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Human capital, at its core, refers to the people or human beings within an organization, an economy, or a society. It is the stock of knowledge, abilities, competencies, skills, personality attributes, and other intangible assets embodied in people’s ability to generate economic value. It is distinguishable from physical capital, which includes tangible assets such as raw materials, equipment, and land. Unlike physical capital, human capital is not a tradable good. It cannot be bought or sold because it encompasses not only acquired abilities but also innate abilities and intrinsic potential, such as intelligence, a generally positive attitude, and reliability, as well as an individual’s ability to learn, as demonstrated by one’s aptitude, imagination, and creativity.

Although the concept of human capital has emerged as a key ...

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