Estimation of the human capital depreciation rate: an international comparison and policy implications in South Korea

2021 ◽  
pp. 213-257
Author(s):  
Ga Woon Ban
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Empirical Support ◽  
Policy Implications ◽  
Policy Interventions ◽  
National Differences ◽  
Skills Retention ◽  
The Social ◽  
Capital Depreciation ◽  
World Point

This chapter emphasizes skills retention instead of human capital accumulation, which is prominently featured in the social investment literature. The chapter discovers strong empirical support for the so-called use-it-or-lose-it hypothesis, which is that utilising people's skills at work is critical to retaining human capital. Considerable cross-national differences in human capital depreciation across the Organisation for Economic Co-operation and Development (OECD) world point to workplaces as the key site, as differences in workplace organisation may shape differences in how skills are used and, accordingly, differences in human capital depreciation. Considering the differences in skills depreciation, the chapter calls for tailored policy interventions rather than a one-size-fits-all approach. It argues that countries should take different approaches to preserving human capital, depending on their unique patterns of human capital use and depreciation.

scholarly journals Entry Class and the Early Employment Experience of Immigrants in Canada

2009 ◽  
Vol 36 (3-4) ◽  
pp. 363 ◽  
Author(s):  
Kelli Phythian ◽  
David Walters ◽  
Paul Anisef
Keyword(s):  
Social Networks ◽  
Human Capital ◽  
Economic Performance ◽  
Employment Status ◽  
Longitudinal Survey ◽  
Economic Outcomes ◽  
Policy Implications ◽  
Skilled Workers ◽  
Immigrants And Refugees ◽  
The Social

Despite its policy importance, research related to the economic performance of immigrants by entry class is sorely lacking. It is generally presumed that immigrants selected on the basis of human capital will have better economic outcomes than unscreened immigrants; however, there is speculation that the social networks of family immigrants provide access to employment resources not available to others. Both arguments have merit, yet there is little research to support either claim. This study utilizes data from the Longitudinal Survey of Immigrants to Canada to investigate the association between entry class and employment status of immigrants six months after arrival. Findings reveal little difference between skilled workers and family immigrants, while business immigrants and refugees are much less likely to be employed. Policy implications are discussed.

scholarly journals Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake

2018 ◽  
Vol 10 (12) ◽  
pp. 4409 ◽  
Author(s):  
Renjie Zhao ◽  
Shihu Zhong ◽  
Aiping He
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Wenchuan Earthquake ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Policy Implications ◽  
Economic Recovery ◽  
Obvious Effect ◽  
2008 Wenchuan Earthquake ◽  
The Government

How disasters have affected economic growth has often been a subject for economic debate, and empirical studies of the experience in China are clearly inadequate. Using the panel data from 181 county-level cities in Sichuan province from 2003 to 2013, this paper investigates the direct and dynamic effects of the Wenchuan earthquake disaster on economic growth, as well as how national rescue affected postdisaster economic recovery. The econometric results show that earthquakes significantly reduce real GDP in the affected areas after controlling for the national rescue variables, and this negative effect exists in the affected area over a long time. In addition, our empirical findings suggest that the postdisaster national rescue can promote economic recovery in the affected areas by increasing government expenditure, improving traffic conditions, and enhancing the urbanization process and the level of industrialization. Besides, state financial aid has no obvious effect on the development of tertiary industries and the accumulation of human capital in affected areas. These results were found to be robust after applying several approaches to alleviate the potential endogeneity problem. Findings in this study carry several important policy implications. As well as providing national rescue to promote postdisaster reconstruction, the government should also develop policies that will provide direct aid funding to tertiary industries and boost postdisaster economic reconstruction and human capital accumulation, thus improving the efficiency of relief funding and reducing the long-term adverse effects of the disaster on economic growth.

scholarly journals Accents of the development of the macro-regional space of Russia: social infrastructure

2019 ◽  
Vol 12 (3) ◽  
pp. 367-376
Author(s):  
S. V. Makar ◽  
P. V. Stroev ◽  
D. E. Morkovkin
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Russian Far East ◽  
Far East ◽  
National Development ◽  
Spatial Development ◽  
Human Potential ◽  
Social Infrastructure ◽  
The Social ◽  
National Perspective

The modern accents in domestic and foreign studies of social infrastructure are highlighted. The trends of changes in the content of the concept of «social infrastructure» in the Russian realities are considered. The necessity of theoretical and practical approach to the current transformation of the concept of «social infrastructure» in the context of the national spatial development and global postindustrial trend, analysis of the saturation of macro-regional space components of social infrastructure, refinement of their parameters is justified. The urgency of the considered problems is determined by the necessity of saturation and consolidation of the regional/macroregional space of the Russian Federation. The social infrastructure is considered from the standpoint of the spatial development of Russiaas a component of the configuration (filling and compaction) of the space.The purpose of the article is to identify the relevant attributes of modern social infrastructure from the national perspective of human potential and human capital accumulation, to determine the indicators and parameters of the social infrastructure of the priority macro-region.It is proposed to include in the concept of social infrastructure functionally important and relevant for the modern stage of national development in the postindustrial period components such as the preservation of human potential and the accumulation of human capital with an emphasis on consistency. The author’s classification of social infrastructure by functional biosocio-humanitarian criterion is proposed. The author’s algorithm of complementarity is formed: the indicators of each function correspond to specific statistical indicators. This approach is appropriate for use in order to manage the development (saturation) of the regional (macroregional) space, especially in the Russian Far East.

scholarly journals Multidimensional Skill Mismatch

2020 ◽  
Vol 12 (1) ◽  
pp. 210-244 ◽  
Author(s):  
Fatih Guvenen ◽  
Burhan Kuruscu ◽  
Satoshi Tanaka ◽  
David Wiczer
Keyword(s):  
Human Capital ◽  
Skill Acquisition ◽  
Capital Accumulation ◽  
Occupational Choice ◽  
Bayesian Learning ◽  
Empirical Support ◽  
Switching Behavior ◽  
Empirical Measure ◽  
Human Capital Accumulation ◽  
Skill Mismatch

What determines the earnings of a worker relative to his peers in the same occupation? What makes a worker fail in one occupation but succeed in another? More broadly, what are the factors that determine the productivity of a worker-occupation match? To help answer questions like these, we propose an empirical measure of multidimensional skill mismatch that is based on the discrepancy between the portfolio of skills required by an occupation and the portfolio of abilities possessed by a worker for learning those skills. This measure arises naturally in a dynamic model of occupational choice and human capital accumulation with multidimensional skills and Bayesian learning about one’s ability to learn skills. Not only does mismatch depress wage growth in the current occupation, it also leaves a scarring effect—by stunting skill acquisition—that reduces wages in future occupations. Mismatch also predicts different aspects of occupational switching behavior. We construct the empirical analog of our skill mismatch measure from readily available US panel data on individuals and occupations and find empirical support for these implications. The magnitudes of these effects are large: moving from the worst- to best-matched decile can improve wages by 11 percent per year for the rest of one’s career. (JEL E24, J24, J31, J41)

Optimal Unemployment Insurance with Endogenous Negative Duration Dependence

2016 ◽  
Vol 45 (3) ◽  
pp. 395-422 ◽  
Author(s):  
Brandon Lehr
Keyword(s):  
Human Capital ◽  
Unemployment Insurance ◽  
Firm Behavior ◽  
Correction Term ◽  
Social Optimum ◽  
Duration Dependence ◽  
Insurance Benefit ◽  
The Social ◽  
Capital Depreciation ◽  
The Unemployed

This article characterizes optimal unemployment insurance (UI) in an economy with endogenous negative duration dependence in hiring rates for the unemployed. The characterization generalizes the standard Baily–Chetty result and is independent of the particular mechanism generating endogenous hiring rates. I find that at the social optimum, UI equates the moral hazard cost with the sum of the insurance benefit and a new externality correction term. The sign of this externality correction term depends, in part, on the responsiveness of hiring rates to the UI benefit. I show how the effect of UI on hiring rates in turn depends on the particular assumptions about firm behavior, considering the cases of employer screening and human capital depreciation models.

scholarly journals Bayesian Model-Based Approach: Impact on Science and Policy

2021 ◽  
pp. 155-174
Author(s):  
Jakub Bijak ◽  
Martin Hinsch ◽  
Sarah Nurse ◽  
Toby Prike ◽  
Oliver Reinhardt
Keyword(s):  
Bayesian Model ◽  
Policy Implications ◽  
Policy And Practice ◽  
Science And Policy ◽  
Model Based ◽  
Policy Interventions ◽  
Trade Offs ◽  
The Social ◽  
Limits Of Knowledge ◽  
The Impact

AbstractIn this chapter, we summarise the scientific and policy implications of the Bayesian model-based approach, starting from an evaluation of its possible advantages, limitations, and potential to influence further scientific developments, policy and practice. We focus here specifically on the role of limits of knowledge and reducible (epistemic), as well as irreducible (aleatory) uncertainty. To that end, we also reflect on the scientific risk-benefit trade-offs of applying the proposed approaches. We discuss the usefulness of proposed methods for policy, exploring a variety of uses, from scenario analysis, to foresight studies, stress testing and early warnings, as well as contingency planning, illustrated with examples generated by the Risk and Rumours models presented earlier in this book. We conclude the chapter by providing several practical recommendations for the potential users of our approach, including a blueprint for producing and assessing the impact of policy interventions in various parts of the social system being modelled.

scholarly journals The Nexus Between Trade Openness and GDP Growth: Analyzing the Role of Human Capital Accumulation

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402096737
Author(s):  
Sumbal Fatima ◽  
Bateer Chen ◽  
Muhammad Ramzan ◽  
Qamar Abbas
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Negative Impact ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Gdp Growth ◽  
Human Capital Accumulation ◽  
Indirect Relationship

The objective of this study is to explore the empirical impact of trade openness on gross domestic product (GDP) growth. Researchers have not given the externalities of trade openness the deserved scholarly attention. In this work, we propose to account for human capital accumulation (HCA) as an additional dimension of economic trade integration. To address the potential endogeneity issue, we use the system generalized method of moments (GMM) estimator developed for dynamic panel data models. The results outline an intriguing indirect relationship between trade openness and GDP growth. If HCA is taken into account as an intervening variable, trade may have a negative impact on GDP growth when countries exhibit a low level of HCA. Thus, the indirect relationship between trade openness and HCA was studied in depth, and to the best of our knowledge, this research is the first to examine this relationship in both developed and developing countries over a 34-year period (1980–2014). The established GMM-centric thresholds are robust to alternative estimation techniques and measurements of trade openness. Policy implications are discussed.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

DEMOCRATIZATION OF THE SOCIAL ENVIRONMENT OF HIGHER EDUCATION INSTITUTION AS A PREREQUISITE FOR THE INDIVIDUALS’ DEVELOPMENT POTENTIAL OF THE SUBJECTS OF ITS ACTION

2020 ◽  
pp. 7-24
Author(s):  
Volodymyr Ryabchenko
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Social Environment ◽  
Higher Education Institutions ◽  
Social Systems ◽  
Education Institution ◽  
Human Capital Development ◽  
The Social ◽  
Conceptual Problems ◽  
Capital Development

There are following prerequisites outlined in this article: worldwide democratization trend; complexity of structures of social systems; growing needs in human capital development; autonomy of national higher education institutions; civilizational problem of Ukraine in national elite. Conceptual problems on a road to real democracy in higher education institutions were actualized and analyzed. Determined and characterized three models of higher education institutions activities based on the level of democratization needs of their social environment as: negative, neutral and favorable.

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