Integrating Human Capital with Human Development

For the most part, human capital theory emphasizes human cognitive development and the acquisition of knowledge and skills that enable enhanced productivity and earnings. In light of recent research findings, particularly concerning neurodevelopment and early childhood development, it is becoming apparent that this standard version of human capital theory has a far too limited conception of human capabilities and how they are created. Integrating Human Capital with Human Development considers recently accumulated knowledge related to the human brain's functioning and development to better understand the relationship between human capital and human development in successful economies. It shifts the focus of human capital theory to give full consideration to intangible, non-cognitive aspects of learning. This exciting new volume is an important addition to the study of human capital and behavioral economics more broadly.

“This book provides insights into how non-cognitive variables might feed into the productivity machine and also how they might impact broader dimensions of human development. … this book provides some important insights on the causes of significant socio-economic problems. Tomer does this by articulating a modeling narrative which he refers to as a human development framework that incorporates human capital (cognitive skills) and non-cognitive skills and understandings.” (Morris Altman, Journal of Bioeconomics, Vol. 19, 2017)

"Integrating Human Capital with Human Development is another very insightful and readable book from Tomer. He enhances the traditional concept of human capital to better integrate highly significant, sociological, psychological, and neurological variables. This opens the door to a more flexible, enriching, and realistic understanding of human decision-making, without throwing out the conventional human capital baby with the bathwater." - Morris Altman, Dean, Head, and Professor of Behavioural and Institutional Economics, Newcastle Business School, University of Newcastle, Australia; editor, Review of Behavioral Economics

"Tomer demonstrates that the conventional concept of human capital fails to capture key aspects of human development, and thus needs to be extended and reformulated to explain the full range of human capacities over the life cycle. Drawing on behavioral economics and cognitive psychology, his book provides new foundations for addressing a wide range of social problems, and makes an important contribution to developing a more humane economics." - John Davis, Professor of Economics, Marquette University, USA, and University of Amsterdam, Netherlands; author of Individuals and Identity in Economics

"Economists sometimes need to pause and reflect on how to prevent their concepts from becoming too narrow to do justice to reality. Tomer's book is an outstanding example of such a reflection. By broadening the notion of human capital to encompass the dimension of human development, he outlines an innovative and extremely fruitful behavioral extension of a central research field in economics." - Ulrich Witt, Professor of Economics, Max Planck Institute of Economics, Germany; editor in chief, Journal of Bioeconomics

John F. Tomer is Emeritus Professor of Economics at Manhattan College, USA. He is a founder and past President of the Society for the Advancement of Behavioral Economics. Tomer's research areas are behavioral economics and human capital. He has written three books and 50 articles.