions of development over the entire life cycle. This chapter begins by explaining about my early involvement with the human capital (HC) concept and defining important terms such as capital and standard HC. Standard HC is the HC concept that fits well with mainstream economics. The chapter then explains about the importance of the standard HC concept as well as its deficiencies. It explains about important nonstandard types of HC such as social capital and personal capital (also noncognitive HC). Further, it explains about the need for a broader concept of HC, a concept that is compatible with the kind of unified interdisciplinary behavioral science that Herbert Simon strived for. Lastly, it outlines the plan of the book, including the essence of the contribution of each chapter