Macrodynamic Modeling of Innovation Equilibria and Traps

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Edgar J. Sanchez-Carrera ◽  
Sebastian Ille ◽  
Giuseppe Travaglini
Keyword(s):  
Human Capital ◽  
Mixed State ◽  
Evolutionary Dynamics ◽  
Evolutionary Model ◽  
Skilled Workers ◽  
Strategic Complements ◽  
Advanced Economy ◽  
Production Sector ◽  
Unskilled Workers ◽  
Increase Productivity

Abstract We study the interplay between the decision of firms to innovate and human capital. Based on a dynamic evolutionary model, we show that in the presence of a high stock of human capital, an advanced economy can remain caught in an “innovation trap”. Following the literature on endogenous growth, R&D investments and human capital are modeled as strategic complements. Skilled workers increase productivity and enjoy a wage premium if they are employed in the R&D sector, while they receive the same wage as unskilled workers if they are employed in the production sector. We model the evolutionary dynamics of the share of innovative firms and human capital to determine the conditions under which an economy converges to a high, low or mixed state of innovation.

Analisis Penentu Perbezaan Upah Mengikut Kemahiran Di Malaysia

2011 ◽  
pp. 1-22 ◽  
Author(s):  
Nik Azma Wail ◽  
Rahmah Ismail ◽  
Ishak Yussof
Keyword(s):  
Human Capital ◽  
Key Words ◽  
Wage Rate ◽  
Wage Differentials ◽  
Economic Transformation ◽  
Skilled Workers ◽  
Wage Ratio ◽  
Unskilled Workers ◽  
And Training ◽  
Discriminatory Practice

Di Malaysia, permintaan terhadap kemahiran buruh telah mengalami perubahan kesan daripada perubahan struktur ekonomi. Kesan selanjutnya, berlaku perubahan dalam nisbah upah antara kemahiran yang memihak kepada buruh yang lebih mahir. Terdapat banyak faktor yang menentukan tingkat upah pekerja seperti modal manusia khususnya pencapaian pendidikan, pengalaman dan latihan, faktor demografi dan sektor pekerjaan. Walau bagaimanapun, setelah mengambil kira semua perbezaan dalam pemboleh ubah yang berkaitan dengan produktiviti ini, perbezaan upah mengikut jenis pekerjaan atau kemahiran masih berlaku yang boleh disebabkan oleh perlakuan diskriminasi majikan. Kertas ini bertujuan mengenal pasti penentu perbezaan upah mengikut kemahiran di Malaysia. Analisis berdasarkan kepada data 2,216 ketua isi rumah yang dikutip pada tahun 2007/2008, hasil kajian ini menunjukkan pemboleh ubah modal manusia memainkan peranan utama dalam menentukan tingkat dan perbezaan upah mengikut kemahiran. Selanjutnya, hasil kajian juga menunjukkan 64.25 peratus daripada perbezaan upah pekerja mahir dengan pekerja separuh mahir dapat diterangkan oleh pemboleh ubah dalam model upah dan 35.75 peratus tidak dapat diterangkan. Bahagian yang tidak dapat diterangkan ini termasuklah amalan diskriminasi oleh majikan terhadap pekerja mereka. Bagi perbezaan upah antara pekerja mahir dengan tidak mahir pula, sebanyak 77.20 peratus dapat diterangkan dan 22.80 peratus tidak dapat diterangkan. Kata kunci: Perbezaan upah; diskriminasi; pekerja mahir; pekerja separa mahir; pekerja tidak mahir In Malaysia, demand for skills has been changing dramatically as a result of economic transformation. This subsequently resulted in changes in wage ratio between skills, which is more favourable towards skilled workers. However, it has been argued that wage rate does not merely depend on the demand for labour, but there are other factors that can influence workers’ wages. These include human capital variables like educational attainment, experience and training; demographic factors and job sectors. Even after taking into account the variations in these productivity-related variables, occupational wage differentials may still prevail as a result of employers' discriminatory practice. This paper attempts to measure wage differentials determinants by skills in Malaysia. The analysis is based on 2,216 heads of households data collected in 2007/2008. The result revealed that human capital variables play a major role in determining the level of wage and its differentials between skills. Moreover, the result demonstrates that 64.25 percent of skilled-semi skilled wage differentials are explained by the incorporated variables in the wage model, whereas 35.75 percent are unexplained. This unexplained portion includes the employers’ discriminatory practice against their workers. For the skilled-unskilled wage differentials 77.2 percent are explained and 22.8 percent are unexplained. Key words: Wage differentials; discrimination; skilled workers; semi-skilled workers; unskilled workers

scholarly journals International trade in services and inequalities

2016 ◽  
Vol 23 (5) ◽  
pp. 1069-1075 ◽  
Author(s):  
Sylvain Petit
Keyword(s):  
Wage Inequality ◽  
Developed Countries ◽  
Tourism Industry ◽  
Skilled Workers ◽  
Business Services ◽  
Long Run ◽  
Short Run ◽  
Unskilled Workers ◽  
Tourism Services ◽  
The Impact

This study investigates the impact of the international openness in tourism services trade on wage inequality between highly skilled, semi-skilled, and unskilled workers in the tourism industry. The sample covers 10 developed countries and expands over 15 years. A cointegrated panel data model and an error correction model were used to distinguish between the short- and long-run effects. The results are compared to those of openness of business services and manufactured goods. The findings point out that tourism increases wage inequality at the expense of the least skilled workers in the long run and the short run.

Abstract P036: Socioeconomic Status and Risk of Diabetes over 35 Years

Circulation ◽  
2012 ◽  
Vol 125 (suppl_10) ◽  
Author(s):  
Lena M Bjorck ◽  
Christina Stahl-Heden ◽  
Masuma Novak ◽  
Wai Giang Kok ◽  
Annika Rosengren
Keyword(s):  
Socioeconomic Status ◽  
Population Sample ◽  
Diabetes Type 2 ◽  
Diabetes Type ◽  
Low Ses ◽  
Occupational Class ◽  
Skilled Workers ◽  
Unskilled Workers

Background and aim: The link between low socioeconomic status (SES) and CHD is well established but whether low SES is also an independent predictor for development of diabetes type 2 is not clear. The aim of this study was to investigate whether SES, measured as occupational class, predicted subsequent development of diabetes type 2 over an extended follow-up. Methods: A total of 6941 men 47-55 years old, without prior diabetes, from a population sample of 9998 men, were investigated during 1970-73. Of the men, 23.7% were unskilled workers, 27.2% were skilled workers, 19.7% occupied either a supervisory manual position or were lower officials, 17.9% were officials at an intermediate position, and 11.6% were professionals, executives or senior officials. Follow-up was achieved through the national Swedish patient registry. Results: A total of 900 men (13%) were registered at any time with a diagnosis of diabetes over a 35-year follow-up. Compared with men in the highest occupational class, men with intermediate non-manual occupations had a multiple-adjusted hazard ratio (HR) of 1.10, 95% confidence interval (CI) 0.84-1.44, lower officials and foremen had an HR of 1.37 (1.06-1.78), semiskilled and skilled workers 1.39 (1.08-1.78), and unskilled workers 1.66 (1.30-2.13) after adjustment for smoking at baseline, BMI, blood pressure, serum cholesterol, treatment for hypertension and leisure time physical activity. Conclusions: Low SES is an independent risk factor for long-term risk of diabetes in men, with a 66% independent higher risk in unskilled workers, compared to professionals/senior officials.

scholarly journals HUMAN CAPITAL AND ITS ROLE IN THE FOURTH INDUSTRIAL REVOLUTION

2021 ◽  
Author(s):  
Yelyzaveta Snitko ◽  
Yevheniia Zavhorodnia
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Labor Market ◽  
Technological Change ◽  
Industrial Revolution ◽  
Skilled Workers ◽  
Fourth Industrial Revolution ◽  
Modern Economy ◽  
The Future ◽  
The Impact

The development of a modern economy, in the context of the fourth industrial revolution, is impossible without the accumulation and development of human capital, since the foundation of the transformation of the economic system in an innovative economy is human capital. In this regard, the level of development and the efficiency of using human capital are of paramount importance. This article attempts to assess the role of human capital in the fourth industrial revolution. In the future, human talent will play a much more important role in the production process than capital. However, it will also lead to a greater division of the labor market with a growing gap between low-paid and high-paid jobs, and will contribute to an increase in social tensions. Already today, there is an increase in demand for highly skilled workers, especially in high-income countries, with a decrease in demand for workers with lower skills and lower levels of education. Analysis of labor market trends suggests that the future labor market is a market where there is simultaneously a certain demand for both higher and lower skills and abilities, combined with the devastation of the middle tier. The fourth industrial revolution relies heavily on the concept of human capital and the importance of finding complementarity between human and technology. In assessing the impact of the fourth industrial revolution, the relationship between technology, economic growth and human resources was examined. The analysis was carried out in terms of three concepts of economic growth, technological change and human capital. Human capital contributes to the advancement of new technologies, which makes the concept of human capital an essential factor in technological change. The authors emphasize that the modern economy makes new demands on workers; therefore it is necessary to constantly accumulate human capital, develop it through continuous learning, which will allow the domestic economy to enter the trajectory of sustainable economic growth. The need to create conditions for a comprehensive increase in the level of human capital development is noted.

Investment in Human Capital as a Means to Preserve IT Strategic Advantage in an Organization

2012 ◽  
Vol 3 (2) ◽  
pp. 25-39 ◽  
Author(s):  
Nikolaos Preve
Keyword(s):  
Human Capital ◽  
Human Factor ◽  
Rapid Evolution ◽  
Organization Structure ◽  
The Core ◽  
The Past ◽  
It Department ◽  
Evolution Of Technology ◽  
Increase Productivity ◽  
Reducing Costs

The rapid evolution of technology during the past decade has increased among large organizations, while at that same time they are reducing costs to retain their strategic advantage in the market. Organizations have also realized that numerous employees or cutting the size of an organization is not always a solution. Most recently, they have turned their attention to the human factor, which is renewable, to gain and retain strategic advantage inside a competitive market. The paper analyses investment in human capital, demonstrating how it is the sole solution. This paper examines knowledge employees, based on a well-structured IT department, and how they increase productivity and comprise the core of the organization structure. The leadership of an organization must administer its human resources properly to maximize the profit of their investment.

Human capital divergence and the size distribution of cities: Is Gibrat’s law obsolete?

Urban Studies ◽  
2020 ◽  
pp. 004209802095309
Author(s):  
Daniel Broxterman ◽  
Anthony Yezer
Keyword(s):  
Human Capital ◽  
Population Growth ◽  
Size Distribution ◽  
Growth Models ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Skilled Workers ◽  
Gibrat’S Law ◽  
Gibrat's Law ◽  
Growth Hypothesis

This article studies how the changing geographic distribution of skilled workers in the US affects theoretical models that use Gibrat’s law to explain the size distribution of cities. In the empirical literature, a divergence hypothesis holds that college share increases faster in cities where college share is larger, and a growth hypothesis maintains that the rate of city population growth is also directly related to initial college share. Examining the divergence hypothesis, the classic test for Gibrat’s law is shown to be a test for [Formula: see text]-convergence. Testing shows that there has been absolute, not relative, divergence in human capital since the 1970s. However, the combination of even absolute divergence and the growth hypothesis is shown to violate the condition that a city’s population growth is independent of its size. Additional testing finds that the relation between college share and city growth is concave rather than monotonic. These results imply that stochastic growth models can survive the challenge posed by divergence in the distribution of human capital.

scholarly journals Human Capital Formation During the First Industrial Revolution: Evidence from the use of Steam Engines

2019 ◽  
Vol 18 (2) ◽  
pp. 829-889 ◽  
Author(s):  
Alexandra de Pleijt ◽  
Alessandro Nuvolari ◽  
Jacob Weisdorf
Keyword(s):  
Human Capital ◽  
Technological Change ◽  
Industrial Revolution ◽  
Capital Formation ◽  
Human Capital Formation ◽  
Skilled Workers ◽  
Synthetic Indicator ◽  
Negative Effect ◽  
Rock Strata ◽  
Carboniferous Rock

Abstract We examine the effect of technical change on human capital formation during England's Industrial Revolution. Using the number of steam engines installed by 1800 as a synthetic indicator of technological change and occupational statistics to measure working skills (using HISCLASS), we establish a positive correlation between the use of steam engines and the share of skilled workers at the county level. We use exogenous variation in carboniferous rock strata (containing coal to fuel the engines) to show that the effect was causal. While technological change stimulated the formation of working skills, it had an overall negative effect on the formation of primary education, captured by literacy and school enrolment rates. It also led to higher gender inequality in literacy.

scholarly journals DIRECTED TECHNOLOGICAL CHANGE: A KNOWLEDGE-BASED MODEL

2013 ◽  
Vol 19 (1) ◽  
pp. 116-143 ◽  
Author(s):  
Tailong Li ◽  
Shiyuan Pan ◽  
Heng-fu Zou
Keyword(s):  
Technological Change ◽  
Wage Inequality ◽  
Scale Effects ◽  
Developed Countries ◽  
Skilled Workers ◽  
Developed Country ◽  
Knowledge Based ◽  
Biased Technological Change ◽  
Unskilled Workers ◽  
Directed Technological Change

In a knowledge-based growth model where skilled workers are used in innovation and production, skill-biased technological change may lower average R&D productivity via an innovation possibilities frontier effect that eliminates scale effects. We show that skill-biased technological change increases the skill premium even if the elasticity of substitution between skilled and unskilled workers is less than two. Trade between developed countries promotes skill-biased technological change, thus raising wage inequality. Trade between developed and developing countries has differing effects: it induces relatively skill-replacing technological change and lowers wage inequality in the developed country but has the opposite effects in the developing country. Finally, we show that trade can stimulate or hurt economic growth.

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 Comparative Advantage and Skill-Specific Unemployment

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Mario Larch ◽  
Wolfgang Lechthaler
Keyword(s):  
Heterogeneous Firms ◽  
Unskilled Worker ◽  
Skilled Workers ◽  
Skilled Worker ◽  
Industry Trade ◽  
Trade Model ◽  
Unskilled Workers ◽  
Endogenous Selection ◽  
Two Sectors ◽  
Selection Of

Abstract We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to identify three different channels through which trade liberalization can affect unemployment: specialization, changes in productivity, and mobility. These three channels may work in opposite directions and their relative importance depends on the type of trade (intra-industry trade vs. inter-industry trade) and the skill-class of a worker. We show that the gains from trade are distributed very unequally. When a skilled worker abundant country opens up to trade with a country that is unskilled worker abundant, the biggest losers are the skilled workers in the import sector in the skill abundant country. However, average unemployment among skilled workers goes down, while average unemployment among unskilled workers goes up.

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