Human Capital Accumulation and the Labour Market: Applications Using Evaluation Methods

Human capital accumulation and its effect on labour market outcomes have been in the focus of economic research for decades. Traditionally the economic literature suggests that there might exist several forms of human capital, where human capital represents the knowledge, skills and health embodied in individuals. Skills and knowledge are largely acquired through education and experience but may also reflect, in part, innate abilities. In addition, some aspects of motivation and behaviour, as well as attributes such as the physical, emotional and mental health of individuals are also considered as human capital. These activities are referred to as human capital because people cannot be separated from their knowledge, skills and health, in the way they are separated from their physical and capital assets. Human capital accumulation is an important determinant of individuals' earning capacity and employment prospects, therefore plays an important role in determining the level and distribution of income in society. Moreover, the costs of these investments include direct outlays on market goods and the opportunity cost of the time that must be withdrawn from competing uses. Apart from direct investments in human capital people could also invest in constructing a network of relationships for example to find a job. Until now all these aspects have been studied separately, in this thesis I try to reconcile them.