Human Capital Accumulation Research Articles

Trade openness and urban green innovation: A dual perspective based on financial agglomeration and human capital accumulation

Trade openness and urban green innovation: A dual perspective based on financial agglomeration and human capital accumulation

Human Capital Components and Economic Development: The Relationship between Education and Health Expenditures and GDP in Selected Countries of Southeast Europe

The modern theory of economic growth and development posits that human capital is one of the main factor for economic growth as it enhances the productivity of two other classical growth factors: physical capital and labour. Also, investments in human capital accumulation are considered as important precondition for achieving higher levels of economic development. In this context, one line of emprical research is to assess the importance of the two components of human capital – education and health – in the process of economic development. In this paper, we investigate the impact of education and health on the level of economic development (measured as GDP per capita) in a sample of five Southeast European countries (Albania, Croatia, North Macedonia, Serbia and Slovenia, over the period 2000-2021.The empirical analysis relies on a cross-sectional regression using two panels (one for education - based human capital, and the other for health-based capital. Other variables in the models include lagged GDP per capita, gross fixed capital formation per capita and corruption perception index as a proxy for insitutional quality. The results from the two panel regressions indicate that spending on education and health has significant positive effects on GDP per capita. Such research results lend support to the policy prescription that public investments in education and health aimed at upgrading the quality of human capital may significantly contribute to the process of economic development.

Population Aging and Labor Income Share: Theoretical Mechanisms and Cross-Country Evidence

Against the backdrop of intensifying global population aging and its increasingly prominent multi-faceted impacts on economic and social development, this pa-per comprehensively employs theoretical analysis and empirical research methods to conduct an in-depth investigation into the concept of labor income share and its influencing factors. Focusing on variables such as technological progress, labor market supply-demand dynamics, and human capital, it explores the relationship between population aging and labor income share. The research finds that population aging affects labor income share by altering labor market supply-demand relationships. Simultaneously, through technological progress and human capital accumulation, aging also exerts indirect influences on labor income share. Furthermore, due to differences in economic structures across countries and regions, the impact of population aging on labor income share demonstrates significant heterogeneity. These research outcomes provide im-portant theoretical and practical references for addressing labor income distri-bution issues in the context of population aging.

Migration, child education, human capital accumulation, and a brain dilution tax

Abstract I study the effect of educational policy in the host economy on human capital accumulation and growth. The analysis is performed in a two-country growth model with endogenous fertility. I show that providing additional free educational services for immigrant children can increase the attractiveness of migration for less skilled individuals, which can outweigh the positive effect of this policy on the acquisition of human capital. In contrast, imposing taxes on immigrants in the host country reduces low-skilled immigration flows and has the potential to promote human capital accumulation if the resulting revenues are channeled into educational subsidies.

Mixed correlations between groundwater extraction in India and accumulation of physical and human capital

Abstract The idea of weak sustainability posits that the exploitation of a natural resource, even if it depletes it, could be accompanied by investments in man-made forms of capital that may help maintain human wellbeing in the long run. Here, we conduct an initial test of the empirical evidence that such investments were made in the context of groundwater extraction in India. Irrigation with groundwater has played a crucial role in India’s rural development, but also made it the world’s largest consumer of groundwater with fast depleting aquifers. We test whether in locations that have had extracted greater amounts of water between 1966-2009, there are indications of greater accumulation of household level physical (assets) and human (education and health) capital, presumably through the investment of income generated from irrigation. We document positive correlations between groundwater utilization and the accumulation of physical assets. The results are more mixed for correlations with health and learning outcomes, which are likely the most important for the diversification of income away from farming once irrigation is no longer viable.

Engineering Ghana’s Future: The Impact of Emerging Technologies and Digital Transformation

Emerging technologies continue to reshape the global marketplace, providing new opportunities for businesses and societies to adopt emerging digital technologies. These technologies offer innovative and business executives a chance to leverage the technology in creating and transforming their organizations in the digital world. Like many emerging economies, Ghana recognizes the crucial role that adopting new digital technologies plays in a country's competitiveness and growth. The importance of digital transformation in Ghana's development has been acknowledged in various policy and development frameworks. The broadband policy states that enhancing the national broadband ecosystem is necessary for developing and deploying broadband networks and services in all sectors of the economy. In addition, the digital innovation and entrepreneurship centre at the Institute of Technical Training and Innovation aims to provide a turnkey facility for training and up-skilling inspiration and facilitate technology transfer and knowledge sharing with local industry and operators. The government’s policy direction is aimed at demonstrating leadership in embracing innovation, entrepreneurship, and digital adoption. Historically, the role of infrastructure, skills, and software in digital transformation has been examined based on secondary information from sources. The role of emerging technologies in socioeconomic development has been highlighted, especially in infrastructure projects. With an increasing desire for technology-driven economies globally, Ghana is taking huge strides to position itself as a significant player in the league of technology-driven economies. These strides come in the form of policies that stimulate innovation, accelerate the adoption of emerging technologies, and create conducive environments for the growth of innovative enterprises. This study identifies the key dimensions of digital transformation and prepares a question for face-to-face interviews with industry and government stakeholders in Ghana. In doing so, an in-depth and original analysis of the role and prospects of digital transformation in Ghana is provided. This industry is nascent, and there is no similar research on adopting new and emerging digital technologies in Ghana. In terms of challenges, it was pointed out that the penetration of advanced technologies in the industrial and private sectors in Ghana is very limited. Inadequacies of relevant infrastructure, outdated technology, lack of skilled manpower, and huge power constraints widen the gap. The study emphasized that there is a need to proactively foster the export base towards an increased sophistication level. Nevertheless, an important condition is the accumulation of human capital, which in part is related to technology transfer.

The Promotion of Sustainable Energy: How Does Digital Economy Attention Enhance Green Total Factor Energy Efficiency?

As global digital transformation accelerates alongside the “dual carbon” goal, understanding how the digital economy can drive the green transformation of traditional energy systems is critical to overcoming resource and environmental constraints. This study examines the impact of digital economy attention on Green Total Factor Energy Efficiency (GTFEE) using panel data from 275 Chinese prefecture-level cities between 2011 and 2022. Three main findings emerged. First, an increase in attention to the digital economy significantly enhances GTFEE, serving as a key driver of improved energy efficiency. Specifically, a one-standard-deviation increase in attention raises GTFEE by 0.276 standard deviations. Second, this effect operates through two pathways: (1) digital technology advancements, such as higher internet penetration; (2) human capital accumulation, reflected in a greater college student ratio; and (3) green innovation, measured by a rise in green patents. Third, regional heterogeneity is evident, with stronger positive effects in eastern and coastal cities, while high-carbon-intensity regions exhibit a suppressed impact. These results underscore the importance of public engagement in digitalization to optimize energy systems. Policymakers should adopt region-specific strategies, such as boosting digital infrastructure in low-carbon areas and supporting structural reforms in high-carbon regions. This study expands our understanding of the digital economy’s role in enhancing energy efficiency and offers policy guidance for the green energy transition.

The Role of Human Capital in Economic Development: A Theoretical Analysis

Human capital is a critical driver of economic development, serving as the foundation for enhanced productivity, innovation, and sustained economic growth. This paper provides a comprehensive theoretical analysis of the relationship between human capital and economic development, examining key dimensions such as education, skill acquisition, and health. By synthesizing established economic theories, the study demonstrates how strategic investments in human capital ranging from formal education and vocational training to healthcare and nutrition generate long-term economic benefits. The findings reinforce the argument that human capital is not merely a complementary factor but a fundamental determinant of economic progress, shaping a nation’s ability to compete in an increasingly knowledge-driven global economy. The analysis highlights the pivotal role of quality education in equipping individuals with the cognitive and technical skills necessary for modern labor markets. Additionally, it underscores the significance of healthcare in ensuring a productive workforce, as healthy individuals are more capable of contributing to economic activities and adapting to technological advancements. Lifelong learning and continuous skill development are also emphasized as essential components of human capital accumulation, particularly in the face of rapid technological change and automation. To illustrate these concepts, the study examines case studies from countries with highly effective human capital systems, such as Finland and South Korea. These nations exemplify how targeted policies in education reform, equitable healthcare access, and gender-inclusive workforce participation can foster economic resilience and growth. Finland’s emphasis on teacher training and equitable education, alongside South Korea’s focus on STEM education and innovation, offers practical insights for policymakers. The paper concludes with actionable policy recommendations, advocating for increased investments in early childhood education, vocational training programs, and universal healthcare. Furthermore, it stresses the importance of gender equality in education and employment to fully harness human capital potential. By prioritizing these areas, governments can lay the groundwork for sustainable economic development, reducing inequality and enhancing global competitiveness. Ultimately, the study reinforces the imperative of human capital development as a cornerstone of prosperity in the 21st century.

The Statistical and Computational Revolution in Economic Growth Models: A Review of Theoretical Developments and Empirical Applications

This paper examines the transformative role of statistics and computer science in advancing economic growth theory, with particular emphasis on the evolution from neoclassical models to endogenous growth frameworks. The study analyzes how enhanced computational capabilities, and statistical methodologies have enabled economists to develop more sophisticated models that better explain empirical observations of economic growth patterns. We review key theoretical developments, including Romer's innovation-driven growth model (1986, 1990), Lucas's human capital framework (1988), and subsequent contributions by Aghion-Howitt (1992) and Barro (1992). The analysis demonstrates how statistical tools, and computational advances have facilitated the integration of multiple growth determinants, including human capital accumulation, technological innovation, and public infrastructure investment. Our findings suggest that the synthesis of statistical methods and computational power has not only enhanced theoretical modeling but also improved empirical validation and policy formulation in growth economics. This review contributes to the understanding of how quantitative methodological advances have shaped modern growth theory and its practical applications.

How Do Career Expectations Affect the Social Withdrawal Behavior of Graduates Not in Employment, Education, or Training (NEETs)? The Chain Mediating Role of Human Capital and Problem-Solving Ability.

In recent years, some college graduates in China have chosen to postpone or avoid employment due to the disparity between their career expectations and the reality of the job market, leading to the emergence of a group of graduates not in employment, education, or training (NEETs). As the number of individuals in this group continues to grow, exploring effective strategies to mitigate such behavior has become increasingly important. Based on self-determination theory, this study conducted an empirical analysis using a multi-wave questionnaire survey with a sample of 226 graduate NEETs in Shanghai, China. The findings indicate that (1) career expectations do not directly reduce social withdrawal behavior; (2) the mere accumulation of human capital is insufficient to decrease social withdrawal-only when knowledge and skills are further transformed into problem-solving ability does an individual's tendency toward social withdrawal significantly decline; and (3) human capital and problem-solving ability serve as a sequential mediating mechanism between career expectations and social withdrawal behavior. This study expands the research on the formation mechanisms of social withdrawal behavior and elucidates the proactive adaptation pathways in individuals' career adjustment processes. The findings provide theoretical insights for higher education institutions to shift from traditional knowledge transmission models toward a greater emphasis on problem-solving ability development.

Has urbanization contributed to an increase in haze pollution?

To examine the impact mechanisms of urbanization on haze pollution, this study analyzes panel data from 269 prefecture-level cities in China from 2007 to 2021. We construct regression models that incorporate technological innovation and human capital accumulation as mediating and threshold variables to examine the influence of urbanization on haze pollution. The results reveal an inverted U-shaped relationship between urbanization levels and haze pollution, which initially increases before subsequently decreasing. During urbanization, haze pollution is mitigated through technological innovation and human capital accumulation, both serving as partial mediators. A dual-threshold effect of technological innovation significantly reduces pollution upon surpassing these thresholds, while human capital accumulation exhibits a single-threshold effect; its influence on reducing haze pollution gradually diminishes. Both eastern and western regions of China have surpassed the single-threshold effect for human capital accumulation, whereas the central region has exceeded the threshold for technological innovation, with trends being consistent across these regions. As levels of technological innovation and human capital increase, they contribute to haze reduction. Consequently, the paper advocates for China to prioritize technological innovation and talent development, implementing region-specific strategies tailored to the developmental phases of the eastern, central, and western regions, thereby enhancing urbanization levels and achieving sustainable development while continuously mitigating haze pollution.

The impacts of clan culture on private investment: Financing substitution and human capital accumulation

The impacts of clan culture on private investment: Financing substitution and human capital accumulation

Finding Out Who You Are: A Self‐Exploration View of Education

ABSTRACTI study the optimal design of information in education. Students in my model have different priors about their talents and update their beliefs after receiving noisy signals about themselves. I show that the socially optimal signal structure depends only on the average priors of the participating students. In particular, an optimal structure encourages a career in which the average participant has a comparative advantage. In an extended model with human capital accumulation, optimal education targets the participants who respond most sensitively to information.

The Impact of Professional Degree Graduate Expansion on Regional Innovative Human Capital

Based on the panel data of 31 Chinese provinces and cities from 2010 to 2019, the study examines the impact of professional degree graduate students on regional innovation human capital and investigated the threshold effect of human capital spatial agglomeration through panel fixed-effects model, GMM dynamic panel model, quantile regression and threshold regression model. It was found that (1) Since 2010, the expansion of graduate education in mainland China has been primarily in professional degree programs, with the proportion of professional degree graduate students increasing from 24% to 58%. (2) The expansion of professional degree graduate programs contributes to the accumulation of innovative human capital in the region, with increasing marginal benefits. (3) The agglomeration effect of human capital is significant; the impact of the expansion of professional degree graduate programs on regional innovative human capital increases with urban population density.

Healthcare Workforce Shortages: Evidence from Communist and Postcommunist Bulgaria

Abstract This study assesses healthcare workforce shortages in Bulgaria across three periods: communism (1944–1989), transition (1990–2002), and EU integration (2003 onward). Using historical data and benchmarking against European medians, the authors analyze trends among physicians, dentists, nurses, and midwives. They find that during communism, massive investment until the mid-1970s, and restricted international mobility led to significant human capital accumulation in healthcare. For the 1980s, they identify serious issues due to reduced subsidies and low remuneration. The authors point to a substantial brain drain and care drain following the labor market opening during the transition, while they argue that the reform implemented at the end of this period exacerbated nursing staff losses. For the period of EU integration, they observe positive reversals, but also emphasize that shortages persist. This, they argue, can be explained by the inability of the educational system to overcome the shortages.

Analysis and Assessment of Human Capital in Agrarian Field of the Republic of Belarus Based on Acmeological Approaches

The article analyzes the condition of human capital in the agrarian sector in the Republic of Belarus in view of its continuous development and sustainable growth. To reach this goal acmeological approach was used, the idea of which implies researching permanent development of personality and accumulating collective human capital representing the result of its continuous development. Methodology of acmeological research is based on successive study of statistic data characterizing dynamics of human capital life cycle in the agrarian field in view of interconnection between demographic and education components. This approach provides an opportunity to assess its conditions in complex in the light of continuous development and accumulation. The research shows the decline in intellectual component of human capital in the agrarian sector of the country, which testifies to the discrete nature of its reproduction. The obtained results demonstrate key reasons hindering sustainable development and accumulation of human capital in the agrarian sector of the Republic of Belarus, which points to the direction of further research.

Talent allocation, gender disparities and post‐reform economic growth in Central America

AbstractFrom 1995 to 2015, Costa Rica, El Salvador and Panama underwent significant labour market transformations, particularly in the occupational distribution and participation of women. This paper examines these shifts through an occupational choice model, focusing on three key frictions affecting efficient talent allocation: labour market discrimination, barriers to human capital accumulation, and restrictive social norms. The findings reveal that improved talent allocation drove economic growth in Costa Rica and Panama, primarily due to reductions in barriers to human capital accumulation. In contrast, labour market discrimination intensified, supporting the retaliatory hypothesis and creating headwinds for growth. The aggregate effects in El Salvador are relatively mild and noisy, making it difficult to pin down the impact qualitatively. Nonetheless, prevailing social norms around market work have precipitated sharply in El Salvador for both genders, creating a significant impediment to growth.

Human capital and regional disparities: Advancing accounting frameworks with education, health, and population dynamics.

This study advances the inclusive wealth accounting of human capital (HC) to improve global research on the valuation of HC for sustainability. By innovatively integrating complex population dynamics, including schooling and labor force participation, and using a net present value (NPV) valuation method aligned with capital budgeting principles, we quantitatively measure HC in 165 countries. As a methodological advancement, we use a unified framework that incorporates education, health and economic participation via the measurement of life expectancy in different life stages to inform sustainable development investments. Our analysis from 1990 to 2020 reveals significant differences in HC development across countries. While education is strongly correlated with GDP growth, disparities in health and economic participation are critical barriers to long-term HC accumulation. Our findings argue for a comprehensive policy approach that goes beyond investing in education for its financial benefits and includes substantial improvements in health and economic opportunities to promote more equitable HC growth. We emphasize the need to incorporate complex population dynamics into HC assessments to better understand and strengthen the interdependencies between these critical factors, with the aim of reducing global development gaps.

The Effect of Shadow Economy on Human Capital in Tunisia: An Ardl Bounds Test Approach

ABSTRACT: The research for this paper was conducted in order to investigate the effect of the shadow economy on human capital in Tunisia using time series data between 1991 and 2017. The study objectives were achieved by analyzing annual time series data extracted from the World Development Indicators and the Central Bank of Tunisia. While the intricate relationship between the shadow economy and human capital is well-established in the literature, country-specific analyses, especially for developing nations like Tunisia, remain scarce. This research meticulously addresses this critical gap by focusing on the unique socio-economic landscape of Tunisia and the interplay between formal and informal sectors. The short- and long-run impacts of the shadow economy on human capital remain important issues in the empirical and theoretical literature, particularly in country-specific contexts. However, they have yet to receive significant research consideration. To this end, the paper employs the ARDL (Autoregressive Distributed Lag) analysis method, widely regarded as an advanced and robust analytical model for exploring relationships in time series data. The ARDL approach provides nuanced insights into both short- and long-term dynamics, making it especially relevant for this study. The findings reveal that the shadow economy exerts a significant positive long-run impact on human capital in Tunisia. This suggests that informal economic activities may provide opportunities for skill development and human capital accumulation over extended periods. Conversely, in the short run, the shadow economy negatively impacts human capital, implying that individuals with higher education levels are less likely to engage in informal sector activities during the early stages of development. Additionally, the analysis indicates that foreign direct investment (FDI) and life expectancy are positively and significantly correlated with human capital, highlighting the role of foreign capital and improved living conditions in fostering human development. Interestingly, GDP also shows a significant positive impact on human capital, but the coefficient on legal frameworks is statistically insignificant. This finding suggests potential deficiencies in enforcement mechanisms or legal structures related to the shadow economy. Hence, based on these results, Tunisian policymakers are urged to implement comprehensive strategies to enhance human capital through targeted education and strategic programs. Moreover, policies should aim to increase the attractiveness and competitiveness of the formal sector, reducing reliance on the shadow economy.

Time spent abroad as a source of human capital – A nationwide study

AbstractThis study examined the extent to which time spent abroad contributes to human capital, using higher income as an indicator. Utilising Finnish register data, the study focused on returning migrants with higher education (N = 3497), matched with a reference population (N = 30,882). Time abroad was associated with a higher income level upon return amongst men (returnees €63,199, reference €55,982), but not amongst women (returnees €39,316, reference €41,779). In sectors, such as industry, construction, sales and finance, returnees showed particularly significant income differences compared to the reference group. However, even in these sectors, the association between international experience and subsequent income levels appeared to be notably stronger amongst men than women. In these sectors, men's income grew more, with increases of €8678 to €19,363 annually, while women's gains were €1685 to €9582. Overall, while time abroad enhances human capital, the benefits vary substantially by gender and sector. Men experienced clearer income growth compared to their counterparts in the reference group, whereas for women, no similar accumulation of human capital was identified.