Share Of Human Capital Research Articles

Countercyclical Income Risk and Portfolio Choices: Evidence from Sweden

ABSTRACTUsing Swedish administrative panel data, we document that workers facing higher left‐tail income risk when equity markets perform poorly have lower portfolio equity share. In line with theory, the relationship between cyclical skewness and stock holdings increases with the share of human capital in a worker's total wealth and vanishes as workers get closer to retirement. Cyclical skewness also predicts portfolio differences within pairs of identical twins. Our findings show that households hedge against correlated tail risks, an important mechanism in asset pricing and portfolio choice models.

Экономическая оценка человеческого капитала региона

Sustainable regional development should consider the state and improvement of the quality of regional human capital. To this end, the present study focuses on economic assessment of human capital. Additionally, the research analyses the definitions of the “human capital” category, as well as approaches to identifying its composition and structure. After examining various economic assessment techniques, a definition of regional human capital was proposed. The cost approach was chosen as the most suitable tool for the economic assessment of human capital at the regional level. For economic valuation, the study uses a method developed by Chigoryaev and co-authors, including a number of theoretical and methodological modifications that take into account regional specificities. According to the assessment results, the total human capital in Kamchatka krai exceeded 191 billion roubles, of which more than 104 billion accounted for the fixed human capital. The constant growth of human capital in the period 2011–2018 was noted. Simultaneously, the share of the fixed human capital in the overall structure has been steadily increasing. The values of the chain growth rate of the operating human capital ranged from 1.0 to 1.06, while the values of this rate of the fixed human capital ranged from 1.14 to 2.05. A comparative analysis of the ratio of the total human and physical capital showed the presence of an imbalance: the share of human capital was gradually increasing and reached 37.5 % in 2018. The obtained results can be used to create strategic and programme documents in the field of regional socio-economic development. The modified method of Chigoryaev and co-authors can be applied for the valuation of regional human capital in other studies.

Analysis of the Main Factors Affecting the Development of Human Capital as One of the Key Strategical Objectives in the Republic of Azerbaijan

Sustainable development is one of the most challenging and pressing challenges facing humanity. One of the driving factors of sustainable development is the successful development of human potential and the transformation of this potential into human capital. In recent decades, reproducible human capital has begun to occupy a significant share in the structure of the national wealth of many developed countries.
 In developed countries, the share of human capital in the country's national wealth reaches 70%, thereby significantly exceeding the importance of natural and physical capital in economic growth. Due to the variety of factors and conditions affecting the sustainable development of countries, the development of human potential and the formation of human capital around the world is happening with different dynamics. This largely depends on government priorities and policies in the field of full development of human potential, the creation of favorable social, economic and environmental conditions for its successful implementation. The author researches the factors that influence the development of human capital to varying degrees, analyzes various government policies aimed at the development of human capital, analyses experience of the public administration mechanisms in the Republic of Azerbaijan aimed at human development and the development of human capital. An important aspect of the success of the implementation of government programs is the assessment by influential international organizations of various country indicators. The article also highlights topical issues related to the development of human capital within the framework of national development priorities until 2030. The reforms carried out in the Republic of Azerbaijan in the field of vocational education, health care, demographic policy, the implementation of programs to support the private sector, especially small and medium-sized businesses, the creation of favorable conditions for investment in various sectors of the economy are important factors for the development of human capital in the medium and long term.
 The purpose of the article is to study the factors influencing the development of human capital in the Republic of Azerbaijan, to analyze the state measures carried out in the country aimed at creating the necessary conditions for the development of human capital.

Positive feedback in skill aggregation across Chinese cities

ABSTRACT This paper examines whether human capital levels diverged across Chinese cities between 1990 and 2010. By employing a series of instruments for the initial human capital share, consistent positive feedback between current human capital levels on the subsequent growth of human capital in the 2000s is found. The findings are also robust to alternative instrumental variables. Further evidence suggests that a city's industry structure does not explain the positive feedbacks, but rather urban amenities appear to be the primary causal factor. To mitigate large provincial inequality in development, China should mitigate growing differentials in human capital by improving local urban amenities.

The Influence of the Social and Political Environment on the Human Capital Share in Romania. A Historical Overview

The social political environment has a strong impact on the human capital stock. Therefore, the major political changes that occurred in Romania during the 20th century significantly contributed to the disturbance of the normal forming cycle of human capital, both quantitatively and qualitatively. This paper aims at following, by means of a comparative study and qualitative analysis, the evolution and dynamics of the human capital stock under the two elements of influence, education and healthcare. The objective is to carry out an analysis on the changes occurred at the level of the human capital stock in different social political contexts, by means of the available statistical data and for the purpose of providing a database to be used in taking the right political decisions for its protection.

An Empirical Note on Factor Shares

In general, empirical studies on growth consider, at most, three factors, physical capital, labor and human capital. Land, however, is also a production factor for many activities. In this study, we make growth regressions considering land as factor. We also propose an explanation for why labor and capital shares do not seem to have a trend: It is possible that an increasing trend in physical capital share is compensated by a decreasing trend in land share. Similarly, an increasing trend in human capital share may be compensated by a decreasing trend in raw labor share. We find empirical support for the claim that the elasticity of output with respect to reproducible factors, human and physical capital, is positively correlated with the income level. This result has important implications for economic growth theory and for empirical exercises related to economic growth.

An empirical note on factor shares

In this study, we propose an explanation for why labor and capital shares do not seem to have a trend: an increasing trend in physical capital share is compensated by a decreasing trend in land share. Similarly, an increasing trend in human capital share is compensated by a decreasing trend in raw labor share. We also find empirical support for the claim that the elasticity of output with respect to reproducible factors, human and physical capital, is positively correlated with the income level. This result has important implications for economic growth theory and for empirical exercises related to economic growth.

Human capital and regional convergence in Canada

Proposes an empirical analysis of regional convergence in Canada based on the growth model of Barro et al. In an open economy with perfect capital mobility, if domestic residents cannot borrow abroad with human capital as collateral, the dynamics of human capital accumulation is the driving force of per capita income growth. Empirical results indicate that, as predicted by the theoretical model, various indicators of the stock of human capital did converge at the same speed as per capita income during the 1951‐1996 period. A substantial part of the relative growth of per capita income indicators across Canadian provinces since the early 1950s could be explained by the convergence process of human capital indicators based on the percentage of the population, both sexes and males, who have at least a university degree. The estimates of the human capital share in national income based on those indicators are in the neighbourhood of 0.5, a number consistent with other measures of the implicit income share of human capital. The convergence speed of per capita income at the regional level might have been two to three times faster, if all persons had invested in education at the same rate as the young.