scholarly journals The Cost of Human Capital Depreciation During Unemployment

2014 ◽  
Author(s):  
Lien Laureys
Keyword(s):  
Human Capital ◽  
Capital Depreciation ◽  
The Cost

scholarly journals The Cost of Human Capital Depreciation During Unemployment

2020 ◽  
Author(s):  
Lien Laureys
Keyword(s):  
Human Capital ◽  
Job Creation ◽  
Point Of View ◽  
Hiring Decisions ◽  
Skill Composition ◽  
The Future ◽  
Capital Depreciation ◽  
The Cost ◽  
New Hire ◽  
New Hires

Abstract This paper argues that human capital depreciation during unemployment generates an externality in job creation: firms ignore how their hiring decisions affect the skill composition of the future unemployment pool, and hence the output produced by new hires. As a consequence, job creation is too low from a social point of view. But the extent to which it is too low varies over the cycle. The reason is that the increase in the expected productivity of a new hire from next period’s unemployment pool caused by hiring an additional worker today, depends on the pool’s composition, which varies over the cycle.

The financial consequences of human capital disclosure as part of integrated reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Salvi ◽  
Nicola Raimo ◽  
Felice Petruzzella ◽  
Filippo Vitolla
Keyword(s):  
Human Capital ◽  
Firm Value ◽  
Fixed Effects ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Firm Risk ◽  
Integrated Reporting ◽  
Content Type ◽  
Financial Consequences ◽  
The Cost

PurposeThe purpose of this paper is to analyse the financial consequences of the level of human capital (HC) information disclosed by firms through integrated reports. Specifically, this work examines the effect of HC information on the cost of capital and firm value.Design/methodology/approachA manual content analysis is used to measure the level of HC information contained in integrated reports. A fixed-effects regression model is used to analyse 375 observations (a balanced panel of 125 firms for the period 2017–2019) and test the financial consequences of HC disclosure.FindingsThe empirical outcomes indicate that HC disclosure has a significant and negative effect on the cost of capital and a positive impact on firm value. Our results show that companies can reduce investors' perceived firm risk by improving HC disclosure, leading to a lower cost of capital. Moreover, our findings support the notion that increased levels of HC disclosure are linked to firms' improved access to external financial resources, consequently enhancing firm value.Originality/valueThis study is the first contribution to examine the financial consequences of HC disclosure and is one of the first to examine the level of HC information within integrated reports.

scholarly journals Gender and Age as Determinants of Expected Rate of Return on Human Capital

2020 ◽  
Vol 28 (4) ◽  
pp. 30-50
Author(s):  
Bartosz Kurek ◽  
◽  
Ireneusz Górowski ◽  
Keyword(s):  
Human Capital ◽  
Professional Education ◽  
Statistical Tests ◽  
Male Students ◽  
Rate Of Return ◽  
Older Students ◽  
Expectations Gap ◽  
Gender And Age ◽  
Salary Expectations ◽  
The Cost

Purpose: The aim of the article is to examine the selected determinants of the expected rate of return on human capital. Methodology: We conducted an anonymous survey of expected salaries among the Accounting and Controlling students at the Cracow University of Economics, which provided a unique setting for the analysis. On the basis of collected data for the cost of living and the cost of professional education for every participant, we used the human capital model developed by Dobija to compute the perceived level of the human capital of each individual. Then, we compared the expected salaries with the perceived levels of human capital and computed expected rates of return on human capital. The following research methods are used: literature review, statistical tests, econometric modeling. Findings: On the sample of 754 respondents, we found that male students expect a higher rate of return on their human capital than female students, while older students expect a lower rate of return on human capital than younger students. Research limitations: Only one field of study was used to measure the determinants of the expected rate of return on human capital. Originality: We contribute to the salary expectations and human capital literature by identifying a significant gender salary expectations gap that holds even after considering individually assessed costs of living and professional education. Our findings are consistent with the well-known observation that women tend to expect lower salaries than men.

scholarly journals Human capital depreciation and job tasks

2021 ◽  
Author(s):  
Sonja Walter ◽  
Jeong-Dong Lee
Keyword(s):  
Human Capital ◽  
Industrial Revolution ◽  
Job Tasks ◽  
Core Skill ◽  
Technological Advances ◽  
Education Levels ◽  
Capital Depreciation ◽  
Mincer Equation ◽  
Learning Policies ◽  
Using Data

This research aims to investigate the link between human capital depreciation and job tasks, with an emphasis on potential differences between education levels. We estimate an extended Mincer equation based on Neumann and Weiss’s (1995) model using data from the German Socio-Economic Panel. The results show that human capital gained from higher education levels depreciates at a faster rate than other human capital. Moreover, the productivity-enhancing value of education diminishes faster in jobs with a high share of non-routine analytical, non-routine manual, and routine cognitive tasks. These jobs are characterized by more frequent changes in core-skill or technology-skill requirements. The key implication of this research is that education should focus on equipping workers with more general skills in all education levels. With ongoing technological advances, work environments, and with it, skill demands will change, increasing the importance to provide educational and lifelong learning policies to counteract the depreciation of skills. The study contributes by incorporating a task perspective based on the classification used in works on job polarization. This allows a comparison with studies on job obsolescence due to labor-replacing technologies and enables combined education and labor market policies to address the challenges imposed by the Fourth Industrial Revolution.

scholarly journals The Cost of Job Loss

2020 ◽  
Vol 87 (4) ◽  
pp. 1757-1798 ◽  
Author(s):  
Kenneth Burdett ◽  
Carlos Carrillo-Tudela ◽  
Melvyn Coles
Keyword(s):  
Human Capital ◽  
Job Search ◽  
Capital Accumulation ◽  
Job Loss ◽  
Learning By Doing ◽  
Risk Averse ◽  
Wage Formation ◽  
Optimal Contracting ◽  
The Cost ◽  
German Data

Abstract This article identifies an equilibrium theory of wage formation and endogenous quit turnover in a labour market with on-the-job search, where risk averse workers accumulate human capital through learning-by-doing and lose skills while unemployed. Optimal contracting implies the wage paid increases with experience and tenure. Indirect inference using German data determines the deep parameters of the model. The estimated model not only reproduces the large and persistent fall in wages and earnings following job loss, a new structural decomposition finds foregone human capital accumulation (while unemployed) is the worker’s major cost of job loss.

Human Capital and the Case for Undergraduate Social Work Education

2020 ◽  
Vol 25 (1) ◽  
pp. 105-128
Author(s):  
Mary R. Weeden ◽  
Frederick W. Siegel
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Social Work ◽  
Social Work Education ◽  
Academic Programs ◽  
University Administrators ◽  
Prospective Students ◽  
The Social ◽  
The Cost ◽  
Work Education

Higher education, from an economic perspective, functions as an investment in human capital. It requires time, effort, and money by the student as an investment with the resulting benefits of acquiring skills, knowledge, and values that promise a stream of future tangible and intangible benefits by earning a living in a chosen field or profession. Education viewed through this lens assists educators to articulate the case for their academic programs to stakeholders, including prospective students and their parents, university administrators, government regulators, benefactors, alumni, and the general public. This perspective has previously not been discussed in the social work education literature and provides new insights into several issues affecting social work education. These include the cost of higher education, the multidimensional benefits of education for the student and society at large, the role of the Council on Social Work Education, and the current challenges to the profession.

The nature of surgeon human capital depreciation

2014 ◽  
Vol 37 ◽  
pp. 70-80 ◽  
Author(s):  
Jason M. Hockenberry ◽  
Lorens A. Helmchen
Keyword(s):  
Human Capital ◽  
Capital Depreciation

scholarly journals On the Determinants of Organizational Forgetting

2011 ◽  
Vol 3 (3) ◽  
pp. 100-123 ◽  
Author(s):  
Guy David ◽  
Tanguy Brachet
Keyword(s):  
Resource Allocation ◽  
Human Capital ◽  
Organizational Learning ◽  
Labor Turnover ◽  
Relative Importance ◽  
Production Experience ◽  
Efficient Resource ◽  
Capital Depreciation ◽  
Organizational Forgetting ◽  
Potential Channels

Studies of organizational learning and forgetting identify potential channels through which the firm's production experience is lost. These channels have differing implications for efficient resource allocation within the firm, but their relative importance has been ignored to date. We develop a framework for distinguishing the contributions of labor turnover and human capital depreciation to organizational forgetting. We apply our framework to a novel dataset of ambulance companies and their workforce. We find evidence of organizational forgetting, which results from skill decay and turnover effects. The latter has twice the magnitude of the former. (JEL D23, D83, J24, J63)

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