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Our results suggest that while improving human capital in EU countries has the potential for substantial economic gain, the specific policy choices are less clearly appropriate.
The authors examine how fiscal policy relates to the three drivers of productivity: improving human capital, increasing physical capital (equipment or software, for example), and using these forms of capital more efficiently.
This might be the result of using more or better capital equipment, using more efficient production processes, new inventions, or improving "human capital" (workers' education and skills, and their ability to adapt to different tasks).
The authors observe that all these wasted hours eat into time that could be better spent on improving human capital.
It would also function as a quasi "study grant" allowing nationals to occasionally drop out of the labor market or reduce work engagements to acquire new skills, leading to "significantly more stepping-stone, training-intensive, often part-time jobs," thereby improving human capital accumulation" (Van Parijs and Salinas [64]; Van Parijs [63], p. 65), a particularly grave concern in HRCs.
For example: the "education" principle plays out through a heavy investment in improving human capital and diffusing cooperative values across the Mondragon network.
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That's the surest way to improve human capital.
If generations overlap, then a well-designed fiscal policy may be able to improve human capital investments by replacing missing capital markets with an intergenerational transfer scheme.
With the goal of raising per capita income to over $15,000 by 2020 from the current level of $6,634, the plan included measures to improve human capital, reduce migration and privatize inefficient government linked corporations (GLCs).
Being NEET means remaining unproductive, losing the opportunity to improve human capital.
So an obvious implication of the JPS study is that raising public school spending must not improve human capital.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com