Download or read book Exposure to Risk and Its Impact on Human Capital written by Michael F. Yankovich and published by . This book was released on 2013 with total page 187 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the impact of contemporaneous American participation in war on military labor and conflict duration. Chapter one uses variation in occupation-specific retention bonuses and mortality risks observed in the U.S. Army during the war on terror to estimate the rate at which volunteers for active military service are willing to trade wealth and risk of death when making reenlistment decisions. Our estimate of the Value of Statistical Life among first-term soldiers is between $0.1M and $0.5M. Bonus policy is an effective tool for meeting near-term military manpower shortages. Increasing the bonus offer by $1,000 leads to an increase in the probability of reenlistment of 1.5 percentage points. Chapter two documents a substantial increase in the post-service one-year mortality rate of recent veterans using estimates constructed by matching Army administrative data to the Social Security Administration's Death Master File. The total mortality of service in the Army between 2001 and 2010 is likely understated by approximately 10% or over 350 deaths. Approximately 91% of the change in post-service mortality is due to the effect of exposure to high rates of mortality while in-service. The relationship between in-service and post-service mortality has likely always existed, but the higher rates of in-service mortality during the war mean that post-service mortality rates are higher. The third chapter provides empirical evidence linking third-party interventions to increases in the duration of intra-state wars. It also reviews several theoretical constructs underlying this correlation, and it adapts the model of the Swing Voter's Curse to provide a novel explanation. Namely, when third-parties intervene in civil wars, local nationals are more likely to abstain from making a commitment to either the government or rebel side as the intervening party serves to cloud perceptions of the latent balance of power between the primary intra-state contenders. The chapter concludes with an analysis of implications for interventionist policies with regard to the war in Afghanistan.
Download or read book Trade Human Capital and Income Risk written by Liuchun Deng and published by . This book was released on 2021 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we empirically assess the causal links between trade and individual income risk and study the role that human capital plays in this relationship using a rich, worker-level, longitudinal data set from Germany spanning the years 1976 to 2012. Our estimates suggest substantial heterogeneity in labor income risk across workers in different entry cohorts, over workers' life cycles, and across workers with different levels of industry- and occupation-specific human capital. Accounting for entry-cohort effects and age effects, our findings suggest that within-industry changes in imports and exports (per worker) are causally related to income risk: Imports increase risk and exports decrease risk, and they do so in an economically significant manner. Importantly, we find there to be a complex interplay between human capital and the linkage between trade and risk: While, on average, individuals with higher levels of industry- or occupation-specific human capital experience lower income risk, a given increase in net-imports exposure in an industry increases risk for workers with higher levels of industry tenure more than it does for workers with lower levels of industry tenure. High levels of industry-specific human capital can therefore be costly, from a risk perspective, for workers in highly trade-exposed industries. By contrast, we find no evidence of any interaction between risk, industry trade exposure, and occupation-specific human capital.
Download or read book Managing Risk written by John Stevens and published by Routledge. This book was released on 2005 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook is a one-stop guide that sets out a strategic approach for understanding and managing HR risks. Managing Risk: The HR Contribution will enable the user to understand how managing HR risks will benefit their organisation. It will also assist the user to put into place a practical strategy for managing risks associated with employees from recruitment through to the close of the employee/employer relationship. This book will be of particular interest to organisations looking for a strategic, integrated approach linked to business risk management and corporate governance.
Download or read book Human capital risk contract enforcement and the macroeconomy written by Tom Krebs and published by . This book was released on 2011 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We develop a macroeconomic model with physical and human capital, human capital risk, and limited contract enforcement. We show analytically that young (high-return) households are the most exposed to human capital risk and are also the least insured. We document this risk-insurance pattern in data on life-insurance drawn from the Survey of Consumer Finance. A calibrated version of the model can quantitatively account for the life-cycle variation of insurance observed in the US data and implies welfare costs of under-insurance for young households that are equivalent to a 4 percent reduction in lifetime consumption. A policy reform that makes consumer bankruptcy more costly leads to a substantial increase in the volume of credit and insurance"--National Bureau of Economic Research web site
Download or read book Essays on Human Capital Health and Development written by Yao Yao and published by . This book was released on 2016 with total page 119 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies rich lifecycle behavior concerning human capital and health, and its implications for economic growth and development. It examines the impact of social institutions and government policies on individuals' lifetime choices which affect public health outcomes and economy-wide labor productivity. I apply macroeconomic approach and focus on aggregate effects, but both theoretical framework and quantitative analysis are built upon solid micro foundations of household behavior. By exploring the underlying channels, I derive policy implications for economic growth and development. This dissertation consists of three chapters. Chapter 1 studies the role of fertility motives in women's HIV risk in Sub-Saharan Africa, Chapter 2 studies the impact of higher education expansion along with economic reform on Chinas labor productivity, and Chapter 3 explores patterns of Chinas regional income disparity. Chapter 1 examines the role of social and cultural norms regarding fertility in women's HIV risk in Sub-Saharan Africa. Fertility, or the ability to bear children, is highly valued in most African societies, and premarital fertility is often encouraged in order to facilitate marriage. This, however, increases women's exposure to HIV risk by increasing unprotected premarital sexual activity. I construct a lifecycle model that relates a woman's decisions concerning sex, fertility and education to HIV risk. The model is calibrated to match Kenyan womens data on fertility, marriage and HIV prevalence. Quantitative results show that fertility motives play a substantial role in women's, especially young women's, HIV risk. If premarital births did not facilitate marriage, the HIV prevalence rate of young women in Kenya would be one-third lower. Policies that subsidize income, education, and HIV treatment are evaluated. Chapter 2 studies the impact of higher education expansion, along with economic reform of the state sector, in the late 1990's in China on its labor productivity. I argue that in an economy such as China, where allocation distortions widely exist, an educational policy affects average labor productivity not only through its effect on human capital stock, but also through its effect on human capital allocation across sectors. Thus, its impact could be very limited if misallocation becomes more severe following the policy. I construct a two- sector general equilibrium model with private enterprises (PE) and state-owned enterprises (SOE), with policy distortions favoring the latter. Households, heterogeneous in ability, make educational choices and occupational choices in a three-period overlapping-generations setting. Counterintuitively, quantitative analysis shows an overall negative effect of higher education expansion on average labor productivity (by 5 percent). Though it did increase China's skilled human capital stock significantly (by nearly 50 percent), the policy had the effect of reallocating relatively more human capital toward the less-productive state sector. It is the economic reform that greatly improves the efficiency of human capital allocation and complements educational policy in enhancing labor productivity (by nearly 50 percent). Chapter 3 explores patterns of China's regional income disparity. I document the stylized fact that the regional labor income disparity varies across industries with different skill in- tensities in China. While high-skill-intensive industries have larger income dispersions across regions than low-skill-intensive ones, this pattern tends to intensify over recent decades. I construct a model that interprets this pattern using the regional productivity variation of high-skilled firms, match-specific ability, firms' screening decision and workers' migration. In particular, firms in rich regions have higher productivity than those in poor regions. Workers are heterogeneous in ability, which is match-specific and unobservable before screening. Since ability and productivity are complements for high-skilled firms, these firms in rich regions pay more screening efforts to select workers with higher ability, and pay a higher wage in equilibrium. Workers live in different regions, and migration incurs a cost. This increases la- bor market tightness in rich regions and amplifies the regional income disparity. The model is quantified to match China's data. Counterfactual analysis shows that the screening process accounts for 45 percent of China's regional income disparity of high-skill-intensive industries, and migration barrier accounts for 10 percent.
Download or read book Occupational Health and Safety in the Care and Use of Nonhuman Primates written by National Research Council and published by National Academies Press. This book was released on 2003-06-13 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt: The field of occupational health and safety constantly changes, especially as it pertains to biomedical research. New infectious hazards are of particular importance at nonhuman-primate facilities. For example, the discovery that B virus can be transmitted via a splash on a mucous membrane raises new concerns that must be addressed, as does the discovery of the Reston strain of Ebola virus in import quarantine facilities in the U.S. The risk of such infectious hazards is best managed through a flexible and comprehensive Occupational Health and Safety Program (OHSP) that can identify and mitigate potential hazards. Occupational Health and Safety in the Care and Use of Nonhuman Primates is intended as a reference for vivarium managers, veterinarians, researchers, safety professionals, and others who are involved in developing or implementing an OHSP that deals with nonhuman primates. The book lists the important features of an OHSP and provides the tools necessary for informed decision-making in developing an optimal program that meets all particular institutional needs.
Download or read book Human Capital Risk Contract Enforcement and the Macroeconomy written by Tom Krebs and published by . This book was released on 2011 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a macroeconomic model with physical and human capital, human capital risk, and limited contract enforcement. We show analytically that young (high-return) households are the most exposed to human capital risk and are also the least insured. We document this risk-insurance pattern in data on life-insurance drawn from the Survey of Consumer Finance. A calibrated version of the model can quantitatively account for the life-cycle variation of insurance observed in the US data and implies welfare costs of under-insurance for young households that are equivalent to a 4 percent reduction in lifetime consumption. A policy reform that makes consumer bankruptcy more costly leads to a substantial increase in the volume of credit and insurance -- National Bureau of Economic Research web site.
Download or read book Key Human Capital written by Ryan D. Israelsen and published by . This book was released on 2018 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms whose human capital is concentrated in a few irreplaceable employees lack diversification in their human capital stock, exposing them to key human capital risk. Using "key man life insurance" disclosures to measure this risk, we show that exposed firms are riskier. These younger, smaller, growth firms have abnormally high volatility and following announcement of key employee departures, the most exposed firms lose 8% of their value. Key employees tend to be highly educated. They are four times more likely to hold Ph.D.'s than top managers, and firms with key human capital are more innovative.
Download or read book Empirical Studies on Risk Management of Investors and Banks written by Xiaohong W. Angerer and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This dissertation is composed of two empirical studies on risk management. The first part is an empirical study on income risk and portfolio choice of investors. Recent theoretical work has shown that uninsurable labor income risk likely reduces the share of risky asset investment. Little empirical work has been done to examine this effect. This empirical study on the issue has three novel features. First, the long labor income history in NLSY79 is used to estimate the labor income risk. Second, the study distinguishes between permanent and transitory labor income risk, and estimates them for individuals. Third, I explicitly consider human capital as a component of the portfolio. Human capital is treated as a risk-free asset and estimated using signal extraction technique to labor income data. The study finds strong empirical support for the theory that labor income risk significantly reduces the share of risky assets in the portfolio of an investor. Furthermore, as economic theory suggests, permanent income risk has a significant effect on portfolio choice while transitory income risk has little effect. The second part of the dissertation is an empirical study on the interest rate risk management of banks. Using a rolling sample of bank holding companies from 1986 to 2002, the study investigates how banks adjust their balance sheet maturity structure according to their perception of current and future interest rate changes. Banks tend to lengthen the maturity of net assets when the yield curve is steeply sloped and shorten it when they expect the interest rate to increase in the future. To account for the off-balance-sheet activity effect on interest rate risk exposure, the sample is divided into those with high and low interest rate derivative activities. For banks with little off-balance-sheet interest rate derivative activities, the cross-sectional variation in their responsiveness of maturity structure to interest rate changes explains the stock market risk and returns of common equities. The interest rate risk management strategies reflect the extent of risk taking and are priced in the stock market.
Download or read book Does Human Capital Risk Explain the Value Premium Puzzle written by and published by . This book was released on 2014 with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a general equilibrium model with endogenous growth, I show that risk to human capital leads to a "Value" premium in equity returns. In particular, firms with relatively more firm-specific human capital or more positive covariance between asset growth and returns on human capital are less valuable (and hence have greater Book-to-Market Equity) and yield greater expected equity returns since human capital is more tied to the fate of said firms. Thus, I reproduce some of the results of Fama and French (1996) and show that in the model their HmL factor is a proxy for human capital risk as measured by macroeconomic and financial variables such as the covariance between human capital growth, or labor income growth, with the growth rate of firm assets. The model implies relatively lower investment-to-asset ratio and lower average asset growth for Value firms as observed in data and as argued in Zhang (2005). Furthermore, the model yields counter-cyclical Value premium and relative Book-to-Market Equity, greater long-run risk exposure for Value firms, and failure of the CAPM. Hence, it replicates several results from the related literature.
Download or read book The Human Capital Index 2020 Update written by World Bank and published by World Bank Publications. This book was released on 2021-05-05 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: Human capital—the knowledge, skills, and health that people accumulate over their lives—is a central driver of sustainable growth, poverty reduction, and successful societies. More human capital is associated with higher earnings for people, higher income for countries, and stronger cohesion in societies. Much of the hard-won human capital gains in many economies over the past decade is at risk of being eroded by the COVID-19 (coronavirus) pandemic. Urgent action is needed to protect these advances, particularly among the poor and vulnerable. Designing the needed interventions, targeting them to achieve the highest effectiveness, and navigating difficult trade-offs make investing in better measurement of human capital now more important than ever. The Human Capital Index (HCI)—launched in 2018 as part of the Human Capital Project—is an international metric that benchmarks the key components of human capital across economies. The HCI is a global effort to accelerate progress toward a world where all children can achieve their full potential. Measuring the human capital that children born today can expect to attain by their 18th birthdays, the HCI highlights how current health and education outcomes shape the productivity of the next generation of workers and underscores the importance of government and societal investments in human capital. The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19 presents the first update of the HCI, using health and education data available as of March 2020. It documents new evidence on trends, examples of successes, and analytical work on the utilization of human capital. The new data—collected before the global onset of COVID-19—can act as a baseline to track its effects on health and education outcomes. The report highlights how better measurement is essential for policy makers to design effective interventions and target support. In the immediate term, investments in better measurement and data use will guide pandemic containment strategies and support for those who are most affected. In the medium term, better curation and use of administrative, survey, and identification data can guide policy choices in an environment of limited fiscal space and competing priorities. In the longer term, the hope is that economies will be able to do more than simply recover lost ground. Ambitious, evidence-driven policy measures in health, education, and social protection can pave the way for today’s children to surpass the human capital achievements and quality of life of the generations that preceded them.
Download or read book Insurance Against Poverty written by World Institute for Development Economics Research and published by Oxford University Press. This book was released on 2005 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt: Poor people in developing countries are often affected by droughts, floods, illness, crop failure, job loss, and economic downturns. Much of their energy goes into coping with these shocks and into day-to-day survival. While insurance and credit markets, combined with widespread social security, provide an important cushion against poverty in rich countries, the need for immediate survival may lock the poor into persistent poverty in developing countries.The poor in developing countries do have informal mechanisms to cope with risk and misfortune. These are based on income diversification, risk avoidance, self-insurance by saving together with family, and community-based mutual assistance. Nevertheless, the scope of these mechanisms remains limited. Repeated individual-specific shocks such as illness or pests, or covariate risks associated with drought, flood, or recession, undermine the ability of individuals and their families to cope withrisk.We now know much more about vulnerability to risk and how poor people cope. Even more importantly, we have learned much about the large long-term consequences of these risks, which condemns many to persistent poverty and excludes them from economic growth. But there is much that can be done. The micro-level studies that underpin this book offer new insights on how effective public action could be more effective in protecting the vulnerable against persistent poverty. Policy should focus onproviding a comprehensive menu of ex-ante and post-crisis protection mechanisms, including new forms of insurance, savings, safety nets, and the means to strengthen the poor's asset base. Local communities have a big role to play: public funds should not be used to replace indigenous community-basedsupport networks; rather they should be used to build on the strengths of these networks to ensure broader and more effective protection.With numerous thematic chapters and case studies of both best practice and of failure, from a mix of low-income and middle-income countries across the developing world, this book evaluates alternatives in widening insurance and protection provision, and makes an important contribution to the topical field of insurance and risk.
Download or read book Human Capital as an Asset Mix and Optimal Life Cycle Portfolio written by Takao Kobayashi and published by . This book was released on 2008 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines life-cycle optimal consumption and asset allocation in the presence of human capital. Labor income seems like a money market mutual fund whose balance in one or two years is predictable but a wide dispersion results after many years, reflecting fluctuations in economic conditions. We use the martingale method to derive an analytical solution, finding that Merton's well-known constant-mix strategy is still true after incorporating human capital from the perspective of total wealth management. Moreover, the proportion in risky assets implicit in the agent's human capital is the main factor determining the optimal investment strategy. The numerical examples suggest that young investors should short stocks because their human capital has large market exposure. As they age, however, their human capital becomes bond-like, and thus they have to hold stocks to achieve optimal overall risk exposure.
Download or read book Play to Your Strengths Managing Your Company s Internal Labor Markets for Lasting Competitive Advantage written by Haig R. Nalbantian and published by McGraw Hill Professional. This book was released on 2003-10-03 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: The breakthrough approach for aligning people with strategy for higher profits.
Download or read book Powering the Digital Economy Opportunities and Risks of Artificial Intelligence in Finance written by El Bachir Boukherouaa and published by International Monetary Fund. This book was released on 2021-10-22 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Download or read book Specialized Human Capital Unemployment Risk and the Value Premium written by Stephan Jank and published by . This book was released on 2014 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: To determine whether negative shocks to specialized human capital are priced in the cross section of stock returns, this study measures shocks to industry-specific human capital by employment growth in that industry. In industries in which employment contracts, exposure to the value factor is significantly higher than in industries in which employment expands. Cross-sectional predictive regressions and hedging portfolio returns document that stocks belonging to industries with low employment growth have higher expected returns than stocks belonging to industries with high employment growth. The return premium related to employment growth is pervasive across small, big, and micro stocks, as well as when micro stocks are excluded. The premium cannot be explained by the capital asset pricing model, but the hedging portfolio's payoffs are inversely related to that of the value-minus-growth risk factor.
Download or read book A Model of Strategic Human Capital Management written by David M. Walker and published by DIANE Publishing. This book was released on 2002-07 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: Intended to help Federal agency leaders better manage their organizations' most important asset -- their people. Federal agencies that acquire, develop, and retain high performing employees with the appropriate skills and competencies are better able to respond to the needs of the public on a daily basis and in times of crisis. This model is designed to help agency leaders effectively use their people, or human capital, and determine how well they integrate human capital considerations into daily decision-making and planning. The model highlights the importance of a sustained commitment by agency leaders to maximize the value of their agencies' human capital and manage related risks.
