Human Capital Externalities and Productivity in Cities
Journal Title: International Journal of Innovation in Management, Economics and Social Sciences - Year 2022, Vol 2, Issue 4
Abstract
Purpose: Human Capital Theory states that individuals invest in their human capital in order to enhance own productivity which is in turn rewarded by higher wages. The theory asserts that investments in human capital are undertaken by individuals until the point where the marginal productivity gained equals the marginal opportunity cost (from the individualâs viewpoint). Benefits of human capital accumulation by a person need not pertain to that person solely. An individualâs investment in her own human capital may also increase productivity of the other factors of production, i.e. physical capital or human capital of others. Importantly, the channels of such influence â the most prominent of which is sharing of knowledge and skills through formal and informal interaction between people in the same industry, city, region or economy â may not be internalized within firms or families. This gives rise to human capital externalities. Methodology: The technique used is DEMATEL method. A questionnaire was constructed and answered by eleven experts. Then the DEMATEL method was applied to analyze the importance of criteria and the casual relations among the criteria were constructed. The study period is 2021-2022. Findings: Factors affecting productivity in cities can be divided into several categories: Factors related to human resources, Factors related to management, Factors related to the government, Equipment and facilities, Technology, Environmental factors, Materials and energy.                                                                 Originality/Value: Human capital can be defined as those skills, abilities, and knowledge embodied in an individual which contribute to a productive process by creating value, whether it be economic or social.
Authors and Affiliations
Saeideh Samadzad,Mirabbas Hashemi,
Keywords
Related Articles
- EP ID EP711379
- DOI -
- Views 49
- Downloads 0
Community Leaders and Their Influence on Tourism Development in Bali
Purpose: This paper aims to identify and explain the role of community leaders in the development of tourism in Bali. Bali, which is known as a world tourism destination, is able to develop well and cannot be separated f...
Assessment of Cyber Risks in an IoT-based Supply Chain using a Fuzzy Decision-Making Method
Purpose: The Internet of Things (IoT) is a relatively new paradigm that is growing rapidly in modern wireless communication scenarios. The main idea of this concept is the pervasive presence of all kinds of objects aroun...
China Real Estate Price and Stock Market Volatility during COVID-19
Purpose: This study examined the response of stock prices on the China Stock Exchange (SSE) and Real Estate prices to COVID-19 using an event study approach and the GARCH model. Methodology: In this study, the dimen...
Cell Production System Design: A Literature Review
Purpose In a cell production system, a number of machines that differ in function are housed in the same cell. The task of these cells is to complete operations on similar parts that are in the same group. Determining th...
Investigating the Mediating Role of Organizational Culture in the Relationship between Transformational Leadership and Organizational Effectiveness
Purpose: The aim of this study was to investigate the effect of transformational leadership dimensions on organizational effectiveness with respect to the mediating role of organizational culture. Methodology: The s...