A Team’s human capital and its sporting success. An analysis of the first and second German soccer league

The article discusses some areas of optimization of the spatial distribution of investments in human capital on the example of the regions of the North Caucasus Federal District. Based on the study of the subjects of investment in human capital and the mechanisms of investment in human capital, the article identifies a number of problems that allow us to talk about a weak system of organization and management of investments in human capital, as well as stochastic returns on these investments, which requires the search for mechanisms to optimize the processes of managing the spatial distribution of investments in human capital. In order to solve the problems identified in the study and to optimize the spatial distribution of investments in human capital at the regional level in the context of limited financial capabilities of the regions, the proposed article develops a mechanism for forming priorities for regional investments in human capital, which will take into account the characteristics of a particular region, its priorities in terms of investment in human capital, the structure and sources of such investments, taking into account the capabilities of the region. Within the framework of the proposed study, it is determined that the formation of priorities for regional investments in human capital should be determined as the ratio of the required volume of investment investments to the costs of achieving specific results of socio-economic development, taking into account specific criteria for assessing the financial support of the regional investment process. The mechanism of formation of priorities of regional investments in human capital proposed in the scientific article will allow optimizing the distribution of investments in regional human capital, since the priority areas of investment are determined here taking into account the available resources of the region, as well as taking into account the assessment of their multiplier effect for sustainable regional development as a whole.

The research literature presents a strong positive relationship between economic development and human capital, which is usually measured by education. The standard approach assumes that an individual invests some time in education, and then it shows up in terms of enhanced future earnings as a return, i.e. investment in education helps to increase the individuals’ future earnings. How much to invest in education is one of the most important economic decisions that individuals have to face. Hundreds of studies in many different countries and time periods have confirmed that better-educated individuals earn higher wages, suffer less unemployment and work in more prestigious occupations, have other social returns like honour and status than their less-educated counterparts. This positive correlation between education (schooling) and earnings is well established in the empirical literature. Despite the fact, that the rate of return to education (human capital) has been widely studied in the world since the late 1950s and even though hundreds of papers have studied this issue in various countries at different time periods and with alternative estimation methods, studies concerning Lithuania’s case remain limited. This study focuses on the evaluation of investments in human capital. Problem question raised: Once education, which plays a very important role in development and growth of a country, is treated as an investment, the immediate natural question is: what is the profitability of this investment comparing to alternatives? Therefore it is important to investigate the return to investment in education in order to evaluate effectiveness of investments in human capital in Lithuania and compare it to the other countries in the development process. The object of the research – the return to investment in human capital. The aim of the research is to estimate the private rate of return to human capital in Lithuania and to study the changes of these returns during the time (2003-2011) and compare calculated data with analogical data in other countries. In the first part of the paper the concept of “human capital” is defined, before estimating the returns to human capital. In order to reveal the return to investment in human capital, it was limited to investment in education overview. Further, the research methodology is presented. One of the main ways to calculate the rate of returns to investment in human capital, which is used in the empirical practice, is the “full-discounting” or “elaborate” method, which consists in calculating the internal rate of return, was employed. 2003-2011 statistical data were used for the study. The conclusions reveal that the rate of return to investment in human capital varies over time and rate of return for females is lower than for males. The rate of return of investment in human capital varies, reflecting the effect of constantly decreasing income tax, average wage and cost changes of higher increments of education (increase / decrease). After comparing Lithuania’s and other countries’ rate of return on investment in human capital, it is seen that private rate of return in Lithuania is similar to Denmark, Spain, Finland, Germany and USA. Compared to neighbour countries Latvia and Estonia, the return on investment in human capital is also similar to that in Lithuania. DOI: http://dx.doi.org/10.5755/j01.ee.24.3.2957

The article discusses the basics of building a system of tax incentives for investments in human capital, capable of ensuring economic growth of the Russian Federation. The relevance of this issue is explained by three circumstances: first, investment in human capital is a key tool for protecting workers from the adverse effects of automation; second, human capital accumulation is closely correlated with income inequality and poverty levels; third, it is a key factor in stimulating rapid economic growth. The purpose of the study is to work out directions of development of tax incentives for investments in human capital on the basis of review and systematization of domestic and foreign literature. In accordance with the goal, the following tasks are defined: to identify areas of taxation influence on human capital formation; to formulate the principles of tax stimulation of investments in human capital; to characterize the tax instruments stimulating growth of investments in human capital; to highlight the state approaches to tax stimulation of investments in human capital of individuals. The scientific literature in the field of human capital development and tools for its regulation was analyzed, and the use of tax incentives was substantiated. The principles of tax stimulation of investments in human capital are formulated and described: the principle of risk minimization, the principle of multidirectionality by subjects of stimulation, the principle of differentiation by types and forms of human capital, and the principle of systemic measures of state support. The study presents three groups of tax incentives focused on the identified areas of impact and taking into account the formulated principles of stimulating investments in human capital.

This paper analyzes the implications of tax policy for the accumulation of human and physical capital and for the overall productivity level of the economy. A comprehensive income tax, applying to both labour income and capital income. discriminates against investments in human capital relative to investments in physical capital. Hence. it has an adverse impact on human capital accumulation. Taking into account a positive external effect of investments in human capital on overall productivity, the adverse effect of income taxation on human capital investments is significantly magnified.

The direction of economic policy of Ukraine for gradual achievement of innovative features of knowledge economy in modern conditions may be realized through continuous and intensive accumulation of human capital, the implementation of which is possible through investment. The aim of the article is to determine the nature of investment in human capital, to substantiate its peculiarities and determine scientific principles of investment, to develop components for diagnostics of the adequacy of investment in human capital at enterprise level. The peculiarities of the process of investment in human capital are summarized. The origin of the peculiarities of the process of investment in human capital out of two processes, related to it – investment and personnel management – is determined. On the basis of this relationship scientific principles of investing in human capital, namely: effectiveness, integration with general system of personnel management, complex character of managerial decisions formation, dynamism, taking into account of time factor, economic motivation, social and economic efficiency and multicriterion valuation are substantiated. The accordance of these principles to investment stages is determined. The sources of investment in human capital over a person’s life are diversified. It is proved that as a result of investment in human capital a company may receive financial, economic and social efficiency. Indicators for assessing investment in human capital at the level of an enterprise are offered. A technique for assessing the adequacy of investment in human capital, its criteria and peculiarities are shown

In the era of knowledge-driven economy, the human capital plays a more and more important role in economic development and enterprise development. The human resource becomes the primary factor in enterprise development; it is related to the improvement of enterprise core competitiveness and also related to enterprise survival and development. This paper briefly explains the concept and main features of investment in human capital, points out the important significance of investment in human capital for large-sized enterprises, and proposes the strategies for improving the enterprise investment in human capital on the basis of analysis on current situation of human capital of domestic large-sized enterprises.

The paper presents some of the results of the research with the orientation on human capital and its efficiency. Human capital, as the sum of intangible qualities and features such as knowledge, skills, abilities, attitudes and talent, represents an essential resource for the value creation, mainly within the field of knowledge-intensive industries. This is, for example, the case of the enterprises conducting business in the environment of information technology, more specifically, the enterprises creating software products or providing the services related. Within this paper, the broad topic of human capital is approached from the perspective of investment in this intangible asset. The attention is paid to the forms and focus of investment efforts of enterprises. An important question is whether these efforts are in alignment with what is considered to be the most important in the present, rapidly-changing environment. Proper investment in human capital is necessary for the enterprise to become flexible enough to be able to adapt to new, emerging trends. However, when investing in the human capital available, enterprises need to deal with the efficiency of this activity as well. Therefore, they need proper ways of evaluating whether the investment was efficient. The paper presents suggestions for the solution of this matter, based on the opinions of academics, other researchers and especially the practitioners – the managers of enterprises. The investment in human capital needs to be connected to the metrics and indicators suitably representing the performance and the competitiveness of enterprises. The methods for the evaluation of the efficiency of investment in human capital must be specific enough to capture the essence of this asset but, at the same time, they need to be applicable for the operation of enterprises and for their managerial processes. The characteristic features of such investment cannot be omitted since they affect the substantial parts of the whole evaluation. For example, there is a significant imminent risk of losing an employee who was the target of valuable investment in his/her human capital when he/she decides to leave the enterprise. This underpins the purpose of research within the field of efficiency of investment in human capital as one of the core issues of the concept denoted as human capital management. The aim of this paper is to reveal the current situation of the process of investment in human capital being performed in IT enterprises operating in the Slovak Republic. These enterprises with their solutions have an important role in the sector of transport as well, as it is described in the paper. Two groups of data were used. The primary data were represented by the answers of human resources managers to the questions in the survey. This questionnaire survey was conducted in 2018, focusing on IT enterprises operating in the Slovak Republic. The enterprises were addressed directly, on a random basis. There were 115 IT enterprises participating in this research. The secondary data represented the opinions of software developers working in the Slovak Republic, collected by a professional organization in 2018. There were 617 respondents answering the questions. The methods of statistical description and analysis of the data included the frequencies of individual answers with their total percentages and the χ2 test applied to identify possible associative relationship between the sets of categorical data entries.

The purposes of the article are to assess the impact of financing of education and health to human capital development, to consider the relationship among wages and investment in human capital, to establish directions of improvement of the investments in human capital development in Ukraine and other lower-middle-income countries. Methodology. Methodological basis of the research is the study of the dynamics of such indicators as the Human Capital Index 2020, wages, GNI per capita, education expenditure, government expenditure, financing of health, the wages of full-time employees. To solve the problems arising from the purpose of the study, systemic method (when analyzing the relationship of the investments in human capital development and wages), statistical methods of comparisons, economic analysis (when processing statistics), historical method (in the study of the evolution of Human Capital Index, expenditures on health and education), empirical and correlation-regression analysis (in the analysis of the practice of investments in human capital development) have been used. Results. The human capital is a central driver of sustainable growth and poverty reduction. The article proves that high-income countries can better finance the development of human capital; they are the leaders of the Ukraine Index 2020, more human capital in high-income countries is associated with higher earnings for people, higher income for countries, and stronger cohesion in societies. At the same time, the article substantiates that the low level of GNI per capita (3370 USD in Ukraine) and insufficient level of education and health expenditure negatively affect formation of human capital (the 53rd place in the Human Capital Index 2020). On the basis of the study of government and non-government expenditure on education and health, it has been concluded that investments in human capital are the effective tool to increase of the wages of full-time employees. Practical implications. Today human capital gains in many countries are at risk, especially in lower-middle-income countries. Features of the current socioeconomic situation require strengthening of investments in human capital development. The main steps that are necessary to undertake for implementing changes in the investments in human capital development have been determined in the article. They are the following: optimization of state financing of human capital; creation of fiscal space; creation of regional funds for financing human capital development; creation of strategic alliances and partnerships; supporting the demand for education and health care from households. Value/originality. The relationships between investments in human capital development and wages in the lower-middle-income countries are analytically proved. The complex of actions on optimization of financing of human capital has been generalized.

Empirical researches prove a relationship between investment in human capital and economic growth, but assessing human capital itself, as well as the effectiveness of relevant investments, presents a practical problem. The article is aimed at specifying scientific approaches to generalization of investment objects, components and schemes of human capital formation for the development of a modern theoretical ground for the development of investment in the human capital of the country’s economy. To achieve this aim, the article sets a task of research on types of capital, their content characteristics, structure of human capital, investments in human capital for the needs of management of the national economic system. Important for human capital research is that investments in human capital ensure the growth of the value of human labor, and this is the most important factor in the transformation of the economy, modernization of economic institutions. By this provision is stated that economic growth is not only achieved through technology transfer, investment in physical capital and accumulation of knowledge, but also depends on human capital, including improving people’s health, reducing crime, providing appropriate social climate and institutions, as well as education. Thus, under such conditions, economic development should be considered not only as an increase in economic growth, but also as an investment in human capital ? in the components of its structure. A system-component approach is substantiated, which, unlike the existing one, defines the composition of the structure of human capital and types of investments in human capital, strengths and weaknesses, opportunities and threats of investing in human capital as the main element of productive forces.

The object of the study is the investment in human capital. Subject – new forms of investment in human capital in modern conditions. The purpose of the study is to determine the factors influencing the diffusion of innovations and digital technologies on the effectiveness of investments in human capital. The research is based on general scientific methods and a review of foreign scientific literature. As a result of the study the authors declare the necessity of accumulation of human capital and optimization of its use to provide the economic development of organizations, regions and the country as a whole in modern conditions. The development of information and communication technologies leads to an increase in the role of human capital, including its convergent components: physical capital; intellectual human resources and organizational capital. At the same time, there is an urgent need to conduct an inventory of human resources at the level of organizations and local government. Such transformations are possible only through continuous improvement of the quality of educational potential, which will help maintain the quality of human capital indicators in the relevant entities at the proper level. It is concluded that human resources, when developed and properly used, easily converge with each other, which contributes to the rapid accumulation of human capital. Investments in a changing socio-economic environment, saturated with digital technologies and elements of artificial intelligence that ensure faster monetization and practical application of human capital.

According to human capital theory the higher education is considered as an investment decision. In order to be beneficial from economic point of view and in comparison with other investment opportunities, investment in education should give a higher rate of return on investment. Knowledge about the return on investment can help to make competent decisions, which would have an economic benefit in the future. Evaluating the investment in human capital (education) as an individual decision, since the vast majority of individuals for gained education should pay themselves and only a part of the price shall be covered by the state, the rate of return on investment becomes an increasingly important evaluation criterion. Making an investment decision it is very important to allocate resources properly. For the individual the costs of this investment include poor wages and direct costs. It can be assumed that individuals with higher education will be paid more than the others without education. Thus, the investment in higher education (human capital) is useful as long as there is a positive difference between marginal benefit and marginal costs. Higher education is a guarantee of a higher life quality. But, in order to ensure the higher life quality, such main factors as individual skills and labour productivity should be eximined. Investment in human and physical capital doesn’t only promote the growth of labour market. The investment such as lower inflation rates and freer trade (lower limits) also stimulates the economic growth. The ability to absorb easily technological change increases labour productivity and efficiency. Education, lifelong learning and health are very important investment in human capital. The foreign scientists performed researches and proved that income growth of individuals depends on the level or degree of education the individual has gained. Rate of return on investment in human capital is positive even after direct and indirect costs estimation. The individuals with higher education have higher incomes in comparison with individuals with college education. Education is one of the most important development factors of the modern knowledge based economy. However, educational and scientific development requires the long-term and huge investment. This investment also should be assessed from the social aspect. On the one hand investment in human capital should be stimulated; on the other aspect it should assess their effectiveness. As the investment in human capital is a complex problem from both practical and scientific aspect, so the practice of such evaluation and applied methods do not give an unambiguous answer. It is very important to evaluate the effectiveness of this investment, to estimate the detention of the time, the money flows: incomes (revenues) and outcomes (expenditures).DOI: http://dx.doi.org/10.5755/j01.ee.23.2.1541

Skill and capacities present in the workforce, if put to productive use, can be vital determinants of a nation's long-term profit gains. Building employees' competence through skill acquisition is an important yardstick in measuring an organization's performance. Keeping into account the importance of investing in human resources in an organization, the current study tries to review existing literature and research work on human capital and organization investment with a main focus on human capital accumulation, human capital depletion and human capital drivers. The study reviewed existing literature that shows the relationship between human capital and organization investment, which shows either a firm performing well or projecting poor performance. The review has shown that human capital accumulation, human capital depletion and human capital drivers have a positive influence on the performance of an organization when proper investment strategies are adopted. The findings also show that organizations that invest in developing their human capital project growth, positive performance and survival of firms in very competitive environments.

Investment in Human Capital provides an increase in productivity, also leading to an improvement in the profile of income distribution in the long term. An increase in education investment is generally accompanied by higher spending on health and nutrition which later results in higher socioeconomic performance of the country. The most evident results are the following: • increased productivity; • increased mobility of the workforce for dynamic sectors, • lower population trough reduced fertility rate. A proposed action that would lead to increased investment in human capital then becomes an unquestionable opportunity since it raises the standard of the community life. However, it is always advisable to consider some limitations to these possibilities. The first one is linked to the fact that the return on investments in human capital varies according to the stage of development of each country, i.e., there is always a kind of inversion best recommended for each economy, which takes into account the particularities of national growth. The World Bank (1995) indicates that in countries where national product per capita is considered small (1 to $ 3,000), spending on health and nutrition provide better results in national productivity than investments made directly in formal teaching. In countries where per capita national product is considered of medium size (between 40 to 10 thousand dollars), the return rate on investments in higher education is higher. In areas where formal education is low, the best results come with the expansion of the school network and the improvement of the quality of basic education. In countries where education is better structured, educational investments in secondary and higher levels provide the best returns. The second condition is related to socioeconomic variables, depending on different development policies drawn from country to country. The rates of return of investment in human capital considering these aspects are greater when: • the level of economic activity is maintained through market equilibrium, • there is continuity to government economic policy action, prioritizing the operation of free market and • the country is integrated with world markets. One may also consider in this scenario, that the investments in human capital targeted to women generate results superior to those targeted to men. The reason is simple: increased education for women results in a greater contribution to the generation of professionals in health and nutrition, as well as providing a reduction in the fertility rate, which has a direct impact on population size and the improvement of the per capita income of the community. In Brazil there are virtually no specific studies involving the relationship between the level of health and nutrition and the ability to generate cash income. However, some correlation coefficients have been calculated and in all cases a strong inverse relationship between level of family income and nutrition degree is found. An important impact on per capita income is related to the family size in the country. National and World Bank research show that an increase in educational levels, particularly in women who play the role of family head, is associated with improved levels of health, nutrition and income of the family. In countries with big gaps in income concentration, especially among ethnic groups and rural areas, it is preferable to invest in human capital targeting the poor, as a consequence there's an increase in social welfare resulting from the improvement of the per capita income as well as the productivity of the workforce. The major limitation to this option is associated with the maturation time required for gestation of investment in Human Capital. Few of these investments present immediate results on productivity, income distribution and poverty reduction, although they are capable of producing high return rates. In this scenario, investment in human capital through training appears to be an exception since there are strong indications that its return occurs in a much shorter term, though it is advisable to undertake a careful analysis of the effects of training, region to region.

We study a two-sector economy with investments in human and physical capital and imperfect labor markets. Human and physical capital are heterogeneous. Workers and firms endogenously select the sector they are active in, and choose the amount of their sector-specific investments in human and physical capital. To enter the high-skill sector, workers must pay a fixed cost that we interpret as direct cost of education. Given the distribution of the agents across sectors, at equilibrium, in each sector there is underinvestment in both human and physical capital, due to non-contractibility of investments. A second source of inefficiency is related to the self-selection of the agents into the two sectors. It typically induces too many workers to invest in education. Under suitable restrictions on the parameters, the joint effect of the two distortions is that equilibria are characterized by too many people investing too little effort in the high skill sector. We also analyze the welfare properties of equilibria and study the effects of several tax-subsidy policies on the total expected surplus.

This paper investigated the impact of education tax and investment in human capital on economic growth in Nigeria utilizing the Non-Linear Autoregressive Distributed Lag Model of cointegration covering the period of 25 years from 1995 to 2019. The findings reveal that education tax and investment in human capital have positive and significant effect on the growth of the Nigerian economy over the sampled period. The paper recommends that in order to boost the economy, Nigeria would need to, among other policy frameworks, provide a suitable environment for ensuring macro-economic stability through effective utilization of income from education tax that will encourage increased investment in human capital in the public sector. In addition to income from education tax, for effective and speedy economic growth and development in Nigeria, the government, beneficiaries (students/parents), employers of labor and other stakeholders in the society should share the responsibility for financing primary, secondary and tertiary education, so as to provide a solid foundation for human capital development. However, as revealed in this paper, the contribution of education tax and investment in human capital is most likely to be realized over a long-run period than in the short term. Keywords: Education Tax; Investment; Human capital; Economic growth