Becker’s theory of fertility assumes that people have children so as to contemplate and bask in the thought of their children’s happiness (utility). (If my “altruism” in this respect is higher than yours, I will have many poor children, while you have a few rich ones.

Becker made the assumption that people would be hard-headed in calculating how much to invest in their own human capital. They would compare expected future earnings from different career choices and consider the cost of acquiring the education to pursue these careers, including time spent in the classroom.

Becker received the Nobel Prize in 1992 “for having extended the domain of microeconomic analysis to a wide range of human behavior and interaction, including nonmarket behavior”.

Human Capital is Becker’s classic study of how investment in an individual’s education and training is similar to business investments in equipment. Becker is a pioneer of applying economic analysis to human behavior in such areas as discrimination, marriage, family relations, and education.

Additional or improved capital goods is intended to increase labor productivity by making companies more productive and efficient. As labor becomes more efficient, this increased efficiency nationwide leads to economic growth for the entire country and a higher nationwide GDP.

Human capital management strategies combine integrated technology and streamlined HR processes in the following areas:

• Recruiting and Applicant Tracking.
• Onboarding.
• HR Management.
• Benefits Administration.
• Performance & Talent Management.
• Time & Labor.
• Payroll.

The three human capital components – time, talent and energy – are actively focused on by some of the world’s fastest growing companies, according to Bain & Company, which recently conducted research into the area.