Human Capital as an Asset Class 

Human capital - the competencies and potential of a region's workforce - forms a basic building block of its economy. Yet there is currently no infrastructure for investors to systemically, attractively, bet on this core asset. This briefing outlines how a deep, broad, granular, market platform could include mechanisms attracting funds directly into upskilling or equipping breadwinners for financial, social, or general economic return.

At its simplest, this investment might involve noting market data showing a shortage of roofers in one area and an oversupply of carpet layers. an investor could offer to fund roofing training and certification for perhaps 50 carpet layers with a proven track record of reliability. Those who accepted might have to agree to 30% of their income uplift being diverted to her over the following 6 months. 

Other funds might be enabling home hairdressers to buy equipment or providing childcare, travel fares, or other support that allowed target workers to earn more.

A fund like our carpet-layers-to-roofers example is just a foundational element for systemic direct investment in human potential. Larger investors will require standardized reporting, indices, aggregation of opportunities, automated trading, aftermarkets and tools to manage compliance. The aim is to make any region's human capital an enticing asset class alongside stocks, currencies, commodities, bonds or property. 

Trends in employee scheduling, just-in-time workforces, AI control of labor costs and fragmentation of employment point to fast rising hour-by-hour work. Such volatility in household income has societal impacts, addressed elsewhere. This paper explores how - with the right platforms - it could also unlock streams of data and opportunity for investors.

Contents

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