A Century of Human Capital Development by On‐the‐Job Training

Economists have known for some time that increases in the amounts of capital and labour cannot explain all of the growth of output (Kendrick, 1961, 1976). Schultz showed the potential importance of human resource development in explaining this residual when he made estimates of investments in education for the period 1900 to 1957. He stated that educational capital was clearly an important element in production and that it had risen at a much faster rate than reproducible non‐human wealth (Schultz, 1960, 1962).