Human Capital Formation Research Articles

Impacts of Capital Formation and Investment Sources on Total Factor Productivity: The Example of Nigeria’s Agriculture

The study was designed to analyse the impact of capital formation and investment sources on Nigeria's agricultural productivity from the period 1980 - 2021. The time series data were analysed with Malmquist Data Envelopment Analysis (DEA) and the tobit regression models using DEA, the Total Factor Productivity Change, which quantifies the degree of productivity, was estimated at 1.022, which implies an average productivity progress of 2.2% annually. Again, since the value of technical efficiency change is less than technological change, it implies that the productivity gains are mainly attributable to technological progress instead of efficiency improvements in the periods under the study. The results of tobit regression indicate that domestic capital formation significantly influences agricultural TFP, highlighting the importance of government expenditure on agriculture (GEA) and gross fixed capital formation (GFCF) in enhancing productivity, although with minimal effects. Human capital formation (HCF) also showed positive impacts on Total Factor Productivity TFP, suggesting that improvements in workforce skills and knowledge are crucial for agricultural efficiency. However, FDI exhibited no significant correlation with TFP, implying that local investments are more beneficial than foreign aids in the context of Nigeria's agricultural sector. The findings emphasize the need for robust policy frameworks that align capital disbursements with agricultural production periods to optimize TFP. This study contributes to the discourse on agricultural productivity by providing empirical evidence on the critical role of capital investments in enhancing TFP within developing economies like Nigeria.

Оценка системы высшего образования Казахстана и вопросы управления её качеством

The modern labor market requires an improvement in the quality of higher education, professional training, and a higher level of qualifications obtained by university graduates. Therefore, the assessment of the higher education system as the main tool for the formation of human capital that meets the requirements of modern realities is of particular importance. The purpose of this study is to identify the main directions of development of the higher education system through the assessment of key performance indicators of higher education institutions in Kazakhstan and the development of recommendations aimed at improving its quality. The article analyzes the main indicators of the higher education system in Kazakhstan, assesses the dynamics of the number of universities, admission, graduation and the number of students, the demand for Kazakhstani universities among foreign students, as well as the teacher-student ratio. An analysis of the income and expenditure of universities and the provision of computer and interactive equipment for training is carried out. It highlights the main problems and substantiates the need to develop a list of factors that explicitly and implicitly affecting the quality of higher education. The study is aimed at finding solutions to the problems faced by the current system of higher education management. Despite the fact that there are systems for collecting statistical information and methods for assessing the quality of higher education, there is still a need to revise them for efficiency, convenience, transparency, and adaptability to new conditions. The solution of these problems through the creation of a new information platform can ensure an increase in access to high-quality higher education, have a positive impact on the development of the educational sector and improve the quality of higher education.

Selected aspects of the correlation between indicators used in public administration in the field of human capital formation

The role of human capital in the global economy is increasing. The education system makes an important contribution to the formation of human capital. One aspect of the education system that is gaining prominence is additional education for children. This is becoming an increasingly important factor in fostering harmonious human development and the full realization of human potential. In the sphere of state and local administration in the field of education, such indicative indicators as the enrollment of children in additional education and the average score on the Unified National Test are used. We believe that there is a certain correlation between these indicators. The purpose of our study is to test this hypothesis and find out whether there is a correlation between these indicators. If such an influence is discovered, this will make it possible to adjust educational policy in the field of additional education for children, which, in turn, will help to increase the average score on the unified national testing. The results of the study allow us to conclude that in some regions of Kazakhstan there is a direct, strong correlation between indicators of the level of enrollment of children in additional education and indicators of the average score on the unified national testing. These data update further indepth study of certain aspects of additional education for children.

Human capital formation and the role of institutions in Africa

Human capital formation and the role of institutions in Africa

The Importance of Human Capital in the Life of a Corporation: the Influence of Managers on the Dynamics of the Social Environment

Introduction. The purpose of the article is to analyze the influence of managers and their human capital on the corporate social environment, offering tools for such analysis and studying the factors of human capital formation. The relevance of the work is determined by the practical application of network research methods using the in-depth interview method. The result of using such methods is the analysis of the qualities of managers that influence the building of the most positive socio-structural relations in the corporation and contribute to the development of the human capital of the corporation, which is important for society.Methodology and sources. In developing the methodology there were used the works of sociologists devoted to values (M. Weber, T. Parsons, F. Tennis, P. Bourdieu, V.A. Yadov) and the theory of network human capital (P.P. Deryugin, S.A. Kravchenko, S.A. Dyatlov) were used. The results of research by N.E. Tikhonova, S.A. Solntsev, M. Goltzman and others on the role of leaders in Russian society were used. In addition to the in-depth interview method, the research methodology was based on the concept of "Management Grid", which reveals the work style of a manager through his self-assessment.Results and discussion. This article is an applied research that reveals the role of human capital of managers in the life of a corporation and its impact on the social environment. It confirms the key importance of human capital and the social institution of corporations for the formation of social structure and economic development, and offers practical recommendations for corporate management with an emphasis on the development of human capital. Conclusion. The human capital of managers significantly affects the interaction inside and outside the corporation and the social dynamics of society as a whole. The development of leadership competencies, skills and values plays a key role for the success of corporations and society as a whole. The social component of the life activity of corporations is focused on production by meeting social needs, which emphasizes the central importance of human capital and its impact on the social structure of society.

An investigation into the convergence of economic growth among Indian States and the path ahead

This study offers a comprehensive examination of economic growth and convergence in the Indian States and Union Territories (U.T.) over the period from 1991 to 2020. It investigates absolute, sigma, and conditional convergence within this diverse set of states and utilizes the augmented Solow and extended Solow models to explore conditional convergence dynamics. The empirical findings reveal several significant insights. First, there is no substantial negative correlation between the initial per capita GDP ratio and the average annual growth rate, indicating the absence of absolute convergence across the Indian States and U.T. economies during the study period. These results align with those obtained from sigma convergence analysis, reinforcing the absence of widespread convergence. However, conditional convergence is observed, as evidenced by the rate of conditional convergence (coefficient of initial GDP per capita) estimated at 0.038 among the Indian States and U.T. The presence of conditional convergence implies that while initial conditions matter, other factors, including physical and human capital, population growth, and additional variables, significantly contribute to the growth and convergence of Indian regions. The study concludes that policies aimed at promoting economic growth in the Indian States should prioritize the expansion of the labor force, investments in physical and human capital, and prudent government consumption. Furthermore, fostering an environment that encourages access to new technologies and ideas, maintaining sound macroeconomic management, and increasing investments in human capital formation are essential for sustained growth. Effective resource allocation through prudent budgetary policies and heightened investments in the health sector are recommended. Incentives to reduce fertility rates and adept monetary policy management are also identified as crucial elements for ensuring stability and sustainable growth. In summary, this research underscores the importance of adopting a holistic approach to foster economic growth and convergence in the Indian States. The suggested policy measures create a conducive environment for sustained development and prosperity in this diverse and dynamic region.

Social Expenditures in Odisha: Populism Versus Human Capital Formation

This article examines the level, composition and trends of social expenditures at the subnational level in India using the secondary data of Odisha from 1990–91 to 2016–17 due to the low level of economic development in the state. The level of social expenditures of Odisha is better than those of the 14 major states of the country. However, it is not sufficient for the development of the state due to its declining trend and a small proportion of capital account social expenditures. Regarding the composition of social expenditures, a substantial proportion is incurred on populism rather than human capital formation. Social expenditures deviate from human capital formation to populism with time. Further emphasis is shifted towards economic services from social expenditures in the total expenditures. The ruling party used the strategy of populism to win seats in the state legislature keeping in mind the high proportion of the poor, illiterates and poor farmers in the state, where a direct relationship exists between human capital formation and winning seats in the legislature. To ensure economic development, the state should strive to improve its human capital formation and refrain from populist measures.

EDUCATION POLICY AND HUMAN CAPITAL DEVELOPMENT: ASSESSING THE EFFECTIVENESS OF VARIOUS EDUCATIONAL STRATEGIES IN UZBEKISTAN

This research article examines the crucial relationship between education and human capital, emphasizing their significant impact on both individual and societal development. Through an extensive literature review and empirical analysis, the article investigates the diverse dimensions of education as a catalyst for human capital formation and its subsequent effects on sustainable growth. The study highlights the importance of implementing effective policies and investments in education to promote human capital accumulation, which in turn enhances productivity, innovation, and inclusive socio-economic progress. Additionally, the article underscores the vital role of education in addressing contemporary challenges and achieving the United Nations' Sustainable Development Goals (SDGs). The findings of this research stress the urgency of prioritizing education and human capital development as essential elements of a comprehensive development strategy.

THE SETAs AND S-SYSTEM SKILLS DEVELOPMENT IN SOUTH AFRICA AND BRAZIL: A TRANSFORMATIVE SOCIAL POLICY PERSPECTIVE

Relevance. The African Union declared 2024 the Year of Education, Educating an African Fit for the 21st Century and the Agenda 2063 aspiration seeks to catalyse an education and skills revolution for Africa’s industrialisation. This places Technical and Vocational Education and Training at the centre in skills development on the continent. As part of their endogenous initiatives at improving skills, knowledge and abilities desired for work and enhance industrial competitiveness South Africa and Brazil instituted the SETAs system and the S-System, respectively aimed at skills formation and human capital development. Aim. The two BRICS countries of South Africa and Brazil, through Acts of Parliament, institutionalised skills development programs which had seen them emerge as leading economies on their respective continents. What key lessons can be drawn for other African countries in their quest for industrialisation in the AU Year of the Year of Education to foster the relevant and competitive skills needed for the 21st century. Methods. The case studies of the S-system of Brazil and the SETAs system of South Africa are presented using a case study approach. Examining the SETAs and S-systems using a Transformative Social Policy framework, the paper adopts a case study approach seeks to answer the following questions: (1) what kind of institutional linkages and coordination between industry/business and skills/education training institutions need to be in place for adequate and appropriate human capital formation in Africa? (2) what are the appropriate funding mechanisms for human capital development suitable for African countries to adopt? (3) What coordination and facilitating role should be adopted by states in African countries to facilitate industry/training institutional linkages? Results and conclusions. Key finding indicates that while the SETAs in South Africa are widely recognised by employers and give holders a big advantage in securing employment, TVET-market coordination, regional coordination for area-specific industrialisation and appropriate skills funding mechanism are key for competitive skills development and provide practical and policy lessons for African governments.

Climate-related Disaster and Human Capital Investment in the Global South — Household Heterogeneity and Growth

This study develops a dynamic model of climate-related disaster impacts, considering multidimensional household heterogeneity, for analyzing changes in growth and inequality in low-income countries. Focusing on human capital development, the study demonstrates the multiple impacts of disaster risk reduction (DRR) policies on human capital investment, including the effect of schooling opportunities for households constrained by the subsistence consumption constraint. Through numerical simulations performed for two economies that differ in terms of human capital, modeled after Madagascar and Fiji, it is illustrated that the possibilities of involuntary unemployment and the work-learning choice drive the diversity in macroeconomic impacts of a disaster. In an economy characterized by low levels of human capital, a disaster could cause an increase in labor supply in the immediate aftermath but interrupt human capital formation, impeding long-term growth and human capital formation. Such a result contradicts prevailing intuition by demonstrating that a disaster occurring in an economy under recession may not result in a large adverse GDP impact in the short run but may negatively impact growth in the long run. On such a path, a policy of development in DRR infrastructure with appropriate taxation could reduce human-capital gaps in the long run by supporting continued post-disaster human-capital-investment opportunities for the poor.

Merit-based scholarships for university graduates: A generation of Italian economists

We examine the role of financial aid in shaping the formation of human capital. We study the impact of a large merit-based scholarship for graduate studies in affecting individuals’ occupational choices, career trajectories, and labor market outcomes of a generation of Italian economists, with special focus on gender gaps and the role of social mobility. We construct a unique dataset that combines archival sources and includes microdata for the universe of applicants to the scholarship program and follow these individuals over their professional life. We discuss five main results: (i) it is easier to become a high achiever for individuals from households with a lower socio-economic status if they reside in high social mobility provinces; (ii) women are less likely to be shortlisted for a scholarship as they tend to receive lower scores in the most subjective criteria used in the initial screening of candidates; (iii) scholarship winners are much more likely to choose a research career and this effect is larger for women; (iv) women who work in Italian universities tend to have less citations than men who work in Italy. However, the citation gender gap is smaller for candidates who received a scholarship and (iv) women take longer to be promoted to the rank of full professor, even after controlling for academic productivity.

Socioeconomic deprivation, health and healthcare utilisation among millennials

This study estimates and decomposes components of different measures of inequality in health and healthcare use among millennial adolescents, a sizeable cohort of individuals at a critical stage of life. Administrative data from the UK Hospital Episode Statistics are linked to Next Steps, a survey collecting information about millennials born between 1989 and 1990, providing a uniquely comprehensive source of health and socioeconomic variables. Socioeconomic inequalities in psychological distress, long-term illness and the use of emergency and outpatient hospital care are measured using a corrected concentration index. Shapley-Shorrocks decomposition techniques are employed to measure the relative contributions of childhood socioeconomic circumstances to adolescents’ health and healthcare inequality of opportunity. Results show that income-related deprivation contributes to significant inequalities in mental and physical health among adolescents aged between 15 and 17 years old. There are also pro-rich inequalities in the use of specific outpatient hospital services (e.g., orthodontic and mental healthcare), while pro-poor disparities are found in the use of emergency care services. Regional and parental circumstances are leading factors in influencing inequality of opportunity in the use of hospital care among adolescents. These findings shed light on the main drivers of health inequalities during an important stage of human development and have potentially important implications on human capital formation across the life-cycle.

Human capital management: new factors of production in the Indonesian life insurance industry

In the current era of the Information Society, competition in any business industry is increasingly fierce. However, the lack of skilled workers is a major obstacle in increasing company production. Human Resources problems are still not enough to overcome complex problems. In the current era of modern globalization, competitive advantage is largely determined by the formation of Human Capital. The inadequate level of knowledge from theoretical and practical aspects of Human Capital Management in increasing sustainable production determines the objectives of this research and problem formulation so that solutions can be found, because the attention of developed and developing countries is currently more focused on developing Human Capital which is one of the company's solutions in Human Resources development which tends to have a significant impact on performance. This research examines Human Capital's direct impact on employee performance and becomes a new production factor in the Indonesian Life Insurance industry. The results of this research are to justify and develop that human capital management including TASK (Talent, Attitude, Skill, Knowledge) through continuous training with studies in the Indonesian Life Insurance Industry sector is a production factor that can also improve employee and company performance.

The Impact of Globalization and Internationalization on the Global Society

Internationalization and globalization are perceived as the central realities of the 21st century impact on higher education. Moreover, internationalization and globalization together influence to transform the image and organizational activities of universities. To be able to better prepare students for the development of career, universities must be aware of the trends, opportunities and experiences of globalization and internationalization. The impact of globalization and internationalization on the character and behavior of universities has become a central theme of many recent studies. Some even go so far as to claim that the process of globalization has produced a grand new model of global universities. This general trend of today's reality gives us the opportunity to increase the balanced economic and scientific potential of a country and the formation of human capital that leads to an economy with sustainable growth. Education in general and higher education in particular is an important factor and aims for the globalization and internationalization of higher education to achieve these objectives and help society to navigate a future that is more difficult to predict. Received: 25 December 2023 / Accepted: 25 February 2024 / Published: 23 April 2024

Социально-экономическое благополучие как условие формирования потенциального человеческого капитала

The materials of the article are a continuation of a series of the authors’ research devoted to the study of correlation relationship closeness between the level of socio-economic development of the countries and the development of national human capital. Quantitative relationship between the level of socio-economic well-being of the country and development potential of future human capital is the object of attention in the article. Based on the author's interpretation of the concept of "potential human capital" from the standpoint of correlation and regression analysis, influence of socio-economic well-being parameters on the current opportunities of formation and realization of human capital of future generations is considered. Within the framework of the methodological tools of regression analysis, based on calculations of correlation coefficients, there was an attempt to quantify the degree of influence on the dependent variable (potential human capital) of various parameters of socio-economic well–being of countries – per capita income, non-cost characteristics of social development (competitiveness of national economy, level of social progress, level of prosperity, and level of happiness).

Transforming mineral capital into human capital? Mining and education in early twentieth-century Spain

Abstract Using a highly detailed dataset at the municipality level, drawn from the Spanish Mining Cadastre of 1890, this paper shows how the mining sector affected education provision and human capital formation in early twentieth century Spain. The results indicate that there were two patterns in mining towns. Those mines that invested in technology, those highly productive, and those with post-extraction industries linkages were able to transform mineral capital into human capital. However, in areas where mines were characterized by unskilled labour and low living standard, the mining sector had a negative impact on education, especially in women’s human capital formation.

Assessing the Impact of Socioeconomic Factors on Educational Equity in Indian Primary Schools: A Structural Modelling Perspective

ABSTRACT The Indian primary education system plays a crucial role in the nation’s socio-economic development and human capital formation. Despite progress in expanding access to education, challenges persist, particularly regarding educational equity. In a diverse country like India, ensuring educational equity is complex due to factors such as income inequality, caste disparities, regional variations, and resource access. Globally, educational equity has gained prominence in research and policymaking, recognizing its profound impact on individual lives and societal progress. In India, persistent disparities in access, quality, and outcomes highlight the urgency to address educational equity. Previous research emphasizes the influence of socioeconomic factors on educational attainment. However, understanding these mechanisms requires an interdisciplinary lens. Structural modeling, particularly Structural Equation Modeling (SEM), offers a robust framework to unravel the relationships between socioeconomic factors and educational outcomes. This research aims to contribute to the discourse on educational equity in Indian primary education and provide evidence-based policy insights. Using a structural modeling perspective enriched by qualitative case studies, we explore the intricate relationships between socioeconomic factors and educational outcomes. By integrating quantitative analysis with qualitative inquiry, we offer a comprehensive framework to address socio-economic disparities and promote a more inclusive education system in India.

Human Capital Formation in High-Tech: Features of Government Policy

Purpose: is to reveal the peculiarities of government policy aimed at building human capital in high-tech industries. Methods: this research is based on a systems approach; decomposition of human capital in order to identify systemic gaps in its formation; qualitative (traditional) analysis of government programs and projects; a comparative analysis of the directions of Russian government policy and some leading countries in the field of high technologies aimed at human capital development. Results: the essence and structure of the organization's human capital are considered based on the stages of its reproduction, as well as from the position of its expanded interpretation. Systemic gaps in the formation of human capital of high-tech organizations have been identified, including gaps in the formation of individual and corporate human capital, as well as in the institutional and infrastructural support for its reproduction. The features of Russian government policy aimed at the formation of human capital in the high-tech sector are shown, in comparison with the policies of a number of foreign countries. The role of government programs and projects (“Priority2030”, “Professionalitet” and “Advanced Engineering Schools”) in overcoming systemic gaps in the formation of human capital in high-tech organizations is outlined. Conclusions and Relevance: the performed analysis showed the presence of a wide range of government policy measures of a number of countries that occupy leading positions in the field of high technology, aimed at developing human capital in the high-tech sector. Among them are the development of fundamental science, interdisciplinary and mathematical knowledge, STEM competencies, as well as strengthening the interaction between the academic sector and the high-tech sector. The arsenal of tools of domestic government policy includes a focus on practice-oriented training, the development of digital competencies, advanced training of management personnel, as well as the development of interaction between the academic and high-tech sectors. The federal project “Advanced Engineering Schools” corresponds to the elimination of the largest number of system gaps. At the same time, the systemic gap at the stage of formation of general human capital, which manifests itself in the poor physical and mathematical training of schoolchildren, remains unresolved.

Human capital spillovers and plant productivity in ASEAN: Evidence from the plant panel data

This paper examines whether local human capital spillovers can affect plant productivity in three Association of Southeast Asian Nations (ASEAN) countries using panel data from the World Bank enterprise survey between 2009 and 2015. According to the literature, spillovers in the form of human capital are critical for economic growth. The spillovers exist if plants can produce more in the region with the abundant number of skilled workers given their inputs. This study uses the augmented Cobb-Douglas production function to evaluate the influence of the non-production worker proportion outside the plant which serves as a proxy for skilled workers. The findings indicate that plant production is impacted by spillovers of human capital. This study finds that a 1 percentage point increase in the proportion of nonproduction workers within a region will enhance the productivity of plants in all regions by roughly 7.1–8.9 percent. Moreover, productivity rises are found to be higher for low-tech plants. According to the economic significance of these spillover effects, the value-added per plant will rise by US$ 330,000 or US$ 866.75 million for the manufacturing sector as a whole. According to the findings, policymakers should encourage plants to provide workers with additional training and raise the level of human capital through education.

Formation of human capital in agricultural sector of the Republic of Kazakhstan in digital space

The goal is analytical review of the current situation on formation of human capital in agricultural sector of the Republic of Kazakhstan, identifying the main problems and opportunities, as well as providing specific recommendations for optimizing development of labor potential in the context of digital transformation. Methods – statistical analysis, calculation of indicators, generalization, monographic. Results – the role of personnel reserves in AIC as a determining factor in increasing agricultural production volumes is considered. The main factors influencing on labor resources in agricultural sector of the republic in the conditions of digitalization are systematized: lack of qualified workers, aging workforce, unfavorable demographic situation, underdeveloped social infrastructure of the village, migration of the working population. It is emphasized that training of young specialists, as well as improving the quality of educational and methodological systems are an integral part of solving these problems. An analysis of the level of digital literacy of villagers and degree of the use of information and communication technologies was carried out. The state and dynamics of employment of rural residents, its differences in rural and urban areas have been studied, the share of people employed in agriculture, the structure of the economically active population by level of education have been determined. Conclusions - based on the results of the study, the need to train personnel capable of effectively using modern digital technologies in agricultural sector is noted, and measures to attract young people with specialized skills are argued. It is necessary to expand the continuous chain of career guidance, staff development to update professional competencies, and implement industry strategic goals. Practical recommendations for the development of human capital in the conditions of informatization and digitalization are proposed.