Twenty years ago, Pablo Peña found himself captivated by a course on human capital theory taught by Nobel laureate Prof. Gary Becker at the University of Chicago. Peña, now an assistant instructional professor in economics at UChicago, recalled, “I felt a sense of very deep satisfaction—it just made so much sense.” This profound impact led him to become a teaching assistant for the course and eventually teach it himself.
Peña's book, "Human Capital for Humans," draws from Becker’s lectures to explain human capital theory—the concept that investing in a person’s knowledge and skills can have broad economic effects. He uses accessible language with humor and cultural references to apply this framework to various aspects of life such as marriage, parenting, and aging.
“The University of Chicago played a very important role in the development of human capital theory; it's part of our intellectual contribution to the social sciences,” Peña stated. He hopes his book clarifies its importance and makes it engaging.
In an edited Q&A, Peña discusses how human capital encompasses skills learned both formally and informally. “You learn many things on the job,” he said, emphasizing that characteristics like teamwork or health are crucial forms of human capital.
Peña applies economic models to personal experiences like marriage and parenting, explaining that these involve trade-offs or implicit prices beyond monetary costs. He argues that understanding these concepts can help people make better life decisions.
Regarding government roles in developing human capital, Peña notes that basic education is universally tax-funded because “the benefits are big but the market cannot provide enough investment.” He also highlights the long-term returns on graduate education using examples like vaccine discoveries.
Peña hopes readers gain personal insights and understand broader economic patterns from his book. Despite concerns about AI replacing human jobs, he remains optimistic: “If AI is to some extent analogous to what has happened in the past... new sectors are going to be created.”
He concludes that humans value challenges and social interactions over mere productivity: “In the long run, it is our tastes and preferences—not efficiency in production—that give value to economic activities.”