Patience, Risk-Taking, and Human Capital Investment Across Countries

2021 ◽  
Author(s):  
Eric A Hanushek ◽  
Lavinia Kinne ◽  
Philipp Lergetporer ◽  
Ludger Woessmann
Keyword(s):  
Human Capital ◽  
Risk Taking ◽  
Fixed Effects ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Migrant Students ◽  
Cross Country ◽  
Opposing Effects ◽  
Identification Strategy

Abstract Patience and risk-taking – two preference components that steer intertemporal decision-making – are fundamental to human capital investment decisions. To understand how they contribute to international skill differences, we combine PISA tests with the Global Preference Survey. We find that opposing effects of patience (positive) and risk-taking (negative) together account for two-thirds of the cross-country variation in student skills. In an identification strategy addressing unobserved residence-country features, we find similar results when assigning migrant students their country-of-origin preferences in models with residence-country fixed effects. Associations of national preferences with family and school inputs suggest that both may act as channels.

Promotion Signaling and Human Capital Investments

2020 ◽  
Vol 12 (1) ◽  
pp. 125-155 ◽  
Author(s):  
Michael Waldman ◽  
Ori Zax
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Capital Investments ◽  
Human Capital Investments ◽  
Asymmetric Learning ◽  
Specific Human Capital ◽  
Investment Choices

In a world characterized by asymmetric learning, promotions can serve as signals of worker ability, and this, in turn, can result in inefficient promotion decisions. If the labor market is competitive, the result will be practices that reduce this distortion. We explore how this logic affects human capital investment decisions. We show that, if commitment is possible, investments will be biased toward the accumulation of firm-specific human capital. We also consider what happens when commitment is not possible and show a number of results including that, if investment choices are not publicly observable, choices are frequently efficient. (JEL D82, J24, J31, M12, M51)

scholarly journals Child Ability and Household Human Capital Investment Decisions in Burkina Faso

2012 ◽  
Vol 61 (1) ◽  
pp. 157-186 ◽  
Author(s):  
Richard Akresh ◽  
Emilie Bagby ◽  
Damien de Walque ◽  
Harounan Kazianga
Keyword(s):  
Human Capital ◽  
Burkina Faso ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment

INSTITUTIONS, INVESTMENT AND ECONOMIC GROWTH: A CROSS-COUNTRY AND PANEL DATA STUDY

2015 ◽  
Vol 60 (04) ◽  
pp. 1550061 ◽  
Author(s):  
SAMIA NASREEN ◽  
SOFIA ANWAR ◽  
MASOOD QADIR WAQAR
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Panel Data ◽  
Capital Investment ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Civil Liberties ◽  
Human Capital Investment ◽  
Important Relationship ◽  
Cross Country

In this study, both cross-country and panel techniques have been used to analyze the long-term impact of institutions on investment and economic growth in the context of neoclassical model. The empirical results indicate that both physical and human capital investment have positive impact on economic growth. Economic freedom has a direct impact on economic growth by enhancing factor productivity and indirect by increasing investment. Political and civil liberties also exert positive impact on investment. Further, an important relationship exists between institutional freedom and human capital investment in both cross-country and panel data analysis.

Attitudes, Beliefs, Intentions, and Metaphors Over Time and in Place

2021 ◽  
pp. 131-156
Author(s):  
Michael J. Camasso ◽  
Radha Jagannathan
Keyword(s):  
Human Capital ◽  
Risk Taking ◽  
Capital Investment ◽  
Human Capital Investment ◽  
The United States ◽  
Ordinary Least Squares ◽  
Attitudes And Beliefs ◽  
Generational Effects ◽  
Individual Achievement ◽  
Over Time

Chapter 6 provides the results from the descriptive and multivariate analyses of family member responses to attitude and belief questions regarding trust, redistributive justice, human capital investment, centrality of work, intentions to work, risk-taking, cooperative attitudes/intentions, and individual achievement. The importance of metaphorical meaning is also addressed. Employing ordinary least squares, binomial, and multinomial logit regressions, the authors find that trust, risk-taking, cooperative attitudes, and individual achievement are consequential in distinguishing families in Sweden, Italy, the United States, and India. They also find strong generational effects with millennials expressing significantly different attitudes and beliefs than those of their grandparents on redistributive justice, human capital investment, the centrality of work, risk-taking, and individual achievement. They find little evidence to support the utility of cultural metaphors, as defined by Gannon and associates, as an emic device to capture cultural value orientation.

scholarly journals Labor Market Incentives to Stay in School

1993 ◽  
Vol 25 (2) ◽  
pp. 82-94 ◽  
Author(s):  
Judith I. Stallmann ◽  
Thomas G. Johnson ◽  
Ari Mwachofi ◽  
Jan L. Flora
Keyword(s):  
High School ◽  
Human Capital ◽  
Labor Market ◽  
Rural Communities ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Capital Theory ◽  
Job Information ◽  
Job Opportunities

AbstractHuman capital theory suggests that job opportunities will create incentives for human capital investment. If job information does not flow freely, or if they prefer not to move, students will make investment decisions based upon local job markets. Communities with a high percentage of low-skill jobs which do not reward high school and higher education do not create incentives for students to finish high school or continue beyond high school. Data from Virginia support this hypothesis. Targeted job creation, and improved labor market information may create incentives for increased human capital investment in many rural communities.

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