Ateneo - UPO

The course “Economics of Human Capital” aims to analyse the role that human capital plays in the development of the economic systems, within firms and in the life of each individual.
In the future knowledge will be more and more at the base of every aspect of human life, this is a reason why the course analyses the choices of investment in human capital by individuals and firms. “Economics of human capital” also discusses the role that labour market dynamics, at the national and international level, exert on the accumulation of human capital and how economic policy affects the choices of individuals and firms in terms of investment in education and training.
The role of human capital in promoting more sustainable development is also analyzed, not only from an environmental point of view, but with reference to economic growth and social development.

Claudia Goldin, Human Capital, in Handbook of Cliometrics, Springer-Verlag Berlin Heidelberg 2016
T.W. Schultz, Investment in Human Capital, The America Economic Review, Vol. 51, No. 1 (March 1961)
World Bank, The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19
World Economic Forum, The Global Human Capital Report 2017
George Borjas, Labor Economics, 7th Edition, Mc Graw Hill, 2016, ch. 5, 6, 7, 8, 9, 10, 12.

Material suggested during the lectures
For further information, please consult the course page on D.I.R.: https://www.dir.uniupo.it/

Economics of Human Capital aims to ensure that students know, understand and are able to analyse, making autonomous judgments, the main issues related to human capital investment by individuals, firms and society. At the end of the course, they will know, understand and critically discuss the theoretical models that analyse how individuals and firms make their own decisions about the accumulation of human capital through education, training and development of skills and abilities. They will also be able to understand and critically assess the impact of those decisions on the whole society not only in terms of net wealth. A further objective of the course is to make students able to analyse the role of the institutions and discuss the main economic policy interventions as well as to reflect on the empirical evidence related to the main industrialized countries.

Micro- and Macroeconomics

To reach the objectives of the course, the following teaching methods will be adopted:
• Lectures, to illustrate the main arguments that the students should know;
• Exercises in order to deepen the understanding of students about course content;
• Testimonials, so that students can meet and interact with innovators and/or experts to understand how the knowledge acquired during the course is met in practice;
• Presentations by group of students (potentially in English) to verify their capacity of analysis, synthesis, critical judgement and communication.

Class attendance is optional, but recommended.
Students, who attend lectures will have, additional possibilities if they sit the exam at the end of the course.

The exam is written.
Students have to answer to 4 open questions within 60 minutes (max 7,5 points per question).
The examination questions want to check if the student knows, understands and is able to use the theoretical models, in order to analyze the main themes, object of the course, and comment on the empirical evidence.
Students, which have actively attended most of the classes and sit the exam during the winter session, can substitute one question with a class presentation.

Definition of human capital
Human capital in a changing world
Human capital In Italy: an international comparison
Investment in education
Investments in training
Returns on human capital investment
Compensatory wage differentials
Discrimination
Labour mobility and immigration
The 2030 agenda: the inclusive organization

At the end of the course, students will have a precise knowledge of what human capital is and how it can influence the economic sustainable development and the life of firms. In particular, they will be able to distinguish the role of individual and collective decisions on the allocation of human capital both at the enterprise level and at the aggregate level. They will also be able to compare the outcomes of different economies based on their differences in terms of human capital characteristics.