The well-being of nations: the role of human and social capital

This report argues that the role of human capital in the economic and social development of nations is commonly acknowledged although its exact effects are still in dispute. Recently, increasing attention has been focused on the role of social capital or the role of social relationships and individual abilities in economic activity and social well-being. The report has three main purposes: (1) to describe the current evidence on investment in human capital and its role in economic growth and social well-being; (2) to describe and clarify the new concept of social capital; and (3) to...  [+] Show more

This report argues that the role of human capital in the economic and social development of nations is commonly acknowledged although its exact effects are still in dispute. Recently, increasing attention has been focused on the role of social capital or the role of social relationships and individual abilities in economic activity and social well-being. The report has three main purposes: (1) to describe the current evidence on investment in human capital and its role in economic growth and social well-being; (2) to describe and clarify the new concept of social capital; and (3) to identify the roles of human and social capital in achieving sustainable economic and social development. The chapters are: Emerging social and economic concerns; The evidence on human capital; The evidence on social capital; Policy implications and further research needs. Appendices: Some measures of well-being; Some trends in the social and economic environments; Determinants of school attainment: the research evidence; The impact of human capital on economic growth: some major studies; Are trust and civic engagement declining in OECD countries?; This report builds on a 1998 OECD report entitled 'Human capital investment: an international comparison' which is available in VOCEDplus at TD/TNC 54.44.