- Individual capital
Individual capital, also known as human capital, comprises inalienable or personal traits of persons, tied to their bodies and available only through their own
free will, such as skill, creativity, enterprise, courage, capacity for moral example, non-communicable wisdom, inventionor empathy, non-transferable personal trust and leadership.
It was recognized as an intangible quality of persons in
economicsback to at least Adam Smith. He distinguished it (as "enterprise") from labour (economics)which can be coerced and is usually seen as strictly imitative (learned or transmitted, via such means as apprenticeship). Marxist economicsrefers instead to "an individual's social capital- individuals are sources neither of creativity and innovation, nor management skill. A problem with that analysis is that it simply cannot explain the substitution problem and lack of demand that occurs when, for instance, an understudy takes on a leading role, or a second author takes over writing a popular book series. At the very least there must be some conditional, if not firm-specific then "class specific", special ability to command premiums for outstanding personal performance. Neoclassical economicsby contrast refers to [http://www.auburn.edu/~johnspm/gloss/human_capital.html "the individual in whom the human capital is ... embedded"] , which implies a strong association of the individual with the instructional capitalthey learn from, with little or no social capitalinfluence. This is orthogonal to the Marxist view, but not necessarily opposed. Human development theoryreflects both distinctions: it sees labour as the yield of individual capital in the same way that neoclassical macro-economicssees financial capitalas the yield of the looser idea of human capital. But the rest problemand social welfare functionselection, as well as the subjective factors in behavioral finance, has led to a closer analysis of factors of production. In effect, the financial architectureis no longer trusted as an arbiter of the value of lifeas it was in neoclassical economics. Moneyis not seen as values- neutral, but as embodying a set of larger social choices about money supplyrules, made by measuring well-beingof whole populations.
Fusions of terminology are common. Sociological analysts refer to "individual-level elements of social capital" or "an individual's social capital" or just "individual social capital" while economic analysts often use the phrase firm-specific human capital. In either case the clearly includes individual capital but also some "activity-", "community-" or "firm-specific"
social capital(community trust) and instructional capital(shareable knowledge or skills). This is easy to measure: its yield is your salary in your current job.
To the degree this is consistent if you take other work nearby, this opens the questions of what is "not" "firm-specific" and whether a nation is just a bigger "firm": Some analyses see
political capital, or just "influence" or "trust of professionals" as a full style of capital of its own. Some ethicists, most clearly Jane Jacobs, see this as simple corruption. Nonetheless, corruption clearly has a cash value, involves some creativity to arrange, and is a decision factor. It is a skill like any other.
Perhaps because of this, not all theorists recognize individual capital as being as essential as labour, or distinct from social or political influence, or from instructional capacity. These theorists often refer to "
intellectual capital", which more properly describes a debate or locus of complexity that arises when individuals take key instructional roles. Some refer to celebrityas another fusion, when individuals take key social roles.
Those who differentiate individual capital tend to see it as something that one can invest in, directly, and see grow, directly. For individual skill, even skill at a highly imitative enterprise, like
sportsor mastery of a musical instrument, this is very often quite measurable. Many enterprises, for instance, a music conservatoryor circus schoolor creative writingcoach, are clearly making a living on the identification and (somewhat) measurable enhancement of the individual.
* [http://www.marxists.org/archive/marx/works/1885-c2/ch18.htm Capital: Volume Two]
* [http://csf.colorado.edu/cgi-bin/mfs/24/csf/web/psn/marx/Archive/1894-C3/Part1/ch07.htm Capital: Volume Three]
* [http://www.google.ca/search?q=cache:5fGzkWCJg7UJ:stat.gamma.rug.nl/snijders/WHF9_Snijders_vdGaag.pdf+individual+capital&hl=en&ie=UTF-8 Proposals for the measurement of individual social capital]
* [http://ideas.repec.org/p/fth/brichs/996.html "individual-level elements of social capital"]
* [http://www.english.upenn.edu/~jenglish/Courses/hayes-pap.html "an individual's social capital"]
* [http://www.efs.dk/publikationer/rapporter/engvidenregn/kap05001.html intellectual capital accounts - "individual capital and structural capital ... described to explain the future profitability and growth of the company"]
Wikimedia Foundation. 2010.
Look at other dictionaries:
Capital asset — has two related meanings in the fields of accounting and financial economics. In accounting, a capital asset is an asset that is recorded on a balance sheet as capital that is, property that creates more property, e.g. a factory that creates… … Wikipedia
Capital gains tax — A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds,… … Wikipedia
Capital (economics) — In economics, capital or capital goods or real capital refers to items of extensive value. The term can also be applied to the amount of wealth a person controls or is capable of controlling.Capital goods may be acquired with money or financial… … Wikipedia
Capital accumulation — Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. Capital can be generally defined as assets invested with the expectation that their… … Wikipedia
capital account — noun a) An account in the net worth section of the balance sheet of an entity such as sole proprietorships and partnerships. In this context, the capital account (or, in cases of more than one owner, the sum of all individual capital accounts )… … Wiktionary
Capital, Volume I — is the first of three volumes in Karl Marx s monumental work, Das Kapital, and the only volume to be published during his lifetime. Originally published in 1867, Marx s aim in Capital, Volume I is to uncover and explain the laws specific to the… … Wikipedia
Capital gains tax in Australia — Capital Gains Tax (CGT) in Australia applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most… … Wikipedia
capital — cap·i·tal 1 adj [Latin capitalis, from caput head, a person s life (as forfeit)] 1 a: punishable by death capital murder b: involving execution a capital case 2 [Medieval Latin capitalis chief, principal, from Latin … Law dictionary
Capital Pride (Washington) — Capital Pride is an annual LGBT pride festival held in early June each year in Washington, D.C. As of 2007, the festival was planned and produced by Whitman Walker Clinic, and is the fourth largest gay pride event in the United States.Chandler,… … Wikipedia
Capital Asset Pricing Model — Saltar a navegación, búsqueda El Capital Asset Pricing Model, o CAPM (trad. lit. Modelo de Fijación de precios de activos de capital) es un modelo frecuentemente utilizado en la economía financiera. El modelo es utilizado para determinar la tasa… … Wikipedia Español