- Skills are the mainstay of human capital. They are the capabilities that a person has to effectively solve different problems. Skills include not only knowledge or abstract reasoning, but also aspects of personality, beliefs and even physical skills. This report shows that having more skills involves working better and being more productive, having better physical and mental health, participating more actively in civic life, completing more years of education, and experiencing greater satisfaction with life, among other aspects of personal well-being. The report also notes that, unlike human capital measured by years of education, skills for work and life are not only developed in educational institutions. The family, the social and physical environment (e.g. neighborhood or community), and jobs are also areas of crucial importance in the accumulation of skills.