Human Capital For Money

The first part of this lesson introduces students to the terms human capital, occupation, salary, and wages. Part two of this lesson provides the students an opportunity to compare selected careers including median salary and education statistics. The final part of this lesson provides a vehicle for students to research and report a career or occupation of interest. The report is in the format of song lyrics that go to the tune of “I’ve Been Working on the Railroad”. The song format requires that salary and human capital information be recorded.

People’s incomes, in part, reflect choices they have made about education, training, skill development, and careers. People with few skills are more likely to be poor. Though adult life seems very far away to most students, it is important to help them make the connection between their choices now and their success later in life. Investing in human capital makes sense for individuals just as investing in physical capital makes sense for businesses. In each case, investment now pays off later–in improved productivity for businesses and, typically, in higher wages or salaries for individuals.

• Identify the relationship between levels of education and wages or salary.
• Locate information about median income and education levels of a given occupation or career.
• Define human capital as the sum of a person’s productive knowledge, experience and training.
• Identify the skills, knowledge, and training (human capital) people will need for various jobs in the future.

• Occupational Outlook Handbook: students can find the missing information for the Career Information Sheets here.
  Career Information Sheet
• Career Information Sheet: Teachers can use this worksheet to evaluate students understanding of the terms discussed in class
  Career Information Answer Sheet 

Part One of this lesson introduces students to the terms human capital, occupation, salary, and wages. Part two provides the students with an opportunity to compare selected careers by reference to median salary and education statistics. The final part of this lesson provides a vehicle for your students to research and report a career or occupation of interest. The process will be an online reporting form that will produce a Career of Choice report that your students will be able to print out and turn into you.

Part 1:

1. Introduce the terms human capital, occupation, wage, and salary to the class.

[Human Capital: Knowledge and skills, acquired on the job or through training and experience, that increase the employee’s value in the marketplace.]

[Occupation: An activity that serves as one’s regular source of livelihood; a vocation.]

[Salary or Wage: Fixed compensation for services, paid to a person on a regular basis; Payment for labor or services to a worker, especially remuneration on an hourly, daily, or weekly basis or by the piece.]

2. Students will use the following activity to test their understanding of the terms discussed in class.

1. What is the correct economic definition for human capital? [Human Capital: Knowledge and skills, acquired on the job or through training and experience, that increase the employee’s value in the marketplace.]
2. What is the correct economic definition for occupation? [Occupation: An activity that serves as one’s regular source of livelihood; a vocation.]
3. What is the correct economic definition for wage? [Payment for labor or services to a worker, especially remuneration on an hourly, daily, or weekly basis or by the piece.]
4. What is the correct economic definition for salary? [Fixed compensation for services, paid to a person on a regular basis.]

3. Now review the answers to the economic terms activity that your students just took.

Part 2:

1. Read Benchmark 8.5 from Standard 13 and ask for statements of agreement or disagreement. Statements of either kind must include supporting details or ideas. Record these on the board.
2. Print and distribute Career Information Sheets to all the students and direct them to visit the Occupational Outlook Handbook web site to fill in the missing information.

Once at the site, students should type in one of the following occupations in the “Search by Occupation” space: physician, teacher, data entry, and firefighter. Once the search results come up, students should select the one with the written title of the job. Other selections will come up, but these are pdf files and will bring up the text from the actual book. The summary given when the job title is selected is much more appropriate for the students. Allow adequate time for obtaining information. Career Information Sheet answers for the activity

3. Have the students share their results with another classmate. Then have the students take a moment to answer the following questions. Once the students have completed the activity they may print out their answers and turn them in.

A link to the Occupational Outlook Handbook

Questions for Understanding:

1. Which career choice had the highest level of salary? [Doctor.]
2. Which career choice had the highest level of education required? [Doctor.]
3. Which career choice had the lowest salary? [Data entry.]
4. Which career choice had the fewest educational requirements? [Data entry.]
5. Can you give a statement that shows how education and salary are related? [The more education, the higher salary can be expected.]

Part 3:

1. Have students investigate a career of their choice using the Occupational Outlook Handbook . They should locate the same information on the Career Information Sheet that they will print out using the website.

Questions for Understanding:

1. Which career have you chosen? [answers will vary]
2. What is the median income expected for this career? [answers will vary]
3. How many years of education will you need for this career? [answers will vary]
4. What other training or skills will you need for this career? [answers will vary]
5. What is one form of human capital that you would need for this career? [answers will vary]
6. Describe the career you would choose based on the information you have found. [answers will vary]

1. Standard 13 Benchmark 8.5 and ask for statements of agreement or disagreement. Statements must be supported by experiences from the lesson.
2. Round Robin: have each student share something learned from the lesson using one or more of the following terms in his/her answer: human capital, occupation, wage, or salary.