Human Capital Measures Research Articles

Problems of measurement and disclosure of human capital in the light of International Accounting Standard

The contemporary working environment is characterized by intense competition and uncertainty and human capital is one of the most important elements that contribute to the success and continuation of any economic unit working in this type of environment, so the subject of measurement and disclosure of human capital is an important and necessary topic, and in response to the above, this research aims to show the problems in (IAS, IFRS) with regard to measurement and disclosure of human capital, and to achieve the goal of research a questionnaire was developed that included (12)questions distributed to a sample of the 65 specialized academics in the Kurdistan region of Iraq, from which 55questionnaires were recovered, To reach a set of conclusions through which the researcher set of conclusions, the most important of which is the lack of an international accounting standard (IAS,IFRS)that clearly and explicitly addresses the means and methods of measuring human capital and how to disclose them in financial statements as the researcher made a set of recommendations including the need to issue standards specializes in measuring and disclosing human capital in order to make financial statements more credible and reliable and provide useful information in the decision-making process.

Human Capital Development Challenge: Why Corruption Eradication is a Panacea in Nigeria

The study finds empirical evidence regarding the role of corruption in the development of human capital in Nigeria for 1996–2019 period. Using ARDL technique to examine the long-run and short-run relationship between corruption and human capital development, and VECM to assess the causal effects, the analysis involves the inclusion of two corruption indicators (corruption index and control of corruption) as well as two human capital development measures (human capital index and life expectancy at birth). Findings obtained are consistent with efficiency-reducing theory (corruption is harmful), as the empirical evidence indicates that corruption has a significant impact on human capital development, suggesting that the incidence of corruption is a crucial element in the development of human capital. Further evidence reveals that there exists bidirectional causality between corruption and human capital development, implying that both the level of corruption and human capital development are interlinked and mutually inducing. Hence, the entrenched phenomenon of corruption in the country seems to have presaged long-term poor human development. It is therefore suggested that aside existing institutions established to curb corruption, such policy measures, which include addressing factors that incentivise corruption such as inappropriate regulatory frameworks, rent-seeking dispositions, among others, need to be initiated and promoted.

Intellectual Capital and Firm Value: An Investigation of Turkish Manufacturing Companies

This paper investigates whether intellectual capital and its components (human, relational, innovation, and process capitals) have meaningful information on firm value. Full sample consists of 148 listed Turkish manufacturing firms over the period of 2005–2017. We show that our extended Ohlson models explain the substantial part of the unexplained variation in firm market values. Specifically, we find that higher levels of measures of human capital, relational capital, process capital, innovation capital, and overall intellectual capital are directly associated with higher stock prices. Furthermore, we find that intellectual capital and its components have lagged effects on market values of firms, and human capital has a moderating effect on the relationship between other intellectual capital components and firm market values. Our main finding still holds when we re-estimate our model by addressing potential endogeneity issues and alternative conditions. Based on our findings, we recommend firm managers to do convenient resources planning on these components to raise the firm’s value. Moreover, we recommend accounting standards setters to create a separate financial reporting standard, which includes detailed information on these components that are value-relevant in making business valuation decisions.

Intellectual Capital and Firm Value: An Investigation of Turkish Manufacturing Companies

This paper investigates whether intellectual capital and its components (human, relational, innovation, and process capitals) have meaningful information on firm value. Full sample consists of 148 listed Turkish manufacturing firms over the period of 2005–2017. We show that our extended Ohlson models explain the substantial part of the unexplained variation in firm market values. Specifically, we find that higher levels of measures of human capital, relational capital, process capital, innovation capital, and overall intellectual capital are directly associated with higher stock prices. Furthermore, we find that intellectual capital and its components have lagged effects on market values of firms, and human capital has a moderating effect on the relationship between other intellectual capital components and firm market values. Our main finding still holds when we re-estimate our model by addressing potential endogeneity issues and alternative conditions. Based on our findings, we recommend firm managers to do convenient resources planning on these components to raise the firm’s value. Moreover, we recommend accounting standards setters to create a separate financial reporting standard, which includes detailed information on these components that are value-relevant in making business valuation decisions.

Critical Feedback Characteristics, Teacher Human Capital, and Early-Career Teacher Performance: A Mixed-Methods Analysis

Most education agencies have implemented new teacher evaluation systems that promise to improve teacher performance. Post-observation performance feedback is a theoretically important driver of this promise as it should ultimately develop teacher-specific weaknesses. This is the first large-scale study to use the written feedback provided to early-career teachers during formal post-observation conferences and quantitatively link critical feedback characteristics (CFCs) to measures of teacher human capital. We find that most conferences do not include CFCs, that feedback is typically unidimensional, and that less effective early-career teachers receive higher shares of CFCs. However, goal-setting is the only CFC associated with subsequent teacher performance. Beginning and less-educated teachers, for whom goal-setting may clarify performance expectations, drive this relationship.

Gender disparities in wage returns to human capital components: how different are European labour markets?

ABSTRACT The paper investigates the gender wage gap in relation to the multi-dimensional human capital measure, asking which human capital components are most valued in the European labour markets. Relying on the Programme of International Assessment of Adult Competencies (PIAAC) data for seventeen European countries and applying Gelbach (2016) decomposition, we document remarkable cross-country disparities in the returns to different human capital components. The only dimension that consistently and significantly decreases gender wage disparities in all countries is work experience related to a currently occupied position. Numeracy cognitive ability is another strong predictors of the gender wage disparity, while job-specific cognitive and non-cognitive skills reveal weaker than expected association with the gender wage gap. Unlike the studies stressing the decreasing importance of human capital in the gender wage gap assessment, we argue that a narrow definition of human capital may undermine the actual effect of the latter.

Human Capital Measurement and Integrated Reporting: An Intra-Systemic Model

Human Capital Measurement and Integrated Reporting: An Intra-Systemic Model

Показатели человеческого капитала в исследованиях экономического роста: обзор

Quantity and quality of human capital are important components of economic growth. However, assessing the relationship between human capital and growth is complicated both by the multidimensional nature of human capital itself, and by the fact that many of its characteri­stics are difficult to observe and to measure. Economic growth studies use various measures for different aspects of human capital - such as education, experience and health of workers. Choice of a particular measure depends largely on the objectives of the research, available data and established approaches; its motives and implications are often less visible, though.In this paper, I discuss human capital measures that are used in macroeconomic studies. The main ones include quantitative and qualitative characteristics of education, returns to education, cognitive skills test results, work experience and health of workers. Choice of a measure is reflected in differences in estimates of human capital impact on economic growth, ranging from the complete absence of any influence to the fairly high role of human capital as a factor of economic growth. This paper discusses the strengths and weaknes­ses and the peculiarities of the respective measures. Specific research results obtained using various approaches to human capital measurement are presented for illustrative purposes.

Human Capital Measurement: A Case Study of Organisational Culture At A Multi-National Homeware Manufacturing and Retail Company

Human Capital Measurement: A Case Study of Organisational Culture At A Multi-National Homeware Manufacturing and Retail Company

Особенности стоимостной оценки человеческого капитала организации

The subject of the study is the features of the evaluation of the human capital of an organization as a system of restrictions used in the selection of methods of quantitative measurement and examination of human capital. The purpose of the work is to form an algorithm for constructing a methodology for the valuation of human capital. The article forms the basic criterion for making a strategic investment decision concerning the use of the profit of the organization to ensure the income of the owners. A list of the main properties of the human capital valuation process has been formed, which covers not only the subject and object of the assessment, but also the purpose, result and methodology of the assessment. It is shown that they allow determining the final features of the process of assessing the value of human capital. Based on the selected properties of the evaluation process, the main features of the evaluation of the value of human capital in the organization are established, which, in particular, include cost estimation; time limitation; consideration of the synergetic effect and emergence of efforts in the team; verifiability; chain dependence. It is determined that the carriers of human capital are not only employees individually, but also the collective as a whole. Based on the features of human capital assessment, an algorithm for choosing quantitative and qualitative methods for assessing the value of an organization's human capital has been developed. It is shown that in the evaluation process, various efforts are required to verify the satisfaction of the results, as well as their comparison with various benchmarks, for example, market or historical ones. It is concluded that human capital is a reflection not only of the individual abilities of employees, but also the result of their self-realization, interest and involvement in the process of economic activity.

Human Capital Development in Nigeria: Determinants and Challenges

The human capital theory is one of the foundational theories of socio-economic development. The founding scholars hold that any acquired qualities and abilities that help individuals and groups be economically productive is an individual or group human capital. However, the focus by classical human capital model on schooling and training as the major factors comprising human capital on all levels has made the human capital measurement tools to generally assess only educational attainment on these levels. This overly simplified approach creates difficulty in accurately assessing the strengths and weaknesses of human capital in a country but policy-makers and others use these simplified estimates of human capital because the factors suggested to have significant impact on human capital are mostly intangible and the collection of such data costly. To identify and analyze the significant factors affecting the Nigerian human capital and determine efficient and effective ways of improvement, this study administered 90 copies of questionnaires to participants who were selected using purposive sampling technique. Responses were retrieved from 78 participants. A descriptive survey design using tables and mean scores was applied to the retrieved data. Findings revealed that human capital development is not limited to only investment in health and education but includes all policy measures which favour a country’s human population such as the provision of infrastructural facilities, enabling environment for businesses while reducing tribalism and other social vices all promote human capital development. Public opinion also suggested that having responsible families, even distribution of income and distributive justice in Nigeria will improve the state of her human capital.

Lithuanian Active Labour Market Policy in 2009–2020: a Social Investment Perspective

An active labour market policy is an integral part of social policy, ensuring support for the unemployed to search for a job through developing their skills. Thus, the active labour market policy is part of the social investment, focusing on investment in people’s knowledge. The heart of social investment is the design of policy-enhancing people to work, use their skills, create families and grow up children. The active labour market policy was analysed, focusing on the measures and their development in Lithuania. At the same time, the analysis from the social investment perspective was missing. Thus, this research aims to analyse Lithuania’s active labour market policy from the social investment perspective between 2009 and 2020. The choice of the period was determined by the time of the world financial crisis in 2009 and the Covid-19 pandemic crisis in 2020. The analysis of legal documents and Eurostat data for 2009-2018 was used to attain the formulated aim. Additionally, the meta-analysis of the Ministry of Social security and Labour’s Social Reports in 2009-2017 was used to analyse active labour market policy development. The research is based on methodology, which suggests classifying the active labour market measures into the strong and weak investments in human capital. A strong investment provides basic education or training, and a weak one creates new jobs, job subsidies, counselling, services for getting the job, job searching programmes, benefits, and taxes allowances. The analysis of the Lithuanian active labour market policy measures revealed that both strong and weak investments in human capital were balanced only during the crises. However, during the inter-crisis period, Lithuania’s active labour market policy measures were more focused on the weaker investment in human capital measures or the “job first” strategy. The strong investment in human capital was the lowest in Lithuania among other Baltic countries during the analysed period.

THE EFFECT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN SOME SUB SAHARA AFRICAN COUNTRIES (SSA)

Purpose: This research looked into debate on the possible impact of human capital on economic growth in Sub-Saharan Africa (SSA) and considers two alternative measures of human capital: health and education.
 Methodology: The research used a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1986–2018. The research used Microsoft excel to record all the data gotten from the world indicator data base from world bank, penn world table data base and CANA database. The analysis was presented in a tabular form.
 Findings: This study found that human capital has an overall positive and statistically significant impact on economic growth in the SSA region, although, democracy has a negative and statistically significant impact on economic growth in the region. This finding shows the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital.
 Unique contribution to theory, practice and policy:Generally, the finding emphasised that both education and health measures of human capital are important, and that policymakers must consider the level of economic development while formulating policies that can enhance the impact of human capital on economic growth in the Sub-Saharan Africa region.

Social Control as a Factor of Social Progress

Introduction. Social control is considered in the aspect of social philosophy, in the contexts of ideas of social dynamics, social changes, instrumentalities, manufacturability and criticism of instrumental reason. Methods. Research materials, philosophical, sociological, sociocultural works that form the methodological basis of social control. Methods of social statistics, social changes and transformations, social processes, social representation, social topology, constellation and typology are applied in macro- and microanalysis of social space in the study of quality of life problems, the formation and comparison of social practices in the context of the formation of modern forms of social control, informatization, optimization and humanitarization of the social environment, measurement of human capital in the aspect of social criticism. Results. Social control is a multifaceted and universal phenomenon, it is a mechanism that connects people, marking the application of goals, value orientations and norms. Social control is the most important factor in the state of “maturity” of society, the quality of the communication space, the public and power structures. Conclusion. Social control of important information about production, culture, cultural life of society, historical culture.

Domestic Resource Mobilization and Human Capital Development in Sub- Saharan Africa

This study investigates the nexus between domestic resource mobilization using aggregated and disaggregated taxes, and human capital accumulation as measured by the index of human capital and total factor productivity. The study explores panel Autoregressive Distributed Lag. We further explore the linear and nonlinear effects of taxes on human capital accumulation. The results from the scatterplots show that taxes at aggregate and disaggregated levels positively correlated with the two measures of human capital. On the linear analysis, the impact of aggregated and disaggregated taxes is largely negative under the index of human capital but largely positive under the second measure in the short-run. However, the long-run results indicate that aggregate and disaggregated taxes significantly amplify human capital accumulation. On nonlinearity, there is no presence of human capital laffer curve (HCLC) in the short-run under the two measures of human capital. However, there is presence of HCLC in the long-run. The net effects results show that some taxes (such as indirect taxes, taxes on goods and services) are distortionary in improving the level of human capital development while some taxes (such as total tax, direct tax, taxes on income, profit, and gains) can distort human capital development in the SSA region.

Factors Influencing Economic Empowerment in Tourism Development

The output per worker of Indonesia has been on a downtrend since 2010, with total factor productivity (TFP) and capital stock largely stagnant if not declining. This paper discusses stylized facts that may explain recent trends in the productivity and growth potential of Indonesia. The decomposition of output per worker reveals the declining contribution of human capital, which is also most negative among peer countries. The growth in labor productivity has been concentrated within sectors, implying room for gains from labor reallocations. A substantial share of employment and credit in Indonesia has shifted to the relatively unproductive service sectors, particularly wholesale and retail trade. In terms of firm dynamics, the contribution of large firms in Indonesia has been lackluster compared to regional peers while the productivity of micro, small and medium enterprises remains stagnant. Considering that human capital and TFP measures of Indonesia are lagging behind middle-income peers, there is wide scope for Indonesia to catch up. However, the potential output of Indonesia also faces new risks from the COVID-19 pandemic. We expect that the short-term effect of the pandemic on capital accumulation and the long-term effect on human capital pose the highest risk while labor inputs appear to be more resilient. Meanwhile, the potential productivity gains from accelerated digital adoption and sectoral reallocations are more uncertain.

Do human capital investments mediate the intergenerational transmission of domestic violence?

BackgroundDomestic violence is a major public health issue worldwide with detrimental consequences not only for its victims but also for the next generations. Despite an extensive literature documenting the persistent intergenerational transmission of domestic violence, few studies explore the mechanisms underlying this transmission. MethodsWe use data from the Cebu Longitudinal Health and Nutrition Survey implemented between 1984 and 2009 in the Philippines. These longitudinal data allow us to measure how much the association between witnessing parental violence during childhood and the experience of intimate partner violence in young adulthood is explained by different measures of human capital that occur up to young adulthood, including education and health outcomes, cognitive skills, and psychosocial traits. ResultsWe find that these human capital measures explain 22 percent of the transmission of domestic violence. Our results indicate that depression at age 18 and cognitive ability at age 11 are the primary human capital channels. ConclusionsOur findings suggest a potential role of interventions targeting these human capital investments in reducing the cycle of violence across generations, as such, it could expand the window of opportunity for effective interventions in developing countries.

The Human Capital on the Performance Margins of Vehicle Marketing Companies. Lambayeque, 2017


 
 
 To determine the incidence of human capital in the increase of performance margins of vehicle commercialization companies in Lambayeque 2017. Materials and methods: A census sample of 8 companies in Lambayeque was used. Ninety-four workers and managers of the companies were interviewed regarding the role of human capital and different measures of business results such as: productivity, efficiency and operating profit. Results: A significant positive correlation of 0.75 was found between company productivity and human capital expenditure; however, with respect to efficiency, only 38% of companies have an efficient performance in terms of operating margins related to human capital expenditure per worker, whose efficient value was estimated at 1,338 soles per year. Conclusion: The correlation between training expenses and net operating margins over sales was 0.12 and not significant, indicating that the relationship between human capital and business performance is still partial.
 
 

Design of Personal Trajectories for Employees’ Professional Development in the Knowledge Society under Industry 5.0

The main feature of Industry 5.0 is “personalization”, linked not only to provide customers with personalized products, but also, in our opinion, to ensure personalization in labor relations with employees, since it increases human value through human–machine collaboration. The human capital quality determines a significant contribution not only to the labor productivity growth, but also to extend a social communication, loyalty and employees’ trust. The study proposes the new methodological approach for corporate human capital assessment and management (CHCM) over new conditions of digital transformation. The CHCM uses methods of system analysis and synthesis, expert assessments, descriptive statistical analysis and survey. The novelty of CHCM is that, firstly, it reflects all the essential features and properties of human capital under emergence of new professions; secondly, it combines and comprehensively uses both quantitative and qualitative methods for human capital assessment, reflecting the subjective and objective aspects of human capital measurement; thirdly, it allows to create warranted management decisions about individual trajectories of professional development of employees, ensuring the continuous growth of individual, corporate and social wealth. It is proved experimentally that the implementation of individual trajectories for employees’ professional development provides 2–3 years’ perspective on companies’ performance growth.

Human capital, innovation, and inclusive growth in sub-Saharan African Region

The impact of human capital on inclusive growth manifests in several forms. An improvement in human capital can directly influence inclusive growth and indirectly through innovation. Also, human capital serves as a key driver of innovation and knowledge diffusion hence, enhancing labour capacity will facilitate new ideas and technological adoption. Evidence on this relationship are scanty, hence, this study explores the relationship between human capital, innovation, and inclusive growth in sub-Saharan Africa. The fixed-effects model was deployed to examine this relationship in 17 sub-Saharan African countries between 1998 and 2014. The results from the scatterplot suggest that human capital and innovation measures positively correlate with inclusive growth. More so, our empirical results show that different measures of human capital propel inclusive growth as the quality measures (total factor productivity and index of human capital) have significant impact. On innovation measures, the results reveal that investment and ICT positively influence inclusive growth, however, their magnitudes remain inconsequential. Regarding the interaction terms, the results indicate that the indirect impact of human capital through innovation was largely negative. Hence, this study reveals that the level of human capital is not large enough to promote innovative activities and technological advancement in the region.