Rethinking human capital: Perspectives from women working in the informal economy

Abstract Motivation The development of human capital is a priority for most nation states, accelerated by the COVID‐19 global pandemic. In the context of reimagining a “new normal” post‐COVID, we reconsider the concept of human capital, and focus on knowledge, skills, and training of individuals in order to capture aspects of inclusive development. Purpose This paper shows how the perspective of women, informal sector workers, representing some of the most marginalized workers in society, informs and improves our understanding of human capital and its development and utilization. Methods and approach Our findings are derived from field‐based research conducted over the summer of 2021 in which multiple (virtual) focus group discussions (FGDs) were held with selected members of the Self‐Employed Women's Association (SEWA) in India. Findings Through our FGDs, the participants provided new perspectives and insights into our knowledge of human capital, emphasizing the importance of social protection programmes, gender equity, ongoing training opportunities, decentralized supply chains, and income security. Perhaps most significantly, the benefits accrued to women through being organized have been key to unlocking their human capital potential. Policy implications Our research highlights themes that are often overlooked in the literature or are beyond the scope of more narrow conceptualizations of human capital. We show that human capital is tightly interwoven with other forms of capital (community assets), and hence efforts to build the former cannot be achieved in isolation from attending to the latter.