Human Capital Research Articles

The fall and rise of parental financial investments during the COVID‐19 pandemic

AbstractObjectiveThis research note investigates changes in American parents' financial investments in children during the COVID‐19 pandemic, as well as whether and how changes in parents' spending varied based on parental education.BackgroundParents purchase goods, experiences, and services that shape children's human capital and life chances. Socioeconomic differences in parental expenditures on children represent an important pathway for perpetuating inequality across generations. The COVID‐19 pandemic disrupted children's lives in ways that may have changed these levels of investment.MethodThe 2015–2022 Consumer Expenditure Survey (CEX) is used to describe spending on five key categories of investments in children's human capital (educational spending, extracurricular activities and lessons, computers and tablets, formal childcare, informal childcare) overall and by parental education. Mediation analysis assesses the extent school closures explain these changes.ResultsChildcare and extracurricular expenditures initially decreased significantly and then gradually recovered to pre‐pandemic levels by the end of 2021. Cutbacks were primarily among more educated families. However, spending on schooling increased in 2021 and computer and tablet purchases spiked in 2020, particularly among more educated families. Mediation analysis suggests that when expenditures were most affected by the pandemic (in 2020), school closures explained 50%–70% of those changes.ConclusionThis note provides evidence that during the pandemic socioeconomic inequalities in child‐related spending decreased in some categories of spending (e.g., childcare and extracurriculars) and increased in others (e.g., computers and tablets). Many changes appeared short‐term, but changes in education point to possible longer‐term shifts in parents' preferences about children's educational environments.

On the Issue of Human Capital of the Working Older Generation of Modern Russia

Practice has shown that the onset of retirement and pre-retirement age in modern Russia adds new problems to the working older generation, caused by significant changes in lifestyle and new views on human labor activity. The implemented pension reform in Russia, which added five years to the day of retirement, significantly exacerbated the problems associated with the employment of people of retirement age. The article offers scientifically based recommendations for increasing human capital at the expense of the working older generation, taking into account regional and other characteristics. In modern conditions, human capital can play an important role in solving many problems during the military conflict between Russia and Ukraine, especially in increasing the military-industrial potential of our state. In conditions of labor shortage, experienced personnel of engineers, technologists, managers can significantly strengthen Russian industrial and other enterprises

Executive Compensation: The Role of Human Capital and Geographic Preferences

Human capital is crucial for sustainable competitive advantage, and certain workforce groups have a greater impact than others. The top management team, responsible for directing firm strategy and structure, is one such group, and executive turnover can be detrimental for a firm. While existing literature often suggests that executives change jobs primarily for higher pay, this is not always true. Drawing on human capital research and the geographic preference theory, we examine how an executive’s human capital and geographic preferences affect changes in compensation during job transitions. Using a sample of 351 executives who moved among S&P 500 companies from 2000 to 2015 (378 inter-organizational moves), we find that education (a proxy for human capital) and area desirability (a proxy for geographic desirability) correlate with changes in executive compensation. Additionally, a higher density of geographically proximal executive pay packages increases an executive’s compensation premium when changing jobs.

Human capital, creativity and innovation as pillars of leading technology systems

The relevance of the research is determined by the need of modern agricultural enterprises for innovations. Only on the basis of innovative development they can be competitive and later enter industry 4. The purpose of the article is to analyze and justify an innovative approach to the formation of technological networks in the agricultural sector based on the use of competitive advantages of human capital and strengthening of its creativity. The authors note that in order to attract innovation, project managers must coordinate the company's strategy with the strategy of knowledge management and creativity development. The study summarizes the results of using an innovative model in the Brazilian agricultural sector that promotes human capital development and knowledge generation, as well as environmental sustainability (the UTAUT model). The evaluation of these results showed that a significant factor in the successful implementation of the innovation model is the creation of an appropriate organizational and management culture, focused on the involvement of innovations in the activities of agricultural enterprises. The authors conducted a survey of agricultural workers of large and small enterprises of this industry in order to identify their need and degree of readiness for innovations. The results of the survey showed significant differences between large and small enterprises in the given parameters, which require the choice of different ways and sources of strengthening their innovativeness. The problem raised in the article is also relevant for Ukraine as a country with a traditional agricultural sector.

Refueling intellectual capital toward innovation performance of SMEs in Saudi Arabia: mediating the role of entrepreneurial opportunity recognition

PurposeThe objectives of this research were to inspect the relationship of intellectual capital (IC), along with its dimensions (human, structural and internal and external relational capital) with innovation performance (IP), to explore entrepreneurial opportunity recognition (EOR) as a mediator between the IC and IP of small and medium-sized enterprises (SMEs) in Saudi Arabia.Design/methodology/approachThis research used data collected via a well-structured questionnaire. The sample size was comprised of 457 participants who were owners and/or managers of SMEs in Saudi Arabia. Further, the findings were extracted from data using partial least squares (PLS) techniques.FindingsThe results indicated that all dimensions of IC, including human capital (HC), structural capital (SC), internal relational capital (IRC) and external relational capital (ERC), had a significant relation with both IP and EOR. It was also shown that EOR positively influenced IP. Furthermore, the results showed that EOR played an important role as a mediator between IC (HC, SC, IRC and ERC) and IP.Practical implicationsThe present research offered a beneficial and novel managerial and theoretical strategy for improving a given firm’s IP with the support of IC and EOR. This finding offered a vision to the management teams of SMEs for full utilization of IC and IP. The present study also provided policymakers, administration and future studies with a path to improving the production and services of SMEs to secure market advantages.Originality/valueAccording to the author’s best knowledge, the present research represented the first attempt to expose the mediating role of the EOR relationship between IC and IP. Furthermore, the present study also developed the relationship between dynamic capabilities (DC) theory, intellectual capital-based view (ICV) theory and resource-based view (RBV) theory, with variables that reveal the theoretical foundation of the study. Finally, the results of this study were verified by the existing literature.

Effects of Teen Childbearing on the Family Socio-Economic Wellbeing in Ruiru, Kiambu County, Kenya

Purpose: The purpose of the study was to investigate the impact of teenage childbearing on family socio-economic well-being in Ruiru, Kiambu County, Kenya, focusing on financial strain, educational disruption, post-partum experiences, and family support. Methodology: Using family stress, human capital, and social support theories, the study adopted descriptive survey design targeted 378 teenage mothers, with a sample of 195 selected using Yamane’s formula. Data collection involved semi-structured questionnaires and interviews, analyzed quantitatively through descriptive statistics and regression, and qualitatively through thematic analysis. Findings: The findings reveal that 85.5% of respondents faced financial difficulties within six months, and 55% reported disrupted high school education, leading to long-term setbacks. Emotional and health challenges characterized post-partum experiences, and 61.1% of respondents found family support insufficient to meet socio-economic needs. The study concludes that teenage childbearing significantly disrupts family well-being, recommending comprehensive support programs, including financial aid, childcare, healthcare, and community initiatives, to better assist teenage mothers and reduce their socio-economic burdens. Unique Contribution to Theory, Policy and Practice: This research uniquely contributes to theory, policy, and practice by creating a comprehensive model that integrates empirical findings and qualitative insights, thereby enriching existing theories. Additionally, it provides practical recommendations for targeted support programs that guide policymakers in alleviating socio-economic burdens and enhancing family well-being.

Una metodología de despliegue de mejora continua replicable en escuelas de negocios en México

Continuous improvement fosters adaptability and the ability to respond to changes and challenges in the environment, so in a constantly evolving context, organizations must continuously learn to remain competitive. Continuous improvement provides a structure and mindset that promote innovation and the ability to anticipate the changing needs and expectations of consumers of goods and services, such that the focus on continuous improvement impacts efficiency, adaptability, and innovation within organizations. In this context, the research problem in this paper is to propose a methodology for deploying continuous improvement that is replicable in business schools in Mexico, based on an updated and relevant theoretical framework in line with the guidelines of a major international accrediting organization for higher education, in this case, the Accreditation Council for Business Schools and Programs. The methodology used in this research was documentary and descriptive, collecting, analyzing, and synthesizing existing information on continuous improvement in business schools according to international standards in order to provide a solid foundation for further research in this field of study, and to describe the characteristics and accurate representation of the continuous improvement process in business schools in accordance with the guidelines of leadership, planning, stakeholder listening methods, learning assessment, human capital, and administrative processes.

The impact of internet medical service on rural gender inequality in health opportunity: a cross-sectional study

BackgroundThe increasing popularity of Internet medical service may have alleviated the gender inequality in health opportunity faced by rural women. However, research to ascertain the association between Internet medical service and gender inequality in health opportunity is scarce. This study explored the impact of Internet medical service on gender inequality in health opportunity among rural women and the underlying mechanisms involved.MethodsA multistage stratified cross-sectional survey was conducted across six counties in three provinces in China, yielding 3,108 responses for a 97.13% response rate. The questionnaire was used to collect information on Internet healthcare use, health status, health behaviors, social activities and personal exercise, chronic disease status, and demographic and socio-economic characteristics of the participants. Based on Roemer's theory of equality of opportunity (EOP), we established a decomposition strategy for the fairness gap between genders, which we used for the measurement of the gender inequality in health opportunity Fixed effects models, propensity score matching (PSM), and least absolute shrinkage and selection operator (LASSO) regression were utilized to explore the impact of Internet medical service on rural gender inequality in health opportunity.ResultsOn average, rural women experienced a gender health fairness gap of 1.63. Internet medical service significantly mitigated this inequality (β = -0.0602, P = 0.0002), and this finding remained significant across propensity score matching (PSM) and LASSO regression analyses. Mechanistic analysis revealed that human capital positively moderates this effect (β = -0.0510, P < 0.01), while income (β = 0.0370, P < 0.001) and marital status (β = 0.2039, P < 0.001) have negative moderating effects.ConclusionsBy focusing on gender inequality in the digital era, this study highlights the mitigating role of Internet medical service on gender inequality in health opportunity in rural areas. This study proposes and validates the mechanisms through which Internet medical service alleviates gender inequality in health opportunity, suggesting that human capital amplifies this effect, while high personal income and marital status attenuate this effect. These findings contribute to understanding how the digital age can narrow gender health opportunity equality, providing support for future interventions aimed at promoting health equity and gender equality.

Trade liberalization and total factor productivity in Brazil: A vecm modeling

This paper aims to investigate trade openness’s effects on total factor productivity (TFP) using monthly data from December 1991 to March 2024. The analysis also incorporated absorptive capacity to examine the behavior of TFP components. Our findings from a multivariate VECM model indicated that absorptive capacity did not significantly impact TFP, even in the short term. Conversely, the increase in openness contributes to raising TFP by about 26 and 0.16 percentage points in the short and long term, respectively. Additionally, absorptive capacity and trade openness Granger-Cause short- and long-term components of TFP. These results are statistically significant at conventional significance levels. Policymakers should consider the dynamic effects of their policy actions on other sectors of the economy that were not initially the focus of the policy. Policymakers should develop concrete policies that improve the efficient use of resources in production chains to potentialize the productive impact of trade liberalization, including investment in human capital, ICT, and research and development.

How do cooperative rebates and asset specificity impact operating performance of farmer cooperatives? evidence from China

Improving farmer cooperatives’ operating performance is essential for their economic sustainability and for promoting sustainable agricultural development. Despite the prominent role of benefit distribution and asset specificity in cooperation organizations, their impact on performance remains controversial, and the relationship between the three is unclear. This study focuses on cooperative benefit distribution in terms of their rebates (first and second rebates) and investigates the relationship between asset specificity, cooperative rebate and operating performance. The results show that both the first and second rebates have a positive impact on operating performance and play substitutive roles in increasing operating performance. Physical asset specificity (PAS) impacts first rebates positively, whereas human asset specificity (HAS) impacts first rebates negatively. PAS has a positive effect on operating performance whereas HAS has no significant influence on operating performance. Furthermore, the first rebate mediates the relationship between PAS and operating performance and suppresses the relationship between HAS and operating performance. These findings provide support for developing relevant policies to improve cooperative performance and sustainability.

Influence of COVAW Capacity Building on Gender-Based Violence Program Performance in Narok County, Kenya

Purpose: The study explores the influence of employee capacity building on the performance of gender-based violence (GBV) programs in Narok County, Kenya. The specific objectives include examining the effect of leadership style, the impact of community empowerment on program effectiveness, the role of resource allocation, and the influence of organizational innovation on program outcomes. Methodology: Utilizing a descriptive survey design grounded in modernization theory and performance and human capital theory, the research targets full-time staff from ten GBV programs operated by COVAW. A sample of 92 respondents is collected through convenience and stratified sampling techniques, incorporating both community participants and program personnel. Data collection employs interview schedules and semi-structured questionnaires, with quantitative data analyzed using SPSS software and qualitative data thematically analyzed. Findings: Findings reveal a prevailing democratic leadership style that fosters collaboration; however, community empowerment faces challenges due to inadequate integration and mobilization. The study concludes that there is a significant interconnectedness among leadership, community engagement, resource management, and organizational adaptability in enhancing GBV program performance. Unique Contribution to Theory, Policy and Practice: Recommendations include adopting diverse leadership styles, strengthening community engagement, and optimizing resource management practices to ensure the sustainability and impact of GBV initiatives.

Emergence of global value chains as key driver behind industrial development: evidence from participating African countries

Purpose The purpose of this paper is to examine the role of global value chains (GVC) in industrial development of emerging economies, with particular focus on participating African countries. The findings of this study are expected to provide insight on the need for more developing countries to participate in GVC. Design/methodology/approach This study is built upon the neoclassical and endogenous growth theories, which postulate that savings, physical capital and human capital are the fundamental drivers of development in productive sectors of the economy. The investigation, covering the period 1980–2021, is carried out by using the unrestricted error correction model and dynamic ordinary least squares model. Findings The results of this study reveal that GVC stands as the dominant factor driving industrial development, compared to savings, physical capital and human capital. The findings, therefore, seem to contradict the postulation of conventional theories. The policy implications of the findings are not far-fetched. First, industrial development in the participating African countries has benefited largely from GVC; hence, it is necessary to encourage more participation. Second, industrial development also benefited from the control variables (savings, physical capital and human capital), hence the need to sustain their complementary role. Thirdly, only three African countries are actively participating in GVC, which suggests that more countries need to join, to facilitate industrial development. Originality/value Previous studies have not given adequate attention to African countries that participate in GVC, thus creating a void that needs to be filled. This study, therefore, produced results that are relevant to policy-making on industrial development in African countries.

Shifted baselines: Using the adaptive cycle to assess the post-tsunami mangrove social-ecological system recovery in the Nicobar Islands.

The 2004 tsunami and coastal subsidence resulted in 97% mangrove loss in the Nicobar Islands (India), leading to major social-ecological change. We assessed how the Nicobar mangrove social-ecological system (SES) responded to the 2004 event using the adaptive cycle (AC) framework. We describe the changes across AC phases (collapse-Ω, reorganisation-α, growth-r, and conservation-K) concerning various capital types (natural, built, human, social), connectedness and resilience. The subsidence and tsunami triggered a rapid collapse (Ω) in the mangrove SES, particularly depleting natural and built capitals. Despite declines in social and human capital, some knowledge and skills were retained within Nicobari communities. We suggest that locally managed interventions involving mangrove restoration are critical to escape the poverty trap caused by resource insufficiency hindering growth. The AC model helps visualise and describe temporal changes, preparing for recovery challenges. This approach is relevant to SESs beyond Nicobar, offering insights for sites confronting similar social-ecological dynamics and challenges.

Pioneering excellence: How women’s transformative leadership drives business excellence, and financial sustainability

This study delves into the dynamic realm of women’s transformative leadership and its influence on the business excellence and financial sustainability of the Development and Consulting Services Institute DCSI at Princess Nourah Bint Abdulrahman University PNU, Riyadh, Saudi Arabia. Focusing on six strategic business excellence factors: Governance and Policies, Digital Transformation, Human Capital, Project Attraction and Management, Houses of Expertise, and Corporate Social Responsibility CSR, the research aims to explain the positive impact of women’s transformative leadership on these critical dimensions. Data was primarily obtained through an exhaustive review of their achievement, annual reports, and thorough document analysis. Additionally, interviews were conducted with the Institute’s Dean and her team to corroborate and delve deeper into the information gathered from secondary data resources. Employing the Data-Driven VRIO (Value, Rarity, Imitability, and Organization) Framework, the study highlights the Institute’s core competencies and competitive advantages, offering insights into how these factors contribute to its long-term business sustainability. The study reveals a positive correlation between women’s transformative leadership and enhanced business excellence and financial sustainability. This research contributes valuable insights to the ongoing dialogue on leadership dynamics, emphasizing women’s pivotal role in leading institutions toward success and offering a fresh perspective on women leadership in a distinct context.

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.

Effect of Organizational Cynicism on Job Performance: Evidence from the Rubber Manufacturing Industry in Sri Lanka

Human capital serves as a beacon of any organization in the 21st century. Organizational cynicism, a pervasive negative attitude towards one's workplace, has been recognized as a significant factor influencing employee behavior and outcomes. In the last two decades, the global market has embraced Sri Lanka’s Rubber industry for its value-added products. Since the Sri Lankan context is obsessed with an empirical in exploring the organizational cynicism in the Rubber manufacturing sector, this research aims to ex-amine the impact of organizational cynicism on the job performance of operational-level employees within the rubber manufacturing industry, focusing on Gampaha District. This study is deductive and quantitative, deploying a sample consisting of 170 operational level employees in the rubber manufacturing industry in the Gampaha District, selected through the stratified sampling technique. Data were collected using an online structured survey questionnaire and analyzed using SPSS (version 21). By deploying Pearson Correlation analysis and Multiple Regression Analysis, four hypotheses of the study were tested and three hypotheses were accepted. The thorough investigation of these hypotheses collectively confirms the detrimental influence of organizational cynicism on the job performance of operational-level employees in Sri Lankan Rubber manufacturing firms. Two facets of cynicism—cognitive, and behavioral—exerts a distinct yet interconnected role in mitigating job performance while the affective component was removed from the model. These revelations advocate for a paradigm shift in organizational strategies, urging managers to not only address the visible symptoms but also delve into the root causes of cynicism.

Facilitator or figurehead? The impact of academician shareholder on corporate innovation: Evidence from China

Investment by academicians with resource advantages can serve as a vital channel for promoting innovation. In this study, we investigate whether and how academician shareholders who are esteemed fellows or candidates of the Chinese Academy of Sciences and the Chinese Academy of Engineering impact corporate innovation. Using a sample from China, we document a positive association between academician shareholders and corporate innovation. Our channel analysis reveals four potential channels through which academician shareholders promote corporate innovation: innovative human capital, investor protection, top management team attention to innovation and reduction in innovation uncertainty. Moreover, in line with the resource-based view and incomplete contract theory, our findings indicate that the positive association is more pronounced in firms with directors appointed by academician shareholders, without state ownership, and with multiple large shareholders. Finally, our findings indicate that academician shareholders can enhance open innovation, attract government subsidies, shorten the time it takes for corporate patent applications to be granted, and improve firm performance.

Green Knowledge Sharing and the Green Performance Nexus: A Moderated Mediation Model

Green knowledge sharing plays a pivotal role in enhancing businesses’ environmental performance by promoting sustainable practices, innovation, and operational efficiency. Using a knowledge-based view [KBV], the current investigation aims to explore a moderated mediation model to investigate the relationship between green knowledge sharing and green performance. Green creativity is proposed as an explanatory variable that explains the relationship between green knowledge sharing and green performance, while green human capital is proposed as a boundary condition for green knowledge sharing and green creativity relationships. Data from 266 respondents working at managerial levels in different firms with offices in Riyadh were collected using the snowball sampling technique and were used to analyze the proposed moderated mediation model. The findings indicate that green creativity significantly mediates the relationship between green knowledge sharing and green performance, and green human capital moderates the relationship between green knowledge sharing and green creativity. This study highlights the importance of knowledge sharing and creativity in enhancing green performance. It also suggests that organizations investing in green human capital can strengthen these relationships. The results also offer practical insights for policymakers and managers on how green knowledge sharing can foster sustainable environmental performance.

Why is the Roy–Borjas model unable to predict international migrant selection on education? Evidence from urban and rural Mexico

AbstractThe Roy–Borjas model predicts that international migrants are less educated than nonmigrants because the returns to education are generally higher in developing (migrant‐sending) countries than in developed (migrant‐receiving) countries. However, empirical evidence often contradicts this prediction, even when comparing migrants from different regions of the same country. Specifically, whilst Mexicans migrating to the United States from urban areas are negatively selected based on education, those from rural areas are positively selected – despite similar returns in both regions. Leveraging this setting, we demonstrate that the inconsistency between theory and evidence can be resolved by assessing migrants' human capital using a two‐dimensional measure of occupational skills rather than educational attainment. Our findings caution against using positive migrant selection on education as evidence to reject the Roy–Borjas framework for explaining international migration.

Assessing the Effectiveness of TVET Training in Enhancing Youth Employability: A Case Study of Kisumu County, Kenya

Abstract: TVET offers opportunities to equip youth with industry-relevant skills, bridging the gap between education and employment. However, challenges such as inadequate funding, outdated curricula, limited access to modern equipment, and negative perceptions hinder its potential. This study assessed the effectiveness of TVET training in enhancing youth employability n Kisumu County, Kenya. Social learning theory and Human capital theory were adopted. A descriptive survey design was adopted. The study targeted a population of 20,857 consisting of 20,814 TVET students, 42 Heads of TVET institutions and 1 County Education Officer in Kisumu County Government. The sample size was 379 determined using Krejcie and Morgan (1970) formula. Sampling was conducted by means of disproportionate stratified random sampling. Structured questionnaires and interview guide were used to collect data. Data analytical methods were content analysis, descriptive and inferential statistics. Linear relationships between variables were determined using Pearson`s Correlation analysis method. The correlational coefficient for youth employment was=0.57 implying a moderate positive relationship between TVET training and youth employability. Government as policy-maker was recommended to institute regular reform for reviewing the existing TVET curricula in order to incorporate feedback from students and adapt to emerging dynamics of demographic dividends. The Government should increase funding, resources for TVET Institutions: The government should allocate more financial resources to TVET institutions to enhance infrastructure and support the development of industry-relevant programs and strengthen industry partnerships and collaborations between TVET institutions and industries to ensure that training programs are aligned with current labor market demands.