Risk, the College Premium, and Aggregate Human Capital Investment

2021 ◽  
Vol 13 (2) ◽  
pp. 168-213
Author(s):  
Kartik Athreya ◽  
Janice Eberly
Keyword(s):  
Human Capital ◽  
Graduate Students ◽  
College Readiness ◽  
Capital Investment ◽  
College Education ◽  
College Attainment ◽  
Biased Technological Change ◽  
Quantitative Results ◽  
The Impact ◽  
College Premium

Despite increases in the college earnings premium to persistently high levels, investment in college education remains low. We can understand this apparent puzzle by considering the risk of attending college and, in particular, the possibility of failing to graduate. Students with a reasonable probability of completing college already enroll, and for those who do not enroll, the low chance of completion blunts the impact of the rising college premium. In the absence of improved college readiness, our quantitative results suggest that continuing long-standing trends in skill-biased technological change can be expected primarily to increase earnings inequality rather than college attainment. (JEL E24, I22, I23, J24, J31, O33)

scholarly journals Competitive Advantage Based on Human Capital and its Impact on Organizational Sustainability: Applied Study in Jordanian Telecommunications Sector

2017 ◽  
Vol 7 (1) ◽  
pp. 64 ◽  
Author(s):  
Abdul Azeez Badir Alnidawi ◽  
Abdul Sattar Husien Alshemery ◽  
Manal Abdulrahman
Keyword(s):  
Human Capital ◽  
Competitive Advantage ◽  
Capital Investment ◽  
Organizational Sustainability ◽  
Business Organizations ◽  
Continuous Change ◽  
Business World ◽  
The Creation ◽  
The Impact ◽  
Telecommunications Companies

The current situation facing business organizations is characterized by diverse work environments with continuous change and development. Todays organizations seek to keep pace with this continuous development and operate to maintain their current business through the ability to effectively respond to change, and to create competitive advantage based on the existence of qualified human capital that contribute to the creation of organizational sustainability in the business sector. Talented human capital, with special skills, has the potential to create confidence and integration among the staff and top management, leading to organizational growth and continuation (Kurucz, 2013). The emergence of a set of challenges in the knowledge economy has had a clear reflection on business organizations which have begun to search for new mechanisms to compete and insure their existence in the business world. Hence, the importance of the concept of competitive advantage, based on human capital, as a necessary requirement to deal with the challenges faced by local, regional or international organizations (Global Institute, 2011). Where competitive advantage based on human capital is the main generator of new ideas, development of old ideas, and contribution to aid in organizational abilities to expand their current market share as well as maximizing value. Competitive advantage based on talented human capital allows organizations to be able to seize new opportunities and achieve permanence and future continuity (Thomas, 2014). This study aimed to look at the impact of competitive advantage through intellectual capital investment as one of the elements in the creation of organizational sustainability in the Jordanian Telecommunications Companies sector. Simple and Multiple regression was used for data analysis and testing the hypotheses of this research .This study has reached a set of results that previous studies reinforced in this area such as: Competitive advantage based on a distinct capital is the optimum method that should be used in telecommunications companies since it contributes to the optimal investment of human capital. This leads to optimum organizational sustainability for companies in various fields and also contributes to the achievement of a company’s mission and vision of the future. 

scholarly journals The Impact of Investment in Human Capital on the Exports of Goods and Services

2021 ◽  
Vol 2 (2) ◽  
pp. 161-192
Author(s):  
Samina Siddique ◽  
Zafar Mahmood ◽  
Shabana Noureen
Keyword(s):  
Human Capital ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Developed Countries ◽  
Business Environment ◽  
Least Square ◽  
Goods And Services ◽  
Foreign Countries ◽  
The Impact

With the growth of services economy worldwide, it has become essential for policymakers to comprehend the export competitiveness of nations to identify offshore export locations or alternatively offer their own sites as an exporting location. Human capital investment is considered as a key component in attracting foreign countries for outsourcing purposes. Earlier studies have shown mixed role of human capital investment on off shoring activities. This study assesses the effects of control variables (business environment, wages and IT infrastructure) and human capital investment on export of goods and services from the selected Asian outsourcing countries. Panel Estimated Generalized Least Square (EGLS) technique is used with country weights to specifically overcome the problem of autocorrelation. Empirical findings show that investment in human capital is significant for both goods and services exports. We found a large impact of human capital investment on exports of goods and services in selected Asian countries as compared to selected developed countries. Empirical findings further suggest that human capital is more essential for export of goods than export of services. From these findings, the study draws important implications for policymaking in countries who intend to offer themselves as an attractive location for exporting and for those who intend to locate their production activities overseas.

scholarly journals Menelusuri Kembali Peran Investasi Modal Manusia dan Modal Fisik Dalam Meningkatkan Pertumbuhan Produktivitas

2019 ◽  
Vol 8 (3) ◽  
pp. 216
Author(s):  
Hendarmin Hendarmin
Keyword(s):  
Human Capital ◽  
Panel Data ◽  
Capital Investment ◽  
Average Length ◽  
Random Effect ◽  
Participation Rate ◽  
Physical Capital ◽  
Economic Productivity ◽  
West Kalimantan ◽  
The Impact

The purpose of this study is to examine the impact of human capital on the level of economic productivity of regencies/cities in West Kalimantan Province. The data used in this study are panel data from 14 West Kalimantan Province/City Districts during the period 2012-2017 whose research results were analyzed using the Random Effect approach panel data regression analysis. The results of the study explained that the role of hum an capital as measured by the level of education, namely the average length of school (RLS), High School Participation Rate, and health level namely life expectancy (AHH) had a non-significant effect on economic productivity. Whereas physical capital investment (PMTB) has a significant influence on the level of economic productivity. The results of the analysis also show that for the human capital variable it has a smaller magnitude compared to the physical capital investment variable. Based on these results, it is concluded that the impact of human capital is very important in increasing economic productivity in the Regency/City of West Kalimantan Province.

scholarly journals Corruption, Public Expenditure and Human Capital Accumulation

2016 ◽  
Vol 8 (1) ◽  
pp. 17-45
Author(s):  
Spyridon Boikos
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Public Expenditure ◽  
Parametric Method ◽  
Physical Capital ◽  
Human Capital Accumulation ◽  
Linear Effect ◽  
The Public ◽  
The Impact

This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.

Owners and employees wages: a question of rent appropriability

2015 ◽  
Vol 53 (2) ◽  
pp. 250-267 ◽  
Author(s):  
Nieves L. L. Díaz-Díaz ◽  
Petra De Saá-Pérez
Keyword(s):  
Human Capital ◽  
Ownership Structure ◽  
Economic Performance ◽  
Capital Investment ◽  
Dynamic Models ◽  
Negative Influence ◽  
State Ownership ◽  
Business Strategies ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to studuy how the owner identity affects the investment in human capital, measured by wage intensity, as well as the moderating effect of firm’s performance. Design/methodology/approach – A balanced panel of 1,266 Spanish firms that respond to the Survey of Business Strategies for a five-years period was used, which represents a total of 6,330 observations. The dynamic models are estimated using the general method of moments. Findings – The state ownership has a positive and significant effect on specific wage intensity. However, when ownership is in private hands – foreign shareholders, other companies-, the effect is significant but negative. In firms with state ownership, greater economic performance has a negative influence on human capital investment. The results also reveal that while privately owned firms – those with foreign shareholders – tend to invest less in human capital, that tendency diminishes when the firm obtains higher economic performance. Practical implications – Different owners may have different objectives and decision-making horizons, which affect the firm’s investment on human capital. The results obtained regarding the owner identity-wage intensity relationship may serve as a reference for the non-listed firms of continental Europe. The influence of ownership structure on the firm’s decision to invest in human capital is conditioned by the firm’s economic performance. Originality/value – The paper reveals the importance of considering each of the firm’s owners, since their influence on wage intensity differs according to the identity of the owner. There are little empirical papers which analyze the impact of ownership structure on wage intensity, depending on the identity of firm’s owners in a civil context. Moreover, a dynamic panel model is needed due to the firm’s wage intensity does not adjust immediately as their wages are often referring to the previous year rather than being fully negotiated. This paper can be considered a step forward in understanding owner identity characteristics in Spanish-European context.

scholarly journals Human Capital Investment And Training In Islamic Banking Industry In Jordan Jordan Islamic Bank for Finance and Investment

2016 ◽  
Vol 12 (10) ◽  
pp. 90
Author(s):  
Ziad Mohammad Obeidat
Keyword(s):  
Human Capital ◽  
Financial Services ◽  
Capital Investment ◽  
Islamic Finance ◽  
Financial Industry ◽  
Muslim Countries ◽  
Strong Focus ◽  
Wide Range ◽  
Capital Development ◽  
The Impact

The purpose of this study is to measure the impact of investment in human resources activities on the effectiveness of investment in human capital and investigated the relationship between human capital Investmenttraining and its effectiveness in Islamic banks in Jordan. The fascinating development and point of discussion in recent years is the rapid growth and expansion of the Islamic financial services industry. It is no longer rhetoric as Islamic finance has been accepted as viable and competitive mode of financial intermediation that offers wide range of financial products and services to meet the highly differentiated demands of the new economy; not only in Muslim countries but also beyond the Muslim world. Against these rapid revolution of Islamic financial industry globally and in Jordan particularly, human capital has become the defining factor in sustaining the performance and competitiveness of Islamic financial industry. Thus it is crucial to place strong focus on human capital development in embarking Islamic financial services encompassing the basic foundation namely; education. A prerequisite requirement for highly talented and skilled labor force is essential to maximize the opportunities presented by the evolving economic environment in the future. The objective of this study is to determine the issues faced by practitioners that initiate the need to undertake training and development courses as well as to identify the type of training required by current practitioners that affect performance. The main findings of the study can be more comprehensive and representative if more respondents from several banks that practices Islamic finance can be involved in validating the issue that is realizable for future study.

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