Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189822 
Authors: 
Year of Publication: 
2018
Citation: 
[Journal:] Real-World Economics Review [ISSN:] 1755-9472 [Issue:] 86 [Publisher:] World Economics Association [Place:] Bristol [Year:] 2018 [Pages:] 15-32
Publisher: 
World Economics Association, Bristol
Abstract: 
Human capital theory is the dominant approach for understanding personal income distribution. According to this theory, individual income is the result of “human capital”. The idea is that human capital makes people more productive, which leads to higher income. But is this really the case? This paper takes a critical look at human capital theory and its explanation of personal income distribution. I find that human capital theory’s claims are dubious at best. In most cases, the theory is either not supported by evidence, is so vague that it is untestable, or is based on circular reasoning. In short, human capital theory is a barrier to the scientific study of income distribution.
Subjects: 
critique
human capital theory
hierarchy
income distribution
power
productivity
JEL: 
P16
D3
J24
URL of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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