MULTIDIMENSIONAL MEASURE OF HUMAN CAPITAL AND EARNINGS IN UKRAINE: IMPLICATIONS FOR NATIONAL POLICY ADVICE AND HUMAN RESOURCE MANAGEMENT

Author:

Verkhohlyad Olga O.

Abstract

For increasing effectiveness of organizational human resource management as well as for the national policy advice, it is important to assess how human capital factors, other than school attainment, influence individual earning returns, and to compare return to such factors across countries. However, the research of this area is not complete due to lack of data. As a result, there is limited cross-country understanding about how different labor markets reward extended human capital capabilities. This paper contributes to the existing research by studying the link between extended human capital factor and labor market return in Ukraine. It demonstrates the strong effect of development of emotional skills in childhood and the individual’s income as an adult. It also demonstrates that External Locus of Control strongly negatively affects wages. Furthermore, evidence is provided that Undergraduate School quality and individual health also affect wages. The paper contributes to the growing literature on importance of non-cognitive skills in labor market return.

Publisher

Ukrainian-American Concordia University

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