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The Role of Human Capital in the New Global Economy - Essay Example
Pages 5 (1255 words)
The role of human capital in the new global economy Table of Contents Introduction 3 The role of human capital in the new global economy 3 Conclusion 6 Reference 8 Introduction Since the last twenty years, both the European and the American labour markets have confronted with serious problems…
It is seen that human capital plays a major role in the labour market developments in nations. This emphasizes on the role of labour market institutions across the world. The idea is to remove the possibilities of skill shortage or skill crisis which forms one of the most critical components of a productive economy (Davis & Reeve, “Human capital and the global economy”). The role of human capital in the new global economy It is seen that with the growth of the population towards their age of retirement, nations tend to face a shortage of labour. The economy faces a labour shortage crisis which fails to meet the desired level of skill requirement of the society and economy on the whole. Thus it is crucial that nations maintain a certain amount of skill within the economy which meets its output and productivity requirement. In other words nations need to maintain a balance in their labour markets (Turner, “Executive Summary”). Technological advancement has also played a significant role in the increasing competitiveness of nations. Moreover it forms a primary component behind the competitiveness and competitive advantage of nations in the international market. ...