scholarly journals Uncertainty in Labor Productivity and Specific Human Capital Investment

2001 ◽  
Author(s):  
Chong-En Bai ◽  
Yijiang Wang
Keyword(s):  
Human Capital ◽  
Labor Productivity ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Specific Human Capital

Promotion Signaling and Human Capital Investments

2020 ◽  
Vol 12 (1) ◽  
pp. 125-155 ◽  
Author(s):  
Michael Waldman ◽  
Ori Zax
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Capital Investment ◽  
Investment Decisions ◽  
Human Capital Investment ◽  
Capital Investments ◽  
Human Capital Investments ◽  
Asymmetric Learning ◽  
Specific Human Capital ◽  
Investment Choices

In a world characterized by asymmetric learning, promotions can serve as signals of worker ability, and this, in turn, can result in inefficient promotion decisions. If the labor market is competitive, the result will be practices that reduce this distortion. We explore how this logic affects human capital investment decisions. We show that, if commitment is possible, investments will be biased toward the accumulation of firm-specific human capital. We also consider what happens when commitment is not possible and show a number of results including that, if investment choices are not publicly observable, choices are frequently efficient. (JEL D82, J24, J31, M12, M51)

scholarly journals Human Capital Investment Effects On Firm Returns

2011 ◽  
Vol 12 (1) ◽  
pp. 30 ◽  
Author(s):  
Marvin L. Bouillon ◽  
B. Michael Doran ◽  
Peter F. Orazem
Keyword(s):  
Human Capital ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Market Value ◽  
Annual Reports ◽  
Common Stock ◽  
Net Income ◽  
Firm Investment ◽  
Book Value ◽  
Specific Human Capital

This paper demonstrates that two measures of firm investment in specific human capital are significantly and positively correlated with long-term rates of return on investment. The final sample of 260 firms is a subset of the 805 firms included in the June 1984 edition of Forbes survey of executive compensation. We utilize two proxies for firm return-net income and cash flow. The return measures are scaled by both book value of total assets and market value of common stock yielding four alternative specifications of the rate of return measure. The firm investment in specific human capital measures are generally found to be significant explanatory variables in the regressions that have returns scaled by book value of assets. These measures of investment are insignificant when market value of common stock outstanding is used to scale the return measures. We interpret these findings to imply that a public or regulatory policy needs to be established to require firms to include at least some basic rudimentary information regarding their human capital investment, such as turnover rates and training cots, in their annual reports.

scholarly journals PRODUKTIFKAH HUMAN CAPITAL INVESTMENT OLEH PEMERINTAH DAERAH PROVINSI DALAM ERA DESENTRALISASI?

2017 ◽  
Vol 13 (1) ◽  
pp. 39
Author(s):  
Bambang Suprayitno ◽  
Tejo Nurseto ◽  
Supriyanto Supriyanto
Keyword(s):  
Human Capital ◽  
Local Government ◽  
Labor Productivity ◽  
Government Spending ◽  
Capital Investment ◽  
Fiscal Decentralization ◽  
Human Capital Investment ◽  
Secondary Data ◽  
Provincial Government ◽  
Regional Labor

Abstrak: Produktifkah Human Capital Investment oleh Pemerintah Daerah Provinsi dalam Era Desentralisasi? Efektivitas pengeluaran pemerintah khususnya human capital investment dalam meningkatkan produktivitas tenaga kerja juga tergantung dari pemilihan pemda dalam menentukan jenis pengeluaran tersebut. Tujuan dari penelitian ini untuk mengetahui pengaruh pengeluaran belanja pemerintah secara umum maupun secara fungsional terhadap produktivitas tenaga kerja melalui pendekatan kuantitatif dengan metode ekonometrika. Penelitian ini menggunakan data sekunder dari ringkasan APBD pemda seluruh Indonesia yang disediakan oleh Kemenkeu Dirjen Perimbangan Keuangan Daerah RI. Data yang digunakan adalah data tahun 2012 dengan unit analisis perekonomian level provinsi seluruh Indonesia. Pengeluaran pemerintah provinsi secara total tidak mempengaruhi produktivitas tenaga kerja regional. Pengeluaran pemerintah daerah provinsi dalam fungsi human capital investment tidak efektif meningkatkan produktivitas tenaga kerja meski demikian pengeluaran pemerintah dalam bidang fasilitas umum dan perumahan mempengaruhi secara positif produktivitas tenaga kerja regionalnya. Kata Kunci: pemerintah daerah, human capital investment, produktivitas tenaga kerja, desentralisasi fiskal, pengeluaran pemerintah Abstract: Is The Human Capital Investment of Provincial Governments Productive in Decentralization Era? The effectiveness of government spending, especially investment in human capital, increases labor productivity also depends on how the local government determines the type of expenditure. The purpose of this study is to determine the effect of government spending in general and functionally to labor productivity. The approach used in this study is a quantitative approach, econometric method. This study uses secondary data from local government budgets across Indonesia summary provided by the Indonesian Ministry of Finance Directorate General of Regional Financial Balance. The data used is the provincial-level economic analysis units throughout Indonesia in 2012. This research shows that provincial government spending in human capital investment does not effectively increase labor productivity. Total provincial government spending does not affect the regional labor productivity. Government spending in the areas of public facilities and housing positively influence regional labor productivity. Keywords: local government, human capital investment, labor productivity, fiscal decentralization, public spending

Four worlds of productivity growth: A comparative analysis of human capital investment policy and productivity growth outcomes

2017 ◽  
Vol 39 (4) ◽  
pp. 531-550 ◽  
Author(s):  
Takayuki Sakamoto
Keyword(s):  
Human Capital ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
European Countries ◽  
Capital Investments ◽  
Growth Strategies ◽  
Labor Productivity Growth

Labor productivity is an important determinant of the wealth of national economies and standards of living, as its growth explains half of per capita GDP growth. I show that there are four worlds of productivity growth among industrialized countries, by decomposing labor productivity growth into multifactor productivity (MFP) growth and capital deepening. The four worlds that emerge from the analysis are: (1) human capital investment- and MFP growth-dominant Nordic countries; (2) physical capital investment- and labor productivity growth-dominant liberal countries; (3) continental European countries whose moderately high human capital investments create decently high MFP growth, but whose low physical capital investments push down their labor productivity; and (4) South European countries with both the lowest human capital investment and lowest productivity growth. The four worlds are a result partly of the countries’ partisan politics, economic growth strategies, and human capital formation policies – different policies add differently to the components of labor productivity.

scholarly journals Factors Affecting Labor Productivity: An Empirical Evidence from Pakistan

2021 ◽  
Vol 3 (3) ◽  
pp. 221-226
Author(s):  
Ghulam Sarwar ◽  
Muhammad Fayyaz Sheikh ◽  
Iqra Rabnawaz
Keyword(s):  
Human Capital ◽  
Labor Force ◽  
Labor Productivity ◽  
Labor Force Participation ◽  
Wage Rate ◽  
Capital Investment ◽  
Time Series Data ◽  
Human Capital Investment ◽  
Series Data ◽  
Factors Affecting

Labor productivity is important as it is the major factor determining nations' living standards. This study analyzes the factors affecting labor productivity in Pakistan using time series data. ARDL model is applied for estimation of the long run relationship of variables for the period 1981-2018. Data have been taken from the Handbook of Statistics of State Bank of Pakistan and various economic surveys of Pakistan. The findings show that wages, human capital investment, labor force participation, and inflation significantly affect labor productivity. The results indicate that wage rate has a positive effect on labor productivity, and human capital investment also is positively related to labor productivity. At the same time, labor force participation and inflation are negatively related to labor productivity. These findings imply that labor productivity can be raised by increasing the wage rate and investing more in human capital. Results are consistent with efficiency wage theory and human capital theory.

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