Human capital
53459081
Human Capital
We develop a two country, two sector model of trade where the only difference between the two countries is their distribution of human capital endowments. We show that even if the two countries have identical aggregate human capital endowments the pattern of trade depends on the properties of the two human capital distributions. We also show that the two distributions of endowments also completely determine the effects of trade on income inequality. Then, we prove that there are long term gains from trade if the marginal utility of income is constant or as long as losers from trade are compensated by winners. Finally, we look at a simple majority voting model. It turns out depending on the distribution of human capital, autarky and free trade with and without compensation may be the outcome of majority voting. JEL Code: F1.
Encyclopedia of Social Network Analysis and Mining. 2nd Ed.
Spiros P Bougheas Raymond Riezman
51859022
Social Capital in the Creation of Human Capital
In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analysis of dropouts from high school. Use of the concept of social capital is part of a general theoretical strategy discussed in the paper: taking rational action as a starting point but rejecting the extreme individualistic premises that often accompany it. The conception of social capital as a resource for action is one way of introducing social structure into the rational action paradigm. Three forms of social capital are examined: obligations and expectations, information channels, and social norms. The role of closure in the social structure in facilitating the first and third of these forms of social capital is described. An analysis of the effect of the lack of social capital available to high school sophomores on dropping out of school before graduation is carried out. The effect of social capital within the family and in the community outside the family is examined.
American Journal of Sociology
James S Coleman
197763841
Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education
A diverse array of factors may influence both earnings and consumption; however, this work primarily focuses on the impact of investments in human capital upon an individual's potential earnings and psychic income. For this study, investments in human capital include such factors as educational level, on the job skills training, health care, migration, and consideration of issues regarding regional prices and income. Taking into account varying cultures and political regimes, the research indicates that economic earnings tend to be positively correlated to education and skill level. Additionally, studies indicate an inverse correlation between education and unemployment. Presents a theoretical overview of the types of human capital and the impact of investment in human capital on earnings and rates of return. Then utilizes empirical data and research to analyze the theoretical issues related to investment in human capital, specifically formal education. Considered are such issues as costs and returns of investments, and social and private gains of individuals. The research compares and contrasts these factors based upon both education and skill level. Areas of future research are identified, including further analysis of issues regarding social gains and differing levels of success across different regions and countries. (AKP)
Gary Stanley Becker
153979487
Investment in Human Capital: A Theoretical Analysis
SOME activities primarily affect future well being, while others have their main impact in the present. Dining is an example of the latter, while purchase of a car exemplifies the former. Both earnings and consumption can be affected: on the job training primarily affects earnings, a new sail boat primarily affects consumption, and a college education is said to affect both. The effects may operate either through physical resources, such as a sail boat, or through human resources, such as a college education. This paper is concerned with activities that influence future real income through the imbedding of resources in people. This is called investing in human capital. The many ways to invest include schooling, on the job training, medical care, vitamin consumption, and acquiring information about the economic system. They differ in the relative effects on earnings and consumption, in the amount of resources typically invested, in the size of returns, and in the extent to which the connection between investment and return is perceived. But all im
Journal of Political Economy
Gary Stanley Becker
166840650
The role of social and human capital among nascent entrepreneurs
This study examines nascent entrepreneurship by comparing individuals engaged in nascent activities (n=380) with a control group (n=608) after screening a sample from the general population (n=30,427) The study then follows the developmental process of nascent entrepreneurs for 18 months. Bridging and bonding social capital, consisting of both strong and weak ties, was a robust predictor for nascent entrepreneurs, as well as for advancing through the start up process. With regard to outcomes like first sale or showing a profit, only one aspect of social capital, viz. being a member of a business network, had a statistically significant positive effect. The study supports human capital in predicting entry into nascent entrepreneurship, but only weakly for carrying the start up process towards successful completion.
Per Davidsson Benson Honig
154722391
The role of human capital in economic development Evidence from aggregate cross country data
Using cross country estimates of physical and human capital stocks, we run the growth accounting regressions implied by a CobbPDouglas aggregate production function. Our results indicate that human capital enters insignificantly in explaining per capita growth rates. We next specify an alternative model in which the growth rate of total factor productivity depends on a nation's human capital stock level. Tests of this specification do indicate a positive role for human capital.
Jess Benhabib Mark M Spiegel
158946304
Integrating strategic human capital and strategic human resource management
Abstract Human capital is an important construct in a variety of fields spanning from micro scholarship in psychology to macro scholarship in economics. Within the various disciplinary perspectives, research focuses on slightly different aspects and levels of human capital within organizations, which may give opportunities for integration. The current paper aims to increase knowledge about human capital within organizations by integrating two streams of research which focus directly on human capital, but have approached human capital in different ways: strategic human capital (SHC) and strategic HRM. We describe both SHC and strategic HRM research streams and propose areas of integration, and directions for future research on human capital in organizations.
Corine Boon Rory Eckardt David P Lepak Paul Boselie
158259586
Identifying the impacts of human capital on carbon emissions in Pakistan
Abstract At present, carbon emissions reduction is a very important challenge all over the world. Improvement of human capital helps to reduce carbon emissions. This paper studies the long and short term effects of human capital on carbon emissions in Pakistan from 1971 to 2014. We employ an autoregressive distributed lag model and the vector error correction model to analyze the co integration and direction of causalities between human capital and carbon emissions, respectively. Results show that a significant long term relationship exists between human capital and carbon emissions. Improvement of human capital will reduce carbon emissions without decreasing economic growth. Granger causality test results describe the bidirectional causality that exists between human capital and carbon emissions in the long term and no causality in the short term. Human capital and economic growth have feedback effects in the long term and no effect in the short term. The results of this study show that improvement in human capital through education will help carbon emissions reduction in the long term. This study will help policymakers devise a comprehensive strategy to reduce carbon emissions through improvement of human capital.
Sadia Bano Yuhuan Zhao Ashfaq Ahmad Song Wang Ya Liu
158491995
Human capital contribution to economic growth in Sub Saharan Africa: Does health status matter more than education?
This paper revisits the debate on the possible impact of human capital on economic growth in Sub Saharan Africa (SSA) and considers two alternative measures of human capital: health and education. The study employs a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1980 2008. The empirical results show that the two measures of human capital have positive effects on economic growth, although the contribution of health is relatively larger than the impact of education. This finding emphasizes the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital.
Kolawole Ogundari Titus O Awokuse
169859175
The Human Capital Project
By improving their skills, health, knowledge, and resilience their human capital people can be more productive, flexible, and innovative. Human capital is a central driver of sustainable growth and poverty reduction. Investments in human capital have become more important as the nature of work has evolved. Yet despite substantial progress, significant gaps in human capital investments are leaving the world poorly prepared for what lies ahead. The World Bank Group has launched the Human Capital Project (HCP) to mobilize efforts to address these gaps. The project is intended to raise awareness of the costs of inaction and make the case for investing in people through country engagement and analytical work. The goal of the HCP is a world in which all children arrive at school ready to learn, the time spent in school translates into better learning, and they can grow up to live and work as healthy, skilled, and productive adults. The main text of this volume which also appears as chapter 3 in the 2019 World Development Report: The Changing Nature of Work describes the evidence supporting the importance of human capital for people, economies, and societies and lays out the rationale and context for the HCP's theory of change. The Human Capital Index methodology is detailed in the appendix.
Roberta V Gatti Aart C Kraay Ciro Avitabile Matthew Edward Collin Ritika D'Souza Nicola Anna Pascale Dehnen