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.

Cognitive abilities and income: preliminary evidence from a developing country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raufhon Salahodjaev ◽  
Ziyodakhon Malikova
Keyword(s):  
Human Capital ◽  
World Bank ◽  
Cognitive Abilities ◽  
Cognitive Skills ◽  
Preliminary Evidence ◽  
Standard Deviation Increase ◽  
Content Type ◽  
The World Bank ◽  
Unconditional Model ◽  
The World

Purpose Related literature finds that human capital proxied by cognitive abilities is an important antecedent of numerous specific life outcomes. The purpose of this study is to extend existing evidence by investigating the link between cognitive skills and income in Tajikistan. Tajikistan is a landlocked low-income country situated in Central Asia. Its population is 9.1 million people and gross domestic product per capita of US$822. According to the World Bank, Tajikistan has made significant progress in decreasing poverty levels from 83% in 2000 to 29.5% in 2017. Design/methodology/approach The data for this study comes from the 2013 Jobs, Skills and Migration Survey conducted by the World Bank and the German Society for International Cooperation. The main explanatory variable of the study is the cognitive abilities index of the respondents. The survey used item response theory (IRT) approach to estimate the ability of respondents. IRT is a method or a set of statistical frameworks, used to explore assessment item data, such as cognitive abilities assessment data. The wage function was estimated using the ordinary least squares method because the results are easier to interpret (Jencks, 1979; Bowles et al., 2001; Groves, 2006). Findings The baseline results are reported in Table 2. The results in Column 1 demonstrated the link between cognitive abilities and income without control variables (unconditional model). As expected, cognitive abilities are positively and significantly related to income (a1 = 0.0715, p < 0.01). The results from the unconditional model suggest that one standard deviation increase in cognitive abilities is associated with a nearly 17% increase in income. Research limitations/implications However, the study has a number of limitations. First, the dependent variable measures the overall income of the respondent, which includes the profit from other businesses. The survey does not provide data on monthly wages of respondents. Second, the sample may not perfectly represent the overall population of Tajikistan. To partially resolve this issue, this paper re-estimated out results for various sub-samples. Another important limitation of this study is the lack of respondent’s family background, which is an important correlate of human capital and income. Practical implications The results in the study offer preliminary evidence on the link between cognitive abilities and income in Tajikistan. However, the results of the study also suggest that both measures of human capital are positively related to income. Therefore, policymakers in Tajikistan should invest greater resources to health care, education and training programs as cognitive skills can be built in particular in the early stages of the life cycle. Indeed, Tajikistan has a significant potential for economic growth model driven by human capital. According to the World Bank, the adult literacy rate in Tajikistan is 100%, which is significantly above of what is observed in other developing countries. This may imply that the human potential in this country is considerable, and further investment in soft and hard skills would have a positive impact on economic growth. Originality/value This paper offers new evidence on the link between cognitive abilities and income, using data from Tajikistan. First, this paper finds that cognitive abilities are positively and significantly correlated with income. Second, this paper finds that this link remains robust even when this paper control for a large set of personal and job-related characteristics. The results from the unconditional model suggest that one standard deviation increase in cognitive abilities is associated with nearly a 17% increase in income.

Developing human capital 4.0 in emerging economies: an industry 4.0 perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rohit Kumar Singh ◽  
Soni Agrawal ◽  
Sachin Modgil
Keyword(s):  
Human Capital ◽  
Emerging Economies ◽  
Cognitive Skills ◽  
Industry 4.0 ◽  
Competitive Advantages ◽  
Content Type ◽  
Qualitative Survey ◽  
The Right ◽  
Key Resources ◽  
Relationship Of

PurposeThe present study is an attempt of identifying the human capital skills and HR-related challenges faced by top management in the perspective of industry 4.0 in emerging economies. In addition, the importance or key resources related to human assets that help in attaining competitive advantages while adopting newer digital technologies are also identified.Design/methodology/approachFor identifying the dimensions of human capital skills in the perspective of industry 4.0, an extensive review of literature was performed. Along with that, feedback from the expert was used to conceptualize the importance and relationship of the skills in the context of industry 4.0. After that, a qualitative survey was launched and triangulate method was applied for identifying the skills. AHP and DEMATEL was used to analyze the relationship among the skills and subskills and to rank them based on their importance.FindingsThe qualitative survey resulted in skills such as “Cognitive, Emotional and Behavioural skills” and subskills of them. AHP results indicated that “Cognitive skills” was found as the most important skill followed by “Emotional skills” and “Behavioural skills”. In addition to this, DEMATEL was applied for seeking the inter-relationship and identifying the “Cause” and “Effect” relationship of skills and sub-skills.Originality/valueThis study prioritizes factors in a coordinated manner and also finds the relative importance in the context of industry 4.0. It will help further in identifying and deploying human capital with the right skills and will play a significant role at the time of formulating organizational and HR level strategies.

Immigrant–native wage gap in Europe: the role of cognitive skills and their use at work

2019 ◽  
Vol 40 (1) ◽  
pp. 154-175 ◽  
Author(s):  
Maryna Tverdostup ◽  
Tiiu Paas
Keyword(s):  
Human Capital ◽  
Cognitive Skills ◽  
Wage Rate ◽  
Gap Analysis ◽  
Wage Gap ◽  
Multivariate Regression Analysis ◽  
Wage Penalty ◽  
Content Type ◽  
Final Population

Purpose The purpose of this paper is to address the role of cognitive skills and extent of skill use at work in explaining the immigrant–native wage gap in Europe. The study targets immigrant–native disparities in literacy and numeracy cognitive skills, as important, yet not exhaustive factor behind immigrants’ wage penalty. Design/methodology/approach The research relies on the Program of International Assessment of Adult Competencies data for 15 European countries. The empirical analysis employs multivariate regression analysis and incorporates the full set of plausible values for each skill domain, to correctly measure cognitive skills. To estimate standard errors, the authors employ Jackknife replication methodology with 80 replication weights and final population weight. Findings The authors document that, on average, immigrants achieve substantially worse scores in literacy and numeracy test domains. Only highly educated immigrants tend to improve their skills over time in host countries. The results of wage gap analysis indicate that having cognitive skills, demographic profile and occupation category comparable to natives does not yield comparable wage rate. The remaining wage gap results from the systematic differences in skills application at work, as immigrants use their skills to lower extent, relative to natives. Originality/value The research employs a novel measure of productive human capital, which accounts for cognitive skills in literacy and numeracy domains, and frequencies of skill use at work. It allows to more precisely evaluate the immigrant–native disparity in human capital application and its reflection on the wage rate.

scholarly journals Retirement in a global labour market: a call for abolishing the fixed retirement age

2014 ◽  
Vol 43 (3) ◽  
pp. 464-482 ◽  
Author(s):  
Yehuda Baruch ◽  
Susan Sayce ◽  
Andros Gregoriou
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Older Workers ◽  
Financial Analysis ◽  
Current System ◽  
National Level ◽  
Retirement Age ◽  
Content Type ◽  
Potential Benefits ◽  
The Uk

Purpose – The purpose of this paper is to explore potential benefits and possible pitfalls of the removal of the default retirement age. Design/methodology/approach – A human capital and labour market perspective provide theoretical lenses for exploring the potential implications for individuals, organizations and societies. The paper employs financial costing analysis to demonstrate. Findings – The paper uses the UK case to illustrate anticipated managerial and societal outcomes. The main finding from the discussion and the financial analysis is that indeed the current system is unsustainable. Originality/value – The paper offers areas where lessons about age management can be learnt from other experiences of flexible retirement strategies such as enhancing older workers ' human capital. The idea is of global nature and relevance and forms a “wake-up call” for decision makers at national level.

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 Examining GDP Growth and Its Volatility: An Episodic Approach

Entropy ◽  
2021 ◽  
Vol 23 (7) ◽  
pp. 890
Author(s):  
Jakub Bartak ◽  
Łukasz Jabłoński ◽  
Agnieszka Jastrzębska
Keyword(s):  
Economic Growth ◽  
Genetic Algorithm ◽  
Time Series ◽  
Human Capital ◽  
Growth Rates ◽  
Structural Breaks ◽  
Negative Relationship ◽  
Gdp Per Capita ◽  
Gdp Growth ◽  
Per Capita

In this paper, we study economic growth and its volatility from an episodic perspective. We first demonstrate the ability of the genetic algorithm to detect shifts in the volatility and levels of a given time series. Having shown that it works well, we then use it to detect structural breaks that segment the GDP per capita time series into episodes characterized by different means and volatility of growth rates. We further investigate whether a volatile economy is likely to grow more slowly and analyze the determinants of high/low growth with high/low volatility patterns. The main results indicate a negative relationship between volatility and growth. Moreover, the results suggest that international trade simultaneously promotes growth and increases volatility, human capital promotes growth and stability, and financial development reduces volatility and negatively correlates with growth.

Gender Differences in Earnings Rewards to Personality Traits in Wage-employment and Self-employment Labour Markets

2021 ◽  
Vol 46 (2) ◽  
pp. 204-228
Author(s):  
Ibrahim Mohammed ◽  
Priscilla Twumasi Baffour ◽  
Wassiuw Abdul Rahaman
Keyword(s):  
Gender Differences ◽  
Human Capital ◽  
Personality Traits ◽  
Big Five ◽  
Cognitive Skills ◽  
Big Five Personality Traits ◽  
Big Five Personality ◽  
Self Employment ◽  
Wage Employment ◽  
Wage Equations

In an extensive review of wage determination papers, it is concluded that the standard demographic and human capital factors explain little of earning differentials. Consequently, there is a growing interest among economists to include non-cognitive skills measured by personality traits in recent empirical literature to explain variations in earnings. In a bid to contribute empirical evidence to this strand of literature, this study examines the associations between the Big-Five personality traits (i.e., agreeableness, conscientiousness, openness, extraversion and neuroticism) and earnings, using the World Bank’s Skills towards Employment and Productivity (STEP) data on Ghana. The study employed regression techniques to estimate a series of semi-logarithmic wage equations that include demographic and human capital factors and the Big-Five personality traits to determine how important these factors are in explaining wage and self-employment earnings. Furthermore, the estimations of the wage equations are done separately for males and females to highlight any gender differences in the way personality traits contribute to earnings. Findings are largely consistent with the literature but uniquely demonstrate that in a power-distant culture like Ghana, where, traditionally, girl-child education has been relegated to the background, agreeable females, and not males, are rewarded in the formal wage employment labour market. However, in the informal self-employment labour market, conscientious males, and not females, are positively rewarded with higher earnings. These unique findings contribute to our understanding of the gender differences in the relative importance of non-cognitive skills in the formal and informal labour markets. JEL Codes: J31, J24

Immersive Learning Environments at Scale: Constraints and Opportunities

2020 ◽  
Vol 64 (1) ◽  
pp. 1165-1169
Author(s):  
Robert F. Siegle ◽  
Rod D. Roscoe ◽  
Noah L. Schroeder ◽  
Scotty D. Craig
Keyword(s):  
Online Education ◽  
Learning Environments ◽  
Online Courses ◽  
Learning Opportunities ◽  
Traditional Classroom ◽  
Educational Systems ◽  
Virtual Reality Technology ◽  
Immersive Learning ◽  
Potential Benefits ◽  
Theoretical Paper

The expansion of online education into massive open online courses (MOOCs) and equipment have created a unique opportunity for delivering immersive learning experiences at scale. However, although the inclusivity of the MOOC ecosystem can be commended, many online courses lack key benefits associated with traditional classroom environments: immersive, engaging, and team-driven learning opportunities. Immersive learning environments (ILEs) address these educational gaps but has not been able to operate at the broad scale that MOOCs offer. Importantly, ILEs address opportunities missing from MOOC systems, they add unique learning opportunities that would also be missing in a traditional classroom. The inclusion of this virtual reality technology is pivotal topic for educational research. This theoretical paper will briefly define immersive learning environments and the potential benefits of incorporating immersive learning environments into scalable educational systems. We will also consider developers constraints on creating these online ecosystem and suggested strategies for overcoming them.

scholarly journals Rough diamonds in emerging markets: legacy, competitiveness, and sustained high performance

2019 ◽  
Vol 26 (3) ◽  
pp. 363-386
Author(s):  
Seung Ho Park ◽  
Gerardo R. Ungson
Keyword(s):  
Human Capital ◽  
Emerging Markets ◽  
High Performance ◽  
Core Competencies ◽  
Market Potential ◽  
Government Support ◽  
Screening Tests ◽  
Institutional Voids ◽  
Content Type ◽  
Over Time

Purpose The purpose of this paper is to uncover the underlying drivers of sustained high performing companies based on a field study of 127 companies in Brazilian, Russian, Indian and Chinese (BRIC) and Association of Southeast Asian Nations (ASEAN) emerging markets. Understanding these companies provides a complementary way of appraising the growth, development and transformation of emerging markets. The authors synthesize the findings in an overarching framework that covers six strategies for building and sustaining legacy that leads to the succession of intergenerational wealth over time: overcoming institutional voids, inclusive markets, deepening localization, nurturing government support, building core competencies and harnessing human capital. The authors relate these strategies to different levels of development using Prahalad and Hart’s BOP framework. Design/methodology/approach This study examines the underlying drivers of sustained high-performance companies based on field studies from an initial set of 105,260 BRIC companies and close to 500 companies in ASEAN. The methods employed four screening tests to arrive at a selection of the highest-performing firms: 70 firms in the BRIC nations and 58 firms from ASEAN. Following the selection, the authors constructed cases using primary interviews and secondary data, with the assistance of Ernst & Young and with academic colleagues in Manila. These studies were originally conducted in two separate time periods and reported accordingly. This paper synthesizes the findings of these two studies to arrive at an extended integrative framework. Findings From the cases, the authors examine six strategies for building and sustaining legacy that lead to high performance over time: overcoming institutional voids, creating inclusive markets, deepening localization, nurturing government support, building core competencies and harnessing human capital. To address the evolving state of institutional voids in these countries, the authors employ similar methods to hypothesize the placement of these strategies in the context of the world economic pyramid, initially formulated as the “bottom of the pyramid” framework. Originality/value This paper synthesizes and extends the authors’ previous works by proposing the concept of legacy to describe the emergence and succession of local exemplary firms in emerging markets. This study aims to complement extant measures of nation-growth based primarily on GDP. The paper also extends the literature on institutional voids in shifting the focus from the mix of voids to their evolving state. Altogether, the paper provides a complementary narrative on assessing the market potential of emerging markets by adopting several categories of performance.

Impact of marine industrial structure on environmental efficiency

2020 ◽  
Vol 31 (1) ◽  
pp. 111-129 ◽  
Author(s):  
Shuhong Wang ◽  
Lu Xing ◽  
Hanxue Chen
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Ownership Structure ◽  
Industrial Structure ◽  
Environmental Efficiency ◽  
Content Type ◽  
Development Level ◽  
Marine Economy ◽  
Marine Environmental ◽  
Land Economic

Purpose Recently, China has been paying increasing attention to how to improve the efficiency of the marine environment and realize a green and sustainable development of the marine economy. Consequently, the industrial structure is crucial to improving efficiency. The purpose of this paper is to introduce environmental factors into the efficiency analysis framework and explore the relationship between marine industrial structure and marine environmental efficiency. Design/methodology/approach This paper uses marine economic data under the DEA-BBC model to measure the marine environmental efficiency of provinces and cities and classifies them by cluster analysis. Then, the marine industrial structure and marine environmental efficiency are studied by an econometric model with human capital, ownership structure, land economic development level, scientific research input and government intervention degree as control variables. Findings The overall level of marine environmental efficiency is relatively low in China, increasing and then decreasing over the research period. The rationalization of industrial structure and scientific research input have significant promoting effects on marine environmental efficiency, while the degree of government intervention has a significant inhibiting effect. The positive effect of human capital on efficiency depends on whether it can be successfully converted into productivity. The effects of industrial structure advancement, ownership structure and land economic development level of on the marine environmental efficiency are mixed. Originality/value The results provide a theoretical and decision-making basis for China to transform and upgrade its marine industrial structure and sustainably develop the marine economy.

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