Investment In Skills Research Articles

Human capital investment under exit options: Evidence from a natural quasi-experiment

Groups historically subject to discrimination, such as Jews, could exhibit high investment in education because discrimination spurred emigration—and emigration was facilitated by skill. If emigration is uncertain, the skill investment induced by discrimination could more-than-offset the mechanical reduction in skill stocks at the origin. That is, in theory, the exit option could raise skills at the origin net of departures. Tests of these theories are rare. We examine a natural quasi-experiment in the Republic of Fiji, where a sharp and unexpected rise in discriminatory policy by a dominant ethnic group caused both mass emigration and mass skill investment by the other major ethnic group. We find that the net effect on skills within Fiji was positive: the human capital of the discriminated group remaining in Fiji would have been lower if there had been no emigration option. We test a variety of alternative models for the net increase in skills and find that the emigration option was a necessary causal mechanism.

Multilateral development banks investment behaviour in water and sanitation: Findings and lessons from 60 years of investment projects in Africa and Asia

Abstract Multilateral development banks (MDBs) play a pivotal role in financing water and sanitation infrastructure projects and thus have a major impact on the development of basic services. Although information about the MDBs' investments is publicly available, it is dispersed and not easily comparable. A comprehensive compilation of MDBs' water and sanitation investments has long been lacking. To address this gap, we assess water and sanitation financing by the three MDBs most relevant to Africa and Asia between 1960 and 2020: the World Bank, the African Development Bank, and the Asian Development Bank. We compile a new dataset by drawing on 3,639 water and sanitation projects and assess territorial trends, technology choices, distribution of financial burdens, and reforms to institutional arrangements. We find that MDBs' investments align with changing patterns of urbanization and increasingly finance sanitation infrastructures including non-sewered technologies. However, our results also suggest that institutional reforms have addressed utility efficiency through investment in equipment and skills rather than through increased commercialization and private sector participation. The leverage effect of MDB investment on private financing is negligible, whereas co-financing from local governments dominates.

EXAMINING OLDER ADULTS DIGITAL INCLUSION THROUGH THE LENS OF INTERSECTIONALITY AND CONTINUITY THEORY

The possible ubiquitous presence of technology connected to the internet and a growing ageing population has necessitated a renewed interest in the digital inclusion of older adults. The focus on chronological age is a form of ageism as it erases the heterogeneity of the community while over-emphasising a physical attribute. We argue that by introducing a conceptual framework incorporating the intersectionality theory (Crenshaw, 1990) and the continuity theory (CT) (Atchley, 1989, 1999) it is possible to explain the differences found in digital in/exclusion that go beyond chronological age. This would enable a more individualised approach to the current curriculum of digital skill acquirement and to help affect lasting change in digital technology adoption by older adults. A thematic analysis (Braun&Clarke, 2006) on 26 semi-structured interviews, with self-proclaimed digital technology users aged between 66 and 84, was used to test this conceptual framework. By using both theories it was possible to explain why chronological age cannot be used as an indicator of use or non-use. Rather examining the intersections of their identity in combination with their investments in habits and skills can explain why some older adults benefit more and are able to make use of the internet in comparison to others.

Building a Bilingual Elite: “National Indifference” and Romanian Students in Hungarian High Schools (1867–1914)

AbstractThis article highlights the role investment in Hungarian-language skills played in the social reproduction of the Romanian national elite in Dualist Hungary. At any point during the era, little less than half of middle-class Romanian students attended Hungarian-language high schools, which their parents largely considered as language training institutions. Parental choices and the sons’ experiences gain significance when set against the view that such investment in linguistic capital was a subversive practice challenging nationalist mobilization. Based on former students’ memoirs, school yearbooks, and histories, this article concentrates on the strategies of parents, the class-based inequality of access to Hungarian, the language policies of schools, and teachers’ ambiguous treatment of Romanian students.

Mitigating bureaucratic inefficiencies through blockchain technology in Africa

With the Fourth Industrial Revolution (4IR) wave engulfing African governments, the need to do, and use something new has already infiltrated many public sector organizations. While modern technologies are being embraced in the private sector, African governments are emulating new technologies and other Information Communication Technologies (ICTs) to advance their economies while managing the risk that these sophisticated technologies can trigger. Blockchain technology is one of the emerging 4IR technology that is believed to have the capacity to mitigate bureaucratic inefficiencies, although scholars argue implementing such comes at a higher price. To understand how blockchain can help reduce inefficiencies in African bureaucracy, the researchers employed the systematic literature review analysis where documents from various databases such as Scopus, Web of Science, and Google Scholar were systematically sampled depending on how they offer meaningful data concerning blockchain implementation. The analyses of these secondary sources revealed multiple challenges and opportunities associated with blockchain technology in the African government. The challenges include poor project management, weak institutions that do not uphold accountability and transparency in data entry using blockchain, unavailability of blockchain infrastructure, risk-averse attitude, and absence of institutional readiness. By implementing enabling technology policies in government, the study revealed that blockchain could help improve taxation in African bureaucracies and mitigate data altering and errors while maximizing efficiency. Further merits in public healthcare and education can be realized by using blockchain technology. The conclusions drawn from this study have shown that for African bureaucracy to thrive using blockchain technology, there is a need to prepare public sector institutions to embrace blockchain technology. At the same time, investment in soft and technical skills remains fundamental to mitigate inefficiencies in public service provision. Institutional readiness is another deterrent to blockchain technology as public administration regard this technology as demanding since it may require change, and management where institutions and structures are reshuffled to respond to the demands of blockchain technology in the delivery of public goods.

Education and active labour market policy complementarities in promoting employment: Reinforcement, substitution and compensation.

This paper theorises and empirically assesses how education and active labour market policy (ALMP) relate to each other in shaping individuals' employment chances in Europe. It provides a theoretical base for assessing policy complementarities building on sociological skill-formation literature, varieties of capitalism and social investment literature. Two hypotheses of complementarity are advanced: reinforcement whereby higher investment in general skills via education boosts ALMP effectiveness; and substitution-compensation whereby investments in either policy suffice, rendering individual employment chances less dependent on ALMPs at higher (prior) educational investment levels. The advanced theoretical propositions are empirically tested by looking at how individual employment chances are affected by national ALMP efforts conditional on workforce education, distinguishing between individual- and national-level educational attainment. Analyses draw on micro-level EU-SILC longitudinal data 2003-2015 from 29 European countries and 285 country-years applying mixed-effects dynamic panel regression models. Results highlight the complementarity of education in the functioning of ALMPs and show that the education-ALMP interplay follows different dynamics when individual or national education are considered, with substitution-compensation for the former and reinforcement for the latter. Higher individual educational attainment is associated with lower marginal returns from national ALMP efforts, with higher ALMP effectiveness among the lower-educated. By contrast, higher national educational attainment is associated with increased ALMP effectiveness, with ALMPs tending to be far less effective at low levels of highly educated workforce. Different interaction patterns are observed for youth, indicating increased difficulty in activating this risk group.

Permanent Residency and Refugee Immigrants’ Skill Investment

Permanent Residency and Refugee Immigrants’ Skill Investment

Permanent Residency and Refugee Immigrants' Skill Investment

Permanent Residency and Refugee Immigrants' Skill Investment

School district investments in general skills: The case of principal residency programs

Abstract Districts are investing more in school leadership, including the implementation of residency training programs for aspiring principals. There is limited evidence about the district return on these investments, and none in the context in which principal hiring is decentralized at the school level. This paper develops a model highlighting the conditions under which districts benefit from investments in general leadership skills and examines the residency program in the Chicago Public Schools (CPS). The event-study analysis that addresses treatment effect heterogeneity finds that principals who complete a residency are significantly more effective at raising achievement. Although the leadership skills gained through the residency are likely to make a principal more valuable to districts outside of CPS, the large majority of residents remain in CPS despite the absence of salary premia for completion of a residency or high performance. These findings suggest the presence of transition costs that enable CPS to retain more effective, residency-trained principals without having to increase pay, thereby realizing some of the return on the investment in general skills.

Month-of-Birth Effects on Skills and Skill Formation

We estimate month-of-birth effects on cognitive and noncognitive skills, as well as factors relevant to skill formation. Our estimates indicate that younger students in a given grade cohort have lower cognitive and noncognitive skills. To shed light on the underlying mechanisms, we also examine children's time use and interpersonal relationships. We i¬ nd evidence of compensatory investment in cognitive skills by younger children, however, they are also more likely to have poor-quality relationships with their classmates and teachers, which may harm the long-term development of noncognitive skills. Our i¬ ndings on skill formation have implications for efi¬ ciency and equity.

Pastures Green: Corporate Investments in Green Skills and Toxic Plant Emissions

Pastures Green: Corporate Investments in Green Skills and Toxic Plant Emissions

Market and home production earnings gaps in Russia

<abstract> <p>This study assesses the evolution of earnings across different groups of workers during Russia's 2000–2013 oil boom and amidst the 2014–2015 oil bust and a trade war. Unconditional quantile regressions and growth incidence curves are applied to nine household surveys for 2000–2016 to estimate earnings gaps across urban/rural, farming/non-farming and gender divides at various earnings quantiles. Gaps in pre-fiscal formal labor market earnings and informal non-market home production are assessed, distinguishing the roles of workers' endowments differentials and returns differentials in production markets. Earning gaps are found to be pervasive, with rural and some female-headed households receiving lower returns on their human capital in part because they lack employment opportunities. Rural Russian households face mobility barriers and lack decent employment opportunities, thus lacking incentives for skill investment. Rural households tend to be less educated and face low returns on their various marketable characteristics. Gender gaps were particularly high historically, particularly among lower quantile groups, but have been steadily falling over the past decade. Growth incidence curves reveal that the 2014 shocks affected particularly harshly the farming and urban households, both immediately and over the following years. We conclude that Russia should strengthen its rural assistance programs and lower the mobility and resettlement barriers to improve rural households' access to education and employment.</p> </abstract>

Employers Size Wage Differential: Does Investment in Human Capital Matter?

Wage differential due to employer size is one of the key areas of interest in labour market research because a strong positive relationship between employer size and wages has been observed in developed and developing countries. It is, however, relatively neglected area of research in Pakistan. The purpose of present study is to investigate the employer size wage differential by looking at human capital factors. The study is based on standard methodology and estimates earning functions on Labour Force Survey (LFS) data for year 2007-08. Results clearly show that human capital investment has a bigger role in determining wages in the larger firms as compared to smaller firms. The main policy implications emanating from the analysis are the higher investment in skill which increases opportunities for workers in the labour market for higher wages and for jobs with good characteristics especially in large sized firms. The government policy towards education and skill formation needs serious reforms and better allocation of funds so that people get chance to enhance their skill level hence wages. JEL classification: J31, J40, J24 Keywords: Wage Differential, Human Capital, Labour Market

How the reliability and validity of the patient classification system can be ensured in daily nursing work? A follow-up study.

This study aimed to determine the reliability and validity of the RAFAELA patient classification system (PCS) for qualified and efficient nurses. The number of patients per nurse or diagnosis-based determination of nursing workload are imprecise measures that do not consider the variation in patients' care needs. Ensuring the reliability and validity of the RAFAELA is important for the efficient allocation of nursing resources. In this study, we investigated how the maintenance (parallel classification measurement and professional assessment of optimal nursing care intensity level measurement) of the RAFAELA was done with 9 years of follow-up data. The results were analysed using quantitative methods supplemented with qualitative audit descriptions. The STROBE checklist was used. The RAFAELA was used continuously in 44 units (40%). The length of use of the RAFAELA influenced the success of parallel classification measurements. Six per cent of units passed parallel classification measurement over 75% after 1-3 years' use, 42% after 4-6 years and 83% after 7-9 years. Among the units that used the RAFAELA PCS continuously, only four (9%) passed the professional assessment of optimal nursing care intensity level measurement. This study shows that ensuring the reliability and validity of the use of the RAFAELA is laborious, requires several years of use and continuous investments in nurses' skills and motivation. Qualified use of PCS is challenging, and organisations should invest to maintenance, training, support and user motivation. Each patient should be classified comprehensively, and nursing resources should be calculated correctly. In addition, utilisation of the nursing intensity level should be maximised. Kuopio University Hospital organisation permit number 73/2014. Information regarding individual patients or nurses was not available to the researchers. All materials are in the form of summary tables.

Influence of diagnostic and dynamic capabilities on frugal innovation development: An empirical study of the Thai auto parts industry

Cost management is the strategy of planning and controlling the costs associated with operating a business. The frugal innovation (FI) approach is therefore interesting because it is a way to reduce costs while innovating without requiring a high level of investments in capital, technology, and skills. Therefore, to understand the mechanism of FI development, this research aims to study the relationships and influences among the diagnostic capabilities (DiC), dynamic capabilities (DyC), and frugal process innovation (FPI) of Thai small and medium-sized enterprises (SMEs), which require a cost strategy to stay in the highly competitive auto parts industry. Causal research was conducted through surveys using questionnaires for data collection. Respondents were chief executive officers (CEOs), engineers, and senior technicians in their respective companies. Partial least squares-structural equation modeling (PLS-SEM) was used to assess the structural models and verify the research hypotheses. The findings revealed significant influences among three pairs of constructs: (1) DiC has a positive effect on DyC, (2) DyC has a positive effect on FPI, and (3) DiC has a positive effect on FPI. Accordingly, the results of this research reveal a guideline for FI development by creating DiC and improving organizational DyC. These notions improve organizational preparation for unexpected situations in the future.

Non-Economic Motivations behind International Student Mobility

International Student Mobility (ISM) has received a lot of attention in the literature on international migration. However, most of the studies assume that investment in skills and knowledge by international students is guided by economic motivations only. Importantly, with an increase in the proportion of international student mobility in total mobility, the students’ motivations have become more complex. Different theoretical approaches across disciplines have been logically extended to study the mobility motivations of international students. Most of the existing approaches do not emphasise the non-economic aspects of motivation and thus, do not provide a holistic understanding of ISM. This paper proposes an augmented human capital framework that incorporates the non-economic motivations of international students through the inclusion of psychic gains and the acquired stocks of personal and social capital.

Informal artisanal and small-scale gold mining (ASGM) in Ghana: Assessing environmental impacts, reasons for engagement, and mitigation strategies

The informal artisanal and small-scale mining (ASGM) sector in Ghana has been engrossed with grave environmental challenges and practices. Whereas some ideologies call for its perpetual banning, others believe efficient reformation of the sector is rather required. This study sought to assess the impacts of informal ASGM on the environment and the root causes of why these illegal mining activities are very prevalent after several attempts to formalize or ban them. It further sought to assess the mitigation measures to reduce their footprint for sustainable mineral extraction. A semi-structured interview guide, field observations, and sampling were used to obtain relevant data for further analysis. Results indicated that informal ASGM had detrimental impacts on water and soil resources. Although the miners were aware of the detrimental effects of their activities, the desire for basic life necessities for their families and survival remained their priority than the conservation of the environment. It was further revealed that the lack of sustainable alternative sources of livelihood, the general economic hardship and unemployment, the “quick and easy” way of making money in informal ASGM, and the political influence in the sector remains a major driving force for illegal mining in Ghana. So far as the cost of “action” on sustainable practices in ASGM is comprehended more than the benefits of reducing the adverse impacts, interventions for better practices will not be supported even at the government level. Purely political solutions will not fix what is basically an economic problem. This study, therefore, calls for broader and continual stakeholder engagements in developing workable policies that will not seek to outrightly criminalize informal mining but help improve it. This study recommends that informal ASGM should be harnessed to bring economic prosperity to stakeholder's rather than to be treated as an evil venture. The provision of sustainable alternative jobs, preferably in the mining sector, is encouraged to help reduce active participation in this illicit activity. Right technological, finance, and technical skills investments can be key to achieving this.

The Sustainability Crisis . . . Again

The Sustainability Crisis . . . Again

Analysis of the Li-ion battery industry in light of the global transition to electric passenger light duty vehicles until 2050

Abstract The decarbonization of the transport sector requires a rapid expansion of global battery production and an adequate supply with raw materials currently produced in small volumes. We investigate whether battery production can be a bottleneck in the expansion of electric vehicles and specify the investment in capital and skills required to manage the transition. This may require a battery production rate in the range of 4–12 TWh/year, which entails the use of 19–50 Mt/year of materials. Strengthening the battery value chain requires a global effort in many sectors of the economy that will need to grow according to the battery demand, to avoid bottlenecks along the supply chains. Significant investment for the establishment of production facilities (150–300 billion USD in the next 30 years) and the employment of a large global workforce (400k–1 million) with specific knowledge and skillset are essential. However, the employment and investment required are uncertain given the relatively early development stage of the sector, the continuous advancements in the technology and the wide range of possible future demand. Finally, the deployment of novel battery technologies that are still in the development stage could reduce the demand for critical raw materials and require the partial or total redesign of production and recycling facilities affecting the investment needed for each factory.

On the matthew effect on individual investments in skills in arts, sports and science

This paper describes the process of capital accumulation subject to the following characteristics: (i) convex returns to (human) capital and (ii) the need to self-finance investments. Our setup is applicable to some peculiarities in the arts, sports and science, inter alia, coined the Matthew effect in Merton (1968) and explains, e.g., why prominent researchers get disproportional credit for their work. The potential young artist’s (athlete’s or scientist’s) optimal strategies include quitting, or continuing and even expanding one’s human capital in the respective profession. Both outcomes are separated by a threshold level in human capital. In addition, we find that it can be optimal to stay in business although consumption falls and stays at the subsistence level forever (we call this outcome a Sisyphus point). This possibility is also interesting from a theoretical point-of-view, as the optimal control problem may turn abnormal, i.e., the objective does not enter the Hamiltonian.