Abstract
This chapter makes a first introduction to the concept of human capital which shows its importance for the development and growth of economies through a modern perspective. Human capital is roughly described, while the historical development of its concept by Adam Smith to date is presented. The central role attributed to human capital for the development of productivity and the growth of economies in the economic theory of the twentieth century is demonstrated. In addition, the relationship between human capital and knowledge and productivity is presented, which is the foundation for economic growth. The positive effect of human capital is demonstrated as it allows faster innovation and the adoption of new technologies, or leads to positive externalities between workers and generations. In conclusion, Becker’s theory of human capital is presented, which argues that education leads to higher wages and therefore higher labor productivity.
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Giouli, E. (2022). The Role of Human Capital in Economic Development in the Twenty-First Century. In: Petrakis, P.E. (eds) Human Capital and Production Structure in the Greek Economy. The Political Economy of Greek Growth up to 2030. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-04938-5_2
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