The Impact of Human Capital on Life-Cycle Portfolio Choice: Evidence for the Netherlands

2011 ◽  
Author(s):  
Ingmar Minderhoud ◽  
R. Molenaar ◽  
Eduard Ponds
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
The Netherlands ◽  
Portfolio Choice ◽  
The Impact

scholarly journals Hyperbolic discounting and life-cycle portfolio choice

2015 ◽  
Vol 14 (4) ◽  
pp. 492-524 ◽  
Author(s):  
DAVID LOVE ◽  
GREGORY PHELAN
Keyword(s):  
Life Cycle ◽  
Stock Market ◽  
Portfolio Choice ◽  
Asset Allocation ◽  
Financial Literacy ◽  
Hyperbolic Discounting ◽  
Fixed Cost ◽  
Future Earnings ◽  
Financial Wealth ◽  
The Impact

AbstractThis paper studies how hyperbolic discounting affects stock market participation, asset allocation, and saving decisions over the life cycle in an economy with Epstein–Zin preferences. Hyperbolic discounting affects saving and portfolio decisions through at least two channels: (1) it lowers desired saving, which decreases financial wealth relative to future earnings; and (2) it lowers the incentive to pay a fixed cost to enter the stock market. We find that hyperbolic discounters accumulate less wealth relative to their geometric counterparts and that they participate in the stock market at a later age. Because they have lower levels of financial wealth relative to future earnings, hyperbolic discounters who do participate in the stock market tend to hold a higher share of equities, particularly in the retirement years. We find that increasing the elasticity of intertemporal substitution, holding risk aversion constant, greatly magnifies the impact of hyperbolic discounting on all of the model's decision rules and simulated levels of participation, allocation, and wealth. Finally, we introduce endogenous financial knowledge accumulation and find that hyperbolic discounting leads to lower financial literacy and inefficient stock market investment.

scholarly journals The formation of the enterprises human capital in the context of digitalization

2020 ◽  
Vol 164 ◽  
pp. 09011 ◽  
Author(s):  
Oksana Pirogova ◽  
Marina Makarevich
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Service Sector ◽  
Digital Technologies ◽  
Life Cycle Stage ◽  
Information Environment ◽  
Relevant Today ◽  
New Information ◽  
Individual Enterprise ◽  
The Impact

The use of human resources, both in the development of an individual enterprise, and in the development of the whole country, plays an important role, therefore, issues related to the formation of "human capital" and methods for assessing it are relevant today. Today, digital technologies penetrate into all spheres of the economic activity of society and contribute to the formation of a new information environment for economic entities. Digitalization as an objective process has an impact on the development of individual sectors of the national economy, including enterprises in the service sector. The article discusses the positive and negative aspects of the impact of digitalization on the activities of service enterprises. The analysis performed in the study allowed us to identify the main problems of the use of human capital in digitalization and to identify its key features. The features of the formation of human capital of enterprises in the service sector at the stages of the life cycle are considered. A technique is proposed for evaluating the effectiveness of investments in the human capital of service enterprises, which is based on a combined assessment of the elements of human capital using the CIV and MVAIC methods, as well as taking into account the life cycle stage.

The Duration Puzzle in Life-Cycle Investment*

2020 ◽  
Vol 24 (6) ◽  
pp. 1271-1311
Author(s):  
Servaas van Bilsen ◽  
Ilja A Boelaars ◽  
A. Lans Bovenberg
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Portfolio Theory ◽  
Optimal Portfolio ◽  
Inflation Risk ◽  
Target Date ◽  
Target Date Funds ◽  
Portfolio Allocations ◽  
The Impact

Abstract By analyzing the portfolio allocations of target date funds (TDFs), we document that the observed durations of TDF portfolios are inconsistent with the durations predicted by classical portfolio theory. We call this stylized fact the duration puzzle. We investigate to what extent several extensions of classical portfolio theory can explain the duration puzzle. More specifically, we consider the impact of human capital, inflation risk, and portfolio restrictions on the duration of the optimal portfolio. We find that it is difficult to explain the duration puzzle, especially for individuals aged between 35 and 65 years.

The Impact of Income Taxes on Labor's Productivity: A Human Capital Approach

1975 ◽  
Vol 3 (4) ◽  
pp. 361-379 ◽  
Author(s):  
Paula E. Stephan
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Income Tax ◽  
Capital Accumulation ◽  
Early Years ◽  
Fixed Amount ◽  
Relative Value ◽  
Personal Skills ◽  
The Individual ◽  
The Impact

This paper explores the impact of several income tax policies on the acquisition of personal skills within the framework of a life-cycle model of human capital accumulation. The analysis considers the impact of taxes during both the early years of the life cycle when the individual allocates all time to learning and during the later years when the individual participates in the market. The paper demonstrates that an income tax can lower the market productivity of the labor force even when it is assumed that the individual allocates a fixed amount of time to the production of human capital and the market. Specifically, I demonstrate that a tax on earned income can lead to a flatter age-capital profile, and in addition, that the imposition of a tax will make the training process relatively more time intensive since the tax policy operates to lower the relative value of time.

scholarly journals The Impact of AIDS Treatment on Savings and Human Capital Investment in Malawi

2018 ◽  
Vol 10 (1) ◽  
pp. 266-306 ◽  
Author(s):  
Victoria Baranov ◽  
Hans-Peter Kohler
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Life Expectancy ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Spatial And Temporal Variation ◽  
African Countries ◽  
Sub Saharan ◽  
Children's Schooling ◽  
The Impact

Antiretroviral therapy (ART), a treatment for AIDS, is rapidly increasing life expectancy throughout sub-Saharan African countries affected by the AIDS epidemic. This change in life expectancy has potentially profound influences on life-cycle decisions. A longer life expectancy increases the value of human capital investment, while the effect on savings is theoretically ambiguous and life-cycle saving could increase or decrease. This paper uses spatial and temporal variation in ART availability to evaluate the impact of ART provision on savings and investment. We find that ART availability significantly increases savings, expenditures on education, and children's schooling, including among HIV-negative individuals who do not directly benefit from ART. These results are not driven by the direct health effects of treatment or reductions in caretaking responsibilities, but rather by reduced perceptions of mortality risk after ART has become available. (JEL D14, D15, I12, I15, J24, O12)

Stimulating Flexible Citizenship: The Impact of Dutch and Indian Migration Policies on the Lives of Highly Skilled Indian Migrants in the Netherlands

2020 ◽  
Vol 3 (1) ◽  
pp. 1-13
Author(s):  
Katherine Kirk ◽  
Ellen Bal
Keyword(s):  
The Netherlands ◽  
Transnational Migration ◽  
Unique Contribution ◽  
Indian Diaspora ◽  
Migration Literature ◽  
Corporate Rights ◽  
Highly Skilled Migrants ◽  
Highly Skilled ◽  
Migration Theories ◽  
The Impact

AbstractThis paper explores the relationship between migration and integration policies in the Netherlands, diaspora policies in India, and the transnational practices of Indian highly skilled migrants to the Netherlands. We employ anthropological transnational migration theories (e.g., Ong 1999; Levitt and Jaworsky 2007) to frame the dynamic interaction between a sending and a receiving country on the lives of migrants. This paper makes a unique contribution to migration literature by exploring the policies of both sending and receiving country in relation to ethnographic data on migrants. The international battle for brains has motivated states like the Netherlands and India to design flexible migration and citizenship policies for socially and economically desirable migrants. Flexible citizenship policies in the Netherlands are primarily concerned with individual and corporate rights and privileges, whereas Indian diaspora policies have been established around the premise of national identity.

Transformation of education as a metatrend of the digital economy

2020 ◽  
Vol 16 (10) ◽  
pp. 1960-1979
Author(s):  
N.A. Egina ◽  
E.S. Zemskova
Keyword(s):  
Human Capital ◽  
Social Transformation ◽  
Network Effects ◽  
Digital Economy ◽  
Network Education ◽  
Economic Progress ◽  
Positive Externalities ◽  
Communication Processes ◽  
Education Network ◽  
The Impact

Subject. The study focuses on the impact of the digital economy determinants of the education transformation. Objectives. The article provides our own approach treating the education capital as a specific asset of the digital economy, which has an acceleration effect and sets up new trends in education through integrative networks. Methods. The study is based on principles of the systems integration, cross-disciplinary and multidisciplinary approaches. Results. The socio-economic progress was found to be determined with properties of human capital, which are solely specific to the digital economy. In new circumstances, it gets more important for actors of global, national, corporate and social networks to more actively cooperate within distributed networks in order to train high professionals, who would have skills in information networks. Thus, they would raise a new form of human capital – the capital of network education (network-based education capital). We describe positive externalities that arise when the educational sector joins communication processes. We illustrate how educational forms evolves, which are typical of a certain phase of the socio-economic development. The education capital was discovered to grow into a specific asset generating the quasi-rent and working as a social ladder only provided more actors are involved into the network. Conclusions and Relevance. Studying the evolution of educational forms through the cross-disciplinary method, we discovered the need for a system approach, which would help substantiate its transformation in the time of the digital economy, and the emergence of network-based education. These are technologies and tools of the digital economy that become unique factors generating the acceleration effect of the educational capital and ensuring the use of diverse network effects for the formation of intellectual capital and their social transformation.

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