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On the institutional building of human capital

Author: ZhaoQing
Tutor: ZhangMin
School: Qingdao University
Course: Population, Resources and Environmental Economics
Keywords: Human Capital Institution building Cycle Institutional arrangements Play a role in Economic growth Specific system Theoretical study Work effort Institutional system
CLC: F240
Type: Master's thesis
Year: 2005
Downloads: 170
Quote: 3
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Abstract


Human capital is the integration of knowledge, experience, technology, ability, health and other qualities, which are enclosed in human body. It is formed through investment and is of economic value. Human capital can bring future income. Human capital is more energetic than material capital and plays an important role in the economy growth of the developed countries. For example, the economy growth of Japan and America relies on human capital. However, the development of some developing countries has showed that human capital does not necessarily push the economy increase. As the development of the new institutions economics, institutions are led to the analysis frame of economics. The presentation of the factor of institutions accounts for the above situation. The difference of the institutions leads to different result in the use of human capital.Human capital is a dynamic conception. It experiences human capital’s formation, flow and allocation, use and income division. These four procedures compose a cycle. As human capital is a special capital which attaches to its carrier—human, and it is of the characteristics of externality, the whole procedure of human capital is affected by human behavior. While institutions can regulate human’s behavior. Human capital is a way for its carriers to maximize their incomes. Whether human capital functions in economic activities relies on whether institutions motivate people to develop and use human capital. This paper tries analyzing the function of institutions in the cycle of human capital and seeking for the establishment of institutions in the cycle of human capital.The topic of this article is the establishment of institutions of human capital. It absorbs the present achievements concerning human capital theory and practice home and abroad. This paper uses some specific methods including normative analysis and positive analysis, logic analysis and historical analysis, qualitative analysis and quantitative analysis, and so on. The whole paper includes three parts except the introduction and the conclusion. The first part is the base of theory. The second part is the main body of the paper. And the last part puts the theory into the practice in China.

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CLC: > Economic > Economic planning and management > Labor Economics > Labor economic theory
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