Towards Extending the Concept of Human Capital: A Note on Cultural Capital

Abstract

Economists have progressively recognised the importance of human capital in explaining differences in the economic performance of nations. In the context of the knowledge intensity of today’s global economy, the acquisition of human capital takes on added significance. At the micro level too, endowments and upgrading of human capital are seen as the key to employment and better paying jobs for individuals. Commonly subscribed to notions of human capital are, however, based on neoclassical theory of human capital investment. This note argues that this approach fails to recognise adequately the cultural capital of individuals and communities. It is suggested that the concept of human capital should therefore be widened to include embodied cultural capital, with the term used here in the Bourdieuan sense. Broadening the definition of human capital in this way would overcome the predilection to believe that some groups, especially ethnic minorities, are necessarily less employable because they are lacking in human capital. Furthermore, innovative community initiatives could recognise and utilise this dimension of human capital to provide employment for ethnic minorities. This widened definition would also provide a theoretical underpinning to support direct job creation, particularly practical programmes to create jobs at the local grassroots level.