Human Capital and Permanent Income Human capital The present value of one's future labor income Permanent income The constant level of(real)consumption (such as C in the formula)spending that has a present value equal to one's human capital 5 30 C (1+2)= (1+) Human capital .THE COURSE OF FINANCE 2017 SPRING SJTU 10Human Capital and Permanent Income  Human capital  The present value of one’s future labor income  Permanent income  The constant level of (real) consumption (such as C in the formula)spending that has a present value equal to one’s human capital •THE COURSE OF FINANCE 2017 SPRING SJTU •10 Human capital