The cost of specialized human capital

2003 ◽  
Vol 22 (4) ◽  
pp. 433-438
Author(s):  
T.J Perri
Keyword(s):  
Human Capital ◽  
Specialized Human Capital ◽  
The Cost

The financial consequences of human capital disclosure as part of integrated reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Salvi ◽  
Nicola Raimo ◽  
Felice Petruzzella ◽  
Filippo Vitolla
Keyword(s):  
Human Capital ◽  
Firm Value ◽  
Fixed Effects ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Firm Risk ◽  
Integrated Reporting ◽  
Content Type ◽  
Financial Consequences ◽  
The Cost

PurposeThe purpose of this paper is to analyse the financial consequences of the level of human capital (HC) information disclosed by firms through integrated reports. Specifically, this work examines the effect of HC information on the cost of capital and firm value.Design/methodology/approachA manual content analysis is used to measure the level of HC information contained in integrated reports. A fixed-effects regression model is used to analyse 375 observations (a balanced panel of 125 firms for the period 2017–2019) and test the financial consequences of HC disclosure.FindingsThe empirical outcomes indicate that HC disclosure has a significant and negative effect on the cost of capital and a positive impact on firm value. Our results show that companies can reduce investors' perceived firm risk by improving HC disclosure, leading to a lower cost of capital. Moreover, our findings support the notion that increased levels of HC disclosure are linked to firms' improved access to external financial resources, consequently enhancing firm value.Originality/valueThis study is the first contribution to examine the financial consequences of HC disclosure and is one of the first to examine the level of HC information within integrated reports.

Immigrant Entrepreneurship: The Effect of Early Career Immigration Constraints on New Venture Formation

2021 ◽  
Author(s):  
Rajshree Agarwal ◽  
Martin Ganco ◽  
Joseph Raffiee
Keyword(s):  
United States ◽  
Human Capital ◽  
The United States ◽  
Early Career ◽  
Theory And Practice ◽  
New Venture ◽  
Opportunity Costs ◽  
Paid Employment ◽  
Specialized Human Capital ◽  
New Venture Formation

We examine how institutional factors may affect microlevel career decisions by individuals to create new firms by impacting their ability to exercise entrepreneurial preferences, their accumulation of human capital, and the opportunity costs associated with new venture formation. We focus on an important institutional factor—immigration-related work constraints—given that technologically intensive firms in the United States not only draw upon immigrants as knowledge workers but also because such firms are disproportionately founded by immigrants. We examine the implications of these constraints using the National Science Foundation’s Scientists and Engineers Statistical Data System, which tracks the careers of science and engineering graduates from U.S. universities. Relative to natives, we theorize and show that immigration-related work constraints in the United States suppress entrepreneurship as an early career choice of immigrants by restricting labor market options to paid employment jobs in organizational contexts tightly matched with the immigrant’s educational training (job-education match). Work experience in paid employment job-education match is associated with the accumulation of specialized human capital and increased opportunity costs associated with new venture formation. Consistent with immigration-related work constraints inhibiting individuals with entrepreneurial preferences from engaging in entrepreneurship, we show that when the immigration-related work constraints are released, immigrants in job-education match are more likely than comparable natives to found incorporated employer firms. Incorporated employer firms can both leverage specialized human capital and provide the expected returns needed to justify the increased opportunity costs associated with entrepreneurial entry. We discuss our study’s contributions to theory and practice.

scholarly journals Gender and Age as Determinants of Expected Rate of Return on Human Capital

2020 ◽  
Vol 28 (4) ◽  
pp. 30-50
Author(s):  
Bartosz Kurek ◽  
◽  
Ireneusz Górowski ◽  
Keyword(s):  
Human Capital ◽  
Professional Education ◽  
Statistical Tests ◽  
Male Students ◽  
Rate Of Return ◽  
Older Students ◽  
Expectations Gap ◽  
Gender And Age ◽  
Salary Expectations ◽  
The Cost

Purpose: The aim of the article is to examine the selected determinants of the expected rate of return on human capital. Methodology: We conducted an anonymous survey of expected salaries among the Accounting and Controlling students at the Cracow University of Economics, which provided a unique setting for the analysis. On the basis of collected data for the cost of living and the cost of professional education for every participant, we used the human capital model developed by Dobija to compute the perceived level of the human capital of each individual. Then, we compared the expected salaries with the perceived levels of human capital and computed expected rates of return on human capital. The following research methods are used: literature review, statistical tests, econometric modeling. Findings: On the sample of 754 respondents, we found that male students expect a higher rate of return on their human capital than female students, while older students expect a lower rate of return on human capital than younger students. Research limitations: Only one field of study was used to measure the determinants of the expected rate of return on human capital. Originality: We contribute to the salary expectations and human capital literature by identifying a significant gender salary expectations gap that holds even after considering individually assessed costs of living and professional education. Our findings are consistent with the well-known observation that women tend to expect lower salaries than men.

scholarly journals The Cost of Job Loss

2020 ◽  
Vol 87 (4) ◽  
pp. 1757-1798 ◽  
Author(s):  
Kenneth Burdett ◽  
Carlos Carrillo-Tudela ◽  
Melvyn Coles
Keyword(s):  
Human Capital ◽  
Job Search ◽  
Capital Accumulation ◽  
Job Loss ◽  
Learning By Doing ◽  
Risk Averse ◽  
Wage Formation ◽  
Optimal Contracting ◽  
The Cost ◽  
German Data

Abstract This article identifies an equilibrium theory of wage formation and endogenous quit turnover in a labour market with on-the-job search, where risk averse workers accumulate human capital through learning-by-doing and lose skills while unemployed. Optimal contracting implies the wage paid increases with experience and tenure. Indirect inference using German data determines the deep parameters of the model. The estimated model not only reproduces the large and persistent fall in wages and earnings following job loss, a new structural decomposition finds foregone human capital accumulation (while unemployed) is the worker’s major cost of job loss.

Human Capital and the Case for Undergraduate Social Work Education

2020 ◽  
Vol 25 (1) ◽  
pp. 105-128
Author(s):  
Mary R. Weeden ◽  
Frederick W. Siegel
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Social Work ◽  
Social Work Education ◽  
Academic Programs ◽  
University Administrators ◽  
Prospective Students ◽  
The Social ◽  
The Cost ◽  
Work Education

Higher education, from an economic perspective, functions as an investment in human capital. It requires time, effort, and money by the student as an investment with the resulting benefits of acquiring skills, knowledge, and values that promise a stream of future tangible and intangible benefits by earning a living in a chosen field or profession. Education viewed through this lens assists educators to articulate the case for their academic programs to stakeholders, including prospective students and their parents, university administrators, government regulators, benefactors, alumni, and the general public. This perspective has previously not been discussed in the social work education literature and provides new insights into several issues affecting social work education. These include the cost of higher education, the multidimensional benefits of education for the student and society at large, the role of the Council on Social Work Education, and the current challenges to the profession.

scholarly journals The Impact of Human Capital Development Cost on the Net Income and Dividend: An Applied Study over Jordanian Islamic Banks

2018 ◽  
Vol 10 (1) ◽  
pp. 336
Author(s):  
Atef Aqeel Al-Bawab ◽  
Hani Ali Aref Al-Rawashdeh
Keyword(s):  
Human Capital ◽  
Financial Statements ◽  
Islamic Banks ◽  
Net Income ◽  
Human Capital Development ◽  
Applied Study ◽  
Study Population ◽  
Capital Development ◽  
The Cost ◽  
The Impact

The study aimed at identifying the effect of the cost of Human capital development through training employees on the net income and dividend at Jordanian Islamic banks; three banks. The study followed the descriptive analytical approach. The financial data of published financial statements of the study population over the period (2012-2015) were brought and analyzed by mathematical modules to test the study hypotheses. The study concluded several results, the most important are:  There is an effect for the cost of training employees over the pre-tax annual profit development at Jordanian Islamic banks with variant proportions. There is also an effect with variant proportions for the cost of training employees over dividend. The study recommended several recommendations; the most important was the need of Jordanian Islamic banks to disclose in their financial statements in details the cost of their human capital development.

scholarly journals Proposal of Postgraduate in Management to Collaborate with the Sustainable Regional Development in the State of Mexico

2016 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Israel Patiño Galván
Keyword(s):  
Human Capital ◽  
Regional Development ◽  
Educational Program ◽  
Information Gathering ◽  
The State ◽  
Education Sector ◽  
Administrative Process ◽  
Specialized Human Capital ◽  
Government Education ◽  
Sustainable Regional Development

Regional Development of the countries depends of the relation and interaction between enterprises, government, education sector and society, and the strategies to take advantage of the available resources. In that sense, the education sector plays a very important role as a supplier of competitive human capital. This study is the result of a special research made for Technologic of Higher Studies of Ecatepec which is interested in launching a new postgraduate program that can respond to the new regional challenges. Nowadays it doesn’t exist an educational program in the State of Mexico that collaborates in generation of specialized human capital to manage the productive and administrative process of the enterprises. This research is supported with the induction deduction, analysis-synthesis methodologies, moreover, the information gathering of different database scholars was reviewed, and it was also compare institutions within similar context and programs to get and analyzing previous research about tendencies of modern management.

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