Definition of Earning capacity
Term refers to capability of worker to sell his labor or services in any market reasonably accessible to him, taking into consideration his general physical functional impairment resulting from his accident, any previous disability, his occupation, age at time of injury, nature of injury and his wages prior to and after the injury. Sims v. Industrial Commission, 10 Ariz.App. 574, 460 P.2d 1003, 1006. Term does not necessarily mean the actual earnings that one who suffers an injury was making at the time the injuries were sustained, but refers to that which, by virtue of the training, the experience, and the business acumen possessed, an individual is capable of earning.
Fitness, readiness and willingness to work, considered in connection with opportunity to work.
That's the definition of Earning capacity in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.