Human Capital (human + capital)

Distribution by Scientific Domains
Distribution within Business, Economics, Finance and Accounting

Kinds of Human Capital

  • firm-specific human capital
  • specific human capital

  • Terms modified by Human Capital

  • human capital accumulation
  • human capital approach
  • human capital characteristic
  • human capital development
  • human capital formation
  • human capital investment
  • human capital model
  • human capital theory
  • human capital variable

  • Selected Abstracts


    EDUCATIONAL THEORY, Issue 2 2007
    Alexander M Sidorkin
    Specifically, human capital theorists underestimate the private cost of schooling by taking low-level manual labor as the basis for estimating students' forgone earnings. This does not take into consideration the nature of students' labor of learning. In the essay, Sidorkin describes student work as a form of labor, not an investment activity, and considers the implications such an understanding of student work has for school reform. [source]


    Gueorgui Kambourov
    We find that returns to occupational tenure are substantial. Everything else being constant, 5 years of occupational tenure are associated with an increase in wages of 12%,20%. Moreover, when occupational experience is taken into account, tenure with an industry or employer has relatively little importance in accounting for the wage one receives. This finding is consistent with human capital being occupation specific. [source]


    Douglas J. Krupka
    ABSTRACT The role of amenities in the flow of migrants has long been a subject of debate. This paper advances an original model of amenities that work through household production instead of directly through utility. Area characteristics (amenities) affect household production, causing certain kinds of human capital investments to be rewarded more than others. Area heterogeneity thus makes such investments location-specific. This specificity,along with a period of exogenous location,increases the opportunity costs of moving, diminishes migration flows between dissimilar locations and increases valuation of amenities that were present in the originating area. These theoretical results emphasize people's sorting across areas and thus differ from the results of the standard model of compensating differentials. Empirical tests of the model's predictions using NLSY79 data show that childhood investments affect migration flows in the way proposed by the model. [source]


    The aim of this paper is to explore the relationship between wage growth, human capital and investment in financial assets at the individual level. We investigate this relationship using data from five waves of the British Household Panel Survey. We exploit panel data enabling us to determine the change in real wages experienced by individuals across four different time horizons, 1995,96, 1995,98, 1995,1700 and 1700,1. Our findings support a positive association between financial assets and wage growth with this relationship becoming more pronounced over time. In addition, our results suggest that investment in financial assets is positively associated with returns to human capital investment. [source]

    Firm-Specific Human Capital and Governance in IPO Firms: Addressing Agency and Resource Dependence Concerns

    Jonathan D. Arthurs
    Entrepreneurs with firm-specific human capital represent both a potential source of competitive advantage and a threat to appropriate the rents that are ultimately generated by a new venture. This situation presents interesting agency and resource dependence challenges. While potential investors in these ventures will want assurances that their interests are protected, they will also want to ensure that these key entrepreneurs remain with the organization. Using agency theory and resource dependence theory, we examine the types of governance mechanisms that are implemented in firms going through an initial public offering comparing those ventures which indicate a dependence on these critical entrepreneurs versus those that do not. Our analysis reveals that ventures exhibiting dependence on key entrepreneurs are associated with higher insider and outsider ownership by the board, greater start-up experience by the board, greater use of contingent compensation, and greater use of involuntary departure agreements. [source]

    The Role of Human Capital in Technological Entrepreneurship

    Mike Wright
    This special issue addresses the role that the human capital characteristics of individuals and teams play in the complex process of technological entrepreneurship. In this article, we position the special issue on human capital and technology-based entrepreneurship within the literatures concerning academic entrepreneurship, technology transfer and innovation, and corporate spin-offs. We summarize the articles in the special issue and also outline a research agenda at the firm, entrepreneurial team, and individual entrepreneur levels. Finally, we discuss managerial and policy implications. [source]

    Technology Entrepreneurs' Human Capital and Its Effects on Innovation Radicalness

    Matthew R. Marvel
    Radical innovations transform existing markets, create new markets, and stimulate economic growth. This study investigates how the experience, education, and prior knowledge of technology entrepreneurs relate to innovation radicalness. Findings from a sample of 145 technology entrepreneurs operating within university-affiliated incubators suggest that general and specific human capital are both vital to innovation outcomes. Innovation radicalness was positively associated with formal education and prior knowledge of technology, but negatively associated with prior knowledge of ways to serve markets. This suggests a counterintuitive conclusion,the less technology entrepreneurs know about ways to serve a market, the greater their chances of using technology knowledge to create breakthrough innovations within it. Finally, we discuss configurations of human capital that are likely to bestow unique advantages in the construction of radical innovations. [source]

    Effects of Human Capital and Long-Term Human Resources Development and Utilization on Employment Growth of Small-Scale Businesses: A Causal Analysis1

    Andreas Rauch
    The purpose of this study was to explore how three different human resource variables affect employment growth of small-scale enterprises: human capital of business owners, human capital of employees, and human resource development and utilization. The literature suggests different models of how these human resource variables affect business outcomes. Longitudinal data from 119 German business owners provided support for a main effect model indicating that owners' human capital as well as employee human resource development and utilization affect employment growth. Moreover, human resources development and utilization was most effective when the human capital of employees was high. We conclude that human resources are important factors predicting growth of small-scale enterprises. [source]

    Human Capital in Remote and Rural Australia: The Role of Graduate Migration

    GROWTH AND CHANGE, Issue 2 2010
    ABSTRACT In this paper we examine the spatial employment patterns of Australia's university graduates in nonurban locations. Using a 2006 data set recording the employment status of 65,661 university graduates 6 months after their graduation we examine how the personal and human capital characteristics of the individual university graduate affect the type of rural location into which he or she enters for employment purposes. The importance of identifying which types of graduates work where is essential for our understanding of the forces that are currently shaping the spatial distribution of human capital across Australia's regions. In order to do this we allocate postcode-based data of graduate employment to one of five remoteness classes, as defined by the Australian Bureau of Statistics, that allow us to distinguish between different degrees of rurality. The postcode data are used to associate the ways in which the human capital characteristics of the graduate in terms of the types of university degrees awarded and the universities attended, as well as the personal characteristics of the graduate, are related to the degrees of rurality in his or her employment outcomes. [source]

    Racial Wage Differences among Young Male Job Changers: The Relative Contribution of Migration, Occupation Change, Site Characteristics, and Human Capital

    GROWTH AND CHANGE, Issue 1 2006
    ABSTRACT We demonstrated racial differences in the relationship between migration, location, and predicted wages for young male workers who have changed employers. An Oaxaca decomposition allowed a measuring of the contributions of migration, occupation change, site features, and human capital to the racial wage gap. Migration decreases black,white wage differences, and wage compensation for site attributes favors white householders. Constraints on occupation choice and migration dampen the ability of blacks to improve wages. Because most job changes occur in the first ten years of a career, these results on young workers give important general insights into the origins and persistence of racial wage gaps. [source]

    The Earnings of American Jewish Men: Human Capital, Denomination, and Religiosity

    This article analyzes the determinants of the earnings of American Jewish men using the 2000/2001 National Jewish Population Survey. Nonresponse to the question on earnings is analyzed. Earnings are related to conventional human capital variables, as well as Jewish-specific variables. Except for the size of place and region variables, the standard human capital variables have similar effects for Jewish men and the general male population. Jewish day schooling as a youth enhances earnings. Earnings vary by denomination, with Jewish men who identify their denomination as Conservative earning the most, with secular and Orthodox Jews earning less. The effect on earnings of religiosity (measured by synagogue attendance) is not monotonic. Earnings are highest for those who attend about once a week, are lower for those who attend daily, and are lowest for those who never attend. [source]

    Human Capital and Stock Returns: Is the Value Premium an Approximation for Return on Human Capital?

    Article first published online: 28 MAY 200, Bo Hansson
    This study, using a direct measure of the wage growth rate within firms, examines the value premium in relation to human capital. The results suggest that the dispersion in wage growth in value and growth stocks explains a large portion of the differences in stock returns. It appears that value stocks are less exposed to shocks in rents to human capital. Differences in labor force characteristics among value and growth stocks also proved to be an important factor in determining both the impact of future changes in labor income growth rate and firm value. The present findings are understood to mean that the ability of investors to forecast the dispersion in wage growth in firms is limited. [source]

    Cost- and Income-based Measures of Human Capital

    Trinh Le
    Human capital is increasingly believed to play an important role in the growth process, however, adequately measuring its stock remains controversial. In this paper three general approaches to measurement are identified; cost-based, income-based and educational stock-based. This survey focuses on the first two approaches and provides a critical review of the theories and their applications to data from a range of countries. Particular emphasis is placed upon the work of Jorgenson and Fraumeni (1989, 1992) and some new results for New Zealand based upon their approach are also presented. [source]

    The Substitution Hypothesis: The Impact of Premarital Liaisons and Human Capital on Marital Timing

    Monica Gaughan
    Nonmarital romantic and sexual relationships occur concurrently with the human capital acquisition process and contribute to delaying or forgoing marriage. Event history analysis is used to model the marital hazard rate of 341 White women born between 1960 and 1963 in a Western metropolitan area. In addition to family background, adolescent characteristics, and employment and educational histories, the structure of the women's premarital liaisons is shown to play an important role in the timing of first marriage. The greater a woman's involvement in nonmarital romantic and sexual activity, the less likely she is to be married by age 27,30. Human capital characteristics and the dynamics of relationship histories operate independently to explain marital timing. This supports the theory that women substitute premarital liaisons for marriage early in the adult life course. However, there is no evidence that highly educated women, or those who are students, are more or less likely to do so than others. [source]

    Intergenerational Transfer of Human Capital and Optimal Education Policy

    We study the design of education policies (subsidies and public education) when parents' investment in education is motivated by warm-glow altruism and determines the probability that a child has a high ability. The optimal subsidy is not necessarily positive. It is determined by two conflicting terms: a Pigouvian term (warm-glow altruists do not properly account for the impact of education on future generations) and a "paternalistic" effect (the warm-glow term may not be fully included in social welfare). Finally, total crowding out of private expenditure (for one of the types) by public education may be desirable. [source]

    Investment in Human Capital in Team Members Who Are Involved in Collective Decision Making

    Ruth Ben-Yashar
    This paper studies an investment policy which improves the ability of team members to decide correctly. We specify sufficient conditions on the learning function such that the best policy of investment in human capital is to invest first in the least competent person. Despite the fact that team members who are endowed with more human capital contribute more to the probability that the whole team would decide correctly, the liberal policy is still optimal under these conditions. Moreover, within the dichotomous model of collective decision-making, we show that these conditions are not so stringent. [source]

    Immigration Policy, Equilibrium Unemployment, and Underinvestment in Human Capital

    LABOUR, Issue 1 2009
    Christian Lumpe
    We analyse the impact of different immigration policies on human capital investment in a search-theoretic model. This class of models features unemployment and underinvestment in human capital. The underinvestment in human capital can be solved by combining immigration policy with appropriate education subsidies. Extending the model with respect to different skill groups allows to analyse the observed bimodal skilled immigration of the USA. [source]

    Why Do Part-time Workers Invest Less in Human Capital than Full-timers?

    LABOUR, Issue 2009
    Annemarie Nelen
    We analyse whether lower investments in human capital of part-time workers are due to workers' characteristics or human resource practices of the firm. We focus on investments in both formal training and informal learning. Using the Dutch Life-Long-Learning Survey 2007, we find that part-time workers have different determinants for formal training and informal learning from full-time workers. The latter benefit from firms' human resource practices such as performance interviews, personal development plans, and feedback. Part-time workers can only partly compensate the lack of firm support when they have a high learning motivation and imagination of their future development. [source]

    Severance Payments and Firm,specific Human Capital

    LABOUR, Issue 1 2003
    Jens Suedekum
    What effect does employment protection through severance payments have on the behaviour of employed workers? We analyse this issue within a stochastic two,period framework where workers decide on human capital investments and find two competing effects: severance payments imply higher job security that fosters human capital formation. At the same time, a lay,off is perceived by the workers to be a weaker penalty if severance payments are provided. This incentive lowers their optimal amount of firm,specific investments. Which effect prevails on balance depends on the distribution of investment returns among firm and workers. For strong positive reactions, employment protection is also in the interests of the firm. [source]

    Scientific Highlights from the ,k Network: Towards Atomistic Materials Design

    P. H. Dederichs
    The ,k network aims at encompassing the whole community of European groups working in the area of ab - initio materials modelling, including very many small groups and isolated researchers. Historically, the activities started in the 1980s in Trieste with the workshop series entitled "Total Energies and Forces". Since then, it has operated on the European level in various forms, with funding from various EC/EU and ESF sources, beginning more than 10 years ago with the EC's Human Capital and Mobility Programme. In that time, ,k has done much to make Europe the leading area in the world for research in atomic-scale ab - initio computer simulation of all types of materials, their structures, properties, and processes. To a large extent, this has been done by nurturing scientific excellence and collaboration in what might be called "the ,k family". The ,k Network is presently organized around 15 topical working groups. Over the years, the ,k network organized three large scale conferences in Schwäbisch Gmünd, Germany (1996, 2000, 2005), attended by hundreds of scientists from all over the world. The next ,k Conference is to be organized in Berlin in 2010. These ,k Conferences are unique events fully dedicated to the ab - initio research. In addition, the network organizes a variety of meetings and topical workshops every year. The core activities of the ,k network involve editing every two months a ,k newsletter with typically more than 100 pages, which contains a "Scientific Highlight", announcements of conferences, workshops and vacant positions, news of various ESF and EU funded networks, including reports on workshops, and abstracts of submitted papers. The ,k has its own web pages ( which inform about the Network, its structure, and how to get involved in ,k activities. These web pages are also the repository of the ,k newsletters and Scientific Highlights and details about the ,k Workshops of the most recent years. The ,k mailing list contains about 1700 e-mail addresses from across the world, and all the important information about a variety of activities of the network is distributed across this list on a daily basis. The "Scientific Highlights" of the ,k newsletters reflect the scientific activities of the network and aim at presenting reviews and current developments in the field. This special issue of physica status solidi (b) gives a collection of some of the most recent Highlight contributions to the ,k newsletter. All manuscripts originally posted on the ,k server were peer-reviewed by two referees and accepted according to the standards of pss. They are published here partly in revised or updated version. We hope that the readership of the journal will benefit from the quality of the research they report on and the high level of the presentations. [source]

    Locating Critical Components of Regional Human Capital

    Michael C. Farmer
    Enormous attention has been devoted recently to the contributions of human capital in the strategic and competitive success of different regions. These advances by macroeconomists and trade theorists have important implications for understanding the influence of economic development programs in a rural environment. Drawing upon this research we argue that human capital concepts may offer a more effective basis for assessment of strategic resource needs and use within a rural setting. An approach using direct elicitation methods is outlined for developing human capital measures. One significant advantage of a human capital approach is the potential for creating indicators that bridge the interests of economic development and environmental programs. [source]

    The Australian Growth Experience, 1960,2000: Human Capital, R&D or Steady-State Growth?

    Yuan K. Chou
    This article examines the sources of economic growth in Australia from 1960 to 2000 by adapting a framework developed in Jones (2002), whereby long-run growth is driven by the global discovery of new ideas, which in turn is tied to world population growth. We find that, contrary to the conventional view as suggested by sustained growth rates and a stable capital,output ratio over the last several decades, Australia is clearly not on its steady,state balanced growth path. Australia has benefited from increases in educational attainment and research intensity: 42 per cent of Australian growth between 1960 and 2000 is attributable to the rise in educational attainment, about 20 to 40 per cent is attributable to increasing research intensity, while only 10 to 30 per cent is due to long-run population growth in the idea-producing countries. [source]

    The Theory of Human Capital Revisited: on the Interaction of General and Specific Investments,

    THE ECONOMIC JOURNAL, Issue 514 2006
    Anke S. Kessler
    Human capital theory distinguishes between training in general-usage and firm-specific skills. Becker (1964) argues that employers will only invest in specific training, not general training, when labour markets are competitive. The article reconsiders Becker's theory. Using essentially his framework, we show that there exists an incentive complementarity between employer-sponsored general and specific training: the possibility to provide specific training leads the employer to invest in general human capital. Conversely, the latter reduces the hold-up problem that arises with firm-specific training. We also consider the desirability of institutionalised training programmes and the virtues of breach penalties, and discuss some empirical facts that could be explained by the theory. [source]

    Output Taxation, Human Capital and Growth

    Rosa Capolupo
    In this paper we investigate the long-run effects of government spending and taxation in an endogenous growth setting. The model is a variant of Barro's model (,Government Expenditure in a Simple Model of Endogenous Growth', Journal of Political Economy, Vol. 98, 1990, pp. S103,S125) and Lucas's model (,On the Mechanics of Economic Development', Journal of Monetary Economics, Vol. 22, 1988, pp. 3,42) in which human capital accumulation is driven by government spending on public education. To balance the budget the government levies a tax on output in two alternative specifications of the human capital accumulation equation. The results consolidate some recent findings that taxation, when it is used for productive purposes, may lead to faster growth. Growth rates increase with taxes up to a level around 60,70 per cent. [source]

    Forum: Investment in Human Capital: Management and Accounting Issues

    Anne Wyatt
    First page of article [source]

    Accounting for Investments in Human Capital: A Review

    Anne Wyatt
    This paper provides an overview of the human capital literature, focusing on the firm's incentives and disincentives to invest in human capital and subsequently to account for the investments. The evidence suggests human capital investment decisions are intrinsically linked to the success of a business and ultimately to the probability of survival. However, disclosure is largely a voluntary choice by managers as there are few formal disclosure requirements. The conclusion from the evidence shows that the benefits to stakeholders of disclosing information relating to human capital investment are likely to outweigh the costs and suggests a wide range of topics for future research. [source]

    Measuring Human Capital Like Physical Capital: What Does It Tell Us?

    Ruth Judson
    In this paper, I develop a measure of human capital stock that is similar to measuring physical capital by its replacement cost. This measure builds on measures of average educational attainment of the labour force. While it is far from an ideal measure, it is an interesting complement to the educational attainment series and other existing measures of human capital accumulation. In cross,country panel regressions, use of this measure of human capital accumulation yields a positive and significant, but relatively small (about ten per cent) elasticity with percapita GDP growth. Unlike physical capital, the stock of human capital as a share of GDP increases with GDP. This is consistent with the Barro et al. (1995) model of growth with non,mobile human capital and with some predictions of Romer's (1990) model of endogenous growth, but it is not consistent with the predictions of some other growth models. [source]

    UK Corporate Reporting of Human Capital: A Regulatory Failure to Evolve

    First page of article [source]

    School Attendance and Skill Premiums in France and the US: A General Equilibrium Approach,

    FISCAL STUDIES, Issue 4 2007
    David De La Croix
    We evaluate the effect of education policies, welfare programmes, technology and demographics on the differential evolution of the skill premium and on the rise in education investment in France and the US. We use a computable general equilibrium model with overlapping generations of individuals and endogenous education decisions. Human capital has two substitutable components - experience and education - both of which evolve endogenously over time. We use an original method to calibrate our model properly on the post-war period and run counterfactual experiments to assess the relative contributions of the different exogenous variables. The expansionary French education policy boosted the supply of skills and kept the skill premium low. In contrast, increasing education costs in the US contributed to increased wage differentials by reducing the rise in educational attainment. Skill-biased technical change is key to understanding rising school attendance and skill premiums in the US. It has a less important role and appears to be delayed in France. [source]

    Evaluating human capital: an exploratory study of management practice

    Juanita Elias
    The article explores the development of systems of human capital evaluation in a number of large UK firms. Human capital is a much used term in business literature, and it is widely recognised that firms need to develop mechanisms to determine the value of their employee base. An extensive human capital literature has developed in which the authors propose elaborate systems for measuring a firm's human assets. This article does not seek to offer yet another human capital model. Rather, the aim is to examine the management practices through which human capital evaluation is undertaken. The article is based on an exploratory study of such practices in 11 major firms in the UK. The findings are highlighted as follows. First, we note the preference for internal over external (static accountancy-based) reporting. Secondly, we highlight the diverse nature of human capital evaluation systems that exist across UK business. Thirdly, we explore the relationship between practices of evaluation and the role and position of the HR function within the firm. Finally, in conclusion, we address the implications of the human capital perspective for practitioners, arguing that there is no single formula that can be applied to its evaluation. We go on to suggest that the importance of the human capital concept and its measurement may lie in its ability to re-frame perceptions of the relationship between the contribution of employees and the competitive performance of the business. [source]