The present discounted value of the additional productivity, over and above the product of unskilled labour, of people with skills and qualifications. Human capital may be acquired through explicit training, or on-the-job experience. Like physical capital, it is liable to obsolescence through changes in technology or tastes. Unlike physical capital, it cannot be sold in a society without slavery: this means that it cannot be used as collateral for loans. The training needed to create human capital has to be paid for. Training for firm-specific human capital, which does not improve workers' earning ability outside the firm, can be provided by employers. General or vocational human capital, which can be used by other employers, will increase workers' outside earning power, so employers are in general reluctant to provide this type of training. The cost of creating human capital thus mostly falls on individuals or their families, charitable institutions, or the state. See alsofirm-specific human capital, and general human capital.

• tax burden
• tax credit
• tax evasion
• tax exempt special savings account
• tax expenditure
• tax haven
• tax holiday
• Tax Reform Act 1986
• tax refund
• tax return
• tax shelter
• tax wedge
• technical efficiency
• technical progress
• technical standard
• technical substitution
• techniques, choice of
• technological unemployment
• technology
• technology gap
• technology transfer
• tendering, competitive
• tender issue
• tend to infinity
• Tennessee Valley Authority