Discovering the People Behind “Human Capital”
Behind the term "human capital" there are real people who spend their lives taking school courses to improve themselves or parents who make sacrifices to invest in their children’s future. The government can help this process by developing effective education and labour market policies.
Dr. Lance Lochner, Canada Research Chair in Human Capital and Productivity, is providing the Canadian government with sound research to base its policies on such issues as skill formation, income inequality and intergenerational mobility (changes in social status from parents’ to children’s generations).
Little is known about why some families make substantial investments in their children, while others do not. Lochner believes the answer is crucial to designing policies that improve the skills of youth.
To better understand postsecondary enrolment and completion patterns, Lochner is also developing and testing economic theories regarding borrowing opportunities and repayment and default incentives for Canadian students.
In addition, Lochner is exploring the extent to which people acquire skills after school by making costly investments in job training skills, learning-by-doing and job search activity. Understanding why some people experience little wage improvement while others see huge wage increases over their careers is central to the government's design of income and employment assistance programs.
Lochner’s research will contribute to government initiatives that support the development of skills over a lifetime.