Economist Theodore Schultz coined the term human capital in the 1960s to reflect the value of our human capabilities. He believed that human capital was like any other type of capital; He believed that investing in human capital would lead us to higher production. (Investopedia) Investopedia defines human capital as a measure of the economic value of an employee's skills. The concept of human capital recognizes that not all jobs are equal and that the quality of employees can be improved by investing in them. An employee's education, experience and abilities have economic value to employers and the economy as a whole. (Investopedia)Investors defines human capital as "the set of skills that an employee acquires on the job, through training and experience, and that increase that employee's value in the marketplace." (Investor Words) Human capital is a way of defining and categorizing the skills and abilities of individuals used in employment and otherwise contributing to the economy. (wikipedia) These are definitions given in the online dictionary and online investor words, but in this article I will explain human capital and productivity based on the concepts from Wheelan and other sources. I use real examples for better understanding. Human beings have qualities, skills and talents that differentiate them from other human beings. Skills are considered human capital because they make you unique; they differentiate you and make you better than anyone else at something. There are different types of skills. Some humans have rare skills or human capital, such as a high education and knowledge of computer programming like Bill Gates, or the ability to be the best at basketball or golf, like Michael Jordan or Tiger Woods. human capital because they have skills that no one else has, and these rare skills give them the opportunity and advantage to become wealthy. They get paid a lot of money because no one else can do what they do at such a high level. People invest in human capital, such as education and training, but some human capital is not accessible to anyone. Part of human capital is like a gift, like a talent, and cannot be bought or paid for. The gift Michael Jordan was born with was the physical and mental skills needed to become the best basketball player, and he never invested in them, he simply worked on them to become better..