Human Capital Flows Research Articles

Securitization of taxes implicit in PAYG pensions

To preserve solvency, a pay-as-you-go (PAYG) pension system needs to adjust contribution rates and pension promises over time. Currently, it is not possible to hedge in the financial market against politically determined uncertainty as regards these parameters. I consider a policy reform whereby property rights are established on the implicit lifetime tax levied by PAYG finance, and are assigned to the pension institution. These property rights are well defined if the reform also features rule-based allocation of aggregate risk, in the form of defined-contribution or defined-benefit schemes. I show that a PAYG pension system may indeed be instantly restructured so as to minimize political risk and allow financial-market diversification of risk. A side benefit is securitization of human-capital flows, which are not traded in existing financial markets. The new securities, if traded in appropriately competitive financial markets, are complementary to the Notional Account reforms of the 1990s. However, fiscal instability can increase if securitization is implemented in the absence of initial solvency and credible adoption of rule-based methods to allocate aggregate risk. — Salvador Valdes-Prieto

The Future of the Public University in America: Beyond the Crossroads (review)

Reviewed by: The Future of the Public University in America: Beyond the Crossroads Alan P. Wagner (bio) James J. Duderstadt and Farris W. Womack. The Future of the Public University in America: Beyond the Crossroads. Baltimore, MD: Johns Hopkins University Press, 2003. 236 pp. Cloth: $34.36. ISBN: 0-8018-7218-9. Written by two experienced public research university leaders, this volume is a diagnosis of the difficulties public research universities face in addressing challenges of new demands for learning, eroded or redirected public funding, rising costs of instruction and research, and new accountability. The authors, in this first-person account "from the helm" of a leading public research university (the University of Michigan), reflect on their experiences with these challenges at the same time they look forward to a new position and functioning of the public research university. Through this volume, Duderstadt and Womack contribute to a continuing discourse on the changing roles, structure, governance, financing, and functioning of universities at a time when advanced-level learning comes very high on the policy agendas of federal, state, and local governments in the United States and around the world. Duderstadt and Womack take the view that we are "beyond the crossroads" of debate about whether change is needed. The present challenge is to "develop effective strategies to shape the evolution of public universities so that they will play key, albeit different, roles" (p. 3). They argue that what is needed is not "richer and more selective universities, but more institutions capable of providing quality educational opportunities for our citizens. We need to increase our flow of human capital, not refine it" (p. 44). They locate that growth as part of a natural, longer-term evolution of the U.S. public research university, as it has provided for widening outreach and expanded participation over the past 150 years. The authors argue that the public research university should continue to develop in ways that cater to new demands for learning and relearning over adult life (evaporating the distinction between student and alumni) and forge new partnerships and alliances with all manner of entities for delivering content and providing appropriate field-based learning experiences. Where others have called for a sharpening of profiles by type of institution, Duderstadt and Womack raise as one possible future an application of "the extraordinary intellectual resources of the public research university to assist the broader higher education enterprise in its evolution into forms better capable of serving the changing educational needs of a knowledge-driven society. . . . [by entering] into alliances with other types of educational institutions, or even newly emerging forms such as for-profit or cyberspace universities" (p. 194). This proposal opens up a much more nuanced and strategic view of the public university's future role, one that embraces a very wide range of partnerships, networks, and arrangements—public and private, domestic and cross-border—to best exploit and nourish the unique combinations of expertise and activity available at the public research university. Such a future already exists in some measure, and not just in the United States. Examples from elsewhere include the French pôle universitaire, a regional network of universities, government and [End Page 452] firms; the Swiss Lemanic project, leading to the coordination and profiling of three, separately governed and financed university-level institutions in the Lake Geneva region (Universities of Geneva and Lausanne, and the Federal Polytechnic Institute in Lausanne); Royal Melbourne Institute of Technology's offering of programs within Australia's Technical and Further Education (TAFE) system alongside RMIT university degree courses; and the ambitious vision of "Network Norway," giving students and institutions access to educational resources throughout the country. Prescriptions for reforms in university administration, governance, funding, and policy appear in many chapters, accompanied by first- person accounts of experiences with initiatives at the University of Michigan, among which are efforts to advance Michigan's "diversity and excellence" strategy, including elements of admissions practices at the heart of the 2003 U.S. Supreme Court decisions on affirmative action. The prescriptions aim to sustain—indeed, encourage—greater staff initiatives in their primary activities of teaching and research. On this point, Duderstadt and Womack observe that "the most vibrant universities will...

Sharing the Spoils: Taxing International Human Capital Flows

This paper argues that cross-border human capital flows from developing countries to developed countries over the next half-century will demand a new set of policy responses from developing countries. The paper examines the forces that are making immigration policies more skill-focused, the effect of both flows (emigration) and stocks (diasporas) on the source countries, and the range of taxation instruments available to source countries to manage the consequences of those flows. This paper emphasizes the example of India, a large source country for human capital flows, and the United States, an important destination for these human capital flows and an example of how a country can tax its citizens abroad. In combination, these examples point to the significant advantage to developing countries of potential tax schemes for managing the flows and stocks of citizens who reside abroad. Finally, this paper concludes with a research agenda for the many questions raised by the prospect of large flows of skilled workers and the policy alternatives, including tax instruments, available to source countries.

The Labor Shortage, Patient Safety, and Length of Stay: New Era of Change Agents Prompts Process Improvements through Lab Automation

ebru The stark reality of hospital economics is undeniable today. Hospital administrators are justifiably concerned about the flow of resources, technology, and human capital that can shake the very foundations of the health care system. Among the many variables that can affect the efficacy of the health care environment, three in particular are prompting dramatic changes to clinical laboratory processes—and greater demand for automation:

Interrelationships Between Human Capital and Social Capital: Implications for Economic Development in Transition Economies

One of the main tasks of the transition economies is to catch up with the advanced levels of highly developed economies. The lack of social capital is a major impediment to this process, as it does not allow taking dvantage of the comparatively high level of human capital in these ountries. The purpose of the current paper is to study the interrelationships between human capital and social capital, with the main emphasis on how social capital affects the accumulation of human capital. In general, social capital acts like a filter through which human and financial capital flow from the parents and the community to the child, producing better educational outcomes and thus helping to achieve better results in development.

Triangular human capital flows between sending, entrepot and the rest of the world regions

A model of triangular movement of highly skilled immigrants between a sending country (China/India) to an entrepot country (Canada) and then possibly to the rest of the world is developed. The question of who stays or leaves after arrival in the entrepot country is considered. The acquisition of subsidized human capital and the ascension to citizenship by immigrants are argued to be key conditioners that reduce the probability of staying in the entrepot country. Finally, the model predicts if the best or the mediocre highly skilled stay or leave the entrepot country for the sending region or the rest of the world.

TRANSFORMING ENRON: THE VALUE OF ACTIVE MANAGEMENT

Soon after Enron was formed as a regulated gas pipeline company in 1985, economic events forced a dramatic reorganization of the company. The result was the creation of an unregulated energy trading operation whose mission was to capitalize on opportunities arising from the deregulation of the natural gas market The initial form of the new business was that of a “gas bank” in which Enron became an intermediary between buyers and sellers of gas, locking in the spread as profit. Since there was no source of liquidity to the market, Enron had to develop its own risk management system.Furthermore, the need to respond quickly to rapidly changing market conditions required that Enron flatten its organizational structure and hire new people whose skills were better suited to the new decentralized organization. The focus of the new Enron accordingly became human and intellectual capital, not physical assets. Employees were encouraged to move about the firm to staff new business ventures. And in what may well be a unique feature in corporate America, Enron's top management today uses its human capital flows to guide its allocations of financial capital. Other aspects of the Enron model include attempts to capitalize on the option (as opposed to current DCF) value of assets, recognition of the value of networks in adding value to trading platforms, and the use of mark‐to‐market accounting for business transactions as a means of ensuring transparency and promoting timely decision‐making.

The euro revolution and the European Union: monetary and economic cooperation in the Asia-Pacific region

A study of a coordinated monetary and economic policy for the Asia-Pacific region has long been debated. Institutionalization of the Asia-Pacific Economic Cooperation (APEC) occurred in 1989. In 1999 APEC membership had risen to 21 sovereign nation-state member economies. Annual meetings of finance ministers and heads of central banks of APEC member economies have been a regular feature, pointing to the fact that a supranational macroeconomic core, well-defined by monetary or fiscal policy guidelines alone could contribute to the success of APEC agenda of intraregional free trade, free flow of investment, and then free flow of human capital. Inauguration of the euro and European Central Bank on January 1, 1999, presents a learning model for economic regionalization in the Asia-Pacific. Hence, we propose to study the economic rationale of institutionalization of the Asia-Pacific Monetary Union with an optimal and transparent agenda for intraregional monetary policy coordination in terms of both supply of aggregate stock of money and determination of the intraregional core rate of interest, supplemented by intraregional fiscal policy coordination, which can and will provide the necessary and sufficient conditions for intraregional free market with free flow of trade, investment and human capital, contributing to the maximization of economic gains for all microeconomic actors—households as well as business corporations—belonging to all intraregional sovereign nation-state macroeconomies. This regional arrangement in the Asia-Pacific work within the framework of global institutions, thus optimally harmonizing regionalism with globalism. I have argued that the core of newly emerging economic regionalization relates to (1) a map-of-the-world view of the region, and (2) an intraregional, multilateral cooperative effort to map an economic region with well-specified micro- and macroeconomic parameters on to a specific geographic region.

GLOBAL CREDENTIALS, IMMIGRATION, AND METRO-REGIONAL ECONOMIC PERFORMANCE

This paper places urban regions, rather than nations or transnational firms (TNFs), at the center of global economic organization. Using the Dallas/Fort Worth Metroplex as an illustration, it explains the economic reach of a metro region in terms of the quality and diversity of local resources and global investments assembled there. Human capital flows in the form of foreign immigration are likewise viewed as integral to the global economic model. Their effects on the economic performances of the largest U.S. metro regions during the 1980s are analyzed. The findings suggest that although foreign immigration generally depressed both metro-regional growth and development during the decade, these effects were mediated by business-cycle shifts. Therefore, rather than being regarded as either an unalloyed boon or burden to an economy, foreign immigration effects are discovered to be complex and contingent on background economic circumstances.

Urban temporary out-migration under economic reforms: Who moves and for what reasons?

Studies of temporary migration in developing countries often focus on rural outmigration and are preoccupied with problems it may bring to cities. Using a unique data set from two surveys conducted in Zhejiang province, China, this paper examines the other side of the coin — temporary migration from urban places — and thereby provides an important complement to studies focusing on rural-urban migration. The analysis identifies three types of temporary migrations: on-business, economic, and family-related. Using multinomial logit model, the analysis suggests that the three types of temporary migration differ significantly from each other in both their causes and migrants' socioeconomic characteristics; so does urban-urban migration from urban-rural migration. The considerable urban-rural temporary migration attests to the fact that temporary migration is not a one-way process; its positive selectivity further indicates that a considerable human capital flows from urban to rural areas through urban-rural temporary migration, which provides rural areas much needed science and technology and becomes an important facilitating factor of rural socioeconomic development.

Human Capital Content of Canadian Immigrants: 1967-1987

The central aim of this paper is to assess the effects of changing Canadian immigration policies circa 1967-87 on the human capital flows from developed and less developed countries to Canada. Calculations of various replacement cost concepts for the human capital flows are made for three major policy periods; 1967-73, 1974-79, and 1979-87. In sum, total human capital flows from all countries declined over the policy periods. Developed countries sent the majority (66 percent) of this declining total over the period. However, tests do not support the hypothesis that the average educational content of highly trained immigrants has delcined. Rather, the large decline in human capital flows is a result of changing immigration policies which restricted the total flow of skilled immigrants and favored other entry classes.

Human‐Capital Selectivity in Interstate Migration

"Using Public Use Microdata Sample A from the 1980 United States Census, human capital measures are developed and used to test whether states experience human-capital migration that is significantly different from human migration. Strong evidence demonstrates that human-capital migration differs significantly from human migration. For example, Arkansas and Vermont are shown to have a net in-migration of people, but a net out-migration of human capital. Conversely, the data for Connecticut and Minnesota indicate a net out-migration of people and a net in-migration of human capital. This study suggests that traditional models of interstate migration mask the flow of human capital."

Returns to Education in China

We were fortunate in having access to a survey of 800 adults in Nanjing that was conducted by the International Wool Secretariate in 1986. The survey was intended for market research (e.g., brand recognition), but questions were asked about the respondent's age, occupation, income, and education level. These questions, though not ideally worded, were sufficient for the undertaking of a returns-to-education study. We believe the data to be unique and, of course, the issue of interest is whether a member of the workforce in China faces investment decisions on education similar to those faced elsewhere. The influence of sex and marital status on the level of income achieved by an individual was also examined. The basic equation modeled personal income as a nonlinear function of schooling and experience, but multicollinearity problems were encountered. As a result, a production function approach was successfully adapted to the returns-toeducation model. The collinearity problem was overcome, and this approach allowed the ease of substitution of education for experience in income generation to be examined more formally. An additional problem of errors in variables arose from a failing in questionnaire design and was handled statistically.

Manufacturing Location: The Impact of Human Capital Stocks and Flows

National attention has been focused on the importance of education to rural economic development by several recent studies. Manufacturing location and employment growth studies, however, have presented conflicting evidence about the relationship between human capital and local economic development. While insight into this relationship holds important education policy implications for all levels of government, it is particularly critical for rural governments as rural communities attempt to stabilize and strengthen their economic bases. This paper reports the results of a manufacturing firm location study that incorporated measures for both human capital stocks and flows into a statistical model of community attributes that were hypothesized to influence firm location decisions. The results indicate the complexity of evaluating the impact of human capital investment on local or regional economic growth. Given the significance of the human factors to the location decisions of firms, it is surprising that so little attention has been given to these issues.

The economic effect of age and education on the regional flows of Black human capital

This paper quantifies and analyzes the flow of human capital caused by the migration of Blacks within the U.S. over time. Detailed characteristics of migration flows for Blacks moving in and out of each of the nine divisions in the U. S. were determined and multiplied by the appropriate value of human capital (discounted earnings approach). These flows were then summed to determine the aggregate inter-regional flows of Black human capital. The effects of age and education on these flows are analyzed as are the probable effects of such flows on regional economic growth.

A Note on United States Direct Investment and Human Capital

It has become increasingly recognized that international direct investment flows are not simply transfers of physical capital; they also involve transfers of skills and knowledge. The manpower that accompanies physical capital constitutes a human capital flow. An attempt to measure the magnitude of the human capital outflow in U.S. direct investment has been made by Yudin (1968). Yudin also shows that the occupational distribution of Americans abroad is much more skill-intensive than the distribution of the labor force in the United States. This result constitutes evidence that there is a large human capital outflow involved in U.S. investment abroad.' However, it is not a surprising finding, since we would expect, for economic and sociological reasons, that the upper end (in skill terms) of the U.S. occupational distribution would be more internationally mobile than the overall labor force. First, on sociological grounds, we would expect that Americans at the upper end of the skill distribution are more likely to desire to, or to be willing to, go abroad. Second, the cost of sending highly skilled (and higher paid) Americans abroad is proportionately less than the cost for less-skilled Americans. An essential question concerning the causes of the human capital outflow remains. The outflow can be determined by either a shortage of the Americans' skills in the host countries or a preference of the direct investor to use Americans rather than qualified native personnel in foreign positions. The question is: Is the factor flow caused by differences in international factor endowments or by discrimination against available local personnel? In this note we ask if the pattern of U.S. direct investmenthuman capital flows is explained by differences in factor endowments. We deduce from a simple model of a direct investor's factor choice that factors will flow according to endowment differences. We then present empirical evidence that direct investment-human capital flows are more strongly directed toward countries where the human capital endowment

The Impact of Globalization on the African Culture in Helon Habila’s Measuring Time

Globalization is a phenomenon of the postmodern era which accommodates the shrinking of the world into a small functional community. As a result of this, geographical distance and socio-cultural divergence are no longer constraints to aggregating the entire human race into one global family. The term is used to describe transnational relationships, engagements, cooperation and the sharing of human, material and ideological resources across regions. Discourse on the subject has become so relevant across previously unrelated fields that their definitions have now converged on a consensus theoretical concept understood as “universal homogeneity.” The primary material, Helon Habila’s novel, Measuring Time is studied in the context of globalization and hybridity of cultures. The paper asserts that no human community should be isolated from the dynamic engagements of the wider society. This paper avers that globalization should not be advanced as an imposition of foreign cultural values; rather it should be seen as a practice that reflects mutually beneficial contact amongst people of divergent cultures. In the current dispensation, the cultural consumption and uncritical assimilation of Western values by African colonized people do not reflect the underlying objective of Globalization. This paper projected the need for a revision of the concept and to promote a symbiosis of unions where ideological, material and human capital flow across cultures in such a manner that all the actors in the ‘shrinking’ borderless world are mutual beneficiaries.Key words: Globalisation, African, Culture, Hybridity, Post-Colonialism

Attempting Return: Iraqis’ Remigration from Iraq

The voluntary repatriation of refugees and internally displaced persons is interpreted as evidence of restored security and political stability, improved civil-state relations, and public confidence in reconstruction efforts in war-torn countries. The findings presented in this article indicate that Iraqi refugees’ decision to return is driven less by improvements in Iraq than by their desire to rebuild their lives back home and overcome the difficult legal and socio-economic conditions in neighbouring countries. The article explores Iraqi returnees’ experiences based on accounts of their return and subsequent remigration to Syria and Jordan. the micro- and macrotransformations occurring in post-Saddam Iraq have a strong bearing on refugees’ return and reintegration in their home communities. In the absence of permanent solutions to protracted displacement, the Iraqis engage in transnational mobility and livelihood strategies and participate in the socio-economic developments in home and host countries through the constant multidirectional flow of economic, social, and human capital.

Schultz, Denison, and the Contribution of "Eds" to National Income Growth

Previous articleNext article No AccessSchultz, Denison, and the Contribution of "Eds" to National Income GrowthMary Jean BowmanMary Jean Bowman Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 72, Number 5Oct., 1964 Article DOIhttps://doi.org/10.1086/258931 Views: 11Total views on this site Citations: 28Citations are reported from Crossref Copyright 1964 The University of ChicagoPDF download Crossref reports the following articles citing this article:Pedro N. Teixeira Mary Jean Bowman (1908–2002), (Jan 2023): 421–443.https://doi.org/10.1007/978-3-031-01775-9_18Charlotte Le Chapelain Cliometrics and the Concept of Human Capital, (Aug 2019): 331–355.https://doi.org/10.1007/978-3-030-00181-0_45Charlotte Le Chapelain Cliometrics and the Concept of Human Capital, (Feb 2019): 1–25.https://doi.org/10.1007/978-3-642-40458-0_45-1Charlotte Le Chapelain Cliometrics and the Concept of Human Capital, (May 2019): 1–25.https://doi.org/10.1007/978-3-642-40458-0_45-2C. D. Foster Cost-Benefit Analysis in Research, (May 2008): 61–83.https://doi.org/10.1002/9780470719619.ch5Jandhyala B. G. Tilak Education and Poverty, Journal of Human Development 3, no.22 (Jul 2002): 191–207.https://doi.org/10.1080/14649880220147301Anne de Bruin Towards Extending the Concept of Human Capital: A Note on Cultural Capital, Journal of Interdisciplinary Economics 10, no.11 (Jul 2016): 59–70.https://doi.org/10.1177/02601079X99001000106Stephen A. Hoenack Higher Education and Economic Growth, (Jan 1993): 21–50.https://doi.org/10.1007/978-94-015-8167-7_2Henry M.Levin Mapping the Economics of Education, Educational Researcher 18, no.44 (Jul 2016): 13–17.https://doi.org/10.3102/0013189X018004013A. P. Thirlwall Capital and Technical Progress, (Jan 1989): 115–127.https://doi.org/10.1007/978-1-349-19837-5_4Richard B. Freeman Chapter 6 Demand for education, (Jan 1986): 357–386.https://doi.org/10.1016/S1573-4463(86)01009-XA. P. Thirlwall Capital and Technical Progress, (Jan 1983): 118–130.https://doi.org/10.1007/978-1-349-06713-8_4A. P. Thirlwall Capital and Technical Progress, (Jan 1978): 110–126.https://doi.org/10.1007/978-1-349-15875-1_4James A. Evenson, Donald D. Rohdy The economic effect of age and education on the regional flows of Black human capital, The Annals of Regional Science 10, no.33 (Nov 1976): 106–116.https://doi.org/10.1007/BF01453556Douglas M. Windham Social benefits and the subsidization of higher education: A critique, Higher Education 5, no.33 (Aug 1976): 237–252.https://doi.org/10.1007/BF00136447 Douglas M. Windham The Macro-Planning of Education: Why It Fails, Why It Survives, and the Alternatives, Comparative Education Review 19, no.22 (Oct 2015): 187–201.https://doi.org/10.1086/445817Mary Jean Bowman POSTSCHOOL LEARNING AND HUMAN RESOURCE ACCOUNTING, Review of Income and Wealth 20, no.44 (Dec 1974): 483–499.https://doi.org/10.1111/j.1475-4991.1974.tb00929.xLuther Tweeten The Need for the Systems Approach to Rural Development Research, Journal of Agricultural and Applied Economics 6, no.11 (Apr 2015): 43–52.https://doi.org/10.1017/S008130520001150XJ. Moreh HUMAN CAPITAL: DETERIORATION AND NET INVESTMENT, Review of Income and Wealth 19, no.33 (Sep 1973): 279–302.https://doi.org/10.1111/j.1475-4991.1973.tb00892.x P. R. G. Layard Denison and the Contribution of Education to National Income Growth: A Comment, Journal of Political Economy 81, no.44 (Oct 2015): 1013–1016.https://doi.org/10.1086/260097 George Psacharopoulos Measuring the Marginal Contribution of Education to Economic Growth, Economic Development and Cultural Change 20, no.44 (Oct 2015): 641–658.https://doi.org/10.1086/450586Howard Glennerster, Eric Hoyle Educational research and education policy, Journal of Social Policy 1, no.33 (Jan 2009): 193–212.https://doi.org/10.1017/S0047279400000556 Bibliography, (Jan 1970): 185–194.https://doi.org/10.1016/B978-0-08-016163-1.50016-3Mary Jean Bowman 7: Economics of Education, Review of Educational Research 39, no.55 (Jun 2016): 641–670.https://doi.org/10.3102/00346543039005641Mary Jean Bowman PRINClPLES IN THE VALUATION OF HUMAN CAPITAL, Review of Income and Wealth 14, no.33 (Sep 1968): 217–246.https://doi.org/10.1111/j.1475-4991.1968.tb00943.xMaureen Woodhall Chapter II: The Economics of Education, Review of Educational Research 37, no.44 (Jul 2016): 387–398.https://doi.org/10.3102/00346543037004387Charles S. Benson Chapter VIII: Economics and Education, Review of Educational Research 37, no.11 (Jun 2016): 96–102.https://doi.org/10.3102/00346543037001096M. BLAUG THE ECONOMIC CONTRIBUTION OF EDUCATION, (Jan 1966): 6–26.https://doi.org/10.1016/B978-0-08-020627-1.50007-4