Integrating Human Capital and Human Capabilities in Understanding the Value of Education

Chiappero-Martinetti, Enrica and Sabadash, Anna (2014): Integrating Human Capital and Human Capabilities in Understanding the Value of Education. Published in: The Capability Approach. From Theory to Practice, edited by Solava Ibrahim and Meera Tiwari (July 2014)

Abstract

The aim of this chapter is to investigate the possibility of combining human capital theory and the capability approach in order to better understand and measure both the instrumental and the intrinsic values of education for individuals, and to trace its relative spillover effects on societies. This chapter discusses a combined human capital - capability approach as a possibility for working with a broader information space in assessing the value of education. It presents three integrated sections discussing the role and value of education for human well-being. The first section reviews the most significant attempts to define and measure education from a human capital (HC) perspective. The second is focussed on education and human capabilities and considers those aspects and empirical facts that are not fully encompassed within or justified by the HC perspective. The third section argues that human capital and the capabilities paradigms can complement each other in measuring the value of education, and discusses some methodological challenges and empirical features associated with this combined view.

• Item Type: MPRA Paper
• Language: English
• Keywords: education; human capital; capabilties
• Subjects: C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; Data Access; D - Microeconomics > D6 - Welfare Economics > D60 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration

References

Barro, R.J. and J.-W. Lee. (1996). ‘International Measures of Schooling Years and Schooling Quality’, American Economic Review , 86(2), pp. 218–223.

Becker, G. S. (1964). Human Capital , Columbia University Press, New York.

Boudarbat, B., Lemieux, T. and W. C. Riddell. (2010). ‘The Evolution of the Returns to Human Capital in Canada, 1980–2005’, Canadian Public Policy , 36, pp. 63–89.

Bowles, S., Gintis, H. and M. Osborne. (2000). ‘The Determinants of Earnings: Skills, Preferences, and Schooling’, University of Massachussets Economics Department Working Paper Series , Paper 87.

Bruze, G. (2010). ‘Male and Female Marriage Returns to Schooling’, Working Papers 10–17, University of Aarhus , Aarhus School of Business, Department of Economics.

Buchel, F., de Grip, A. and A. Mertens. (Eds.) (2003). Over-Education in Europe: Current Issues in Theory and Practice , Edward Elgar Publishing, UK.

Burchardt, T. (2009). ‘Agency Goals, Adaptation and Capability Sets’, Journal of Human Development and Capabilities , 10(1), March, pp. 3–19.

Burchardt, T. and Le Grand (2002). ‘Constraint and Opportunities: Identifying Voluntary Non-Employment’, Working Paper CASE n. 055, London School of Economics, UK

Carroll, C. and L. H. Summers (1990). ‘Why Have Private Saving Rates in the United States and Canada Diverged?’, NBER Working Papers 2319 , National Bureau of Economic Research, Inc.

Chiappero-Martinetti, E. Grasso, M., and S. Pareglio (2008). Wellbeing Assessment and Policy Simulations: Toward a Micro-Macro and Dynamic Integrated View Based on the Capability Approach, HDCP-IRC Working papers series, 1/2008.

Clark, R. L., Ghent, L.S., and A. A. McDermed (2006). Pension Plan Choice among University Faculty, Southern Economic Journal , 72(3) (Jan), pp. 560–577.

Cutillo, A. and G. Di Pietro (2006). ‘The Effects of Over-Education on Wages in Italy: A Bivariate Selectivity Approach’, International Journal of Manpower , 27(2), pp. 143–168.

Dagum, C. and D. J. Slottje (2000). ‘A New Method To Estimate The Level And Distribution Of Household Human Capital With Application’, Structural Change and Economic Dynamics , 11(1–2) (July), pp. 67–94.

Daly, M., Buchel, F. and G. Duncan (2000). ‘Premiums and Penalties for Surplus and Deficit Education: Evidence from the United States and Germany’, Economics of Education Review , 19, pp. 169–178.

Darity, W.A. Jr. (1982). ‘The Human Capital Approach to Black-White Earnings Inequality: Some Unsettled Questions’, Journal of Human Resources, University of Wisconsin Press, 17(1), pp. 72–93.

David, P. and J. Lopez (2001). ‘Knowledge, Capabilities and Human Capital Formation in Economic Growth’, NZ Treasury Working Paper , Wellington, 01/13.

Ederer, P., Schuller, P., and S. Willms. (2007). ‘Innovation at Work: the European Human Capital Index’, The Lisbon Council Policy Brief , 2(3), Brussels.

Gendron, B. (2004). ‘Why Emotional Capital Matters in Education and in Labour? toward An Optimal Exploitation of Human Capital and Knowledge Management’, Les Cahiers de la Maison des Sciences Economiques, série rouge , no. 113, Université Panthéon-Sorbonne, Paris, 37 pp.

Grossman, M. (1999). ‘The Human Capital Model of the Demand for Health,’ NBER Working Papers 7078, National Bureau of Economic Research, Inc.

Haveman, R. H. and B. Wolfe (1984). ‘Schooling and Economic Wellbeing: The Role of Non-Market Effects’, Journal of Human Resources , 19(3): 377–407.

Haveman, R. H. and B. Wolfe (2002). ‘Social and Nonmarket Benefits from Education in An Advanced Economy’, Conference Series Proceedings, Federal Reserve Bank of Boston, Jun issue, pp. 97–142.

Keeley, B. (2007). ‘Human Capital: How What You Know Shapes Your Life’, OECD Insights , Paris.

Lafortune, J. (2010). Making Yourself Attractive: Pre-Marital Investments and the Returns to Education in the Marriage Market , Unpublished Manuscript, Department of Economics, University of Maryland, College Park.

Le, T., Gibson, J. and L. Oxley (2005). ‘Measures of Human Capital: a Review of the Literature’, New Zealand Treasury Working Paper , 05/10, Wellington, New Zealand.

Liu, G. and M. Greaker (2009). ‘Measuring the Stock of Human Capital for Norway: a Lifetime Labour Income Approach’, Documents 2009/12, Statistics Norway Research.

Michael, R. (1982). ‘Measuring Non-Monetary Benefits of Education: A Survey’, in W. McMahon and T. Geske (eds), Financing Education: Overcoming Inefficiency and Inequity , University of Illinois Press, Urbana.

Mincer, J. (1974). Schooling, Experience and Earnings , National Bureau of Economic Research, New York.

Mojab, Sh. and R. Gorman. (2003). ‘Women and Consciousness in the “Learning Organization”: Emancipation or Exploitation?’ Adult Education Quarterly , 54(4), pp. 228–241.

Nussbaum, M. (2000). Women and Human Development: The ca , Cambridge University Press, Cambridge, UK.

Nussbaum, M. (2003). Capabilities as Fundamental Entitlements: Sen and Social Justice’’, Feminist Economics , 9(2–3), pp. 33–59.

Nussbaum, M. (2006). ‘Education and Democratic Citizenship: Capabilities and Quality Education’, Journal of Human Development , 7(3), pp. 385–395.

OECD (2001). The Wellbeing of Nations: The Role of Human and Social Capital, OECD, Paris.

OECD (2008). Education at a Glance 2008, OECD Indicators , OECD, Paris.

Ordine, P. and G. Rose. (2009). ‘Higher Education Quality, Opportunity Costs and Labor Market Outcomes’, Rivista Italiana degli Economisti , 14(2), pp. 267–292.

Polachek, S.W. (1981). ‘Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure’, The Review of Economics and Statistics , 63(1), pp. 60–69.

Robeyns, I. (2003). ‘Sen’s Capability Approach and Gender Inequality: Selecting Relevant Capabilities’, Feminist Economics , 9(2–3), pp. 61–92.

Robeyns, I. (2005). ‘The Capability Approach: A Theoretical Survey’, Journal of Human Development , 6(1), pp. 191–215.

Robeyns, I. (2006). ‘Three Models of Education: Rights, Capabilities and Human Capital’, Theory and Research in Education , 4(1), pp. 69–84.

Ruggeri-Laderchi, C. (2008). ‘Do Concepts Matter? An Empirical Investigation of the Differences between a Capability and a Monetary Assessment of Poverty’ In Comim, F., Qizilbash, M., and Alkire, S. (eds), The Capability Approach: Concepts, Measures and Applications , Cambridge University Press, Cambridge, UK.

Schultz, Th. W. (1961). ‘Investment in Human Capital’, American Economic Review , 51(1), pp. 1–17.

Sen, A. (1997). ‘Editorial: Human Capital and Human Capability’, World Development , 25(12), pp. 1951–1961.

Sen A. (1999). Development as Freedom , Oxford University Press, Oxford, UK.

Tao, H.-L. and T.F. Stinson. (1997). ‘An Alternative Measure of Human Capital Stock’, University of Minnesota Economic Development Center Bulletin: 97/01.

Thurow, L. (1970). Investment in Human Capital , Wadsworth Publishing Company, California.

Unterhalter, E. (2009). ‘Education’, in Deneuline, S. and Shahani, L. (eds), An Introduction to the Human Development and Capability Approach: Freedom and Agency , Earthscan, London, pp. 207–227.

Walker, M. and Unterhalter, E. (eds) (2007). Amartya Sen’s Capability Approach and Social Justice in Education , Palgrave Macmillan, New York.

Wolfe, B. L. and R. H. Haveman (2002). ‘Social and Nonmarket Benefits from Education in an Advanced Economy’, Conference Series Proceedings, Federal Reserve Bank of Boston , Jun issue, pp. 97–142.

Young, M. (2009a). ‘Basic Capabilities, Basic Learning Outcomes and Thresholds of Learning’, Journal of Human Development , 10(2), pp. 259–277.

Young, M. (2009b). ‘Capability as An Approach to Evaluation of Learning Outcome from Local Perspectives’, in Chiappero Martinetti, E. (ed.), Debating Global Society: Reach and Limits of the Capability Approach , Fondazione Feltrinelli, Milan, pp. 267–300.