Contribution of human capital to economic growth from the education policy point of view – empirical analysis for EU economies

2011 ◽  
Vol 2 (1) ◽  
pp. 49
Author(s):  
Matjaz Novak ◽  
Primoz Dolenc ◽  
Igor Stubelj ◽  
Mateja Jerman
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Education Policy ◽  
Empirical Analysis ◽  
Point Of View

scholarly journals THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL

2018 ◽  
Vol 16 (1) ◽  
pp. 29-41
Author(s):  
André Berardo Coelho ◽  
Nelson Leitão Paes
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Health Sector ◽  
Point Of View ◽  
Retirement Age ◽  
Human Capital Accumulation ◽  
The Impact ◽  
Health Care Production

This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.

Path from human capital to economic growth: A free highway or a complicated labyrinth?

2017 ◽  
pp. 5-23 ◽  
Author(s):  
I. Lyubimov
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Education Policy ◽  
Financial Markets ◽  
Capital Accumulation ◽  
Human Capital Accumulation ◽  
Limited Effect ◽  
Rights Protection ◽  
Property Rights Protection

In this paper, we consider a number of causes which can potentially explain why human capital accumulation policies might have limited effect on economic growth. Mixed empirical results can be found in the literature, both supporting and questioning the key role of human capital as an important cause of economic growth. We focus on the latter and start from pointing at inaccurate indicators of human capital accumulation, such as the average years of schooling, which might not reflect with acceptable level of accuracy the level of human capital accumulated in a particular economy. We then consider the role of other causes of economic growth, such as property rights protection or financial markets development, which might affect the demand for human capital, thus potentially limiting the effect of a policy affecting the supply of human capital. We then discuss the efficiency of human capital distribution among various activities in a particular economy and argue that the way the economy uses its human capital stock might matter for its growth rates. Finally we point at potential flaws in education policy, which might result in slow accumulation of human capital.

scholarly journals Education and economic growth: an empirical analysis of nonlinearities

2019 ◽  
Vol 27 (79) ◽  
pp. 21-45
Author(s):  
Laura Marquez-Ramos ◽  
Estefanía Mourelle
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Empirical Analysis ◽  
Tertiary Education ◽  
Regional Analysis ◽  
Oecd Country ◽  
Smooth Transition ◽  
Content Type ◽  
Country Level ◽  
Education And Economic Growth

Purpose Might a country’s economic growth performance differ depending on the evolution of its human capital? This paper aims to consider education as a channel for human capital improvement and then for economic growth. The authors hypothesize the existence of a threshold for education, after which point the characteristics of economic growth change. Design/methodology/approach To address this question, the authors turn from a linear framework to a nonlinear one by applying smooth transition specifications. Findings This empirical analysis for Spain points to the existence of nonlinearities in the relationship between education and economic growth at country level, for both secondary and tertiary education. Next, as different patterns emerge in different regions, the authors provide a regional analysis for a number of representative Spanish regions. The results show that both secondary and tertiary education matter for economic growth and that nonlinearities in this relationship should be taken into account. Practical implications What is learnt from using Smooth Transition Regression models for the education-economic growth link is that the educational level of the population can be understood as a source of nonlinearities in the economic activity of a country (and of a region). Thus, depending on national and regional educational levels, economic growth behaves differently. Originality/value Although the importance of nonlinearities has been identified, linearity is usually assumed in this field of the literature. This paper calls into question the linearity assumption by using time series techniques for 1971-2013 in Spain, an OECD country, and testing whether the results at country level hold for different regions within Spain as a robustness check.

scholarly journals The Rise and Limits of Education Policy. Gendered Education

2018 ◽  
Vol 19 ◽  
pp. 6-34
Author(s):  
Ansgar Weymann
Keyword(s):  
Economic Growth ◽  
Eighteenth Century ◽  
Human Capital ◽  
Education Policy ◽  
Social Integration ◽  
Capital Investment ◽  
State Building ◽  
Educational Institutions ◽  
School Enrolment ◽  
Core Element

Education policy is a core element of the modern state’s sovereignty and autonomy. Education serves the state as a means of integrating society through culture and ideology, furthermore as a key tool for improving political power and legitimacy, and finally fuelling and stimulating economic growth via human capital investment. Eighteenth century state-building brought the expansion and improvement of educational institutions, and the nineteenth century the development of the fully-fledged education-state. In the twentieth “human capital” century, education policy reached its pinnacle, characterized by unprecedented growth in terms of educational attainment, investments and returns. However, in the last decades, weaknesses of education policy have become visible: the declining growth of human capital returns, problems of reducing social inequality as well as deficient cultural and social integration. Throughout centuries the schooling of girls followed the schooling of boys with delay. Yet, today girl's gross tertiary school enrolment is globally ahead of boys. Indeed, progress of education is a process of longue durée.

Value creation and sustainability in knowledge-based strategies

2016 ◽  
Vol 17 (3) ◽  
pp. 457-470 ◽  
Author(s):  
Gianpaolo Iazzolino ◽  
Domenico Laise
Keyword(s):  
Human Capital ◽  
Empirical Analysis ◽  
Value Creation ◽  
Value Added ◽  
Capital Intensity ◽  
Point Of View ◽  
Sustainable Growth ◽  
Theoretical Point ◽  
Content Type ◽  
Knowledge Intensive

Purpose – The purpose of this paper is to place the value creation process within sustainable growth strategies. Building on Drucker (1968, 1999a, b), Pulic (2000, 2004, 2008) and other papers by the same authors (Iazzolino and Laise, 2013) the specific aim of this research is to propose an accounting-based framework able to: distinguish between knowledge-intensive firms (KIFs) and nonknowledge intensive firms (nonKIFs); and investigate the contribution of the two sets of firms (KIFs and nonKIFs) to overall sustainability, from a social point of view, of the economic system. Design/methodology/approach – The paper uses the notion of value added (VA) (Pulic, 2000, 2004, 2008) as the main indicator to measure the value creation in a knowledge economy context. As regard the first point of the framework, the approach is based on the analysis of VA and its components, starting from a reinterpretation of the concept of value added intellectual coefficient made by the same authors of this paper. An empirical analysis based on the composition of VA in ten Italian industries, by using an overall sample of 1,000 firms, has been carried out and is described in the paper. As regards the second point, the paper analyses, from a theoretical point of view, the necessary conditions to set up a sustainable value creation strategy in social terms, using the conceptual categories introduced by Drucker (1968, 1999a, b) and Pulic (2000, 2004, 2008). Findings – From results of the empirical analysis it emerges that: first, in traditional industries the weight of the cost of employees on VA (human capital investments) is less than the other sectors (low human capital intensity). In these sectors the value creation strategy is mainly based on “dead knowledge,” embedded in machines (physical capital); and second, in nontraditional industries (consulting, advertising, research, etc.) the economic value creation is mainly based on “living knowledge,” embedded in human resources (high human capital intensity). In these sectors we have lower productivity of work (VA/human capital) and higher employment. Practical implications – The framework proposed makes it possible to reduce the risk of myopic valuation of economic performance. Through this methodology it is possible to highlight the effects of sustainable strategies based on knowledge investments oriented toward the stakeholder value theory and corporate social responsibility. The approach can be very useful for top managers and for accountants, as it underlines the importance of the VA income statement and constructs a strong link to the themes of knowledge management. Originality/value – The originality and the value of this methodological proposal can be appreciated by taking into account that in the literature there is no accounting-based methodology that is able to identify: the knowledge-intensive firms; and the firms that can contribute to overall social sustainability, within the set of all firms.

scholarly journals Anticipating the demographic bonus from the perspective of human capital in Indonesia

2021 ◽  
Vol 10 (6) ◽  
pp. 141-152
Author(s):  
Dewi Adriani ◽  
Tien Yustini
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Resource Development ◽  
Development Program ◽  
Secondary Data ◽  
Point Of View ◽  
Main Driver ◽  
The Government ◽  
Study Techniques ◽  
The Right

The purpose of this paper is to investigate and analyze the demographic bonus from the perspective of human capital in Indonesia. This research methodology uses qualitative methods and uses literature and documentation study techniques. This research data comes from secondary data sources, based on literature studies, and is analyzed descriptively qualitatively which emphasizes the use of scientific logic. The results of the study found that Indonesia is in a very good demographic bonus position, and is expected to be able to take advantage of the age structure, especially the portion of the productive age which has the potential to be the main driver of economic growth. Therefore, the government must have a supporting policy to encourage economic growth by having a strategy and implementing competency-based training (CBT) through the implementation of Deming's (1986) plan-do-check-action (PDCA) as a human resource development program that includes material for integrating technical skills and competencies in the form of skills, competencies, and the right point of view or character to make students become professionals. On the other hand, the government is expected to be able to create jobs and open up a wide work environment for young people, the workforce skilled as human capital.

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