Human capital accumulation and its role on economic growth is inreasingly becoming a major area of research in macroeconomics. Human Capital Accumulation theory claims that the wealth of a nation is vested in its people. 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. Life cycle human capital accumulation is on average much larger in rich countries than the poor countries. But high educational attainment, especially at the secondary level, has significantly improved emerging Asia’s human capital accumulation. 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. Regarding human capital accumulation, or accumulation of human capital, we need to explain the determinants of the educational process of local population, and the interregional migration exchange in terms of human capital content. As human capital emerged as a growth engine, equality alleviated adverse effects of credit constraints on human capital accumulation, stimulating the growth process.
A Microfoundation for Social Increasing Returns in Human Capital Accumulation - Daron Acemoglu. This paper proposes a microfoundation for social increasing returns in human capital accumulation. The underlying mechanism is a pecuniary externality due to the interaction of ex ante investments and costly bilateral search in the labor market. It is shown that the equilibrium rate of return on the human capital of a worker is increasing in the average human capital of the workforce even though all the production functions in the economy exhibit constant returns to scale, there are no technological externalities, and all workers are competing for the same jobs.
NATURAL RESOURCE ABUNDANCE AND HUMAN CAPITAL ACCUMULATION - JEAN-PHILIPPE STIJNS. This study examines indicators of human capital accumulation in parallel with data for natural resource abundance and rents in a large panel of countries running from 1970 to 1999. Mineral wealth is shown to make a positive and marked difference in terms human capital accumulation. Cross-country data actually reveal that mineral wealth improves human capital outcome beyond the effect running from mineral production to national income.
Ethnicity and human capital accumulation in urban Mexico - Hugo Ñopo, Natalia Winder. Abstract: This study analyzes social mobility and human capital accumulation among ethnic minorities in Mexican urban areas. 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. 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.
Children's health, human capital accumulation, and R&D-based economic growth - Annarita Baldanzi, Bucci Alberto, Prettner Klaus. Abstract: We analyze the effects of children's health on human capital accumulation and on long-run economic growth. For this purpose we design an R&D-based growth model in which the stock of human capital of the next generation is determined by parental education and health investments. We show that i) there is a complementarity between education and health: if parents want to have better educated children, they also raise health investments and vice versa; ii) parental health investments exert an unambiguously positive effect on long-run economic growth, iii) faster population growth reduces long-run economic growth. These results are consistent with the empirical evidence for modern economies in the twentieth century.
How policy can
influence human capital accumulation and environment quality.
Basseti, Thomas and Benos, Nikos and Karagiannis, Stelios (2010): How policy can influence human capital accumulation and environment quality. Abstract: This paper considers the implications of education and environment policy for growth in a model where the interactions between health, education, and the environment are taken into account. With respect to previous works, in which one of these three dimensions is omitted, we consider their combined effects, arriving to novel results in the literature.
Taxation And Human Capital Accumulation
- LUTZ HENDRICKS. Abstract: How
do taxes affect human capital accumulation? This question has been studied
extensively in the context of two model classes: overlapping generations (OLG)
and infinite horizon (IH). These embody very different assumptions about the
intergenerational transmission of physical and human capital. This paper
investigates how such differences in intercohort persistence affect the
responsiveness of human capital to taxation. A model is developed that nests OLG
and IH models as special cases. The steady-state and transitional effects of tax
changes are computed for varying degrees of persistence. The main finding is
that stronger intercohort persistence magnifies the impact of taxation on human
capital and leads to slower transitional dynamics.
Human capital accumulation and transition to skilled employment
Angelopoulos, K., Malley, J. and Philippopoulos, A. (2017). Abstract: This paper assesses the impact of investment- and education-specific technical change on occupational transition and the skill premium in a model with human capital. In this framework, human capital augments labor productivity and also facilitates the transition to skilled employment. In line with empirical evidence, this setup predicts that an increase in the productivity of physical capital (investment-specific change) leads to very small increases in the relative supply of skilled workers and to significant and rising increases in the skill premium. Additionally, reforms that improve the productivity of resources used in education reduce wage inequality and increase mobility.
Human Capital Accumulation and Geography: Empirical Evidence from the European Union
Jesús López-Rodríguez,J. Andrés Faíña & José López-Rodríguez. Abstract: López-Rodríguez J., Faíña J. A. and López-Rodríguez J. (2007) Human capital accumulation and geography: empirical evidence from the European Union. The present paper provides evidence that, in the European Union, educational attainment levels are higher in those regions with greater market access. This finding corroborates the theoretical predictions of the model and proves that remoteness is a penalty for the economic development and convergence of the European Union regions.
From Physical to Human Capital Accumulation: Inequality and the Process of Development
Oded Galor, Omer Moav. Abstract: Develops a growth theory that captures the replacement of physical capital accumulation by human capital accumulation as a prime engine of growth along the process of development. It argues that the positive impact of inequality on the growth process was reversed in this process. In early stages of the Industrial Revolution, when physical capital accumulation was the prime source of growth, inequality stimulated development by channelling resources towards individuals with a higher propensity to save.
Human Capital Accumulation: Canada's New Mercantilism, Bassett, Carolyn. - 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, migration, and
the transition from urban poverty. Evidence from Nairobi slums
FUTOSHI YAMAUCHI, OUSMANE FAYE, ELIYA ZULU. The accumulation of human capital critically determines the likelihood and outcomes of upward mobility.
Human Capital Accumulation and Its Effect
on Agribusiness Performance: The Case of China
Thomas Bilaliib Udimal, Zhuang Jincai, Emmanuel Caesar Ayamba, Patrick Boateng Sarpong. Abstract: This study investigates the effect of accumulated human capital on the performance of agribusinesses in China.
Child mental health and human capital accumulation: The case of ADHD revisited. Fletcher, Jason & Wolfe, Barbara, 2008. 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.
From Physical to Human Capital Accumulation: Inequality in the Process of Development - Oded Galor, Omer Moav. 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. The return to human capital accumulation increases due to capital-skill complementarity, and 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.
Peer Effects and Human Capital Accumulation: the Externalities of ADD
Anna Aizer. 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.
Life-Cycle Human Capital Accumulation Across Countries: Lessons From U.S. Immigrants. David Lagakos, Benjamin Moll, Tommaso Porzio, Nancy Qian, Todd Schoellman. How much does life-cycle human capital accumulation vary across countries? To understand this fact we build a model of life-cycle human capital accumulation that features three potential theories, working respectively through cross-country differences in: selection, skill loss, and human capital accumulation. Our findings imply that life cycle human capital stocks are on average much larger in rich countries than poor countries.
Human capital accumulation: the role of human resource development - Thomas N. Garavan, Michael Morley, Patrick Gunnigle, Eammon Collins.
Human Capital Accumulation, Economic Growth and Optimal Policy in a Dual Economy. Manash Ranjan Gupta and Bidisha Chakraborty.