This thesis proposes analytical and practical frameworks for the anlysis of human development that are useful for policy purposes. The main theoretical underpinning is Sen's Capability Approach, which advocates a pluralistic view of human life and the expansion of freedom as a normative rule towards the public good. The thesis comprises three chapters; in the first one, Sen's approach is theoretically supplemented with elements of J. Roemer's Equality of Opportunity approach to provide concrete suggestions of policy configurations for improving livelihoods with justice. In the second chapter, economic and econometric frameworks are proposed for this theoretical combination. As many elements that are intertwined in this vision of human development are hard to directly observe, a Simultaneous Equation Model with latent variables is developed and implemented using Bolivian data. The third chapter focuses on one specific aspect of human development, namely work-related wellbeing based on J. Heckman's technology of skill formation.