Sociology Index

HUMAN CAPITAL ACCUMULATION

Capital Accumulation, Capital

Human capital accumulation theory claims that the wealth of a nation is vested in its people. In a global economy, knowledge has become a key factor in international competitiveness. The importance of human capital accumulation to the process of economic development arises from its beneficial impact on macroeconomic productivity and the distribution of incomes. The theory on replacement of physical capital accumulation by human capital accumulation as a prime engine of growth along the process of development is gaining ground.

Since 2001, Canada's immigration policy has been framed by human capital accumulation theory. Shifting to a human capital approach has meant identifying the most qualified potential immigrants in the world, based on their formal qualifications, skills and especially their educational attainments. Such immigrants find their skills and talents go unrecognized and they have a difficult time establishing themselves. Canada's experiences represent a personal tragedy, but also the breakdown of the human capital accumulation approach at the domestic level, with implications for Canada's competitiveness strategy.  - Human Capital Accumulation: Canada's New Mercantilism, Bassett, Carolyn.

From Physical to Human Capital Accumulation: Inequality in the Process of Development - Oded Galor, Brown University, Omer Moav, Hebrew University of Jerusalem. Abstract: The proposed theory argues that the replacement of physical capital accumulation by human capital accumulation as a prime engine of economic growth has changed the qualitative impact of inequality on the process of development. In early stages of industrialization as physical capital accumulation is a prime source of economic growth, inequality enhances the process of development by channeling resources towards individuals whose marginal propensity to save is higher. In later stages of development, however, as the return to human capital accumulation increases due to capital-skill complementarity, human capital accumulation becomes the prime engine of growth and equality, in the presence of credit constraints, stimulates investment in human capital accumulation and promotes economic growth.

Ethnicity and human capital accumulation in urban Mexico - Hugo Ņopo, Natalia Winder.
Inter-American Development Bank, Banco Interamericano de Desarrollo (BID)
Abstract: This study analyzes social mobility and human capital accumulation among ethnic minorities in Mexican urban areas, exploring changes in educational attainment and labor market status. The results indicate important ethnic differences in human capital accumulation patterns, especially in education, where non-indigenous individuals seem to accumulate human capital more rapidly than individuals of indigenous descent. Also, key socio-demographic characteristics linked to those patterns of human capital accumulation seem to differ between indigenous and non-indigenous individuals. In particular, for indigenous peoples in urban areas, human capital accumulation and wealth accumulation seem to work as substitutes rather than complements in the short run. The results indicate important differences in the patterns of human capital accumulation between indigenous and non-indigenous groups living in urban areas.

Child mental health and human capital accumulation: The case of ADHD revisited. Fletcher, Jason & Wolfe, Barbara, 2008, Journal of Health Economics, Elsevier, vol. 27(3)
In this paper we look at a sample of older children and confirm and extend many of the JCMS findings in terms of a broader set of measures of human capital accumulation and additional specifications.

Peer Effects and Human Capital Accumulation: the Externalities of ADD
Anna Aizer, The NBER Bulletin on Aging and Health.
Improvements in peer behavior increase student achievement. Moreover, resources mitigate the negative effects of peer behavior. Existing institutions can modify peer effects by improving behavior and/or mitigating the impact of poor behavior.