I choose the subject of optimization of business' investment in human capital based on the pondering of theory and work experience. At first, this thesis analyzes the cost and income of business' investment in human capital in theory.
Holding-up becomes mutual bargaining between enterprises and employees because enterprises can lock employees and employees will hold up their investment in human capital of specificity to protect themselves.
In the first chapter, the statement on the relation between human resources of enterprises and competitive advantages is made. The importance on generating human resources in enterprises is emphasized and both similarity and difference between human resources investment and training and development is differentiated.
In the second chapter, the introduction is given to theories on human resources investment from the three aspects: the development of the theories, the expatiation of the theories and the analysis of costs and benefits.
Through theoretical and empirical analysis, this paper finds out that the key to transformation is to raise the economic value of people, to improve human capital investment and to match the stocks of physical and human capital.
This papers offers an explanation of this fact based on a simple life-cycle model of human capital investment and timing of first birth.
The empirical analysis finds results consistent with the higher wages of late childbearers arising primarily through greater measurable human capital investment.
Implementation of this second-best insurance however distorts the human capital investment decisions when education qualifies for a low risk job.
This paper tests whether interhousehold transfers from children to parents in developing countries are motivated by altruism or intended to be repayments of implicit parental loans taken up by children for human capital investment.