On the Concept and Dimensions of Human Capital in a Knowledge-Based Economy Context

Mirelle Laroche, Marcel Mérette and Giuseppe Ruggeri ()

Working Papers-Department of Finance Canada from Department of Finance Canada

Abstract: Technological changes along with the globalization of markets are transforming industrial countries into knowledge-driven economies. This shift away from resource-based toward knowledge-based economies has made human capital (and its main component, education) one of the leading public policy themes. Given the policy relevance of human capital in a knowledge-based economy, it is essential that its definition, measurement and specification in economic models capture its key inherent features. This paper discusses the elements of a comprehensive definition of human capital and identifies the fundamental differences between human and physical capital. It shows that the main features of human capital and its differences with physical capital have implications for national income accounting, the classification of government expenditures, and the endogenous growth literature. This analysis highlights the close interactions of policy, human capital and growth in a knowledge-based economy.

Les changements technologiques et la globalisation des marchés sont en train de transformer les pays industrialisés en économies axées sur l’information. Cette substitution des technologies d’information aux ressources naturelles comme moteurs de développement économique a fait du capital humain (dont sa principale composante l’éducation) un thème de prélédiction dans les discussions de politiques économiques. Ces discussions deviendront plus pertinentes lorsque le capital humain sera convenablement défini, mesuré et spécifié dans les modèles économiques. Cet essai discute des multiples dimensions du capital humain et identifie les différences fondamentales entre le capital humain et le capital physique. Les auteurs démontrent que le concept et les dimensions propres au capital humain, de même que ses différences avec le capital physique, ont des implications importantes pour la comptabilité nationale, la classification des dépenses gouvernementales et les modèles de croissance endogène. Cette analyse met en évidence l’intéraction étroite entre le capital humain, la politique économique et la croissance pour les économies axées sur les technologies d’information.

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