Download or read book Essays on Human Capital Accumulation Over the Life cycle written by David Goll and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Human Capital Formation Over the Life Cycle written by Francesca Salvati and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Life cycle Labor Supply and Human Capital Formation written by and published by . This book was released on 2016 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three independent essays on earnings dynamics, educational production function, and retirement. Each chapter explains labor supply and human capital formation from a life-cycle perspective. In the first chapter, I investigate how two different kinds of uncertainty jointly affect young workers' decisions. This paper introduces the possibility of multidimensional learning about worker ability and job match quality into a model of work decisions. This mechanism has a unique prediction, negative sorting into job mobility that fades away over time, which is verified in the NLSY79 data if the AFQT score carries over some information unused by workers and employers. I estimate the structural model, which also has flexible skill accumulation, by indirect inference. From simulation results on earnings dynamics, I find that the contribution of job shopping to average earnings growth is higher than previous estimates; also, individual heterogeneity in earnings growth is mostly explained by the process of resolving uncertainties. In the second chapter, which is joint work with Keunkwan Ryu, we estimate the effects of high school class size on college entrance exam scores, using Korean administrative data. For the identification, we exploit quasi-experimental variation in class size arising from distinct institutional settings in Korea: especially, students are separately educated by major from grade 11 with different class sizes between majors. By using multi-level differencing and instrumental variable techniques, we find the effects of high school class size reduction on the test scores are positive but small. In the third chapter, I examine the effects of life expectancy on retirement and related decisions. I construct a structural model which has a realistic description of complicated dynamic incentives facing the elderly, including Social Security. Furthermore, individual heterogeneity in survival beliefs are flexibly modeled, directly using subjective survival probabilities in the Health and Retirement Study (HRS) data. The estimated model suggests that many people in the data believed their wealth was over-annuitized; they would have chosen to work and save less if their average life expectancy had increased. This result partially explains the early retirement puzzle in the last century.

Download or read book Two Essays on Human Capital Accumulation and Economic Growth written by Alexandros T. Mourmouras and published by . This book was released on 1988 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Human Capital written by Yibo Zhang and published by . This book was released on 2010 with total page 122 pages. Available in PDF, EPUB and Kindle. Book excerpt: First Chapter: Endogenous Skill Acquisition and Taxation (with James Bullard) This paper studies dynamic Mirrleesian-style taxation in a lifecycle economy. In contrast to the recent Mirrleesian dynamic optimal taxation literature, in which individual skills are subject to shocks but are otherwise fixed over time, agents in our model make a conscious decision about human capital acquisition (as well as when to retire) given their own aptitude for learning. This aptitude is private information. Human capital accumulation is the engine of growth in our model. We find that there will be no human capital accumulation, and hence no growth, in the economy when there is no taxation of any sort. We suggest a taxation scheme which will induce human capital accumulation and hence economic growth in this stylized environment. The key feature of the tax scheme is to provide incentives for human capital accumulation for those that have high aptitude by credibly transferring resources to them later in life, after they have revealed their aptitude. We show that only a moderate transfer is called for to induce growth in our calibrated economy. We also find that the timing of the tax-transfer may or may not matter for the income distribution depending on the exact form in which the taxation is levied (labor or capital income tax), but in general the tax-transfer scheme is highly non-monotonic. Second Chapter: Brain Drain and Brain Drain Reversal Departing from the previous theoretical studies on Brain Drain, which mainly focus on the welfare impact of the migration of skilled workers on the home country and on the foreign country, I build a theoretical model to study a somewhat different twin phenomena "brain drain" and "brain drain reversal". The brain drain and brain drain reversal of interest here is the trend that people from developing countries (most prominently from East Asian countries) who have studied in developed countries such as the U.S. go back to their home country sooner or later for good. I study these two phenomena in a two-period lifecycle economy where home country agents choose not only education location but also work location possibly multiple times in their lifetime. The model captures the crucial factors in agents' location choice decision including work-place premium, education-location premium, market opportunity gap (between home and foreign countries) as well as adaptability of skills. I solve the model analytically and conduct comparative statics analysis followed by calibration exercises based on data from Mainland China (1985-2006). Third Chapter: Human Capital Intensity, Education and Growth (with Jiaren Pang and Haibin Wu) Using the methodology of Rajan and Zingales (1998), we revisit the issue of human capital and economic growth by examining whether industries with higher human capital intensity tend to grow faster in countries with higher human capital stock. Not only are we able to avoid the many problems that have plagued the conventional cross-country growth regressions but the results are no longer mixed. We do not find that education improvement has a differential effect on industries with different human capital intensities. However, we have discovered that in countries with higher education levels and quality, high human capital intensity industries grow faster than low human capital intensity ones.

Download or read book Two Essays in the Theory of Human Capital written by Huoying Wu and published by . This book was released on 1992 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Optimal Accumulation of Human Capital Over the Life Cycle written by John W. Graham and published by . This book was released on 1979 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper summarizes the important contributions of the new life cycle human capital literature and demonstrates that many of these results can be derived more simply than in their original presentations. Within three period discrete-time framework it is demonstrated how the optimal pattern of human capital investment over the life cycle depends upon the choice of the objective function, the life cycle of leisure, and the extent of nonmarket benefits of human capital. The paper offers sufficient conditions for the optimality of a profile of monotonically declining investment activity over the life cycle.

Download or read book Essays on Human Capital Taxation and Adverse Selection written by Adam Blandin and published by . This book was released on 2016 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three chapters. The first two explore the impact of government policies on human capital accumulation.Chapter one makes two novel contributions related to the two workhorse models in the human capital literature: Learning by Doing (LBD) and Ben-Porath (BP).First, I show that BP is much more consistent with empirical life-cycle patterns related to individual earnings growth rates relative to LBD.Second, I show that the same model features that generate different life-cycle predictions between models also generate different policy implications. In particular, increasing the top marginal labor tax rate, relative to the current US level, generates much larger reductions in lifetime human capital accumulation in the BP model versus the LBD model. Chapter two examines reforms to the Social Security taxable earnings cap in the context of a human capital model. Old age Social Security benefits in the US are funded by a 10.6% payroll tax up to a cap of $118,500. There has been little work examining the likely outcomes of such a policy change. I use a life-cycle BP human capital model with heterogeneous individuals to investigate the aggregate and distributional steady state impacts of several policy changes the earnings cap. I find that when I eliminate the cap: (1) aggregate output and consumption fall substantially; (2) the role of endogenous human capital is first order; (3) total federal tax revenues are lower or roughly unchanged; (4) about 1/3 of workers are made worse off.The final chapter studies the existence and optimality of equilibria in the presence of asymmetric information. I develop an equilibrium concept which corresponds to the presence of mutual insurance organizations for a class of adverse selection economies which includes the Spence (1973) signaling and Rothschild-Stiglitz (1976) insurance environments. The defining features of a mutual insurance organization are that policy holders are also the owners of the organization, and that the organization can write policies for which the terms depend on the experience of the mutual members. In general the equilibrium exists and is weakly Pareto optimal. Further, all equilibria have the same individual type utility vector.

Download or read book Essays on the Economics of Human Capital Accumulation written by and published by . This book was released on 2014 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Economics of Human Capital Accumulation written by Lucia Rizzica and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Human Capital Accumulation and Inequality written by Claudia Trentini and published by . This book was released on 2009 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Human Capital Accumulation Over the Life Cycle written by Emily Elizabeth Nix and published by . This book was released on 2016 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Human Capital written by Xiaoyan Chen Youderian and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The first essay considers how the timing of government education spending influences the intergenerational persistence of income. We build a life-cycle model where human capital is accumulated in early and late childhood. Both families and the government can increase the human capital of young agents by investing in education at each stage of childhood. Ability in each dynasty follows a stochastic process. Different abilities and resultant spending histories generate a stochastic steady state distribution of income. We calibrate our model to match aggregate statistics in terms of education expenditures, income persistence and inequality. We show that increasing government spending in early childhood education is effective in lowering intergenerational earnings elasticity. An increase in government funding of early childhood education equivalent to 0.8 percent of GDP reduces income persistence by 8.4 percent. We find that this relatively large effect is due to the weakening relationship between family income and education investment. Since this link is already weak in late childhood, allocating more public resources to late childhood education does not improve the intergenerational mobility of economic status. Furthermore, focusing more on late childhood may raise intergenerational persistence by amplifying the gap in human capital developed in early childhood. The second essay considers parental time investment in early childhood as an education input and explores the impact of early education policies on labor supply and human capital. I develop a five-period overlapping generations model where human capital formation is a multi-stage process. An agent's human capital is accumulated through early and late childhood. Parents make income and time allocation decisions in response to government expenditures and parental leave policies. The model is calibrated to the U.S. economy so that the generated data matches the Gini index and parental participation in education expenditures. The general equilibrium environment shows that subsidizing private education spending and adopting paid parental leave are both effective at increasing human capital. These two policies give parents incentives to increase physical and time investment, respectively. Labor supply decreases due to the introduction of paid parental leave as intended. In addition, low-wage earners are most responsive to parental leave by working less and spending more time with children. The third essay is on the motherhood wage penalty. There is substantial evidence that women with children bear a wage penalty of 5 to 10 percent due to their motherhood status. This wage gap is usually estimated by comparing the wages of working mothers to childless women after controlling for human capital and individual characteristics. This method runs into the problem of selection bias by excluding non-working women. This paper addresses the issue in two ways. First, I develop a simple model of fertility and labor participation decisions to examine the relationships among fertility, employment, and wages. The model implies that mothers face different reservation wages due to variance in preference over child care, while non-mothers face the same reservation wage. Thus, a mother with a relatively high wage may choose not to work because of her strong preference for time with children. In contrast, a childless woman who is not working must face a relatively low wage. For this reason, empirical analysis that focuses only on employed women may result in a biased estimate of the motherhood wage penalty. Second, to test the predictions of the model, I use 2004-2009 data from the 1997 National Longitudinal Survey of Youth (NLSY97) and include non-working women in the two-stage Heckman selection model. The empirical results from OLS and the fixed effects model are consistent with the findings in previous studies. However, the child penalty becomes smaller and insignificant after non-working women are included. It implies that the observed wage gap in the labor market appears to overstate the child wage penalty due to the sample selection bias.

Download or read book Essays on Human Capital Formation written by Gonzalo A. Castex Hernandez and published by . This book was released on 2010 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: "I analyze two issues on the efficiency of schooling choice. The first chapter analyzes changes in the distribution of college enrollment rates that occurred between 1980 and 2000. It aims not only to explain the 69% increase in the overall college enrollment rates, but also changes in the distribution of college attendees by their ability and financial status. College attendance increased by 27% less than the overall trend for individuals in the lowest quartile of the joint family income and ability distribution. However, it increased by 12% more than the trend for individuals in the highest quartile. To explain these changes, I construct a quantitative life-cycle model of labor supply and human capital formation. The model is calibrated to match schooling patterns and labor market outcomes for the 1980 and 2000 cohorts. I explicitly model four potential driving forces to explain the observed changes. First, college wage premium increased during the 1980 - 2000 period. This increase had a positive effect on enrollment across all profiles and the largest gain was for the low-ability and low-income groups. Second, there was a merit-oriented reform in distribution of grants which mostly increased college attendance of high-ability students. Third, increase in tuition costs led to reduced attendance across all profiles. This effect was particularly strong for students from low-income families. Fourth, the joint distribution of ability and family income shifted, affecting allocation of grants as well as educational success and expected college wages. This shift had the largest positive effect on students in the center of the ability distribution as they experienced rising incentives to attend college. The second chapter studies the role of college dropout risk premium on returns to education and attendance decisions. Attending college has been considered one of the most profitable investment decisions, as its estimated annualized return ranges from 8% to 13%. However, a large fraction of high school graduates do not enroll in college. Using a simple risk premium approach, I reconcile the observed high average returns to schooling with relatively low attendance rates. A high dropout risk has two important effects on the estimated average returns to college: selection bias and risk premium. Once taking into account dropout risk, a simple calculation of risk premium accounts for 51% of the excess of return to college education. In order to explicitly consider the selection bias, I further explore the dropout risk in a life-cycle model with heterogeneous ability. The risk-premium of college participation accounts for 29% of the excess of returns to college education for high-ability students, and accounts for 27% of the excess return for low-ability students, since they face a larger college dropout risk. Risk averse agents are willing to reduce their return to college in order to avoid the dropout risk. The effect is not uniform across ability levels"--Leaves v-vi.

Download or read book Essays on Human Capital Accumulation and Development written by Hyunseok Kim (Ph.D.) and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, I explore human capital accumulation and its implication for economic development. Chapter 1 and 2 focused on the mechanism behind the sustained economic growth of South Korea, which was a war-devastated, aid-recipient country two generations ago but now sells semiconductors and automobiles to the world. I ask how the country shifted its technology to capital-intensive production technique. These chapters consider educational policy change that led to an increase in college graduate. Chapter 3 studies the mechanism behind the divergence in employment between temporary and permanent workers in South Korea. The chapter considers the labor policy change that protects temporary employment. For each chapter, I construct a plant-level panel dataset from a series of censuses and connect it with an industry-level input-output table to consider a spillover effect. Chapter 1 studies how an increase in college graduates has affected the technology shift in South Korea. The analysis is based on the concept of complementarity in technology adoption - i.e., the idea that more adopters increase a marginal adopter's gain. I consider skilled labor as an adoption good needed for technology adoption. If complementarity exists in technology adoption, there could be multiple equilibria, possibly leading to undesirable results from coordination failure. I develop a theoretical framework which predicts that an increase in the adoption good of skilled labor could overcome coordination failure and promote a technology shift. Based on plant-level panel data from 1982-1996, I find that accumulation of more outside human capital, or more adopters, (i) benefits marginal adopting firm's profit and investment, and (ii) promotes the firm's technology shift by increasing the productivity of capital while decreasing that of unskilled workers. This paper contributes to the literature on aggregate growth theory by verifying that outside human capital accumulation and its spillover effect contribute to economic growth. Chapter 2 builds on Chapter 1, where human capital is considered an adoption good, by studying the specific role of human capital. Specifically, I explore whether research and development (R&D) is the channel through which human capital accumulation leads to a technology shift. The analysis is based on previous literature indicating that R&D generates new knowledge and the absorption of outside knowledge. The latter role of R&D, absorptive capacity, matches the concept of complementarity in chapter 1. Based on plant-level panel data, I find that (i) human capital accumulation due to the educational policy change promotes R&D in the manufacturing industries; (ii) the effect of R&D spillovers is increasing in a firm's own R&D, a finding which validates the concepts of absorptive capacity and complementarity; and (iii) more outside R&D promotes a firm's technology shift toward capital-intensity. This paper contributes to the literature on endogenous growth, which so far has focused on R&D spillover's effects on total factor productivity rather than on technology shift, by connecting absorptive capacity with complementarity in technology adoption. Chapter 3 investigates another dimension of human capital: permanent and temporary workers. The labor market in South Korea has witnessed a divergence in employment between permanent and temporary workers. The proportion of permanent workers, which had been stable between 50 and 60 percent for two decades in the 1990s and 2000s, has increased recently to above 70 percent. I point out that legislation requiring firms that hire a worker on a temporary basis for more than two years to offer them permanent status serves as a trigger for the divergence. This legislation limits the advantages (to firms) of flexibility in hiring and capacity for screening new workers. Hence, in a competitive labor market firms expect that other firms are more likely to hire permanent rather than temporary workers. If complementarity exists in permanent employment, the legislation serves as a Big Push to make the divergence happen. Based on plant-level panel data covering 2011-2019, I find that (i) flexibility and screening effect of temporary workers are overwhelmed by human capital effect, and (ii) complementarity in permanent employment holds after the temporary employment protection legislation. This paper deepens the understanding of the recent labor market phenomena in South Korea by adopting the concept of complementarity and a Big Push.

Download or read book Essays on Human Capital Institutions and Economic Growth written by Babar Hussain and published by . This book was released on 2011 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Human Capital Accumulation in the Presence of Social Influences written by and published by . This book was released on 2016 with total page 139 pages. Available in PDF, EPUB and Kindle. Book excerpt: In these essays, I model the impact of social forces on individuals' human capital decisions and use relevant data to produce empirical estimates of the importance of these social influences as well as the potential impact of related policies. In the first chapter, I examine the formation of friend networks in high school and measure the degree to which policy can alter these social structures and, consequently, academic outcomes. In the second essay, I leverage particular aspects of data from a large study of high school students to measure the impact of friends on college application and attendance behavior in a novel manner than loosens assumptions made in earlier work. In the final chapter, I analyze a model of human capital accumulation and marriage and use panel data to estimate model parameters and obtain measures of how marriage affects schooling and work earlier in life.