Human capital, R&D, and competition in macroeconomic analysis

Long-run per capita economic growth is driven by productivity growth. Major determinants of productivity are investments in education and research, and the intensity of competition on product markets. While these ideas have been incorporated into modern growth theories and tested in empirical analyses, they have not yet found their way to applied macroeconomic models used to forecast economic developments. In this paper, we discuss various options to include human capital, R&D, and product market competition in a macroeconomic framework. We also study how policy can affect the decisions to build human capital or to perform research, and how competition policy impacts on macroeconomic outcomes. We finally sketch how these mechanisms can be implemented into the large models used at CPB. See also background CPB Memorandum 122 , " Why should governments intervene in education, and how effective is education policy?".

Human capital and entrepreneurial success : a meta-analytical review

The study meta-analytically integrates results from three decades of human capital research in entrepreneurship. Based on 70 independent samples (N = 24,733), we found a significant but small relationship between human capital and success (r(c) = .098). We examined theoretically derived moderators of this relationship referring to conceptualizations of human capital, to context, and to measurement of success. The relationship was higher for outcomes of human capital investments (knowledge/skills) than for human capital investments (education/experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for the dependent variable size compared to growth or profitability. Findings are relevant for practitioners (lenders, policy makers, educators) and for future research. Our findings show that future research should pursue moderator approaches to study the effects of human capital on success. Further, human capital is most important if it is task-related and if it consists of outcomes of human capital investments rather than human capital investments; this suggests that research should overcome a static view of human capital and should rather investigate the processes of learning, knowledge acquisition, and the transfer of knowledge to entrepreneurial tasks

Human Capital Policy

This paper considers alternative policies for promoting skill formation that are targetted to different stages of the life cycle. We demonstrate the importance of both cognitive and noncognitive skills that are formed early in the life cycle in accounting for racial, ethnic and family background gaps in schooling and other dimensions of socioeconomic success. Most of the gaps in college attendance and delay are determined by early family factors. Children from better families and with high ability earn higher returns to schooling. We find only a limited role for tuition policy or family income supplements in eliminating schooling and college attendance gaps. At most 8% of American youth are credit constrained in the traditional usage of that term. The evidence points to a high return to early interventions and a low return to remedial or compensatory interventions later in the life cycle. Skill and ability beget future skill and ability. At current levels of funding, traditional policies like tuition subsidies, improvements in school quality, job training and tax rebates are unlikely to be effective in closing gaps.

Human capital, the structure of production and growth

Do high levels of human capital foster economic growth by facilitating technology adoption? If so, countries with more human capital should have adopted more rapidly the skilled-labor augmenting technologies becoming available since the 1970’s. High human capital levels should therefore have translated into fast growth in more compared to less human-capital-intensive industries in the 1980’s. Theories of international specialization point to human capital accumulation as another important determinant of growth in human-capital-intensive industries. Using data for a large sample of countries, we find significant positive effects of human capital levels and human capital accumulation on output and employment growth in human-capital-intensive industries.Human Capital, Growth, Structure of Production

Pengaruh Human Capital, Information Capital Dan Organizational Capital Terhadap Kinerja Karyawan (Studi Pada Karyawan PT Pln (Persero) Unit Induk Pembangunan VIII Surabaya)

This research type is explanatory research with quantitative approach. The sample used 58 employees of PT PLN (Persero) Stem Unit Development VIII Surabaya using proportional random sampling method. The technique of data collection with the dissemination of the questionnaire. This research aims to know the influence of human capital, information capital and organizational capital on performance of employees simultaneously and partialy. Testing instrument using the test validity and reliability tests. This research instrument test results, indicating that the entire item is valid and instrument reliability. Data analysis using descriptive analysis and inferensial analysis. The results showed a simultaneous human capital, information capital and organizational capital effect significantly to the performance of the employee. But only partially human capital that influence significantly to the performance of the employee. Human capital variables are more dominant than with variable information capital and organizational capital. This is caused by the process of recruitment of employees who do PT PLN (Persero) Unit induk Pembangunan VIII Surabaya have high standards so that the human capital that is owned by the company are very good. Limitations of this research researchers in there are still some employees who lack such positive response answer item questionnaire with answers very much agree in whole or hesitation

Human capital, the structure of production, and growth

Do high levels of human capital foster economic growth by facilitating technology adoption? If so, countries with more human capital should have adopted more rapidly the skilled-labor augmenting technologies becoming available since the 1970’s. High human capital levels should therefore have translated into fast growth in more compared to less human-capital-intensive industries in the 1980’s. Theories of international specialization point to human capital accumulation as another important determinant of growth in human-capital-intensive industries. Using data for a large sample of countries, we find significant positive effects of human capital levels and human capital accumulation on output and employment growth in human-capitalintensive industries. JEL Classification: E13, F11, O11Growth, Human capital, structure of production

The Effect of Public Education on the Long-Run Income Distribution

We consider public education provided obligatorily and equally for all individuals. It is usually said that compulsory public education ensures an equal opportunity of education for all individuals and contributes to human capital formation. We will discuss how the introduction of public education affects human capital accumulation and income distribution among heterogeneous individuals in an overlapping generation model. Particularly, we discuss those effects on the long-run equilibrium of individual human capital, considering the threshold effects of human capital stock

Options for Human Capital Acquisition

An \u27options\u27 view of human capital acquisition explains value creation through timedeferred, sequential, path-dependent investment choices and addresses gaps in the resourcebased theory explanation of the relationship between human resources and competitive advantage. Firms will invest in options for human capital, using alternative employment arrangements like temporary/contractual/part-time workers and internships, or by outsourcing the work, when uncertainty associated with human capital is high and investments in human capital are largely irreversible. We discuss various options for skills and employees, two interrelated components of human capital. These are flexibility options, options to wait or defer, options to abandon, learning options, and switching options. The opportunity cost of not having options is quantifiable, which makes the real options approach valuable for strategic HRM decisions

Taxing Human Capital: A Good Idea

This paper studies a Ramsey optimal taxation model with human capital in an infi nite-horizon setting. Contrary to Jones, Manuelli, and Rossi (1997), the human capital production function does not include the current stock of human capital as a production factor. As a result, the return to human capital, namely labor income, does not vanish in equilibrium. In a stationary state, the household underinvests in human capital relative to the fi rst best, i.e., education is distorted. Human capital is eff ectively taxed. The optimal tax scheme prescribes making the cost of education not fully tax-deductible.Optimal taxation; human capital; Ramsey approach