Probably the Most Important Source of Capital Is Human Capital

question 81

Essay

Probably the most important source of capital is human capital.For example,most medical doctors spend years learning to practice medicine.Doctors are willing to make large investments in their human capital because they expect to be compensated for doing so when they begin work.In Canada,the government nationalized the health-care system and reduced doctors' compensation.Is this a form of post-investment hold-up?

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Definitions:

ERG Theory

A theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, as a modification of Maslow's hierarchy of needs.

Lower-Level Need

A category of basic physiological or safety needs in a hierarchy that must be satisfied before an individual can focus on higher-level needs.

Motivator Factors

Aspects of a job that can lead to positive job satisfaction, including achievements, recognition, and the work itself.

Job Content

The specific duties, tasks, and responsibilities associated with a job position.