A linkage between human capital and demographic externalities
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Date
2011
Journal Title
Journal ISSN
Volume Title
Publisher
Institute of Interdisciplinary Business Research
Abstract
The Industrial Revolution and the Demographic Transition are the two great forces that
explain the upward march of modern economy. What is the general effect of increase in
Human Capital Intensity (HCI) on major demographic factors? Despite the universal
agreement on socio-economic return of Human Capital (HC), much less is known about
the demographic return of HC. This study attempts to explore major demographic
externalities of overall increase in HCI. This paper mainly utilizes the published data of
International Labor Organization and United Nations. In this study, both bivariate and
multivariate analyses have been performed. From this study, It is observed that, HCI is
robustly associated with the productivity of the country. Our findings reveal that, a
negative relation exists between HCI (PWSI) and Population Growth Rate, Total Fertility
Rate, Crude Birth Rate and Crude Death Rate, and a positive correlation appears between
HCI and Net Migration Rate. Formation of HC is very important in different aspects for a
nation, as well as the individual. Every nation should emphasize HC formation for
prosperity of the nation. Besides this, HC formation should also be stressed as an indirect
measure of population control, which is very important for well-being of all nations.
Description
Keywords
Occupation, Productivity, Population Dynamics, Industrial Revolution
Citation
Interdisciplinary Journal of Contemporary Research in Business, July 2011 Vol 3, No 3, 601-609