Human Capital

Topics: Economics, Capital accumulation, Investment Pages: 37 (11851 words) Published: April 25, 2014


NAME: DABLA Yao Mawuto

ID: UD 27884BEC36408

PROGRAM: DOCTORATE DEGREE IN ECONOMICS
COURSE TITLE: HUMAN CAPITAL
TITLE OF ASSIGNMENT: ESSAY ON HUMAN CAPITAL
ATLANTIC INTERNATIONAL UNIVERSITY
HONOLULU, HAWAII

TABLE OF CONTENTS

CONTENT PAGE
INTRODUCTION---------------------------------------------------------- 4-5 JUSTIFICATION----------------------------------------------------------- 5 HUMAN CAPITAL-------------------------------------------------------- 6-9 MICRO AND MACRO ASPECTS

OF HUMAN CAPITAL---------------------------------------------------- 9-17 INVESTMENT BY PARENTS IN THE EDUCATION AND OTHER HUMAN CAPITAL OF THEIR CHILDREN--------------------------- 17-21 INTERGENERATIONAL TRANSMISSION

OF INEQUALITY---------------------------------------------------------- 22-26 THE LINKS BETWEEN SPECIALIZATION IN PARTICULAR TYPES OF HUMAN CAPITAL AND COORDINATION COSTS, GENERAL KNOWLEDGE, AND THE EXTENT OF THE MARKET----------- 26-29 THE RELATION BETWEEN HUMAN CAPITAL, POPULATION CHANGE AND ECONOMIC GROWTH------------------------------- 30-34 CONCLUSION-------------------------------------------------------------- 35 REFERENCES--------------------------------------------------------------- 36-37

“The most valuable of all capital is that invested
in human beings.” (Alfred Marshall, Principles of Economics.)

INTRODUCTION
The purpose of this paper is to explain the determinant role human capital is about through productivity in the economic growth of a nation. According to Jacob Mincer, this concept plays a major role in modern treatment of growth theory and of labor economics. In one sense, the distinction between the two is in level of aggregation. I’ll also shed light on how human capital stock is accumulated, and how it contributes to create economic value for the individuals, the employers (micro aspect) and their community (macro aspect), its externalities regarding economics as a whole. Education as prior investment in human capital will be looked into to explain how we get the needed skills to be productive for ourselves or our communities and how human capital pays off in terms of high productivity. The paper will consider the existing pertinent university literature on five major areas which are: The micro and macro aspects of human capital,

The investment of parents in education and other human capital of their children, The intergenerational transmission of inequality,
The links between specialization in particular types of human capital and coordination costs, general knowledge, and the extent of the market, And the relations between human capital, population change, and economic growth, to sort out the various economic implications. It will also highlight the returns from Education and Training (Off and On job) to the individual, the firm and the Economy in order to give a broad and exhaustive understanding of the topic chosen for this paper.

These will help shed light on the topic’s issue from the fundamental information given by the pertinent existing university literature and their relevant principles which monitor economic growth through a perfect distribution of knowledge (rapid evolution of technology) and productivity.

Economic growth and social cohesion are the aimed goals for every development policy through rationale and consequent investment. They cannot be achieved or attained without prior investment in human capital and its amelioration year after year (food, health, education, and training). Education is the social route to economic growth. There is no human capital without education, training (off and on-the -job,) and experiences. These procure skills which constitute human capital used to create economic value for individuals, the firms (micro level) or the economy as a whole (macro level.) The skills or acquired...

References: Alcalà, F.; Hernandez J.P. (2010), Firms’ Main Market, Human Capital, and Wages, http//www.link.springer.com/articles
Becker, S
De la Fuente, A. and Ciccone A. (2002), Le Capital Humain dans une économie mondiale fondée sur la connaissance. Rapport Final, Office des Publications Officielles des Communautés Européennes.
Folbre, N. (2009), Valuing Children, Harvard University Press, USA.
Inter-American Bank, (2003), Escaping the Poverty Trap, Ricardo Moràn
Foote, A
Kim ,S. (1989, labor Specialization and the Extent of the Market Journal of Political Economy, vol 97 N° 3, Chicago Journals
Osterbacka, O
Prskawetz, A.; Fente, T.; Barthel, B. Craspo-Cucoresma, J.; Lindh, T.(2007), The Relationship between Demographic Change and Economic Growth in EU, P. Alexia and Lindh T. Editors
Rosen, S
Rosenzweig, R. M. (1987), Human Capital, Population Growth, Beyond Correltions, University of Minnesota, USA.
Shi,S. (2011), The Extent of the market and the optimal Degree of Specialization, University of Toronto
Sianesi, B
Werding, M. (2008), Ageing and Productivity Growth: Are there Macro-Level Cohort Effects of Human Capital? www.CESifo-group.org/wp
Yueh, Y.L
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