Human capital depreciation and education level

2014 ◽  
Vol 35 (5) ◽  
pp. 613-642 ◽  
Author(s):  
Sylvain Weber
Keyword(s):  
Human Capital ◽  
Educational System ◽  
Education Level ◽  
Academic Education ◽  
Content Type ◽  
Capital Depreciation ◽  
General Skills ◽  
Using Data ◽  
The One ◽  
Specific Education

Purpose – The purpose of this paper is to investigate the link between human capital depreciation and education level, with an emphasis on potential differences between general and specific education. Design/methodology/approach – A nonlinear wage equation, based on Arrazola and de Hevia's (2004) model, is estimated using data from the Swiss Labor Force Survey (SLFS) over the period 1998-2008, in order to estimate a human capital depreciation rate for several education groups. Findings – Human capital depreciation is significantly related to education type. Academic (“concept-based”) education protects workers more effectively against depreciation than vocational (“skill-specific”) education. Research limitations/implications – The SLFS survey is a rotating panel of five years and no retrospective data on earnings and employment are provided. A study of lifecycle earnings like the one proposed here would clearly benefit from a longer individual observation period. Practical implications – In all educational tracks, even vocational ones, a substantial time share should be devoted to the acquisition of general skills. Moreover, it is necessary to manage lifelong learning carefully in order not to waste initial investments in education. Originality/value – Instead of using a purely quantitative approach to separate workers by years of education, qualitative aspects of educational system are taken into account. Taking advantage of the Swiss educational system characteristics, workers are separated on the basis of their education type. Workers with vocational education (apprenticeships, professional and technical schools and universities of applied sciences) are assumed to possess a relatively specific human capital, compared to those with academic education (high schools and universities).

scholarly journals Human capital depreciation and job tasks

2021 ◽  
Author(s):  
Sonja Walter ◽  
Jeong-Dong Lee
Keyword(s):  
Human Capital ◽  
Industrial Revolution ◽  
Job Tasks ◽  
Core Skill ◽  
Technological Advances ◽  
Education Levels ◽  
Capital Depreciation ◽  
Mincer Equation ◽  
Learning Policies ◽  
Using Data

This research aims to investigate the link between human capital depreciation and job tasks, with an emphasis on potential differences between education levels. We estimate an extended Mincer equation based on Neumann and Weiss’s (1995) model using data from the German Socio-Economic Panel. The results show that human capital gained from higher education levels depreciates at a faster rate than other human capital. Moreover, the productivity-enhancing value of education diminishes faster in jobs with a high share of non-routine analytical, non-routine manual, and routine cognitive tasks. These jobs are characterized by more frequent changes in core-skill or technology-skill requirements. The key implication of this research is that education should focus on equipping workers with more general skills in all education levels. With ongoing technological advances, work environments, and with it, skill demands will change, increasing the importance to provide educational and lifelong learning policies to counteract the depreciation of skills. The study contributes by incorporating a task perspective based on the classification used in works on job polarization. This allows a comparison with studies on job obsolescence due to labor-replacing technologies and enables combined education and labor market policies to address the challenges imposed by the Fourth Industrial Revolution.

Corruption accounting and growth: towards a new methodology

2020 ◽  
Vol 27 (1) ◽  
pp. 43-57
Author(s):  
Martin Grandes ◽  
Ariel Coremberg
Keyword(s):  
Endogenous Growth ◽  
Public Works ◽  
Public Expenditures ◽  
National Accounts ◽  
Public Officials ◽  
Content Type ◽  
Endogenous Growth Model ◽  
Using Data ◽  
The One

Purpose The purpose of this paper is to demonstrate empirically that corruption causes significant and sizeable macroeconomic costs to countries in terms of economic activity and economic growth. The authors modeled corruption building on the endogenous growth literature and finally estimated the baseline (bribes paid to public officials) macroeconomic cost of corruption using Argentina 2004-2015 as a case study. Design/methodology/approach The authors laid the foundations of a new methodology to account corruption losses using data from the national accounts and judiciary investigations within the framework of the Organisation for Economic Cooperation and Development (OECD) non-observed economy (NOE) instead of subjective indicators as in the earlier literature. They also suggested a new method to compute public expenditures overruns, including but not limited to public works. Findings The authors found the costs stand at a minimum accumulated rate of 8 per cent of gross domestic product (GDP) or 0.8 per cent yearly. These findings provided a corruption cost floor and were consistent with earlier research on world corruption losses estimated at 5 per cent by the World Economic Forum and with the losses estimated at between a yearly rate of 1.3 and 4 per cent and 2 per cent of GDP by Brazil and Peru’s corruption, respectively. Research limitations/implications The authors would need to extend the application of their new suggested methodology to further countries. They are working on this. They would need to develop the methodology in full to compute the public works overruns input to future econometric work. Originality/value In this paper, the authors make a threefold contribution to the literature on corruption and growth: first, they laid the foundations toward a new methodology to make an accounting of the corruption costs in terms of GDP consistent with the national accounts and executed budgets; on the one hand, and the OECD NOE framework, on the other. The authors named those corruption costs as percentage of GDP the “corruption wedge.” Second, they developed an example taking corruption events and a component of their total costs, namely, the bribes paid to public officials, taking Argentina 2004-2015 as a case study. Finally, they plugged the estimated wedge back into an endogenous growth model and calibrated the growth–corruption path simulating two economies where the total factor productivity was different, at different levels of the corruption wedge.

Two fast prototypes of web-based augmented reality enhancement for books

2019 ◽  
Vol 36 (10) ◽  
pp. 19-24 ◽  
Author(s):  
Dan Lou
Keyword(s):  
Augmented Reality ◽  
Minimum Cost ◽  
Unique Identifier ◽  
Web Based ◽  
Content Type ◽  
The One ◽  
User Friendly ◽  
Specific Education ◽  
Practical Implications ◽  
Library Collections

Purpose The purpose of this paper is to identify a light and scalable augmented reality (AR) solution to enhance library collections. Design/methodology/approach The author first did research to identify the major obstacle in creating a scalable AR solution. Next, she explored possible workaround methods and successfully developed two prototypes that make the current Web-based AR work with ISBN barcode. Findings Libraries have adopted AR technology in recent years mainly by developing mobile applications for specific education or navigation programs. Yet a straight-forward AR solution to enhance a library's collection has not been seen. One of the obstacles lies in finding a scalable and painless solution to associate special AR objects with physical books. At title level, books already have their unique identifier – the ISBN number. Unfortunately, marker-based AR technology only accept two-dimensional (2-D) objects, not the one-dimensional (1-D) EAN barcode (or ISBN barcode) used by books, as markers for technical reasons. In this paper, the author shares her development of two prototypes to make the Web-based AR work with the ISBN barcode. With the prototypes, a user can simply scan the ISBN barcode on a book to retrieve related AR content. Research limitations/implications This paper mainly researched and experimented with Web-based AR technologies in the attempt to identify a solution that is as platform-neutral as possible, and as user-friendly as possible. Practical implications The light and platform-neutral AR prototypes discussed in this paper have the benefits of minimum cost on both the development side and the experience side. A library does not need to put any additional marker on any book to implement the AR. A user does not need to install any additional applications in his/her smartphone to experience the AR. The prototypes show a promising future where physical collections inside libraries can become more interactive and attractive by blurring the line of reality and virtuality. Social implications The paper can help initiate the discussion on applying Web-based AR technologies to library collections.

scholarly journals Depreciation of human capital: a sectoral analysis in OECD countries

2019 ◽  
Vol 40 (7) ◽  
pp. 1254-1272
Author(s):  
Valeria Lentini ◽  
Gregorio Gimenez
Keyword(s):  
Human Capital ◽  
Cognitive Skills ◽  
Structural Breaks ◽  
Educational Systems ◽  
Content Type ◽  
Sectoral Analysis ◽  
Potential Benefits ◽  
Capital Depreciation ◽  
Technological Intensity ◽  
High Skill

Purpose The purpose of this paper is to investigate which sectors are more vulnerable to human capital depreciation, with an emphasis on potential differences in skills and in ICT intensities. Design/methodology/approach The authors estimate an extended Mincerian earnings equation based on Neuman and Weiss’s (1995) model using the EU-KLEMS international database for 15 sectors for the period from 1980 to 2005. The authors also test structural ruptures in earnings and human capital depreciation in the labor market per decade controlling by technological intensity. Findings Human capital depreciation ranges from 1 to 6 percent. It is mainly significant in skill-intensive sectors regardless of the sector’s technological intensity. The analysis of structural breaks shows that human capital value indeed changed from decade to decade. It even appreciated in low skill-intensive sectors in the 1980s and in the high skill-intensive during the 1990s. Appreciation though, was mainly skill-biased. Research limitations/implications Information about on-the-job-training and non-cognitive skills that can also affect human capital depreciation are not included due to lack of data. Practical implications To prevent human capital from depreciating in particular sectors and periods educational systems should provide the tools for ongoing lifelong learning at all skills levels. Education is subject to dynamic effects that should be addressed to increase the potential benefits of technological change. Originality/value First, instead of using cross-section analysis which is considered to be a pitfall in studying the depreciation of knowledge, the authors observe its dynamic on a longitudinal basis. Second, the international macro-sectoral approach goes beyond limited micro-sectoral analysis in certain countries.

Considering online consumer reviews to predict movie box-office performance between the years 2009 and 2014 in the US

2018 ◽  
Vol 36 (6) ◽  
pp. 1010-1026 ◽  
Author(s):  
Ya-Han Hu ◽  
Wen-Ming Shiau ◽  
Sheng-Pao Shih ◽  
Cho-Ju Chen
Keyword(s):  
Support Vector ◽  
Related Factors ◽  
Content Type ◽  
Box Office ◽  
Performance Predictions ◽  
The Us ◽  
The Usa ◽  
Using Data ◽  
The One ◽  
Box Office Performance

Purpose The purpose of this paper is to combine basic movie information factors, external factors and review factors, to predict box-office performance and identify the most crucial factor of influence for box-office performance. Design/methodology/approach Five movie genres and first-week movie reviews found on IMDb were collected. The movie reviews were quantified using sentiment analysis tools SentiStrength and Stanford CoreNLP, in which quantified data were combined with basic movie information and external environment factors to predict movie box-office performance. A movie box-office performance prediction model was then developed using data mining (DM) technologies with M5 model trees (M5P), linear regression (LR) and support vector regression (SVR), after which movie box-office performance predictions were made. Findings The results of this paper showed that the inclusion of movie reviews generated more accurate prediction results. Concerning movie review-related factors, the one that exhibited the greatest effect on box-office performance was the number of movie reviews made, whereas movie review content only displayed an effect on box-office performance for specific movie genres. Research limitations/implications Because this paper collected movie data from the IMDb, the data were limited and primarily consisted of movies released in the USA; data pertaining to less popular movies or those released outside of the USA were, thus, insufficient. Practical implications This paper helps to verify whether the consideration of the features extracted from movie reviews can improve the performance of movie box-office. Originality/value Through various DM technologies, this paper shows that movie reviews enhanced the accuracy of box-office performance predictions and the content of movie reviews has an effect on box-office performance.

Re-examination of the banking window dressing theory

2015 ◽  
Vol 23 (3) ◽  
pp. 252-270 ◽  
Author(s):  
Evangelos Vasileiou
Keyword(s):  
Financial Institution ◽  
Methodological Approach ◽  
Theoretical Background ◽  
Content Type ◽  
Window Dressing ◽  
Bank Managers ◽  
Alternative Approaches ◽  
Using Data ◽  
The One ◽  
Practical Implications

Purpose – The purpose of this paper is to re-examine in detail the banking window dressing (WD) theory. Using data from the Greek banking industry during the euro period (2001-2013), the results suggest that there are signs of upward assets and deposits WD. Moreover, it tries to explain, using new-alternative approaches, the incentives for the WD and how the deposits WD occur. Design/methodology/approach – To examine why bank managers upwardly WD the deposits and which strategy increases the regular payments cost, the author uses a Granger causality procedure and confirms the theory that the aim of increased assets report causes the deposits WD. Moreover, using a GARCH(1,1) and a methodological approach that is usually used in calendar anomalies, but is more flexible than the one usually applied, enables us not only to confirm that there is a WD but also under which mechanisms it occurs. Findings – Bank managers prefer to pay increased regular payments due to the upward deposits WD to upwardly WD the bank assets, for the following reasons: they receive compensation depending on the assets’ volume, they gain prestige and most managers try to present increased bank assets and deposits to include them in the “too big to fail ” (TBTF) regime. The author also finds that managers increase the new offered bank premiums in the quarters’ end to attract more deposits, and in this way, the deposits WD occurs. Research limitations/implications – The findings of this study are limited to the Greek case, but the methodological approach may be applied to other cases to examine the WD theory and it could present a new-flexible way for WD research. Practical implications – Examining the institutional framework, the theoretical background and the results, the author may suggest that reforms, at least in the way that the regular payment to the Greek deposits insurer are paid, should be applied. In Greece, 80 per cent of the regular DIS payments are deposited in the same financial institution. This reduction of the ratio significantly increase the deposits WD cost. Originality/value – The contribution of this paper is to re-examine the WD theory and to suggest new and more flexible methodological approaches. Moreover, this is the first study that examines the WD for the Greek case.

Religion, human capital and growth

2015 ◽  
Vol 43 (1) ◽  
pp. 39-50
Author(s):  
Giuseppina Autiero ◽  
Concetto Paolo Paulo Vinci
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Design Methodology ◽  
Physical Capital ◽  
Religious Activities ◽  
Historical Evidence ◽  
Content Type ◽  
The Government ◽  
The One ◽  
Progressive Force

Purpose – The purpose of this paper is to examine how rulers by supporting religion influence the growth of human capital and physical capital. Design/methodology/approach – The authors consider a model where the government, on the one hand, sets the output quota transferred to religious activities and workers and entrepreneurs, on the other, choose human and physical capital, which are complementary. The findings of the model are used to interpret some historical evidence. Findings – When a religious denomination puts a strong emphasis on children’s education, the rulers who back religion, may encourage the diffusion of education among the followers of that denomination. Conversely secular rulers may face a religion that they consider a force opposing modernization and may develop a secular system promoting the diffusion of education. In both cases, the diffusion of education triggers the increase in physical capital and economic growth. Originality/value – The contribution of the paper is to show how religion may be either a progressive force and promote education by contributing to economic growth or present a conservative dimension opposing the diffusion and rise of human capital.

Knowledge Obsolescence and Women’s Occupational Sorting: New Evidence from Citation Data

2019 ◽  
Vol 20 (1) ◽  
Author(s):  
Amanda McFarland ◽  
Sarah Pearlman
Keyword(s):  
Human Capital ◽  
Wage Gap ◽  
Citation Data ◽  
College Majors ◽  
Undergraduate Level ◽  
Capital Depreciation ◽  
Female Presence ◽  
Using Data ◽  
Occupational Sorting ◽  
New Evidence

Abstract Occupational sorting now is one of the main drivers of the gender wage gap. Differential rates of human capital depreciation, or knowledge obsolescence, have been put forward as one potential explanation. This paper provides new evidence on this relationship using a dataset on academic citations constructed by the authors. The dataset covers numerous fields and decades, making it a more recent and comprehensive measure of human capital depreciation. Using data on occupations from the ACS we find that higher rates of knowledge obsolescence are associated with reductions in women’s presence in a field. We also find that knowledge obsolescence reduces female presence in college majors at the undergraduate level.

Human capital development for SMEs in Pakistan: is the “one-size-fits-all” policy adequate?

2016 ◽  
Vol 43 (8) ◽  
pp. 804-822 ◽  
Author(s):  
Muhammad Shujaat Mubarik ◽  
Chandran Govindaraju ◽  
Evelyn S. Devadason
Keyword(s):  
Human Capital ◽  
Analysis Of Variance ◽  
Firm Size ◽  
Supporting Evidence ◽  
Human Capital Development ◽  
Data Set ◽  
Content Type ◽  
The Government ◽  
The One ◽  
Capital Development

Purpose – Pakistan adopted “one-size-fits-all” policy for human capital (HC) development with the assumption that the level of HC is equal across industry and firm size. The purpose of this paper is to test this major assumption on which this policy is based, by comparing the differences in the levels of HC, overall and by dimensions of HC, by industry and firm size. Design/methodology/approach – The study is based on new data set of a sample of 750 manufacturing SME firms in Pakistan, compiled through a survey. Applying the independent sample t-test, one way analysis of variance and multivariate analysis of variance, the hypotheses of differences in levels of overall and dimensions of HC were tested. Findings – The results indicate significant differences in the levels of HC by industry and firm size. The levels of HC were found to be higher in textiles, food, metal and leather industries, and for medium-sized firms. Practical implications – The findings provide supporting evidence on the inadequacy of the current human capital development (HCD) policy in Pakistan. The study therefore recommends customized HCD policies, accounting for differences across industry and firm size. Originality/value – By taking the data on nine major dimensions of HC from 750 manufacturing sector SMEs, the study tests the level of overall HC and its nine dimensions by industry and size. The study also challenges the “one-size-fits-all” policy of the government of Pakistan for developing HC in SMEs.

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