Learning Isn’t Earning

2020 ◽  
pp. 49-66
Author(s):  
Phillip Brown
Keyword(s):  
Human Capital ◽  
The Body ◽  
Capital Investments ◽  
Rates Of Return ◽  
Highly Educated ◽  
Advanced Economies ◽  
Human Capital Investments ◽  
Orthodox Theory ◽  
Investments In Education ◽  
Over Time

This chapter offers a systematic review of the evidence used to support the key claims of orthodox theory. These include the body of literature showing that investment in education and skills has become more valuable over time as technologically advanced economies come to depend on the brainpower of the workforce. To support this view, orthodox theorists typically compare average rates of return between college and non-college students. There are a number of propositions that can be tested to determine if “learning equals earning.” First, wages reflect human capital investments in education. Second, the value of human capital increases over time. Third, learning equals earnings in all countries. Fourth, reward in the labor market is biased toward the most highly educated workers who will attract higher wages.

Active Labour Market Policy and Unemployment Scarring: A Ten-year Swedish Panel Study

2008 ◽  
Vol 37 (3) ◽  
pp. 357-382 ◽  
Author(s):  
MATTIAS STRANDH ◽  
MADELENE NORDLUND
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Capital Investments ◽  
Labour Market Policy ◽  
Active Labour Market Policy ◽  
Market Policy ◽  
Active Labour ◽  
Human Capital Investments ◽  
Over Time

AbstractPrevious studies have shown mixed results concerning the effects of participation in active labour market policy programmes (ALMPs) on the longer-term scars in the form of poor income development and low job stability following the end of an unemployment spell. Most previous studies, however, have been limited both in the time frame used and to particular programmes. We argue that human capital investments are long-term investments and should therefore also be investigated from a long-term perspective. ALMP training and ALMPs as subsidised employment also represent different types of human capital investments that may produce effects that are differently distributed over time. In order to handle these issues, this article uses a longitudinal register-based dataset in which all long-term (more than six months) unemployed Swedes in 1993, who had no labour market problems in 1992, were followed for ten years. We found positive effects of ALMP participation concerning both the probability of reaching pre-unemployment incomes and a reduction in the hazard of exiting the labour market, while the effect on the probability of having an unemployment-free year was mixed. The effects of the two forms of ALMPs were differently distributed over time, with ALMP employment having an immediate effect that decreased relatively quickly and ALMP training having a longer-term effect.

The Evolution of Managerial Expertise: How Corporate Culture Can Run Amok

2006 ◽  
Vol 96 (1) ◽  
pp. 195-221 ◽  
Author(s):  
Dan Bernhardt ◽  
Eric Hughson ◽  
Edward Kutsoati
Keyword(s):  
Human Capital ◽  
Corporate Culture ◽  
Capital Investments ◽  
Skilled Workers ◽  
Strategic Design ◽  
Long Run ◽  
Investment Distortions ◽  
Short Run ◽  
Human Capital Investments ◽  
Over Time

This paper investigates how noisy evaluation of worker skills affects human capital investments and hiring. Individuals distort investments toward skills that most managers can evaluate. Dynamically, when workers become managers, managerial expertise can become increasingly skewed over time, raising investment distortions and reducing output. If firms select managerial expertise strategically, efficient investments can be retrieved when (a) identifying whether workers' skills matter more than distinguishing among skilled workers, and (b) initial investment distortions are small. Otherwise, such strategic design worsens long-run outcomes. Finally, we determine when short-run affirmative action policies are effective.

Human Capital in the Economic System of Modern Society: the Mechanism of Formation, Investment and Development Prospects in Ukraine

2019 ◽  
pp. 105-109
Author(s):  
S. Zhukov ◽  
V. Zelic ◽  
S. Soima
Keyword(s):  
Human Capital ◽  
Modern Society ◽  
Capital Investments ◽  
Mechanism Of Formation ◽  
Strategic Development ◽  
Education And Health ◽  
Economic State ◽  
Human Capital Investments ◽  
State Of Affairs ◽  
Development Prospects

As a result of the conducted research the problems of development of human capital and basic pre-conditions of providing of his competitiveness are certain. Analyzed the loud speaker of charges on development of education and health protection of summary budget of Ukraine and measures on the improvement of economic situation in Ukraine and providing of development of human capital are offered. The basic types of investments are certain in a human capital on levels and subjects of investing. The mechanism of forming of human capital is presented. The mechanism of forming of human capital is presented. It is grounded, that for strategic development of human capital of Ukraine and achievement of equilibrium and balanced of economy in the conditions of globalization modernization of public policy is needed in area of education, namely, creation of the system of education, oriented to forming and development of skills and jurisdictions of man, necessary for innovative activity. Keywords human capital, investments in a human capital, competitiveness, economic state of affairs, payment for work.

scholarly journals Occupational Choice and Investments in Human Capital in Informal Economies

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Lucila Berniell
Keyword(s):  
Human Capital ◽  
Informal Economy ◽  
Occupational Choice ◽  
Capital Investments ◽  
Educational Decisions ◽  
Managerial Skills ◽  
Model Predictions ◽  
Informal Economies ◽  
Human Capital Investments ◽  
Cross Country

AbstractInformality is pervasive in many developing countries and it can affect occupational and educational decisions. Cross-country data shows that the rate of entrepreneurship as well as the gap between the skill premium for entrepreneurs and for workers increase with the size of the informal economy. Also, in countries with larger informal sectors the fraction of high-skilled individuals that choose to be entrepreneurs is larger. To explain these facts, I develop a model economy with human capital investments, occupational choice and an informal sector, in which the investment in human capital improves the efficiency of labor as well as managerial skills, and the technology to produce goods exhibits capital-skill complementarity. Model predictions can account for cross-country evidence and also shed light on the mechanisms at work when the level of informality in the economy increases. In particular, a higher level of informality discourages human capital investments for workers while it incentivizes these investments for the case of some managers, mostly informal but talented.

Migrant Farmworker Earnings: A Human Capital Approach

1987 ◽  
Vol 15 (4) ◽  
pp. 21-33
Author(s):  
Shelley I. White-Means
Keyword(s):  
Human Capital ◽  
Labor Force ◽  
Low Cost ◽  
Marginal Effect ◽  
Capital Investments ◽  
Health Capital ◽  
Migrant Farmworker ◽  
Agricultural Produce ◽  
Human Capital Investments

Migrant farmworkers are essential to the supply of low-cost agricultural produce. However, employment earnings of this vital labor force are approximately equal to the federal poverty income. This study examines the role of health capital investments in enhancing farmworker productivity and employment earnings. Health capital investments are found to have a larger marginal effect on earnings than other forms of human capital investments, such as education or experience.

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