... income, which is like interest earned. Human capital is substitutable i.e. it will not replace land, labor or capital totally, but it can be substituted for them to various degrees and be included as a separate variable in a production function. While explaining human capital by the unique characteristics of knowledge: it is expandable and self generating with use. For example, a doctor gets more experience, her knowledge base will increase, as will her endowment of human capital. A free worker cannot sell human capital to receive money revenues, even a slave, whose human capital can be sold, does not earn an income himself or herself instead the slave owner gets the income under capitalism, to earn an income, a worker must submit to the authority of an employer who want to hire for a specified period of time. This means that the employer must be receiving an adequate rate of ...

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