Loss Of Human Capital Research Articles

Effects of a defined‐contribution retirement plan on teacher attrition

AbstractIn 2006, Alaska reformed its defined‐benefit (DB) Teacher Retirement System by creating a mandatory 401(k)‐style defined‐contribution (DC) plan for new hires. The new plan increased benefit portability and transferred the investment risk from the employer to the employee. Using individual teacher data for 2005–2017, we show that the reform increased teacher attrition. We also observe, however, that it did not lead to the loss of human capital. The paper contributes to the discussion of the design of DB–DC transitions that can maintain incentives for public‐sector employment.

Solutions for reducing the severe economic burden of musculoskeletal diseases

Abstract Issue In Slovenia the big group of over 150 musculoskeletal and connective tissue diseases (MSCTD) constitute a serious public health problem, a major burden on health systems and society as a whole. Patients with these diseases have a poorer quality of life and often retire early. Any early retirement that could have been prevented represents a loss of human capital, which is a major social and economic cost to society. The aim of this study was to analyze the economic burden of the six most common MSCTD in Slovenia for the period from 2020 to 2022, to contribute to a better understanding of this problem and suggest solutions. Methods At the Slovenian National Institute of Public Health, in collaboration with the Faculty of Economics at the University of Ljubljana, we calculated the burden of six most common MSCTD for the period 2020-2022. We used the National Transfer Accounts (NTA) methodology to calculate the indirect costs; direct costs were calculated based on the national routine health data. Results The calculated economic burden of the six most common diagnoses of MSCTD represents 5% of total health expenditure or 0.4% of Slovenian gross domestic product on average. Direct costs amounted to 2% of total health expenditure (hospitalizations 22.5%, costs for medicines 9.3%, first curative visits at the primary level and visits to the outpatient clinic at the secondary level 2.7%). Indirect costs amounted to 3% of total health expenditure. Conclusions Despite the reduced access to the health system due to COVID-19 the economic burden of MSCTD is high in Slovenia and would be significantly higher considering all diagnoses from this group of diseases. The research requires interdisciplinary cooperation between medicine and economics regarding demanding NTA methodology which is innovative in our country. Key messages • One of the main public health priorities in Slovenia should be to raise awareness of MSCTD. • In the light of the aging population prevention activities with focus on MSCTD should be intensified as soon as possible.

Storm clouds over innovation: Typhoon shocks and corporate R&D activities

This study investigates the economic impact of typhoon disasters on corporate innovation activities, a critical driver of economic growth and resilience. Utilizing a comprehensive dataset of Chinese public companies from 2010 to 2022 and employing a wind field model to construct a city-level typhoon destruction index, we apply difference-in-differences and instrumental variable methods to analyze the effects on corporate innovation. Our findings reveal that typhoon disasters significantly reduce both patent filings and R&D investment intensity, particularly in coastal areas and technology-intensive industries. The adverse effects are transmitted through financial constraints, human capital loss, and infrastructure damage. This research contributes to understanding the microeconomic implications of extreme weather events on innovation-driven economic growth, offering insights for disaster resilience policies in vulnerable regions.

How does vertical fiscal imbalance affect corporate green innovation? Empirical evidence from China

The vertical fiscal imbalance of local governments under the Chinese-style decentralization system affects enterprise decision-making in their jurisdiction. Using the data of A-share listed enterprises in Shanghai and Shenzhen, this paper finds that vertical fiscal imbalance can promote enterprises' green innovation. The analysis of the mechanism of action reveals that the vertical fiscal imbalance positively impacts enterprises' green innovation through tax reduction and government R&D subsidies. In contrast, vertical fiscal imbalance's loss of human capital is a negative channel affecting green innovation of enterprises. Further analysis reveals that the vertical fiscal imbalance has a threshold effect on green innovation; the political and environmental backgrounds of senior executives can significantly strengthen the vertical fiscal imbalance's promoting effect on green innovation activities; in addition, the vertical fiscal imbalance can improve the efficiency and quality of green innovation by enterprises. The research findings are significant for further deepening the fiscal reform and encouraging enterprises to achieve green, high-quality enterprise development.

Effective prevention in clinical practice may save human capital loss: Real-world evidence from Taiwan's National Health Insurance

Background/PurposeEffective prevention could protect the health of the workforce, save human capital loss, and maintain employee productivity as well as economic growth. MethodsUsing real-world data of patients with end-stage kidney disease (ESKD) and lung cancer, we multiplied their lifetime survival functions with employment ratios and working salaries to estimate the lifetime employment durations and earnings. They were compared with corresponding age-, sex-, and calendar year-matched referents to assess the differences in loss of lifetime employment duration and earnings. From 2000 to 2017, 83,358 patients with end-stage kidney disease (ESKD) were associated with 32–66% lifetime productivity losses. Similarly, we collected 24,904 incident cases of lung adenocarcinoma during 2011–2018 and estimated the potential savings in human capital due to early detection. Based on the evolving trends of ESKD incidence rates in Taiwan, we calculated the lifetime human capital losses of ESKD patients in GDP (gross domestic product) percentages during 2000–2020. ResultsThe aggregate lifetime productivity losses of ESKD in terms of GDP% varied between 0.000398% and 0.01% for male patients and between 0.0001% and 0.009% for female patients. The younger the patients, the bigger the losses in GDP%. Similarly, early detection of lung adenocarcinoma saved lives and productivity to some extent. ConclusionsSuccessful prevention of catastrophic illnesses at early stages would save the lifetime employment duration and productivity of the workforce. Future reform on the NHI could consider closer coordination between public health and healthcare organizations, focusing on effective prevention of diseases and complications to save productivity loss.

The economic impact of terrorism in South Asia

This study examines the economic impact of terrorism in South Asia. The region is currently home to 123 active terrorist/insurgent groups and is accountable for over 27 % of recorded global terrorist attacks. The annual data from the six most-terror-affected South Asian countries (Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka) during the US-led war on terror (2001 - 2022) is used. For econometric estimation, the five models: fixed-effect, generalized least squares (GLS), generalized estimating equation (GEE), quantile regression (QR), and panel-corrected standard errors (PCSE) are applied. Terror-related death (a proxy for human capital loss) and per capita income (a proxy for purchasing power) are considered to measure terrorism and its economic impact. In addition, four economic indicators (military expenditure, population, official development assistance (ODA), and USAID) and three institutional indicators (electoral democracy index, political violence index, and mobilization for autocracy index) are taken into account as control variables. The result suggests that every additional 886 terror-related human capital loss across the region significantly reduces the purchasing power of each South Asian person by at least 9.800 US dollars. Moreover, among the control variables, military expenditure, political violence, and mobilization for autocracy negatively affect per capita income, while electoral democracy, population, ODA, and USAID positively impact it. This study will also help understand the implications of the United Nations' Sustainable Development Goals (SDGs) agenda and achieving specific targets such as SDG 8 (promoting economic growth) and SDG 16 (promoting just, peaceful, and inclusive societies) based on the most terror-affected region.

Demographic Development of Russia within the Boundaries of Human Capital Theory: Problems and Solutions

The article outlines the role of the demographic situation in ensuring the development of the socio-economic system of the country. In the process of empirical research, the dynamics of the list of indicators characterizing the demographic situation in Russia is considered. The calculation of the absolute indicator of the population is presented, which allows to reveal of the numerical losses of human capital. The fact that the reduction of the country’s population was due to the population of rural areas was established. It is also noted that there was a constant increase in the number of population over working age, as well as a decrease in the working-age population. The decrease in the existing volumes of human capital has led to certain economic losses expressed in the form of lost GDP, which the socio-economic system has incurred. In the context of the above trends, the preservation of the existing human capital, which can be assessed on the basis of the dynamics of indicators: life expectancy and the number of marriages and divorces, becomes a priority. The processes of human capital reproduction represent one of the important directions of demographic development in Russia. The authors determined that these processes have a negatively directed tendency to change. This problem is considered from the position of the functioning of the family institution and the dynamics of the divorce process. An analytical study of statistical data allowed us to conclude that the intensity of marriages in Russia during ten years was higher than the intensity of divorces. The calculated value of the coefficient of preservation of family relations indicates an increase in the probability of reproduction of human capital. The authors calculated the numerical value of reserve human capital in the form of the volume of potential labor force, which can provide an additional volume of GDP.

Artificial Intelligence, Employee Productivity and Human Capital Loss

Artificial Intelligence, Employee Productivity and Human Capital Loss

Toward a Framework to Assess the Financial and Economic Burden of Cervical Cancer in Low- and Middle-Income Countries: A Systematic Review.

To review the economic burden assessment of cervical cancer in low- and middle-income countries (LMICs) and use the findings to develop a pragmatic, standardized framework for such assessment. We first systematically reviewed articles indexed in scientific databases reporting the methodology for collecting and calculating costs related to the cervical cancer burden in LMICs. Data on study design, costing approach, cost perspective, costing period, and cost type (direct medical costs [DMC], direct nonmedical costs [DNMC], and indirect costs [IC]) were extracted. Finally, we summarized the reported limitations in the methodology and used the solutions to inform our framework. Cervical cancer treatment costs across LMICs vary greatly and can be extremely expensive, up to 70,968 International US dollars. Economic and financial assessment methods also vary greatly across countries. Of the 28 reviewed articles, 25 studies reported DMC for cervical cancer treatment by extracting cost information from billing or insurance databases (eight studies), conducting surveys (five), and estimating the costs (12). Only 11 studies-mainly through surveys-reported DNMC and IC. The economic burden assessment framework includes health care/payer and societal perspectives (DMC, DNMC, IC, and human capital loss) across the cervical cancer screening and treatment continuum. To assess health care/payer costs, we recommend combining the predefined treatment standards with actual local treatment practices, multiplied by unit costs. To assess societal costs, we recommend conducting a cost survey in line with a standardized yet adaptable protocol. Our standardized, pragmatic framework allows assessment of economic and financial burden of cervical cancer in LMICs despite the different levels of available resources across countries. This framework will facilitate global comparisons and monitoring and may also be applied to other cancers.

The economic cost consequences of suboptimal infant and young child feeding practices: a scoping review.

Breastfeeding is important for women and children's health, but less than half of infants worldwide begin life with optimal breastfeeding. A growing literature shows consistently large economic costs of not breastfeeding, with global studies showing economic losses of around US$300 billion globally. However, existing studies are highly diverse in approaches, methods, data sources and country results. Building on a landmark 2012 UNICEF UK review focused on high-income countries, we conducted a scoping review to map and characterize the expanding literature and identify future research directions in this research area. We included studies (n = 36) in diverse country settings and outcomes for women and children. We used PubMed, Web of Science, EMBASE, MEDLINE, ProQuest and manual searches of cost of not breastfeeding studies published between 1996 and 2023. Articles were excluded if they were macroeconomic evaluations, did not assign monetary values or only evaluated breastfeeding or formula feeding costs and not outcomes or were cost of programs studies. We found considerable diversity in disciplinary approaches and differences in methodologies. Though there were different cost measurement perspectives (societal, institutional/payer and individual), all but two excluded the costs of unpaid care. Studies typically measured costs of medical treatment, with more recent studies using dynamic simulation models. The largest economic costs were derived from lifetime estimates of human capital losses, namely cost of premature death and loss of intelligence quotient points. Medical and death costs varied widely depending on method of calculation, but total costs consistently exceeded $US100 billion annually for the USA, and around $US300 billion in global studies. Our findings suggest that greater interdisciplinary collaboration is needed particularly to better define infant feeding exposures, and advance comprehensive measurement of costs and outcomes across lifetimes, in order to prioritize breastfeeding as a public health strategy of economic importance.

ECONOMIC CONSEQUENCES OF WAR IN UKRAINE: A COMPREHENSIVE ANALYSIS

The armed conflict that erupted in Ukraine has had profound economic ramifications, not only for the country itself but also for the wider region. This paper aims to provide a comprehensive analysis of the economic consequences of the war in Ukraine, exploring its impact on various sectors and long-term development prospects. Drawing upon a range of primary and secondary data sources, the study presents a multifaceted assessment of the economic effects, considering both immediate and long-term implications. The paper examines the direct costs of the conflict, including the destruction of infrastructure, loss of human capital, and disruption of production and trade. It investigates the impact on key sectors such as agriculture, manufacturing, energy, and finance, highlighting the challenges faced by businesses and the labor market. It examines the role of external financial assistance and the effectiveness of economic policies implemented during the crisis. Finally, the study concludes by synthesizing the key findings on the economic consequences of the war in Ukraine. These recommendations encompass both short-term measures to address immediate challenges and long-term strategies to foster sustainable economic development and reconciliation. This comprehensive analysis of the economic consequences of the war in Ukraine contributes to the existing literature by providing a nuanced understanding of the multifaceted impacts of the conflict. It offers valuable insights for policymakers, international organizations, and researchers seeking to comprehend and address the economic challenges arising from war-affected regions.

How can soil data and information become actionable knowledge to advance sustainable land management?

AbstractPromoting sustainable land management is key to addressing land degradation but its progress is impeded by the availability and accessibility of the ‘right’ soil data and information. We focus on government‐funded data collection or publicly collected soil data as it is central to effective soil governance. Taking a governance perspective, we discuss what soil information is created and used for, who are the actors involved and how soil information is contributing (or not) to the creation of actionable knowledge. We investigated two countries in depth through a desk‐based review and consultation with 40 key informants, collating which soil data and information is collected, analysed, stored, retrieved and used in the UK and Australia. We present a comprehensive overview of public soil databases, including location, year established, stated purpose, current governing institution, accessibility, digital product/s available, cycle of assessment, scale of sampling, soil data presented and depth of soil assessment. The analysis highlights that current shortcomings in soil governance are a result of not adequately valuing legacy soil data and information, and with the loss of human capital, diminished accessibility to soil information leads to disrupted information flows. A critical assessment suggests that available soil information plays a limited role in knowing the soil types of a locality, the condition of soil under various land uses and associated management, which limits its potential for informing sustainable land management. In both countries, there is a mismatch in scale and intention of use for the soil information between the provider and the user: information is currently held at the scale for regional‐ or nation‐level reporting on targets to meet national and international obligations rather than improving soil health or SLM at the farm scale. In addition, available soil data repositories only partially meet accessibility criteria (discoverability, language applicable to audience, open source and interpretative layer for land management implications). We outline steps to improve soil information and knowledge exchange embedded in effective governance arrangements to ensure that soil data and information can become actionable knowledge for SLM. Applying principles and strategies for facilitating knowledge exchange is of particular relevance to this process.

The history of migration in Northeast China in the XX-XXI centuries.

The subject of this article is the analysis of internal migration processes in Northeast China from the 20th century to the beginning of the 21st century. Special attention is paid to the dynamics of migration flows and their significant impact on the demographic situation of the region. The author examines the specific features of internal migration in different provinces: Liaoning with its subprovincial cities demonstrates a net influx of population, while Jilin and Heilongjiang provinces are characterized by a significant net outflow of population. The author explores the causes of these migration processes and their direct impact on the demographic development of the Northeast region of China. This allows us to better understand the significant changes taking place in underdeveloped regions of China and identify the main factors affecting internal migration. The study used statistical analysis of data on migration flows, demographic studies, as well as comparative analysis of data from various provinces of Northeast China to identify key factors affecting internal migration. The scientific novelty of this study lies in a detailed analysis of internal migration processes and their impact on the demographic situation in Northeast China, which has not been studied in depth before. The study revealed that the region is facing serious problems such as resource depletion and insufficient economic growth, which leads to negative population growth. Negative growth is characterized by significant regional imbalance: most prefectural-level cities, with the exception of Shenyang, Dalian and Changchun, show negative population growth. Especially high rates are observed in Suihua and Daxinganlin in Heilongjiang Province. The population of the border areas has decreased by almost a fifth. The findings of the study confirm that the population in Northeast China continues to decline, accompanied by a marked decrease in the birth rate. This steady decline requires effective measures to slow it down. The outflow of population from the northeast is increasing, while the departing population is usually younger and more educated, which leads to an acceleration of the aging process and loss of human capital. The main features of the region's demographic trends are net population outflow and migration, which makes it an excellent example for studying demographic changes in underdeveloped regions.

Rise of remote work across borders: opportunities and implications for migrant-sending countries.

Contact restrictions imposed during the COVID-19 pandemic have contributed to the rapid expansion of remote work. With this expansion, new opportunities arise for the typical migrant-sending countries in Central and Eastern Europe to remotely involve their diaspora in their labor market. The aim of this paper is, by using the case study of Latvia, to show the potential of cross-border remote work for alleviating human capital losses caused by emigration. We assess the main obstacles and necessary adjustments in taxes, social benefits, labor market regulation and other areas to facilitate the labor market transition and show what incentives the country can use to become a place of choice for performing remote work for the diaspora. Combining the perspectives of employers, employees and the government, this study sheds new light on the challenges and opportunities related to the rise of remote work for countries suffering from emigration. The comprehensive analysis builds on triangulating secondary data, analysis of policy documents, a survey of employers, as well as a survey and in-depth interviews with cross-border remote workers.

Retaining Australian Nurses: An Analysis of Nurses' Wages and Exit Rates

AbstractThis study examines factors influencing Australian nurses' decisions to quit their jobs, the pathways they take after quitting, and estimates the average wage change associated with a nurse changing professions. Using data from the Household, Income, and Labour Dynamics in Australia Survey and panel data estimation methods, we find that a nurse's pre‐exit hourly wage is significantly associated with their exit decision when controlling for relevant exogenous factors. We also find that most nurses who change professions stay in the healthcare sector, which is characterised by significant increases in hourly wages and occupational prestige and suggests that these nurses change jobs for better opportunities. We conclude that while nurses' exit decisions are not associated with a loss of human capital in healthcare, higher wages would have to be paid if the policy objective is to increase nurse retention.

SUPPORT FOR YOUNG ENTREPRENEURS AS A PRIORITY FOR ECONOMIC DEVELOPMENT

The development of entrepreneurial interest among young people represents an important alternative in terms of using the potential of young people. Youth unemployment represents a significant loss of human capital that could contribute to economic growth. The last challenges that young people faced (mass emigration abroad, general demographic decline, the COVID-19 pandemic), shows that it is absolutely necessary to support young people in starting their own businesses. Analysing the experience of the European Union in supporting young entrepreneurs, we found that the inclusion of young people in economic activity is characterized by certain specific difficulties. Based on the obtained results, we can conclude that most of the analysed countries aim to develop entrepreneurial skills among young people through various mentoring and coaching programs, the dissemination of good practices and the sharing of experience. For the Republic of Moldova, the experience of the analysed countries demonstrates that the main support for young people to be interested in entrepreneurship, as a way of self-employment, is the promotion of public policies that must clearly indicate the need to develop and promote entrepreneurial education and culture, including the development entrepreneurial skills and an entrepreneurial mindset at all levels of education.

Labor productivity in retail trade

In the conditions of the war and the post-war Urainian economic recovery, human capital is one of the determining factors of the state’s existence and ensuring its competitiveness. The loss of human capital has caused a shortage of labor resources in various sectors of the economy, which affects the possibilities of gene­rating income and, as a result, financial results of economic entities. One of the largest components of the Ukrainian economy, which fills the budgets of all levels and creates jobs, is retail trade, which accounts for a significant share of employees among all types of economic activity. The dependence of the revenue amount from the sale of products (goods, services) on the amount of use of economic resources, including labor resources, is widely known. In view of the need for post-war reconstruction against the background of a shortage of labor resources, the aim was set to verify the truth of the principles of the relationship between the scope of activities and the amount of resources used, formulated back in the days of neoclassical economics. Verification of the truth of the formulated hypotheses was carried out on the basis of the use of correlation methods and regression analysis. According to the calculation results, it was not possible to fully illustrate the direct proportional dependence of revenue on the average number of employees for the formed sample of retail trade enterprises. There is also a lack of direct relationship between revenue and labor productivity for both larger and smaller retail enterprises. Further research will be aimed at substantiating other samples of Ukrainian retail trade enterprises and finding interdependencies between their scope of acti­vity and the amount of economic resources involved in the conditions of war and post-war recovery.

Determinants of Human Capital Development and Macroeconomic Freedoms: DEA Modelling

The purpose of the study is to identify countries with mechanisms to most effectively ensure that human capital losses do not become an obstacle to strengthening macroeconomic freedoms. The study is based on the hypothesis that a decrease in absence from work due to personal health problems, unemployment, and mortality leads to an increase in the level of six basic macroeconomic freedoms: business, labour, trade, investment, monetary, and financial freedoms. In this case, absence from work due to personal health problems, unemployment, and mortality serve as discouragers/inhibitors of human capital development, the growth of which reduces the chances of an employee obtaining the necessary knowledge and skills to effectively transform this employee’s labour into an economic asset. To generalise the scientific opinion on the studied issue, a bibliometric analysis of the relationship between each of these factors and the totality of all macroeconomic freedoms was carried out using the R Bibliometrix package in RStudio software. The basis of this analysis was formed by the databases of publications indexed by Scopus for 1937–2024, consisting of 1618, 1578, and 1517 literature sources for each factor-destimulator. This analysis allowed us to form clouds of the most used keywords and analyse the dynamics of their use, see how the relevant research areas and the keywords used have evolved, build a topic map of the research interface, etc. The information base of the study is the statistical data of Europa and the Heritage Foundation; the object is 30 European countries; the time horizon is 2021; the main method is the non-parametric method of Data Envelopment Analysis (CCR and BCC models); the software package is the rDEA and Benchmarking package in the R programming language. Frontier graphs were constructed that clearly show the efficiency frontier in the CCR and BCC orientations. Six iterations of DEA modelling were carried out, each using only one of the 6 indicators of macroeconomic freedom as an output and three indicators of human capital as inputs. The countries with the most effective national mechanisms to ensure that human capital losses do not become an obstacle to strengthening macroeconomic freedoms are Cyprus, Czech Republic, Iceland, Ireland, Malta, and Romania. These countries demonstrate “benchmark” efficiency in 6 cases out of 6 calculated. There is also a group of countries that have never been included in the list of “benchmark” countries: Austria, Belgium, Croatia, Estonia, France, Hungary, Greece, Italy, Lithuania, Latvia, Portugal, Serbia, Slovakia, and Spain. We have also identified countries that are “benchmark” not by all parameters, but only by certain ones: Bulgaria – only in terms of the impact of the studied human capital determinants on monetary freedom; Luxembourg – only on investment freedom and financial freedom; Poland – only on investment freedom.

Integrated Role of Human Resource Management in Mitigating the Post-Covid-19 Challenges in Retail

The decline in retail sales during the COVID-19 pandemic was driven by quarantine measures, household financial problems, social distancing norms and changes in consumer shopping behaviour. Shopping habits have been significantly transformed: customers refrained from visiting crowded and large stores where it was difficult to maintain social distancing, often preferred to shop online, made bulk purchases in one visit, reducing the need for frequent trips to the store, delegated a family member to do the shopping, avoided group visits to stores to minimize the impact of the virus on the family, etc. Therefore, the post-pandemic recovery of the retail sector is becoming an important task for many countries. The article systematizes the main problems of the retail sector after the COVID-19 pandemic in general and human resources issues in particular. It structures the scientific work of scholars from different countries on human resources management in retail in the post-pandemic period. During the pandemic crisis, the retail sector experienced a surge in job losses, wage cuts, and high staff turnover, and the pandemic created a problem of employees’ isolation from the team, as well as staff adaptability, as employees were forced to multitask and perform additional, non-standard functions. The rapid changes in quarantine restrictions during the pandemic left retailers’ management with limited time to consider and execute critical business decisions, including recruitment, which often resulted in either a shortage or overstaffing. As the economy has gradually recovered from the pandemic, this loss of human capital has proved irreversible, with many experienced employees having already adapted to other jobs or changed careers. The article explores the mechanisms for overcoming post-pandemic staff losses in retail through effective planning of human resource management policies, in particular, the bottom-up approach, trend analysis and the Delphi method, implementation of creative recruitment strategies in retail in the face of staff shortages, in particular, through digital technologies, with a focus on soft skills and adaptability of candidates, etc. The article also discusses the mechanisms for overcoming post-pandemic challenges in retail using effective methods for assessing the effectiveness of human resources (in particular, straight-ranking appraisals, grading, management by objectives and 360-degree appraisals), techniques to evaluate employee engagement, the integrated role of HR management and HR administration in this regard is substantiated. A separate part of the study is devoted to post-pandemic lessons for the human resource management system in ensuring safe working conditions and employee health and safety when retail workers still experience fear of large crowds and psychological distress about the transmission of viruses in the workplace through direct interaction with customers and objects. The next block of the study focuses on the changes in career planning requirements in the post-COVID-19 era, building appropriate strategies and scenarios.

Exploring the Macroeconomic Determinants of Self-Harm Prevalence in South Asian Countries

Exploring the Macroeconomic Determinants of Self-Harm Prevalence in South Asian Countries