Components Of Human Capital Research Articles

Managerial ability and firm growth: intellectual capital components

PurposeThis study analyses the way various components of intellectual capital (IC), namely, human capital (HC), structural capital (SC), relational capital (RC) and innovation capital (INNC), act as mediators in the relationship between managerial ability (MA) and a firm’s ability to achieve growth.Design/methodology/approachThis study employs data envelopment analysis to quantify the MA of 825 Taiwanese listed electronics companies from 2017 to 2022. The proxies of firm growth are return on asset growth, operating income growth and total asset growth. This study then utilises a three-step mediation analysis methodology to examine the relationships between MA, IC and firm growth.FindingsFindings indicate that HC, SC, RC and INNC mediate the link between MA and firm growth. This suggests that competent managers can capitalise on the potential benefits of these investments to achieve firm growth.Practical implicationsCompetent managers can utilise different IC investments to grow the financial performance and strength of their businesses. Managers should continually scan, secure opportunities and adjust their investments in knowledge assets in accordance with the dynamic capabilities view. That is, managers, in general, and operations managers, in particular, can implement guidelines that prioritise IC investments in the future to expedite firms’ development.Originality/valueThis study extends the existing frameworks that study investment variables as mediators between MA and firm outcomes. Most particularly, this study adopts four components of IC for measurement. Moreover, firm performance is measured using dynamic growth indicators rather than static measures.

The influence of reflexive modernity on the change of human capital

Relevance is due to the need to revise approaches to the theoretical understanding of the concept of "human capital" in modern society, since it is considered as a resource for the development of society, solving many current social problems, as well as confronting new risks. The concept of "reflexivity" as a social phenomenon also needs conceptual development. It is also necessary to identify the relationships between these phenomena.The purpose is to consider how the content of the phenomenon of human capital is transformed in the conditions of the formation of the socio-cultural structure of the information society, including the growing reflexivity of social interaction.Objectives: to identify the key features of understanding the phenomenon of reflexivity (reflection) in philosophy, psychology, sociology; the specifics of this phenomenon in the context of the formation of the information society, as well as the impact of this process on the content component of human capital in modern society.Methodology. The author relies on the achievements of related sciences in the field of the study of reflexivity. The analysis of the problem is based on the ideas and principles of systemic, synergetic, activity-based approaches, as well as the provisions of the theories of emergent effects and human capital.Results. The article substantiates the idea that the transition to a new type of social organization, accompanied by the appearance of new characteristics in the social system, led to the development and strengthening of the importance of reflexivity of society. At the same time, the requirements for the individual are changing and the content of human capital is being revised. This process is conditioned by the need to increase awareness, objectivity of ideas about the system of social relations in conditions of expanding individual freedom, its role in social processes, increasing the volume of information produced by society and the subjects involved in this process.Conclusions. Reflexivity as a characteristic of the social system appears at the later stages of the development of society. The basis of its formation was the evolution of psychological processes in humans and a qualitative change in the organization of society. On the one hand, there is an expansion of the potential of the individual and society, on the other ‒ the risks they have to face. Objectively the content of human capital is expanding, and social demands on it are growing. The ability to reflect seems to be an integral part of it. It involves the mastery of a person's ways of thinking and intellectual techniques for perceiving processes and events in society, which was previously the lot of the elite; internalization, rather than declaring universal values.

Unbundling returns to postsecondary degrees and skills: evidence from Colombia

ABSTRACT Using longitudinal data of college graduates in Colombia, we estimate labor market returns to postsecondary degrees and to various skills—including literacy, numeracy, foreign language, and field-specific skills. Graduates of academic programs and schools of higher reputation obtain higher earnings relative to vocational public programs. A one standard deviation increase in each skill predicts average earnings increases of 1–3%. Returns vary along the earnings distribution, with tenure, with the degree of job specialization, and by gender. Our results imply that degrees and skills capture different human capital components that are rewarded differently in the labor market.

Grossman’s Generalised Health Demand Model: An Application on Türkiye

Health is the main source of economic activity and human capital. Each individual wants to be healthy throughout her life in order to maximize his/her individual benefit and strives for this. In this study, which examined the health demand of individuals, Grossman's health demand (consumption and investment) model, which pioneered research on health demand, was referenced. The demands of 25825 individuals for medical care included in the 2016 and 2019 health research micro datasets in Türkiye were examined using the negative binomial regression model. In addition, the effects of human capital components (education, income, etc.) on the general health status of individuals were analyzed using the ordinal logit model. Health demand is influenced by economic variables as well as social and cultural factors and individuals' life behaviors. Such variables are also included in the analysis. According to the results, it was seen that individuals with chronic diseases are more likely to receive medical care than those who do not have such a disease. Besides, it was concluded that education, income, and sports exercises improve the health status of individuals, whereas aging and an increase in the number of diseases worsen the health status.

THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON ENVIRONMENTAL PERFORMANCE

Modern society is faced with many environmental problems that require the development of new, most effective solutions, which can be implemented through the development of the level of human capital, since the main result of its development is the use of accumulated knowledge and competencies in order to obtain rent and solve the most important socio-­economic problems. However, despite the importance and relevance of solving environmental problems, today methods for assessing the impact of human capital on environmental activities are beyond the achievements of modern economists. The purpose of this study is to propose a method for quantitative assessment of the influence of human capital on the development of environmental activities. The main hypothesis is that the development of human capital is the main driver of the development of environmental activities. The information base for the study was the data from the official statistical collection of the Federal State Statistics Service for the period 2015–2022, which determines the representativeness and reliability of the study conducted by the author. A tool for quantitative assessment of the influence of the dynamics of human capital development on the dynamics of financing environmental activities is proposed — ​the coefficient of the influence of human capital on environmental activities. Based on the correlation and regression analysis carried out, an assessment was made of the influence of the dynamics of human capital development on environmental activities, and the importance of the development of education as the main component of human capital was determined. The proposed regression model allows for a quantitative assessment of the impact of human capital development on environmental activities. This will be useful for assessing the effectiveness of environmental activities.

The Role Of Investment In Education In Enhancing Economic Welfare

This research aims to explore the role of education as an investment in enhancing economic welfare. The study investigates how education, as a crucial component of human capital, contributes to economic well-being by promoting economic growth, job creation, productivity improvement, and reducing income disparities. Utilizing qualitative methods with a literature review approach, this study evaluates empirical evidence supporting the positive relationship between investment in education and various economic benefits. The findings indicate that investment in education significantly impacts economic growth by increasing workforce productivity, stimulating innovation, and reinforcing economic infrastructure. Furthermore, education investment fosters job creation by enhancing workforce skills, supporting the education and training sector, and promoting innovation and entrepreneurship. Additionally, the study highlights that quality education enhances productivity by developing technical, analytical, and creative skills, improving resource utilization, and facilitating technological adoption. Lastly, the research underscores that investment in education reduces income disparities by ensuring equal access to education, increasing social mobility, and reducing skill gaps. The policy implications emphasize the need for sustainable education investments, strengthening skill training, and fostering an environment conducive to innovation and entrepreneurship. This study provides essential insights for policymakers to design inclusive and sustainable economic growth strategies, demonstrating that education is a pivotal investment for enhancing the economic well-being of communities.

The Role of Human Capital Components in Gender Wage Inequality in India

This study investigates the gender wage gap in the Indian labour market by analysing a range of human capital components, including education, work experience, cognitive and technical skills and occupational choices, using data from the India Human Development Survey 2011–2012. We employ the recentred influence functions (RIF) regression and Firpo, Fortin and Lemieux (FFL) decomposition techniques. The results from the RIF regression analysis underscore the significant role of education, work experience, skills and occupation in wage inequality. While education and English language proficiency lead to widening wage inequality for both men and women, the effects are much larger for the latter. Next, the FFL decomposition unveils a positive gender wage gap, indicating potential favourable returns for women’s qualifications and skills, yet it exposes a concerning wage structure effect suggesting women are often employed in lower-paying jobs. These results suggest that enhancing education and skills among women can be important tools in reducing gender wage inequality. JEL codes: E24, J24, J16

Shaping the future Entrepreneurs: Influence of human capital and self-efficacy on entrepreneurial intentions of rural students

This study explores the determinants of entrepreneurial intentions among rural students in Oman's Dhofar region, focusing on self-efficacy, skills, and education as components of human capital. Using Bandura's social cognitive theory, a quantitative approach examines how psychological factors and experiential learning influence entrepreneurial intentions. Data from 467 randomly selected students were collected via self-reported surveys. Results show a significant positive relationship between self-efficacy and entrepreneurial intentions, with higher self-efficacy levels correlating with greater entrepreneurial inclination. Skills also positively impact entrepreneurial intentions, highlighting the importance of diverse skill sets. Additionally, self-efficacy moderates the relationship between skills and intentions, suggesting that high self-efficacy enhances the translation of skills into entrepreneurial ambitions. Unexpectedly, no significant correlation between education and entrepreneurial intentions was found. This study emphasizes the importance of psychological factors and experiential learning in shaping entrepreneurial intentions in unique socio-cultural and economic contexts. Insights can help policymakers and educators promote entrepreneurship and economic development in rural communities, fostering resilience and empowerment. This research enriches our understanding of entrepreneurship in diverse settings by examining the under-researched Dhofar region.

Rediscovering human capital in the conditions of reflexive modernity

Relevance. The relevance is due to the need to revise approaches to the theoretical understanding of the concepts of «human capital» and «reflexivity» as social phenomena, the need to identify the relationship between these phenomena.The purpose is to show the possibilities of expanding the understanding of the phenomenon of human capital based on the analysis of existing theoretical approaches of various sciences to the concept of «reflexivity».Objectives: to study the peculiarities of understanding the phenomenon of reflection in philosophy, psychology, sociology and to highlight the meaningful characteristics of reflexivity as a component of human capital in modern society.Methodology. The author relies in the study on the possibilities of an interdisciplinary approach to the study of the phenomenon of reflection. The sociological analysis is based on the ideas and principles of systemic, synergetic, sociocultural approaches. The starting point for the analysis of the phenomenon of human capital was the concept of V. S. Golubev.Results. The article substantiates the idea that the transition to a new type of social organization, accompanied by the appearance of new characteristics in the social system, led to the development and strengthening of the importance of reflexivity of society. At the same time, the requirements for the individual are changing and the content of human capital is being revised. This process is conditioned by the need to increase awareness, objectivity of ideas about the system of social relations in conditions of expanding individual freedom, its role in social processes, increasing the volume of information produced by society and the subjects involved in this process.Conclusions. Reflexivity as a characteristic of a social system has appeared relatively recently. The basis of its formation was the evolution of human psychological processes and a qualitative change in the living conditions of society. There is an expansion of the potential of the individual and society, and, on the other hand, the risks that she has to face. The ability to reflect is considered as part of the intellectual and spiritual capital of the individual. It presupposes the activity of the individual in the perception of social processes and events, which was previously the lot of the elite, the development of sophisticated intellectual mechanisms for working with information, analyzing their own and others' experiences.

Personality traits and technical efficiency of Chinese rice farmers

Abstract Given the complex managerial tasks and the risks and uncertainties involved in agricultural production, it is expected that personality traits may play an integral role in shaping farmers’ performance. This study uses a large rural household survey dataset collected in three rice-producing provinces in China to examine this proposition. We find that openness to experience and internal locus of control have favourable effects on technical efficiency (TE), while agreeableness and neuroticism are associated with lower TE. Cognitive skills, as measured by years of education, do not contribute to higher TE of the interviewed farmers. These results imply that the motivational component of human capital (i.e. personality traits) is of greater importance for a farmer’s managerial performance than cognitive skills attained through current formal education. The effectiveness of policies aimed at improving rural welfare may be enhanced by adapting agricultural training programmes to include fostering entrepreneurial and social skills, especially for those with unfavourable personality traits for agricultural production, in addition to improving agricultural knowledge.

КОНЦЕПТУАЛЬНЫЕ ОСНОВЫ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА

The article provides various definitions and interpretations of the concept of human capital by domestic and foreign researchers. The chronology of the development of the theory of human capital is revealed. The contribution and significant scientific works of foreign and domestic economists-researchers of human capital problems are analyzed. The features and justification of various concepts in the study of the theory of human capital are presented: "income function", the concept of "overtaking", "earnings function", the new economic theory of the family. The structure, types, components of human capital, investments in human capital, characteristics of the human development index are presented. The competence-based approach in education and its features, investments in human capital as the basis for the development of competitiveness of economic entities and the national economy are substantiated.

Assessment in the efficiency of investments in human capital in the conditions of digital transformation of the economy

The article considers the concept of “investment in human capital”, presents a theoretical and instrumental interpretation of the main components of human capital. The current assessment methods and indicators that characterize the effectiveness of investments in human capital are summarized. Also, a comprehensive and critical analysis of the current methodological aspects for assessing the effectiveness of investments in human capital was made. Education is considered as a property in the form of professional features and self-growing value on the basis of increasing labour productivity of an employee, which is correspondingly distinguished by the growth of wages. Creation of the methodology for assessing the economic efficiency of investments in education at the macroeconomic level is based on the comparison of public investments in education and average wages in the country. The average wage is considered as a productive indicator of the effectiveness of investments in education. The money that is spent on the education of the younger generation, in the foreseeable future will establish the degree of education of the population of the state and, in turn, its competitive advantage in the global community. The proposed model for assessing the effectiveness of investment in education is simple and convenient, it is able to link the efficiency of the firm's activities and the cost of human capital. The article shows the results of the assessment of investment efficiency of the implementation of the State Programme of Education and Science Development of RK for 2020–2025. The analysis of statistical data for Kazakhstan also shows the existence of a close relationship between the remuneration of employees and the volume of investment in education. The article has both theoretical and practical relevance, as it is related to the State Programme “Digital Kazakhstan” with the direction “Human Capital Development” and the topic is in relevant.

Nonlinear effects of ‘normal traumas’ on human capital

The article considers the complication of social and cultural traumas under the global-local complexity and the transition to the dominance of nonlinear development. One of the types of the contemporary complex traumas is the ‘normal trauma’ that manifests itself as ‘naturally’ occurring fluctuations, bifurcations, gaps, paradoxes and metamorphoses. The consequences of ‘normal traumas’ for the formation of human capital are ambivalent: on the one hand, they deform the existing values and norms, previously acquired important competences and skills, thereby, knowledge becomes unclaimed; on the other hand, they encourage the creation of new qualities of human capital, necessary for adaptation to complex, nonlinearly developing realities. The author focuses on the ‘normal traumas’ of human capital, which are caused by the processes of globalization, rationalization, digitalization and the post-covid-19 consequences. The author argues that ‘normal traumas’ can and should be managed to minimize and overcome their dysfunctional, dehumanizing effects in order to develop new creative and humane components of human capital. To achieve this goal, the author suggests applying the theoretical-methodological instruments of the humanistic digital turn, ‘rediscovery’ of the significance of substantive rationalities and national-local lifeworlds, and introduction of innovative approaches to the formation of human capital under the effects of global-local complexity and nonlinearity. The author makes a conclusion about the need for the national strategy for the formation of human capital and national-cultural answers to ‘normal traumas’, based on the features of the Russian culture.

A new macroeconomic measure of human capital exploiting PISA and PIAAC: linking education policies to productivity

ABSTRACT This paper develops a new measure of human capital, calculated as a cohort-weighted average of the quality of education (PISA scores) and the quantity of education (mean years of schooling). Contrary to the existing studies, the relative weights of quality and quantity are estimated (and not calibrated). The quality of education is estimated to be three to four times more important for education than the quantity of education. The new measure has a strong link to productivity, which materialises with long lags. Productivity gains are much greater from improvements in the quality than quantity component of human capital.

Mediating role of leadership and group capital between human capital component and sustainability of horticultural agribusiness institutions in Indonesia

Abstract Farmers’ institutions are currently more cultural and primarily oriented only to getting government facilities. Farmers’ institutions have not been directed at utilizing access to various technological information, capital, and markets needed to develop horticultural agribusiness. Nevertheless, almost all farmers’ institutions exist in rural areas, but not all existing institutions can survive and carry out their functions sustainably. The research objective was to examine the impact of human capital through leadership and group capital on the sustainability of horticultural agribusiness institutions. The study was carried out at Uluere District, Bantaeng Regency, which is designated as a horticulture agribusiness development zone in South Sulawesi, Indonesia. The sample selection was conducted using a simple randomized method, where 10% of the overall population was chosen. This method resulted in a sample size of 233 respondents for this study. The data gathering was done during September and November of 2022. Moreover, to acquire findings about the effect of human capital on the long-term viability of institutional agribusiness horticulture, we conducted an analysis using the Structural Equation Modeling (SEM) method. The findings indicated that individual capability, individual motivation, organizational climate, and workgroup effectiveness were key factors of human capital that directly impact institutional strengthening. These factors were found to have positive and statistically significant connections. In addition, leadership and group capital connected the many aspects of human capital to the sustainability of horticultural agribusiness. The results of this study will significantly enhance ongoing efforts to formulate a plan aimed at mitigating rural development challenges, especially in Indonesia.

The fast-track ascent to the top: The role of human capital in European listed firms

Drawing on human capital theory, this study examines the role of different components of human capital—education (level and type), tenure, and career variety (functional, industry, firm, and country variety)—in the rapid or “fast-track” career ascent of individuals to their first top management position (highest level of organisational hierarchy) as chief executive officer (CEO) or non-CEO Senior Manager (SM). Using a retrospective approach to the career trajectories of over 7500 CEOs and non-CEO SMs s in European listed firms, we show the commonalities and differences in the composition of human capital in the career progressions of both groups. The results reveal that the human capital that accelerates CEOs’ careers include an MBA degree and long tenure, especially when combined with firm variety. In contrast, for non-CEO SMs, a high level of education and low functional variety accelerated their career ascent. For non-CEO SMs, tenure has a negative effect that is alleviated by career variety. By explicating the components of human capital, we suggest that many forms of career variety, such as experience acquired across countries, industries, or firms, are not valued in a fast-track career, and hardly create valuable human capital for top positions. Our study paves the way for exploring the composition of human capital not only for different organisational roles, but also for different hierarchical levels.

Factor model of the health of the Russian population in the border areas

The subject of the study included significant conditions and factors for maintaining health in the context of ensuring the demographic security of Russian society. The object of the study was the national health of Russians and its regional specifics. Methodological approaches included a civilizational approach to the analysis of global and regional social, economic, behavioral determinants of health and population motivation for health-saving technologies. A secondary analysis of the phenomenon of national health in the context of modern humanitarian research is presented. The novelty of the study is based on the analysis of regional practices of the population in relation to their health, the structure of morbidity, factors and reasons motivating the population to take care of their health and lead a healthy lifestyle. Behavioral models of the population's attitude towards health and a healthy lifestyle are described; the structure of diseases in the population of border areas was analyzed. The specifics of motivation to preserve health through employer investments are described. It was concluded that there are regional specificities that determine the quality of public health and, in some cases, provoke specific “medical” interregional and external migration (for example, the opportunity to change place of residence to improve medical care). The health of employees of an enterprise of any form of ownership is a decisive reproductive component of human capital. In the conditions of the modern world, the permanent experience of the socio-economic and financial crisis, the transformation of values, the population is expected to significantly adapt to the changed conditions of society. All of this requires optimal levels of health and vitality. In this context, health is essential for the full and effective implementation of educational or professional activities.

The role of intellectual and social capital in funding businesses: a cross-country analysis

ObjetivoEl estudio tiene como objetivo examinar el impacto del capital intelectual y social en la financiación de las empresas.Diseño/metodología/enfoqueUtilizamos modelos de datos de panel de efectos fijos con una muestra de 142 países de los cinco continentes durante el periodo 1998-2018.ResultadosEncontramos que el capital humano (CH), el capital relacional, el capital estructural y el capital social juegan un papel en las decisiones de los inversionistas para financiar un negocio. Encontramos que las decisiones de financiamiento de los inversionistas en los países con bajo índice de desarrollo humano se basan principalmente en la educación, mientras que las de los países con alto índice de desarrollo humano se basan principalmente en el componente de creatividad del CH y en el capital relacional, estructural y social.Limitaciones/implicaciones de la investigaciónSugerimos replicar el estudio utilizando datos a nivel de empresa dentro de cada país. Por otra parte, la búsqueda de nuevos indicadores de capital intelectual y social (aunque nuestra lista de variables es exhaustiva) tanto a nivel de país como de empresa, constituye una vía interesante para futuras investigaciones.Implicaciones prácticasLos países deben prestar atención al capital intelectual y social para fomentar la actividad empresarial. En particular, los países con bajo desarrollo humano deberían fortalecer el CH, como la tasa de matriculación escolar, con una formación empresarial temprana y aumentar las inversiones en investigación y desarrollo, mientras que los países con un alto nivel de desarrollo humano deberían seguir fomentando las alianzas estratégicas, proteger la propiedad intelectual y mantener o aumentar el nivel de confianza en el país.Originalidad/valorEl estudio contribuye a la literatura al ser el primero en explorar tal variedad de variables de capital intelectual y social desde una perspectiva a nivel de país.

HUMAN CAPITAL OF THE REPUBLIC OF KAZAKHSTAN: FEATURES OF FORMATION AND OPPORTUNITIES FOR GROWTH OF COMPETITIVENESS

Purpose of the research. The article substantiates the need to form competitive human capital on the example of advanced countries, the purpose of which is to determine the sources of formation of eff ective human capital.Methodology: In the course of the study the methods of analysis and synthesis, statistical and comparative analysis were applied. The authors conducted a literature review of scientifi c works in the fi eld of human capital formation of both domestic and foreign economists, studied the best practices of countries, and the possibility of its application in the Kazakhstani realities. For a more in-depth study of the issues were considered strategic programs and analyzed statistical compilations.Originality / value. The main indicators of the health care system, providing the formation of health capital as a component of human capital, have been analyzed. The main problems of education and health care spheres are defi ned. The comparison of labor remuneration indicators with advanced countries both in the average value and by sectors of the economy as a whole is carried out, the degree of its infl uence on the development of human capital is determined.Findings: A mechanism for the development of national human capital in the conditions of building an innovative economy is proposed. Recommendations have been developed to ensure the eff ectiveness of investments in the development and realization of the country's human capital.

Digitalisation in the provision of social services: Rural counties perspective

Digitisation affects all sectors of the economy, including social work. For social service providers (broadly speaking), it is both an opportunity and a challenge. The extent to which professionals manage the use of the digital space for social services has an impact on the accessibility and quality of services for end-users. Technology and innovative digital solutions create opportunities to tackle territorial inequalities and improve the quality of life of people living in rural areas. The provision of social services and assistance is an autonomous function of each municipality. Digital literacy is a component of human capital that includes skills in information flow, communication, safety, content creation, and problem solving in a digital environment. The article presents the results of a study on the digital literacy of social service providers working in rural areas of Latvia. The aim of the study is to find out the self-assessment of digital literacy, understanding, and attitudes towards digitalisation of social services among social service providers. The research instrument is based on the “Citizens’ Digital Competence Framework” (Digi Comp 2.1). The results of the study provide a basis for discussion not only on routine skills in the use of technical tools, but also on a deeper understanding of digitisation in the context of the emergence of a modern information society.