Social capital and human capital are two kinds of resources. The significant difference between human capital and social capital indicates that human capital is described as proficiency, agility, understanding, and more owned by various persons. In contrast, social capital is the resources we acquire from becoming a social grid.
What is Human Capital?
Human capital estimates the financial worth of a worker’s mastery set. It can be described as the talent, proficiency, and experience a person or population retains, considering their worth or expenses to an institution or nation. It is created on the fundamental manufacturing intake of labor estimation in which every work is comparable. This notion acknowledges that not every labor is equivalent and that the delivery rate can be enhanced. Characteristics such as experience, mastery, education, and a worker’s capabilities possess financial worth for his employer and the economy. Human capital can also be described as the joint personal understanding, talents, mastery, abilities, experience, apprenticeship, intellect, and knowledge of a population. These acquisitions represent a method of riches as they can be utilized for a nation’s financial growth. The notion of human capital was publicized by Gary Becker and Jacob Mincer, who declared that proficiency, attitudes, disposition qualities, and more, embraced in the capacity to operate labor, possess an economic worth. In an institution, human capital is the firm’s genius capital concerning capacities, proficiency, mastery, and inventiveness. However, this capital can not be viewed in the firm’s monetary declarations. Since human capital is described as the worker’s mastery and capacities, it relies on the workers. When workers vacate a firm, this human capital is badly influenced.
What is Social Capital?
Social capital is the grid of connections among the individuals who live and labor in a particular society, allowing the society to operate basically. Social capital can also be described as the resources or advantages we acquire from being a social network component. It is also essential to understand that social capital has more than one description and explanation. The writer Lyda Hanifan explained social capital as a substantial acquisition that matters to most individuals in the everyday lives of individuals. These involve benevolence, compassion, companionship, and social interaction among the people and families who create a social unit. The sociologist Pierre Bourdieu described social capital as the total of the natural or possible resources connected to the custody of a stable network or more or less organizational interactions of mutual understanding and acclaim. Social capital is generally separated into three sub-kinds. These include:
These are connections established on general identity, which includes close friends, constituents of the same ethnic groups, and family.
These connections go beyond a general identity, including distant friends, colleagues, and more.
These are connections to individuals up and down the social ladder.
Difference Between Human Capital and Social Capital
- Human capital is the mastery, proficiency, and experience a person or population retains, seen in terms of their worth or expense to a firm or nation. Social capital is described as the grid of connection among individuals who live and labor in a particular society, allowing that society to operate flawlessly.
- Human capital has to do with the personal capabilities and mastery of workers. Social capital relies on the parties of individuals.