What do you mean by humans capital?


Using household-level data from Mexico we document patterns among schooling, entrepreneurial decisions and household characteristics such as assets, talent of household members and age of your family head. Motivated by our findings, we produce a heterogeneous-agent, incomplete-markets, overlapping-generations dynasty model. Households jointly decide over their life cycle on (i) kids' human capital investments (schooling) and (ii) parents' entry, exit and investment into alternative entrepreneurial modes (subsistence and modern). With financial constraints most of these are co-determined. A calibrated version of our model can account fully for the broad correlation patterns uncovered in the information within and across generations, e.g., a non-monotonic relationship between educational choices and assets across occupations, growth in profits and employment for modern firms only, and dynastic persistence across generations in education and wealth. Endogenous human capital acquisition is really a key driver of inequality and intergenerational persistence. Eliminating this channel would decrease the very best 10% income share by 47%. Eliminating within-period borrowing constraints would increase average household expenditure by 7.1% and benefit the middle income, reducing top and bottom expenditure shares. It would also reduce by 28% the correlation between household assets and kids' schooling levels.

Newcomers contribute to organizational innovation by bringing in new knowledge and ideas, on the one hand, and by collaborating and exchanging with incumbents, on the other. We propose that the organization's ability to use these contributions is influenced by hiring rate, hiring rate change, and hiring rate dispersion, which affect both the flow of new ideas into the business and the degree of collaboration between newcomers and incumbents. Using four years of data from a big, multi-industry sample, we find that hiring rate and hiring rate dispersion increase organizational innovation. We also discover that increases in hiring rates from year to year are positively linked to innovation for organizations with more collaborative work practices, while the partnership between hiring rate dispersion and innovation is less positive when organizations do have more collaborative work practices. This study highlights how temporal patterns of hiring influence human capital acquisition and development.

An 'options' view of human caiptal due dilligence explains value creation through timedeferred, sequential, path-dependent investment choices and addresses gaps in the resourcebased theory explanation of the partnership between human resources and competitive advantage. Firms will invest in options for human capital, using alternative employment arrangements like temporary/contractual/part-time workers and internships, or by outsourcing the work, when uncertainty associated with human capital is high and investments in human capital are largely irreversible. We discuss various choices for skills and employees, two interrelated the different parts of human capital. They're flexibility options, options to wait or defer, options to abandon, learning options, and switching options. The ability cost of lacking options is quantifiable, which makes the actual options approach valuable for strategic HRM decisions.