Capability Depreciation: Why Capabilities Endure, Decline, or Regain Value.

This discussion paper develops the theory of capability depreciation that underpins the Evergreen Capabilities Series. Claims that skills are depreciating faster have become common in workforce, education, employer, and policy discussions, but these claims often lack conceptual precision. They frequently conflate different processes: workers losing proficiency, employers changing demand, wage premiums declining, hiring signals losing value, or occupations being reorganized by technology.

This paper clarifies those distinctions. It explains why some capabilities depreciate quickly, others depreciate slowly, some retain value in residual niches, some appreciate temporarily as complements to new technologies, and some regain value after periods of decline.