Religiosity and human capital formation in the overlapping generation model in Indonesia

This research aims to determine the extent of the part of spiritual empowerment and the construction of human capital in the overlapping generation model in Indonesia. The study constructs a model by mathematical approach, which ensures the equilibrium of the entire market; use data of the Indonesian region in the 1983-2019 period and the analyzed by regression. Government spending in the fiscal and monetary sector effectively increases the Gross Domestic Product; the influence of labor positively affects the use of capital stock, where the current capital stock is influenced by the stock capital of the previous year. The aspect of government spending has a positive effect on capital stock.

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Earnings related pension schemes and human capital formation

Journal of Pension Economics and Finance ◽

10.1017/s1474747214000018 ◽

2014 ◽

Vol 14 (1) ◽

pp. 19-54 ◽

Cited By ~ 4

Author(s):

FABIAN KINDERMANN

Keyword(s):

Human Capital ◽

Older Workers ◽

Capital Investment ◽

Large Scale ◽

Capital Formation ◽

Generation Model ◽

Tax Rates ◽

Tax Structure ◽

Human Capital Formation ◽

Skilled Workers

AbstractIn this paper, I show that traditional earnings related pay-as-you-go pension systems as we see them in many OECD countries subsidize human capital formation. The reason is that these systems come along with an implicit tax structure that features high tax rates at the beginning of working life and low tax rates toward the end. When the costs of human capital investment are mainly time costs, such an implicit tax structure lowers the costs of human capital investments and simultaneously increases the payoff. The fact that higher skilled workers tend to have steeper wage profiles over the working phase than the unskilled enforces this mechanism. I first show this result in a simple analytical model and then quantify the macroeconomic and welfare effects of making the implicit tax structure age independent in a large-scale overlapping generation model, in which households can invest in human capital both by going to college and through on-the-job training. In terms of welfare, such a reform comes along with a lot of intergenerational redistribution. Although the welfare of current retirees may increase by about 4.5% of their remaining life-time resources, current older workers will lose due to an increase in their implicit tax rates. The welfare of future generations slightly declines by 0.1%.

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The Origins of the Italian Regional Divide: Evidence from Real Wages, 1861–1913

The Journal of Economic History ◽

10.1017/s0022050718000712 ◽

2019 ◽

Vol 79 (1) ◽

pp. 63-98 ◽

Cited By ~ 14

Author(s):

Giovanni Federico ◽

Alessandro Nuvolari ◽

Michelangelo Vasta

Keyword(s):

Nineteenth Century ◽

Human Capital ◽

Capital Formation ◽

Late Nineteenth Century ◽

Human Capital Formation ◽

Real Wages ◽

Modest Improvement ◽

Regional Trends ◽

Late Nineteenth ◽

Positive Effect

The origins of the Italian North-South divide have always been controversial. We fill this gap by estimating a new dataset of real wages (Allen 2001; Allen et al. 2011) from Unification (1861) to WWI. Italy was very poor throughout the period, with a modest improvement since the late nineteenth century. This improvement started in the Northwest industrializing regions, while real wages in other macro-areas remained stagnant. The gap Northwest/South widened until the end of the period. Focusing on the drivers of regional trends, we find that human capital formation exerted strong positive effect on the growth of real wages.

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