Discuss about the Cultural capital in business higher education.
The growth and economic development is determined by resource availability. In understanding the relationship between the level of education and return on earnings, human capital theory will be implemented (Apple, 2017). The objective of the paper is to implement the concepts of human capital, return to schooling along with evaluating the relationship among education and return on investment in education. Moreover, the literature review section will also explain the fact that the higher the education level the higher will be the earnings. Age earnings profile will be analyzed that indicates mean earnings of the employees at different stages.
Baker (2016) indicated that human capital theory focuses on the way in which education enhances the efficiency and productivity of employees through enhancing the level of cognitive stock of economically productive human ability. This is deemed to be an aspect of innate capability along with investment in human beings. In contrast, Blanchard and Olney (2017) stated that formal education provision is observed to be productive investment within human capital. This is the aspects of the theory that are equally considered and is highly worthwhile in comparison to the physical capital. In the figure below, certain components are explained that directly or indirectly impacts the development of HRD. Research conducted by has focused on human capital theory through education within the formal process (Blaug, 2013).
Figure 1: Human Capital Theory
(Source: Abdullah, Doucouliagos & Manning, 2015)
According to Bonin (2017), education has an increased and considerable role within the nation’s economy. Education is a concept associated with developing one’s own body and mind. The formal education indicates learning and non-formal education indicates acquisition. For this reason, expenditure on education is a part of investment. Bowen and Finegan (2015) stated that the educational experience is a part of investment. This analyses an individual’s human capital and results in better results for the society along with improving individual worker’s earnings. This is also deemed to increase employment opportunities facilitating them to attain pecuniary along with non-pecuniary returns. Additionally, it also offers workers with some opportunity for job mobility (David, 2014).
Gerdtham et al., (2016) indicated that several developing countries have realized that the important mechanism for developing the human resource is the education system. It is also evidenced from a huge amount invested within the education system by all the developing countries. Such decision is not only an initiative to impart skills and knowledge to people but also imparting values, attitudes, ideas along with aspiration that might be towards the company’s best developmental interest. Goldin (2016) revealed that the stress and tension of educational expansion can boost social, economic and political advancement. These researchers also stressed on the fact that the investment projects must take into consideration certain aspects including direct economic return to investment. This is in terms of labor among resource-based opportunity costs and anticipated future advantages.
Grossman (2015) indicated that a properly planned school system indicates a properly designed educational structure. Human capital theory has focused on every micro level of schooling aspects that is among the major components of HRD by means of education. These researchers also explained that a properly planned school system indicates a well planned educational structure. Herrington (2015) stated that the higher the education, the higher will be the income and it is also evidenced that the more educated the group is, the lower will be rate of unemployment. As per this theory certain other advantages of education might be attained with respect to increased productivity and incurs fewer costs. The researcher also provided an instance of educational advantage that enhances production possibilities which results in higher labor market productivity of the people with additional schooling.
The aim of the research is to analyze the return to investment on education in Malaysia. The objectives set for the research is explained under:
Research approach is the most important step in carrying out research study in order to arrive at the desired and actual research outcomes. For this specific research, the researcher has used deductive research approach, since the researcher has not attempted to formulate any new theory or model after arriving at the results. Instead, this particular research approach is related to the evaluation of the past trends with the existing models and theories. Hence, deductive research approach has been deemed fit for this particular study.
The researcher, in this study, has not applied the inductive approach because this approach does not take into account the quantitative data analysis. In addition, the researcher has not tried to develop any new theory or model after reaching the outcome of the research study. Therefore, inductive approach cannot be applied for the conduction of the research study, since human responses have been given the major priority.
In addition, the positivism philosophy is directly related to qualitative data analysis, in which the data gathered has been evaluated with the help of the past trends and existing models and proven facts. Therefore, deductive approach has been considered as the most relevant one for reaching the actual results of the research study.
Sampling could be defined as the procedure where the targeted participants for the research study are chosen from a bigger population. With the help of sampling, the researcher would be able to select the most pertinent source of primary data for mixing relevant information, which is identical to the research aims and objectives. Non-probability sampling in the form of convenience sampling has been used to conduct interviews with the working individuals aiming to return to schooling. The researcher has selected the respondents randomly from different organizations working in different industries to analyze their responses. Henceforth, only 5 respondents have been chosen for the interview purpose due to the limited timeframe of the research.
Data is gauged as the primary need for certifying the success of a particular research, in which the accumulation of pertinent data is reliant on the nature of the study and the target outcomes to be accomplished. As commented by Gerdtham et al., (2016), data could be classified in the form of secondary data and primary data. The secondary sources are used for obtaining secondary data, which comprise of journals, books and websites in order to gain an understanding of the previous presentation and speculative situations. On the other hand, the primary data are gathered mainly from the human responses and after that, they are evaluated to arrive at the research outcome.
However, since primary data is obtained mainly from the human responses, its authenticity is greater in contrast to secondary data. This particular research needs the use of primary data. Primary data could be categorized in the form of quantitative data as well as qualitative data. For this specific research, qualitative data has been used. This is because of the lack of time to survey greater number of respondents for the research study.
The data has been evaluated with the help of various analytical techniques. In this regard, Jensen (2013) stated that effective selection of analytical techniques is vital to achieve proper and pertinent conclusion. In addition, it also helps in maintaining transparency and interpreting the composed data. The qualitative data has been represented in discussion format to simplify the interpretation process of the gathered data.
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Task |
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Week 2 |
Week 3 |
Week 4 |
Week 5 |
Week 6 |
Week 7 |
Week 8 |
Week 9 |
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Selection of topic and search for justification |
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Constructing literature |
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Selecting appropriate methods |
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Data collection |
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Data analysis and representation |
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Reviewing the outcomes |
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Conclusions and recommendations |
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Submitting draft of the project |
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Printing and final submission |
Respondent 1: yes, it is the basis of all development processes in anyone’s career
Respondent 2: yes, education provides the knowledge and awareness required to achieve something new and move ahead in one’s career
Respondent 3: partially, as along with it, talent and skills are necessary too. together these aspects can help one grow
Respondent 4: yes, education opens our eyes to new things and helps us understand what the main elements are required for success
Respondent 5: yes and no at the same time. it is not the main element, but it plays an important role in developing one’s skills and knowledg
Respondent 1: According to me, education has a deep impact on return on earnings and on my occasion, I have earning more because of the college degree I have. In comparison to my friends having diploma I have more earnings so I feel there is positive relationship between the two.
Respondent 2: I feel there is no such positive relationship between education and return on earnings. Even though, I have done my diploma I am earning more than my friends having a diploma degree as we are working in different cities. I think there is difference in salary because of their potential capabilities and not their educational background.
Respondent 3: I strongly believe that spending more on education will provide better return as with higher qualification people develop different skills which is required for organizational success. In my scenario, I have been working as a manager and it is possible I have received a master’s in management. The degree has helped to develop certain skills necessary for being a manager.
Respondent 4: There is strong positive relationship between education and return on earnings. It is natural to say that people having more knowledge and degree are likely to get better job opportunities as they can fit into special skills required by the organization. Moreover, the change in the organizational setting has made it difficult for employees to remain static and constant growth is required for increasing their return on earnings.
Respondent 5: There is no relationship between the two factors and I am earning more than other employees having better educational qualification due to my ability to perform better. Moreover, as the standard of living is high in the cities people having less education prefer more money due to the cost of living. So, in many occasions they are paid more than high qualified candidates as they may agree to working in big cities with less compensation
Respondent 1: It improves and enhances the quality of staff, which in turn improves organizational performance
Respondent 2: It is a long-term investment in human capital that helps build efficiency, improve quality and generate added value for the organization
Respondent 3: It helps nurturing and developing the talents and skills of the employees
Respondent 4: It helps create material and spiritual need for staff satisfaction
Respondent 5: It helps in alignment of skills with personal and organizational goal
Respondent 1: I feel that there is a strong positive relationship between job mobility and higher education. The higher the educational qualification, the more is the opportunity of shifting to a better job opportunity.
Respondent 2: I don’t think higher education increases job mobility as with experience in an organizational setting and developed skills one can easily shift to a different job. A person has to be more talented than educated to have better job mobility.
Respondent 3: In my scenario I have experienced better job mobility due to my professional degree. I have got better opportunities and worked in different organization because of my degree.
Respondent 4: There is strong positive relationship between higher education and job mobility. It is obvious that people will get better job opportunities even they have higher qualification and better degree. I have seen people working in me are quite skilled but due to lack of a better degree they are left behind and others grab better job opportunities.
Respondent 5: I strongly disagree to this fact that higher education has something to do with job mobility. According to me, the employees having better skills, knowledge and experience gets better mobility in jobs.
Respondent 1: The influence of individual abilities and family background is massive to return to schooling. The people investing in better education are contributing to the society and overspill of knowledge. This will increase the overall productivity of the employees.
Respondent 2: It is impossible to measure the return as there are large number of non-monetary returns of higher education. I feel that individual abilities and family background influence return to schooling and there is a social impact attached to it. It uplifts the overall society when the number of knowledgeable person increases
Respondent 3: I think that individual abilities and family background will affect return to schooling. The increase number of educated people the society will increase the productivity and quality of lifestyle. Therefore, this will definitely affect return to schooling.
Respondent 4: I think that returns can be on different types, both monetary and non-monetary returns are high if family background and individual abilities are concerned.
Respondent 5: I feel that individuals’ abilities and their family backgrounds have deep impact on return to schooling. When we consider labor economics, it is seen that in ideal scenarios, organizations having more number of educated workers have a better productivity and compensation.
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Patterns and Keywords |
Count |
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Developing one’s skills and knowledge |
5 |
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Education has a deep impact on return on earnings |
3 |
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No such positive relationship between education and return on earnings |
2 |
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Improves and enhances the quality of staff |
5 |
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Higher the educational qualification, the more is the opportunity of shifting to a better job opportunity |
3 |
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It is impossible to measure the return as there are large number of non-monetary returns of higher education |
5 |
The key patterns in the qualitative data shows that education is necessary for developing one skill and knowledge. Education has a deep impact on return on earnings as higher the qualification better the compensation. However, it varies in different cities and larger cities have more impact than smaller cities. Moreover, productivity and efficiency can be experienced when there are more knowledgeable employees will an organization. This is known as knowledge spillover and various organizations have increased their productivity by using this. Job mobility is high when there is higher education as the employees have different skills so they are flexible enough to fit into different job roles in different organizations. One common thing about the data is that respondents feel that return to schooling is difficult to measure as there are both monetary and non-monetary returns to it. It not only facilities a particular human being, it improves the quality of human capital.
Conclusion
The objectives of th3 study will be linked with the data analysis to provide valid conclusions.
Objective 1: To analyze the relationship between the level of education and return on earnings
According to the findings of the study, it can be said that there is positive relationship between education and return on earnings. However, it is difficult to measure this as different human beings have different abilities so there is difference in pay due to their innate skills.
Objective 2: To explain the association among human capital theory and return to schooling
The human capital theory and return to schooling are deeply related as human capital theory examines factors essential for increasing efficiency and productivity of human capital and return to schooling has both non-monetary and monetary returns. The non- monetary returns include increase in productivity and efficiency of staffs due to increase in the number of knowledgeable employees.
Objective 3: To analyze whether the ability of respondents and family background impacts return to schooling
The findings also show that ability of the respondents and their respective family background impact return to schooling as both are essential components for increasing returns to education.
References
Abdullah, A., Doucouliagos, H., & Manning, E. (2015). Does education reduce income inequality? A meta?regression analysis. Journal of Economic Surveys, 29(2), 301-316.
Apple, M. W. (Ed.). (2017). Cultural and economic reproduction in education: Essays on class, ideology and the state (Vol. 53). Routledge.
Baker, B. D. (2016). Does money matter in education?. Albert Shanker Institute.
Blanchard, E.J. & Olney, W.W., (2017). Globalization and human capital investment: Export composition drives educational attainment. Journal of International Economics, 106, pp.165-183.
Blaug, M. (2013). Economics of education: A selected annotated bibliography. Elsevier.
Bonin, H. (2017). Economics of education.
Bowen, W. G., & Finegan, T. A. (2015). The economics of labor force participation. Princeton University Press.
David, H. (2014). Skills, education, and the rise of earnings inequality among the” other 99 percent”.
Gerdtham, U. G., Lundborg, P., Lyttkens, C. H., & Nystedt, P. (2016). Do education and income really explain inequalities in health? Applying a twin design. The Scandinavian Journal of Economics, 118(1), 25-48.
Goldin, C. (2016). Human capital. Handbook of cliometrics, 55-86.
Grossman, M. (2015). The relationship between health and schooling: What’s new? (No. w21609). National Bureau of Economic Research.
Herrington, C. M. (2015). Public education financing, earnings inequality, and intergenerational mobility. Review of Economic Dynamics, 18(4), 822-842.
Hodson, R. (2014). Workers’ earnings and corporate economic structure. Academic Press.
Kalfa, S., & Taksa, L. (2015). Cultural capital in business higher education: reconsidering the graduate attributes movement and the focus on employability. Studies in Higher Education, 40(4), 580-595.
Kolstad, I., & Wiig, A. (2015). Education and entrepreneurial success. Small Business Economics, 44(4), 783-796.
Psacharopoulos, G. (Ed.). (2014). Economics of education: Research and studies. Elsevier.
Spring, J. (2015). Economization of education: Human capital, global corporations, skills-based schooling. Routledge.
Stiglitz, J. E., & Rosengard, J. K. (2015). Economics of the Public Sector: Fourth International Student Edition. WW Norton & Company.
Woessmann, L. (2016). The economic case for education. Education Economics, 24(1), 3-32.
Level of Earnings and Education
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