Human Capital Productivity Research Articles

The urban–rural education gap: do cities indeed make us smarter?

Abstract Despite the large urban–rural education gap observed in most countries, little attention has been paid to whether cities actually enjoy a comparative advantage in the production of human capital. Using Dutch administrative data, this paper finds that children growing in urban regions consistently attain higher levels of human capital compared with children in rural regions, conditional on observed cognitive ability and various family characteristics. The elasticity of university attendance with respect to population density is 0.07, which is robust across a variety of specifications. Hence, the paper offers a different explanation to explain the recent success of cities.

Analysis of Growth Accounting and Convergence in MENA Countries: Panel Cointegration Approach

The objective of this study is to investigate the sources of output growth and their convergence in the Middle East and North African countries over the period 1970–2017. Towards this end, the study employs Levin et al. (2002, Journal of Econometrics, vol. 108, pp. 1–24), Fisher-type (Choi, 2001, Journal of International Money and Finance, vol. 20, pp. 249–272) and Im et al. (2003, Journal of Econometrics, vol. 115, pp. 53–74) panel unit root tests and Pedroni (2004, Econometric Theory, vol. 20, pp. 597–625), Kao (1999, Journal of Econometrics, vol. 90, pp. 1–44) and Johansen–Fisher cointegration tests. After estimating the production function using random effects estimator to obtain the share of physical capital in output, we employed standard growth accounting approach to measure and decompose growth of total output into contributions from growth in physical capital, labour, human capital and total factor productivity (TFP). Further, the study discusses the existence of stochastic and deterministic convergence of real output per worker and its sources (physical capital per worker, human capital and TFP). The statistical results of the article can be summarized as follows: The contribution of physical capital to output growth is found to be positive and higher than the contribution of labour, whereas the contribution of TFP was negative across the region with the exception of Egypt, Morocco, Tunisia and Turkey. However, when the contribution of human capital is netted out, the contribution of TFP becomes negative in all the countries except for Tunisia. In addition, the study found no clear evidence of deterministic convergence in output per worker (but stochastic convergence), human capital and factor productivity. However, the statistical results provide overwhelming evidence for stochastic and deterministic convergence in physical capital per worker. JEL Classification: O4, O40, O47

Political Risks and Barriers of Digitalization

The article deals with political risks and barriers of digitalisation. Initially, the author identified the factors of political risks and barriers to digitalisation. They include the limited state categorisation and the complexity of the institutional process, lack of investment in human capital and low overall factor productivity, lack of effective and sufficient communication, resistance to bureaucracy. On the base of these factors, the main political risks and barriers to digitalisation include (1) the formal declaration of reforms in the absence of real results, (2) the growth of centralised control and the adverse social reaction, (3) the increasing of social inequality and the formation of the new monopolies, (4) the risks of cybersecurity. Management of these risks is possible through the development of adequate institutional design, the use of new organisational solutions to stimulate the development of human capital, the establishment of the institute of the scientific and technical expertise, support of project finance for ICT projects, support of sufficient political communication.

Exploring the Factors Affecting Economic Growth in Pakistan

Economic growth varies across different countries. Various potential factors have been identified over the years, but finding relevant determinants of growth has been a real issue for empirical investigation. This paper has attempted to examine different macro-economic variables that play a significant role in accelerating economic growth from 1970 to 2019. The econometric results show that human capital, financial development, and industrial production are the encouraging factors of economic growth, while the variable trade openness shows a negative effect on economic growth in Pakistan. Government should design policies to invest inhuman capital and fixed assets; this will create job opportunities for the people and leads to high economic growth.

The Long-Term Distributional and Welfare Effects of Covid-19 School Closures

Using a structural life-cycle model, we quantify the long-term impact of school closures during the Corona crisis on children affected at different ages and coming from households with different parental characteristics. In the model, public investment through schooling is combined with parental time and resource investments in the production of child human capital at different stages in the children's development process. We quantitatively characterize both the long-term earnings consequences on children from a Covid-19 induced loss of schooling, as well as the associated welfare losses. Due to self-productivity in the human capital production function, skill attainment at a younger stage of the life cycle raises skill attainment at later stages, and thus younger children are hurt more by the school closures than older children. We find that parental reactions reduce the negative impact of the school closures, but do not fully offset it. The negative impact of the crisis on children's welfare is especially severe for those with parents with low educational attainment and low assets. The school closures themselves are primarily responsible for the negative impact of the Covid-19 shock on the long-run welfare of the children, with the pandemic-induced income shock to parents playing a secondary role.

Measuring the indirect effect of the Internet on the relationship between human capital and labor productivity

ABSTRACT In an attempt to lift data availability constraints, this paper investigates into the third level digital divide in 65 developing countries for the period 2000–2014, by studying the existence of a mediating impact of Internet use on the relationship between human capital and total labor productivity, and labor productivity by sector. Results of our mediation models with fixed effects panel regressions and Bootstrapping revealed an Internet use mediation effect of 24.20% on the total effect of human capital on total labor productivity, 27% on labor productivity in services and 23% in industry. Mediation was found to be inconsistent in agriculture.

Access to Breast Cancer Diagnostic Devices in the East African Community: Moving the Needle

PURPOSE Globally, two million women develop breast cancer each year. Low-income countries bear a disproportionate burden as a result of systems strapped by limited resources. Inadequate access to diagnostic services is widely recognized as a driver of unfavorable outcomes, yet baseline data on supply, use, and pricing for breast cancer diagnostic devices are scant. The purpose of this study was to assess access to cancer biopsy devices in Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda, and to ascertain related pricing, procurement, and payment models. METHODS We conducted an observational online survey to capture institution-based data that address demographics, facility capacity, human capital, pathology systems, device sourcing and pricing, supply chains, and workarounds. Additional manufacturer information was obtained through public sources and communication with industry. RESULTS We received 58 survey responses from the 6 East African Community countries, most representing urban public hospitals (68%). Pathology laboratory capacity varied drastically: Although basic histopathology was consistently performed (92% of respondents), hormone receptor, human epidermal growth factor receptor 2, and genetic studies were not (63%, 53%, and 11%, respectively). Training varied among practitioners performing biopsies—for example, surgeons or nurses—and most practitioners did not have ultrasound guidance (80%). Both disposable and reusable core needle devices were in use, and stockouts were reported by most respondents (69%). Workarounds included reuse of disposable devices, alternative procedures (eg, surgical excision or fine-needle aspiration), patient rescheduling, and referral. Most patients received results at follow up, but one fifth of all respondents reported that some patients never received results. Of importance, there was no observable pattern to procurement channels or pricing. CONCLUSION Reliable, accurate, and timely diagnosis is vital to improving outcomes for patients with breast cancer in low-income countries. Significant variation related to operations, human capital management, product mix, procurement methods, and pricing was observed between and within the East African Community countries. Additional investigation is needed to identify opportunities for applying best practices and leveraging regional synergies for impact.

FRANSA BİLİM VE ARAŞTIRMA ALTYAPISININ YENİLİKÇİ REKABETÇİLİĞİNİN AVRUPA BİRLİĞİ’NDEKİ YERİ

National strategies, fiscal policies, scientific talent and human capital in science and research are some of the parameters affecting the innovative performance of countries. The study aims to present France’s science and research area and scientific talent in the European Union. It explains the innovative competitiveness in science and research, then compares France with the European Union countries on the basis of various indicators such as the Global Innovation Index, European Innovation Scoreboard and Eurostat. The study covers indirect measures related to human capital, scientific expenditures and knowledge production such as research investments, staff number in the science and research, collaboration with the industry and academic publishing. The research concludes that the development level of France’s science and research infrastructure is not as parallel as its economic size and should be strengthened.

Testing the Technology of Human Capital Production: A General‐to‐Restricted Framework

AbstractStudies of childhood development have suggested human capital is accumulated in complex and nonlinear ways. Nonetheless, empirical analyses of this process often impose a linear functional form. This paper investigates which technology assumptions matter in quantitative models of human capital production. I propose a general‐to‐restricted procedure to test the production technology, placing constraints on a modified McCarthy function, from which transcendental, constant elasticity of substitution, log‐linear and linear models are obtained as special cases. Applying the procedure to data on child height from the Young Lives surveys, as well as cognitive skills, I find that the technology of human capital production is neither log‐linear nor linear‐in‐parameters; rather, past and present inputs act as complements. I recommend that maintained hypotheses underlying functional form choices should be tested on a routine basis.

The impact of global competitiveness on the growth of bioenergy industry in EU‐28 region

AbstractThis study investigates the effect of global competitiveness determinants on the growth of the bioenergy industry in the European Union (EU‐28) region from 1990–2018. Applying the panel fixed effect model, the results revealed that the bioenergy industry grows with an increase in the global competitiveness index. While human capital, innovation ecosystem, markets, enabling environment, and gross domestic product found to be increasing the growth. The finding implies that the growth of the bioenergy industry in EU‐28 developed countries can be effectively strengthened by improving the quality of human capital and enabling environment. Also, the result implies that the growth of the bioenergy industry in EU‐28 developing countries can effectively improve by increasing the quality innovations system and markets. These will eventually contribute to tackling global warming and environmental pollution. The estimated results are considered robust as validated by panel random effect and pooled Ordinary Least Squares estimators. The study recommends for EU‐28 countries to increase the efficiency of global competitiveness indicators to achieve social and environmental objectives. Policymakers should also invest more in global competitiveness factors to increase the supply and accessibility of bioenergy output. The authorities of these countries can equally emphasize on efficiency and sustainability of global competitiveness decomposition to achieve energy security and reduce dependency on fossil fuel.

KAJIAN MODAL SOSIAL PEKERJA DI KEBUN SAWIT KELURAHAN TANI AMAN KECAMATAN LOA JANAN ILIR KOTA SAMARINDA

This researchis motivated by the role of social capital in helping increase the productivity of famers and workers, but not many people admit that increasing human capital increases productivity. This study aims to identify the social capital of workers in oil palm plantions and determine the lovels of social capital of wrkers in oil plam plantions. The data colection techniquis used in this study were directly in the field to distribute questionnaires and interview workers in the oil palm plantions. Then analyzed using the validity of an instrument.
 The results of this study are that the level of social capital, namely (trust, network, social norms) owned by workers in te oil palm plantion in Tani Aman Village Loa Janan ilir District Samarinda City is very large. With An average number of trusts of 96. And the decond is networks with an average number of 91.9. and the last is social norms with a ean number of 90.2 with the category of class intervals 88.5-105.2 stongly agree

The Reduction in Total Fertility Rate Predicts One Fourth of the Gain in Child Height in the Last Decade: Evidence from 44 Low- and Middle-Income Countries

Abstract Objectives Poor child growth is associated with losses in human capital and economic productivity. High fertility rates are an increasing concern in many low- and middle-income countries (LMICs). The link between population-level fertility and child height remains underexplored. Methods Data were from 88 cross-sectional Demographic and Health Surveys from 44 LMICs across three regions between 2000 and 2015. Sample sizes (number of children aged 0–59 months) were 287,032 for South Asia (SAS), 345,256 for sub-Saharan Africa (SSA), and 130,040 for South America (SAM). We explored the association between fertility and child height-for-age z-score (HAZ). Fertility was indexed using total fertility rate (TFR), the number of children born to a woman were she to survive through her childbearing years according to age-specific fertility rates. TFR was calculated at the village level using birth histories and age distributions of women aged 15–49 years. Fixed effects regression models were used to estimate the association between changes in village level TFR and changes in child HAZ. These models were adjusted for country fixed effects, survey-year fixed effects, clustering, and demographic and socioeconomic covariates for the child, mother, and household. Country-level regression decomposition analysis was used to estimate the contribution of the actual TFR reduction from World Bank data to the actual gain in child HAZ. Results On average, individual level HAZ was −1.46 (95% CI −1.47, −1.45) in SAS, −1.50 (95% CI −1.50, −1.49) in SSA and −1.19 (95% CI −1.20, −1.19) in SAM. Mean country level TFR was 2.69 (95% CI 2.36–3.01) in SAS, 5.21 (95% CI 4.96, 5.47) in SSA and 2.76 (95% CI 2.50, 3.02) in SAM. The adjusted fixed effects models showed that a 1-unit decrease in village level TFR was associated with a 0.20 (95% CI 0.18, 0.21) increase in child HAZ in SAS, 0.09 (95% CI 0.07, 0.10) in SSA and 0.15 (95% CI 0.14, 0.17) in SAM. Decomposition analysis showed that reductions in TFR explained 25.7% of the increase in mean HAZ across countries between 2000 and 2015. Conclusions These findings point to an underappreciated role of fertility in the global discourse on childhood stunting. Noncoercive policies, interventions and incentives leading to replacement level fertility have the potential to support rapid reductions in stunting required to achieve development goals. Funding Sources None.

Does graduate human capital production increase local economic development? An instrumental variable approach

AbstractUsing a survey on Italian graduates, we investigate whether universities' degree production affects the economic development of the regions where academic institutions are located. To deal with suspected endogeneity between human capital development and economic growth, we employ an instrumental variable approach, using a global lump sum transferred to each university as an instrument for human capital production. Once we control for the regional flow of mobile students and graduates, the findings reveal the beneficial effect of the university system on local economic development through the gain in human capital.

Private Higher Education Instituions’ Intangible Assets

This article aims to compare the Human Capital, Intellectual Capital and Integrative Capital production of teachers before and after their academic degree. With this goal, the following problem will be answered: the incentive to the teachers to their professional qualification, the academic degree search, of HEI (Higher Education Institution) interest under the aspect of Human Capital, Intellectual Capital and Integrative Capital production rise, has generated expected results in each capital after reaching the titration? The present hypothesis are two: there are no differences in production of Intangible Assets in Human Resources before and after academic degree and there are differences in production of Intangible Assets in Human Resources before and after academic degree. Regarding the methodology, it was used a qualitative approach with deductions and inductions to the production of theoretical construction from the data analysis, proposed by Silva et al, (2010)

Endogenous growth, human capital and the dynamic costs of recessions

PurposeThe purpose of the paper is twofold: to construct and analyze a novel endogenous growth model, in which unbounded growth is possible without the need to assume increasing returns to scale, and to use the model to estimate the long-run (or dynamic) costs of recessions.Design/methodology/approachIn the proposed model, endogenous technology and human capital accumulation serve as the “twin engines of growth.” Simulations are used to derive growth rates consistent with long-term experience of developed countries, to understand better the differences between balanced growth and unbounded growth and to provide an estimate of the dynamic costs of capacity utilization shocks that produce business cycle-like behavior.FindingsConservative calculations show that the costs of the capacity shocks can be large – about 1.5 percent of the present value of output over a 100-period horizon. The theoretical model also suggests that differences in the technology production and human capital accumulation functions, possibly due to differing institutions, may help explain diverse growth experiences.Originality/valueThe paper, for first time, combines two strands of the economic growth theory – endogenous technology and endogenous human capital production – into a single model. It uses the implications of the model to argue, through simulations, that the benefits of counter-cyclical policies are potentially large in the long run.

Quality of human capital accumulation, higher education graduates and economic growth: A comparative analysis between BRICS, Southeast Asian and MENA countries

BACKGROUND: The question of the accumulation of the quality of human capital and its relationship with growth is very rarely addressed by the literature. OBJECTIVE: This article aims to investigate the impact of quality of human capital accumulation on economic growth for BRICS, Southeast Asian and MENA countries. METHODS: Thus, we utilize endogenous growth model of Lucas [5] that is the most appropriate for the human capital-growth question. We use yearly data for each group employed in this paper during the period of study from 1990 to 2015. RESULTS: The empirical results show that for BRICS and South East Asia countries, the nexus between quality of human capital and economic growth is positive, while for MENA countries the relationship has not been identified. Also, we show that positive link between quality of human capital and economic growth depends on the level of accumulation and effectiveness of higher education graduates and their employment rate in high value-added sectors. CONCLUSION: The relationship among human capital and economic growth does not only depend on the employment rate of university graduates and labor market matching mechanisms, but it also depends on the nature of the job and the efficiency and productivity of human capital.

The Long-Term Distributional and Welfare Effects of Covid-19 School Closures

Using a structural life-cycle model, we quantify the long-term impact of school closures during the Corona crisis on children affected at different ages and coming from households with different parental characteristics. In the model, public investment through schooling is combined with parental time and resource investments in the production of child human capital at different stages in the children's development process. We quantitatively characterize both the long-term earnings consequences on children from a Covid-19 induced loss of schooling, as well as the associated welfare losses. Due to self-productivity in the human capital production function, skill attainment at a younger stage of the life cycle raises skill attainment at later stages, and thus younger children are hurt more by the school closures than older children. We find that parental reactions reduce the negative impact of the school closures, but do not fully offset it. The negative impact of the crisis on children's welfare is especially severe for those with parents with low educational attainment and low assets. The school closures themselves are primarily responsible for the negative impact of the Covid-19 shock on the long-run welfare of the children, with the pandemic-induced income shock to parents playing a secondary role.

The Long-Term Distributional and Welfare Effects of Covid-19 School Closures

Using a structural life-cycle model, we quantify the long-term impact of school closures during the Corona crisis on children affected at different ages and coming from households with different parental characteristics. In the model, public investment through schooling is combined with parental time and resource investments in the production of child human capital at different stages in the children’s development process. We quantitatively characterize both the long-term earnings consequences on children from a Covid-19 induced loss of schooling, as well as the associated welfare losses. Due to self-productivity in the human capital production function, skill attainment at a younger stage of the life cycle raises skill attainment at later stages, and thus younger children are hurt more by the school closures than older children. We find that parental reactions reduce the negative impact of the school closures, but do not fully offset it. The negative impact of the crisis on children’s welfare is especially severe for those with parents with low educational attainment and low assets. The school closures themselves are primarily responsible for the negative impact of the Covid-19 shock on the long-run welfare of the children, with the pandemic-induced income shock to parents playing a secondary role.

ВЗАИМОСВЯЗЬ МЕЖДУ ЗАРАБОТНОЙ ПЛАТОЙ, ПРОИЗВОДИТЕЛЬНОСТЬЮ ТРУДА И КАЧЕСТВОМ ЧЕЛОВЕЧЕСКОГО КАПИТАЛА

The article assesses the dependence of wages on factors that have a predominant effect on wage dynamics. The cyclic relationship between wages, labor productivity and the quality of human capital is analyzed. The criteria for the effectiveness of strategic management are disclosed. The problems of reproduction of human capital are considered. The reasons for the decline in the quality of human capital due to the low level of wages in the Russian economy are revealed. The main directions of achieving balanced growth rates of labor productivity, wages and reproduction of human capital are identified.

Capital and Labour Productivity: A Comparative Study of Nigeria and South Africa

The emerging consensus in literature is that growth is dependent on the size and components of capital and labour force productivity. Using a comparative study between Nigeria and South Africa, this study aims to determine how human and physical capital affect labour productivity. The augmented Solow growth model was adapted and the resulting model was estimated using Johansen cointegration to establish the link between capital (labour) productivity and its determinants. This study found that both human and physical capital significantly affected labour productivity in both countries, though South African productivity was more responsive to changes in physical capital. Unemployment showed a positive link, but labour force showed an inverse relationship with labour productivity in South Africa. In Nigeria, school enrolment, capital stock and labour force had negative relationships with labour productivity, while unemployment had a positive relationship. Hence, this study recommends an increase in human and physical capital investment and entrepreneurial activities.