Community Development Bulletin, Volumen8,Tema 2

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Página 38 - ... countries. Some growth of course can be had from the increase in more conventional capital even though the labor that is available is lacking both in skill and knowledge. But the rate of growth will be seriously limited. It simply is not possible to have the fruits of a modern agriculture and the abundance of modern industry without making large investments in human beings.
Página 35 - I shall concentrate on five major categories: (1) health facilities and services, broadly conceived to include all expenditures that affect the life expectancy, strength and stamina, and the vigor and vitality of a people; (2) on-the-job training, including old-style apprenticeship organized by firms; (3) formally organized education at the elementary, secondary, and higher levels; (4) study programs for adults that are not organized by firms, including extension programs notably in agriculture;...
Página 34 - How can we estimate the magnitude of human investment? The practice followed in connection with physical capital goods is to estimate the magnitude of capital formation by expenditures made to produce the capital goods. This practice would suffice also for the formation of human capital. However, for human capital there is an additional problem that is less pressing for physical capital goods: how to distinguish between expenditures for consumption and for investment. This distinction bristles with...
Página 38 - ... through higher education. Nor is it easy either for public decisions or private behavior to untangle and properly assess the consumption and the investment components. The fact that the return to high school and to higher education has been about as large as the return to conventional forms of capital, when all of the costs of such education including income foregone by students are allocated to the investment component, creates a strong presumption that there has been underinvestment since,...
Página 37 - ... and the quality of consumption of students throughout the rest of their lives. If one were to allocate a substantial fraction of the total costs of this education to consumption, say...
Página 31 - Direct expenditures on education, health, and internal migration to take advantage of better job opportunities are clear examples. Earnings foregone by mature students attending school and by workers acquiring on-the-job training are equally clear examples. Yet nowhere do these enter into our national accounts. The use of leisure time to improve skills and knowledge is widespread and it too is unrecorded. In these and similar ways the quality of human effort can be greatly improved and its productivity...
Página 33 - This is true equally of investment in education, training, and migration of young people. Not all investments in human beings are of this kind; some are more nearly akin to current inputs as for example expenditures on food and shelter in some countries where work is mainly the application of brute human force, calling for energy and stamina, and where the intake of food is far from enough to do a full day's work. On the "hungry" steppes and in the teeming valleys of Asia, millions of adult males...
Página 37 - In general, families in which the husbands and wives are already in the late thirties cannot afford to make these investments because the remaining payoff period for them is too short. Yet society would gain if more of them would pull stakes and move because, in addition to the increase in productivity currently, the children of these families would be better located for employment when they were ready to enter the labor market. The case for making some of these investments on public account is by...
Página 32 - The failure to treat human resources explicitly as a form of capital, as a produced means of production, as the product of investment, has fostered the retention of the classical notion of labor as a capacity to do manual work requiring little knowledge and skill, a capacity with which, according to this notion, laborers are endowed about equally.
Página 37 - How much of this unexplained increase in income represents a return to education in the labor force? A lower limit suggests that about three-tenths of it, and an upper limit does not rule out that more than one half of it came from this source.

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