Components Of Human Capital Research Articles

The Gap between the Conditional Wage Distributions of Incumbents and the Newly Hired Employees: Decomposition and Uniform Ordering

We examine the cardinal gap between wage distributions of the incumbents and newly hired workers based on entropic distances that are well-defined welfare theoretic measures. Decomposition of several effects is achieved by identifying several counterfactual distributions of different groups. These go beyond the usual Oaxaca-Blinder decompositions at the (linear) conditional means. Much like quantiles, these entropic distances are well defined inferential objects and functions whose statistical properties have recently been developed. Going beyond these strong rankings and distances, we consider weak uniform ranking of these wage outcomes based on statistical tests for stochastic dominance. We focus the empirical analysis on employees with at least 35 hours of work in the 1996?2012 monthly Current Population Survey. Among other findings, we find incumbent workers enjoy a better distribution of wages, but the attribution of the gap to wage inequality and human capital characteristics varies between quantiles. For instance, highly paid new workers are mainly due to human capital components and, in some years, even better wage structure.

A Theory of Education and Health

markdownabstract__Abstract__ This paper presents a unified theory of human capital with both health capital and, what we term, skill capital endogenously determined within the model. By considering joint investment in health capital and in skill capital, the model highlights similarities and differences in these two important components of human capital. Health is distinct from skill: health is important to longevity, provides direct utility, provides time that can be devoted to work or other uses, is valued later in life, and eventually declines, no matter how much one invests in it (a dismal fact of life). Lifetime earnings are strongly multiplicative in skill and health, so that investment in skill capital raises the return to investment in health capital, and vice versa. The theory provides a conceptual framework for empirical and theoretical studies aimed at understanding the complex relati onship between education and health, and generates several new testable predictions.

The relevance of human capital to firm performance: A focus on the retail industry in Kinshasa, Democratic Republic of Congo

Purpose and problem: Human capital represents an investment in education and skills. However, in the Democratic Republic of Congo (DRC) the ability of small-scale retailers to grow and increase firm performance is restricted by the scarcity of education and prior work experience.Methodology: Survey data were collected from 126 owner-managers in the retail industry in Kinshasa, DRC, in order to investigate the proposed relationship between the human capital components of education, work experience and venture performance.Findings: Several variables pertaining to education and prior work experience were related to different aspects of venture performance, allowing for support of the hypotheses. Nonetheless, when clustering was conducted some surprising results were observed in that owner-managers tended to have little work experience even where their venture was performing well.Implications: Research into human capital and links to performance in Africa and emerging markets is valuable as recent research has found that the matching of entrepreneurial human capital with opportunities for growth is the essence of economic development.

The Relationship Between Communicable Diseases and FDI Flows: An Empirical Investigation

AbstractThis paper focuses on the impact of communicable diseases, which affects the population health component of human capital on worldwide FDI flows. The model controls for endogeneity that can stem from the interconnected relationship between FDI, population health and per capita GDP. After controlling for this endogeneity, we find that communicable diseases have a statistically significant negative effect on FDI, which is 2 to 5 times larger than when using ordinary least squares. The results remain robust to alternative model specifications.

A Theory of Education and Health

This paper presents a unified theory of human capital with both health capital and, what we term, skill capital endogenously determined within the model. By considering joint investment in health capital and in skill capital, the model highlights similarities and differences in these two important components of human capital. Health is distinct from skill: health is important to longevity, provides direct utility, provides time that can be devoted to work or other uses, is valued later in life, and eventually declines, no matter how much one invests in it (a dismal fact of life). Lifetime earnings are strongly multiplicative in skill and health, so that investment in skill capital raises the return to investment in health capital, and vice versa. The theory provides a conceptual framework for empirical and theoretical studies aimed at understanding the complex relationship between education and health, and generates several new testable predictions.

The moderating role of social networks within the radical innovation process: a multidimensionality of human capital-based analysis

Knowledge, or intellectual capital, and innovation continue to be key areas subject to rapid change in the current environment. The complexity of the relationship between knowledge and innovation leads to the in-depth study of more specific linkages. Intellectual capital is divided into human, organisational and social capital. This paper attempts to provide empirical evidence relating to the relationship between human capital and radical innovation, along with social networks. Using data collected via a questionnaire, our hypotheses were tested empirically in a sample of 251 Spanish technology-intensive manufacturing firms. The paper provides new, empirically-based insights into the study of radical innovation by adopting a research framework which is built upon the intellectual capital-based view of the firm, based on the multidimensionality of human capital. The main results show the positive and statistically significant role of human assets in radical innovation, and, regarding a moderating role, indicate the existence of a substitution effect between one of the human capital components - experience and abilities - and social networks.

ABORIGINAL LABOUR FORCE PARTICIPATION IN CANADA: CONSIDERATION OF A BROADER DEFINITION OF CAPITAL

ABSTRACT The labour force status of Aboriginal Canadians is analysed with the intent of assessing the role of an expanded definition of capital to include the human capital component of health status and social capital. The dataset of the 2006 Aboriginal Peoples Survey is analysed using an instrument variable ordered probit model to study labour force participation among Aboriginal Canadians. The results suggest that both health status and social capital are significant determinants of labour force status among Aboriginal Canadians. The findings have implications for public policy. Keywords Labour force, human capital, social capital, Aboriginal, Canada

The Importance of Age in Development

In terms of the sustainable livelihoods approach (SLA), sustainable livelihoods are achievable by the presence of five specific capital assets including human capital. This article shows that human capital needs to be expanded beyond education, training, skills and health. The research was conducted in one rural area of KwaZulu-Natal, South Africa. Using triangulation as well as target and random sampling methods, the study aimed to: (1) identify the capital assets of the people in that area; (2) identify the barriers that they still faced in taking an active role in the local tourism economy after a few years of democracy, and (3) also identify the economic opportunities that the local people could exploit. During the research it was found that young people had clearer and profound views about their conditions than the rest of the community members in terms of age differences. Based on the interviews with different categories of local community members, the article argues that young people in particular have clearer views about their conditions of poverty and unemployment. The article concludes therefore that age is critically fundamental in the realisation of sustainable human capital. In this regard, biological age should form part of the human capital component of the SLA. DOI: 10.5901/mjss.2014.v5n20p2533

The impact of corporate governance attributes on intellectual capital disclosure: A longitudinal investigation of Nigerian banking sector

The main objective of this study is to examine the role of corporate governance and ownership structure attributes in intellectual capital (IC) disclosure practices of Nigerian banking sector, following the recent restructuring and regulatory changes in the banking sector. A longitudinal investigation over a 4-year period (2006–2009), a period following the regulatory changes, has been undertaken. Using a disclosure checklist to measure the overall and the subcategories of IC disclosures of the banks, a total of 80 annual reports were subjected to content analyses. Corporate governance attributes comprise board size, independent non-executive directors and board meetings, whereas ownership structure patterns include director and government ownership. The results revealed that all the corporate governance and ownership structure patterns, except board size, have a significant positive association with the overall amount of IC disclosures. The results also showed that the governance and ownership structure variables had significant impact on at least one of the IC disclosure components of internal, external and human capital. Size, as a control variable, has further shown a strong positive association with the IC disclosures. This article, which examines the relationship between IC disclosures and corporate governance attributes, following the introduction of a mandatory code on corporate governance for the banks, implies that corporate governance mechanisms play a key role in dissemination of IC information. The article also provides an empirical support to previous cross-sectional studies that documented a similar strong positive association between governance attributes and IC disclosures in several other countries.

Investigate of Intellectual Capital in Nonprofit Organizations (NPOs)

Aims: In recent decades, the management of the intellectual capitals has turned into one of the noteworthy and appealing issues. The main objective of the present research was to evaluate the components of intellectual capitals in nonprofit organizations. To this end, Procurement, Development and Renovation Organization of schools of Tehran province, which is considered as a nonprofit organization, was selected as the statistical population. Study Design: Research paper. Place and Duration of Study: In order to investigate the threefold components of intellectual capital, a nonprofit organization was particularly selected. The main activity of this organization is Construction of school buildings in order to achieve society educational goals. This research was done since September of 2012 to February of 2013. Methodology: Therefore, at the initial stage theoretical study was carried out through library studies. Considering the fact that the research method applied was of descriptive type, the instruments employed for data collection was interviewing and questionnaire. The questionnaire includes 40 items and is adapted from a standard questionnaire that are cited in the Appendix A. This questionnaire was then distributed among the samples who were computed to be 124 (100 Men, 24 Women, age range24-68 years) participants utilizing Cochran formula. In order to test the hypotheses, structural equation modeling technique and PLS software have been employed. Results: The results obtained from the concurrent studying on the components of Original Research Article British Journal of Economics, Management & Trade, 4(7): 1102-1114, 2014 1103 intellectual capital on each other in the above-stated organization indicated that human capital has a large effect on the structural capital while human capital showed no relationship with relational capital. Also, structural capital has a significant impact on relational capital. Conclusion: According to the resource-based view, the resources are considered as worthwhile that lead to efficiency development and potential investment in opportunities and confronting threats. With respect to the resource-based view and that structural and relational capital present at an acceptable level, the lack of human capital component indicates that human resource as a valuable source in the organization studied does not have proper planning and has not yet received a rightful place in the organization.

10.5937/skolbiz1-5976 = Knowledge as the component of human capital in economic growth models

The paper first explains the significance of the complex of human capital and investments in human capital in terms of the comprehensive application of the scientific results in the production process. This is followed by the basic economic analysis of the importance of explicit knowledge and tacit knowledge for the development of enterprises and individual economies. After reviewing the role of certain forms of research and development in the creation of economic value, the accent is placed on the understanding of knowledge as the component of human capital in the economic growth model. It is pointed out that in contrast to the neoclassical models that stress the importance of the process of physical capital accumulation, in models of endogenous growth the source of growth is in the process of knowledge accumulation. Endogenous growth models recognize the existence of knowledge that is not mere public goods, i.e. that has the status of the market goods. This means that some knowledge is not fully accessible to all market subjects. It refers to knowledge which is protected by various forms of intellectual property or is potentially inaccessible for use by the interested entities. Such knowledge can be treated as the production factor equal to the physical capital, which has its appropriate market structure.

E-Governance Challenges in the Republic of Bulgaria

Development of information and communication technology imposes new challenges to governmental systems and state governance and local authorities. Development of e-governance in the Republic of Bulgaria is an unavoidable process of modernization of public administration, its effective functioning and improvement in administrative services’ quality. According to the United Nations E-Government Survey 2014 for last two years Bulgaria is going down in ranking- from 60 in 2012 to 73 for 2014 (E-government development index EGDI 0.5421, Online Service Component 0.2362, Telecommunication Infrastructure component 0.5941, Human capital component 0.7960) which is an evidence that approaches should be re-considered in general and the country is lagging behind.

Media Literacy and Development of Human and Social Capital in the European Union

Together with the growing level of the digitalization in the field of multimedia, also convergence of media, information and digital literacy have been growing up. In case of the traditional mass media, it was important to have skills to use the media content in a critical, aware and selective way. Nevertheless, in the era of the Internet and extended availability of information in the digital form, the importance of information and digital technologies literacy also grows. It regards to some extent the technical ability to use particular technological solutions, but also forming aware and active consumers and authors of the media content. The main goal of this paper is researching the relation between forming the media literacy as a component of human capital, and the realization the European Union’s targets in the area of building a knowledge-based economy. On the basis of the subject-matter literature and other source materials a hypothesis, which classifies the media education as a key process during creating a single European information space, shall be verified. In the first part of the paper, the author concentrates on presenting the dependence between human, personal and social capital. Next, on the basis of the European definition of media literacy, the author examines capabilities of achieving progress in the field of media education in terms of the present European audiovisual policy.

Стимулирование рынком труда инновационных компонент человеческого капитала

Стимулирование рынком труда инновационных компонент человеческого капитала

Improving livelihoods in fishing communities of West Sumatra: More than just boats and machines

Despite a raft of livelihood programs designed to help Indonesian small-scale fishers there are concerns that the needs of the poor are still not being addressed. This study examines this concern through a two-pronged approach. Firstly, through a broad-scale series of interviews with fishers, community leaders and government employees in 25 fishing villages in the province of West Sumatra to identify which sectors of the fishing industry the poor operate in and the types of livelihood initiatives targeted at helping them. Secondly, by using three case studies of livelihood development projects and identifying the social, economic and institutional lessons learned that point both to best and worst practice. Three groups of poor fishers were identified; a large group of non-boat owning “labourers”, a group of “small-scale boat owners” and a small group of “processors and sellers”. Empowerment programs by the Department for Fisheries between 2005 and 2009 emphasised improving physical capital through providing fishing gear, motorisation and processing equipment. These initiatives could potentially help small-boat owners but would not benefit non-boat owning labourers. The new livelihood improvement programme GPEMP had non-fishing alternative livelihoods that could help labourers, but still demonstrated an ongoing bias towards physical capital interventions. The three case studies demonstrated that aspects of leadership, trust, advocacy, administration, accountability and ongoing institutional support are key elements of empowering coastal communities towards livelihood improvement. Human and social capital components need prioritisation in future poverty alleviation policy and programs in Indonesia, particularly for the large marginalised group of labourers.

Human Capital Development via Management by Projects

The article presents a brief characteristics of the main ways of human capital development and shows the concept of management by projects (MBP) as a tool for this development. The author based the article on her analysis of specialist literature in the area of management and pedagogy as well as the results of interviews conducted with members of the project teams from a clothing industry company. It was found that the implementation of MBP has a direct impact on the sphere of employee trainings and promotion. Consequently, MBP has an influence not only on the development of human capital components such as knowledge and skills, but also on the motivation.

The impacts of human capital in enhancing new venture's performance

PurposeThis paper aims to extend current understanding about the relationship between human capital and new venture performance. Human capital has increasingly become one of the critical intellectual resources in enhancing firm's success, however little work has been done in enriching the knowledge of this link from a small entrepreneurial new venture context. Many researchers have studied human capital from various angles, but few have analyzed human capital's influence on firm performance from entrepreneurial competence, motivation and creativity perspectives to ascertain their effects on new venture performance, including profit generation and patent creation.Design/methodology/approachThis study was conducted using 155 small technology‐based new ventures located in government incubators on university campuses throughout Taiwan.FindingsThe authors found that entrepreneurial experience, manpower and creativity have positive impact on new venture's performance assessed by using profitability and patents creation as the criterion variables. Amongst all predictors, entrepreneurial manpower was found to have the strongest effect on both profitability and patent creation. The most interesting finding, however, stemmed from a component of entrepreneurial motivation the authors created, pioneering motivation. This unique form of motivation, to explain the extreme determination and time involved in starting a new business, was found to have a significantly negative effect on patent creation.Research limitations/implicationsThis study identifies the variety of entrepreneurial human capital and the importance of human capital's multidimensionality in entrepreneurship research. In this paper, the authors integrated some meaningful components of human capital which have been neglected in previous entrepreneurship studies. The paper's findings add to knowledge of how investments in entrepreneurial human capital, such as work experience, manpower, and creativity, influence performance outcomes at the early stages of the entrepreneurial process.Originality/valueThis paper provides a useful guideline for entrepreneurs by investigating new venture performance with seven less‐emphasized but important components of human capital. The authors identified the most influential components of entrepreneurial human capital (i.e. experience, manpower, and creativity) that a new venture should cultivate for improving its performance.

Organisational innovability: exploring the impact of human and social capital in the banking industry

We propose an organisational innovability framework focused on understanding the effect of the interaction of human capital quality and social capital on firms' innovation. The case study is based on qualitative research of six financial service firms in Taiwan. The results show that the main components of human capital in financial service firms include professional knowledge/skills, industry experiences, educational background, and ethics. The study shows ethics to be the priority of human capital quality, particularly in the financial and banking industry where employee morality/integrity overrides professional knowledge and skills. We also found that high-quality human capital leads to excellent innovative capabilities. The main innovative capability in financial service firms is incremental capability rather than radical capability. The results further show that social capital may moderate the relationship between human capital and firms’ innovability. These findings contribute to academic fields and practical applications.

Electoral Demand for Secure Private Property: On the Edge of Human Capital and Institutions

Discussions concerning the issue of distinguishing the influences of human capital and institutions on economic growth pose the question of the boundary between these two notions. Education, traditions, and other factors have an impact on people’s readiness to acknowledge and support certain distinctions. The respect of agents in the surrounding milieu for private property exerts a significant influence on the possibilities of taking advantage of its products. Significant differences in these factors in post-Socialist countries have found their expression in differences in electoral preferences. These last predetermined the distinctive features both of the preferences of legislators, and of the outcomes of the introduction and enforcement of what were often pieces of similar legislation. In any case, the connections between variability in preferences and economic indicators turn out to be statistically significant.Evidently, it makes sense to classify civic qualifications, or moral norms which have become established among market agents, together with the special components of human capital. But then looking for the boundary between such a component of human capital and institutions properly so called seems to make rather little sense.

Studi Intepretif Identifikasi dan Interaksi Intellectual Capital terhadap Kinerja Perusahaan

The objective of this research is to identify the key components of Human Capital (HC), RelationalCapital (RC), and Structural Capital (SC), as well as to figure out each Components Interaction(CI) and how it relates with company’s performance. This is qualitative research with interpretiveapproach. Data is validated by credibility and transferability test. The technique of analysis isData Reduction. The research shows that the key components of HC, RC and SC in BusinessStrategic Unit of Merpati Maintenance Facility are model and framework, education, and vocationalqualification for HC component; customer loyalty, favorable contracts, and licensing agreementfor RC component; patents, management process, expert network and teams for SC component.Interaction between IC’s component occurs, influencing others and contributing to each componentof IC or as whole. The key components of HC, RC, and SC should have interaction to giveoperational support in order to increase company’s performance, both in its financial and nonfinancial aspect.Keywords: Intepretive Study, Intellectual Capital, Company’s Performance