Ateneo - UPO

The course "Economics of Human Capital" examines the role of human capital in economic development, firm performance, and individual well-being, recognizing the growing importance of knowledge and skills in contemporary societies. The course explores investment decisions in education and training by individuals and firms, as well as the ways in which national and international labor market dynamics shape these decisions. It also investigates the contribution of human capital to sustainable development, considering not only environmental sustainability but also economic and social dimensions. Particular attention is devoted to the private and public, monetary and non-monetary returns to investments in human capital, drawing on recent empirical evidence. Finally, the course analyzes the role of public policy, on both the expenditure and taxation sides, in influencing individuals' investment decisions in education and training.

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.
Stiglitz, Economics of the public sector, part 4, ch. 14 (Education) and part. 5 ch. 20 (Optimal taxation)
OECD (several years), Education at a glance, OECD, Paris
Recommended readings will be indicated during the lectures and made available on the course D.I.R. webpage.
For further information, please consult the course page on D.I.R.: https://www.dir.uniupo.it/

The Economics of Human Capital course aims to provide students with the knowledge, understanding, and analytical skills needed to examine the main issues related to investment in human capital by individuals, firms, and society as a whole, while also developing their ability to formulate independent judgments. By the end of the course, students will be expected to understand, critically discuss, and evaluate the main theoretical models that explain how individuals and firms make decisions regarding the accumulation of human capital through education, training, and the development of skills and competencies, as well as the empirical studies that estimate the private and social, monetary and non-monetary returns to these investments. A further objective of the course is to enable students to analyze the role of institutions and discuss the main public policy interventions.
Teaching is primarily delivered through lectures (DE), while regularly incorporating interactive teaching activities (DI), including questions addressed to students, discussion of the topics covered, and the analysis of case studies and empirical research. DE and DI components are integrated within class sessions and therefore cannot be clearly separated in terms of teaching hours or ECTS credits.

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.
Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/services-students-physical-or-learning-disabilities
Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The examination will be written during the winter examination period. In the other examination periods, the instructors will decide whether the examination will be written or oral, depending on the number of students taking the exam.
In the case of a written examination, students will be required to answer a total of four open-ended questions in 80 minutes: two covering the first part of the course (Prof. Baici) and two covering the second part (Prof. Casalone). Students who have actively participated in class may replace one or more examination questions with a presentation and/or other in-class activities.
The four open-ended questions are divided into several parts and sub-questions and are designed to assess:
• knowledge and understanding of specific course topics;
• the ability to apply the tools of economic analysis;
• the ability to exercise independent judgement;
• the ability to develop clear and well-supported economic arguments.
Each question is worth up to 8 points, for a maximum total of 32 points. Full marks are awarded for answers that are complete, correct, and adequately justified. Questions may cover any of the topics addressed during the course (see the “Content” section of the syllabus). Depending on the topic, students may be required to use either a graphical or an analytical approach. For selected topics (e.g., the public and private returns to human capital), students will be expected to discuss the objectives, methodology, and empirical findings of the studies examined in class. Where explicitly required, results must be explained and/or discussed. Correct answers that do not provide the required explanation or discussion will not receive full marks.
The overall examination mark, expressed on the Italian 30-point grading scale, is based on the sum of the points awarded for the four open-ended questions. The following grade ranges correspond to the indicated levels of achievement:
• 18–21/30: basic knowledge of the core course content and ability to apply the tools of economic analysis, although with some uncertainty;
• 22–24/30: adequate knowledge of the course content and a satisfactory ability to apply the tools of economic analysis and support answers with appropriate reasoning;
• 25–27/30: thorough knowledge of the course content, good ability to apply the tools of economic analysis, and ability to provide sound justification for answers;
• 28–30/30: comprehensive and rigorous knowledge of the course content, full command of the tools of economic analysis, independent judgement, and the ability to develop clear and well-supported economic arguments.

The Definition of Human CapitalHuman Capital in a Changing WorldHuman Capital in Italy: An International ComparisonInvestment in EducationInvestment in TrainingCompensating Wage DifferentialsDiscrimination and the Integration of the Gender DimensionPrivate and Public Returns to Investment in Human CapitalMonetary and Non-Monetary Returns to Human CapitalPolicies Supporting Investment in Education and TrainingHuman Capital Taxation and Fiscal Incentives

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.