Human capital?

Mike Cole (mcole who-is-at weber.ucsd.edu)
Mon, 7 Jul 1997 09:37:59 -0700 (PDT)

This may be of interest.
mike
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4. NAS Human Capital Seminar Reenergizes Old Initiative =

Economists, psychologists, and behavioral and social scientists have all =

had a hand in shaping the concept of Human Capital, a term coined in =

the 1950s. More than 40 years later however, this initiative remains =

difficult to conceptualize on a research level and implement into =

successful programs. NAS took the plunge in organizing a day-long =

meeting to catalyze new interest in Human Capital. =

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5. Briefly Speaking
New HHS, NIH, and DOD Grants Announcements; NIMH Director Announces =

Reorganization Plan
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6. Dr. William Estes Receives National Medal of Science =

Former Federation Vice-President William K. Estes has been named the =

1997 recipient of the National Medal of Science. =

NAS Human Capital Seminar Reenergizes Old Initiative =

The concept of Human Capital has been around since the 1950's when the =

term was coined by economists Gary Becker, Ted Schultz, and Jacob Mincer. =

Psychologists worked from 1990 to 1995 to develop a six-part research =

agenda around the concept of maximizing human capital. That effort led =

to creation at the National Science Foundation of a Human Capital =

Initiative that is similarly arranged around six themes. Officials at =

the White House as well as members of Congress have been drawn to the =

concept and have been supportive of human capital programs. Despite =

these many investments in the Human Capital Initiative, it has been =

exceedingly difficult to light a strong fire under it. The reasons have =

been many: Inter- and multi-disciplinary research, as is called for in =

the initiative, is hard to conceptualize and hard to do well; that =

difficulty has been exacerbated by disputes about how basic or how =

applied research funded under the initiative should be; there have been =

contradictory fears both that the Initiative would draw resources from =

the core disciplinary research programs and that it would fail to be =

anything more than an alternative funding source for the core =

disciplines; and there has been unrest about who should "own" human =

capital--the economists who created the idea, the psychologists who moved =

it toward a research agenda, or behavioral and social scientists in =

general because, if the concept succeeds in advancing human capital, it =

will be their research that made it possible.

Despite these rough edges, nearly everyone sees the potential of this =

concept. Thus the quest for the formula that will catalyze the Human =

Capital Initiative has continued. In early June, the National Academy of =

Sciences held a day-long meeting exploring how human capital might be =

increased by focusing research on the period from infancy to adolescence. =

Springboarding from the recent White House conference on research on =

children and their developing brains, this meeting brought leading =

researchers from a spectrum of behavioral and social sciences to showcase =

knowledge now being yielded by cutting-edge research relevant to =

children. The impetus for the meeting came from Bennett Bertenthal, =

Assistant Director for Social, Behavioral and Economic Sciences at the =

National Science Foundation. It is in his Directorate that the Human =

Capital Initiative resides. It was Bertenthal's hope that the meeting =

would inspire other agencies to devote resources to advancing human =

capital through increased investment in research on children from infancy =

through adolescence. The meeting, "Human Capital Investments from =

Infancy to Adolescence," was managed by Deborah Phillips and her staff. =

Dr. Phillips is Director of the Board on Children, Youth and Families of =

the National Research Council's Commission on Behavioral and Social =

Sciences and Education. =

Dr. Bertenthal repeated Gary Becker's observation that 80 percent of a =

country's wealth is bound up in the knowledge and skills of its people. =

Thus, the investment made in children and their opportunities to develop =

knowledge and skills is an investment in the wealth of the nation. That =

being the case, it seems disproportionate that each year $500 billion is =

spent on services for children and adolescents, but less than $2 billion =

is spent on the child-centered research to assure that the $500 billion =

is spent effectively. =

Seven researchers presented their work over the course of the day. =

Psychologist Jerome Kagan began the presentations with an overview of =

centrally important research areas with respect to children. He noted =

that social class is of overwhelming importance in understanding child =

development, but not nearly enough is known about class. It affects =

level of preparedness for school, largely determines the quality of =

schools a child will attend, and heavily influences educational =

attainment and life success. He also suggested that too little is known =

about the relation of temperament to conduct disorders, and too little is =

known about how environmental factors shape the manifestations of =

temperament in conduct. In that vein, he urged that attention be paid to =

the development of methodologies that will allow us to accurately assess =

children's interpretation of their own experience. How a child will act =

and think as an adult may be dependent on the symbolic constructions =

children build up from their subjective experiences. Finally, Kagan =

urged the group to consider that while there may be some critical times =

in child development, there is no magic moment that sets a child's =

development. If environments change, people can change.

The Role of Schools

Economist Alan Krueger discussed the role of schools in producing human =

capital. His first observation was that almost no large-scale, =

controlled research on the relation between schools and their products =

has been done. Two exceptions are the Student-Teacher Achievement Ratio =

(STAR) study conducted on 11,600 students in Tennessee which looked at =

effects of classroom size and pupil-to-adult ratios--and a study of =

school vouchers in Milwaukee. The former study showed that smaller =

classrooms improved performance, especially in the first grade by about 5 =

percent and the effects were strongest for the most disadvantaged =

children. The addition of a classroom aide helped slightly.
The voucher study found that math scores were better for children who =

used vouchers to attend private school, but reading scores were slightly =

better for public school children. Smaller-scale research tends to find =

a small relationship between what Dr. Krueger termed "school inputs and =

school outputs." The most salient outcome of the research is that years =

of school correlates directly with earning power, adding about 10 percent =

for each year in school. Income is increased somewhat more by having =

attended a good school. Behind these general findings, however, is much =

variation along both regional and temporal lines. Moreover, the paucity =

of good large studies is accentuated by the near-non-existence of large =

longitudinal studies of effects of schooling. There is, therefore, a =

need for large, controlled studies of schooling that follow subjects =

through their lives and yield information not just about immediate =

effects of schooling but also about long-term outcomes.

Research on Low-Income Children's Health

Economist Jonathan Gruber focused on research related to improving the =

health of low-income children. One-fourth of the 40 million uninsured in =

the U.S. are children. And half the women and children in this country =

are eligible for Medicaid. While half the women and children in the =

country are not on Medicaid, there is a preventive effect of mere =

eligibility. It increases annual doctor visits by 50 percent and saves =

about 4,000 lives. The cost of saving a child under Medicaid is about =

$1.6 million. The value of an adult life is between $4 and $7 million. =

By that standard, Medicaid is saving lives at a reasonable cost. But =

another way to view the cost of a life saved is that the same investment =

would allow 300 children to attend Head Start. The key to making =

Medicaid most beneficial to children is targeting resources to those who =

most need them. But accomplishing such targeting is a huge challenge =

with no single best way to do it. It has been hard to identify children =

who would be unable to have alternative health insurance. Also, eligible =

women tend to be signed up for Medicaid by their hospital by the time =

they leave the hospital. Ideally, those who need Medicaid should be =

signed up before they enter the hospital. More research is needed to =

discover the combination of incentives and disincentives that will get =

those who need it onto Medicaid and keep those who have other means of =

paying for their health needs off of it.

The Developing Brain

Psychologist William Greenough discussed his research which established =

that experience causes brain development. In normal brain development, =

the young brain overproduces brain cells and connections. For example, =

the number of spines per unit of dendrite rises in the monkey's brain =

until eight months of age, and then decreases. Over time, the brain =

pares back these cells. The human frontal cortex adds synapses until =

about age eight and then begins to pare back. Experience influences what =

will be the appropriate number of cells and connections for a given =

brain. There are critical periods for some types of brain development. =

For example, artificial deprivation of sight in one eye early in =

development can cause permanent loss of vision in that eye. Such =

deprivation later in life will have no effect on ability to see. While =

there may be critical periods in some instances, experiences throughout =

the lifespan can increase the number of synapses. =

The quality of information to which one is exposed and that one acquires =

is reflected throughout life in the brain storage mechanisms. In Dr. =

Greenough's research, rats living in an enriched learning environment =

produced 20 to 25 percent more synapses per neuron than did rats in =

normal learning environments. Capillaries also change with the result =

that in enriched environments, more blood gets to each cell than occurs =

in normal environments. Greenough's research shows that physical =

exercise is also a factor in increasing vascular flow even in the brain. =

But intellectual stimulation is the important factor in increasing the =

number of synapses. The brain can be developed throughout life, but the =

greatest gains will come from starting early.

Language Development
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Psycholinguist Elizabeth Bates spoke on language development from cradle =

to grave. Her research on language development mapped well onto =

Greenough's picture of brain development in that language development can =

be a lifelong event. There is very rapid development during the period =

of brain cell overproduction early in life. And experience is critical =

in how this development proceeds. But the driver behind strong early =

language development can be simple. Parents who read and talk regularly =

to their children promote early language development. Between eight and =

ten months, babies have acquired speech perception and have begun to =

achieve word comprehension. By 12-13 months, they can produce words.
At 16-20 months, there is accelerated vocabulary acquisition. By 18-20 =

months, word combinations appear, and there is grammaticization by 24-30 =

months. This is the groundwork. Vocabulary expansion, reorganization of =

discourse, and improvement of access to words and grammatical structures, =

however, continue to develop throughout life. There are huge individual =

differences in pace of development, but there is enough evidence now that =

it is possible to construct the equivalent of growth-range charts for =

language development milestones.

A percentage of children have specific language impairments, and the =

impairments can be severe enough that language development deficits are =

greater with these children than with children who experience brain =

lesions through traumatic injury. It has been assumed that children are =

more able to recover from such brain injuries than are adults. But the =

only good study of resilience yields a U shaped function with the effects =

of lesions being much more critical between the ages of 1 and 4 than they =

are either before age 1 or after age 4. Language does not map easily =

onto the brain. Many areas control aspects of language, and how they =

interact is far from well understood. The current state of linguistic =

understanding points up a variety of research needs. More needs to be =

known about normal and abnormal neuroanatomy and physiology. Registries =

for rare disorders are needed so that these disorders can be studied. =

Shared databases need to be developed, and inter-site research conducted =

along with data pooling. In research, there needs to be a focus both on =

language acquisition and language development. For example, views about =

second language learning are based on little evidence. The research =

suggests that acquisition, use, and the influence of one language on the =

other are complex matters that are influenced by a host of factors that =

are not well understood. There has been too much reliance on English as =

the language for linguistic study when English is odd among the languages =

of the world. Our linguistic understanding needs to be based on research =

in many languages. Similarly, more computer-based simulations of =

language acquisition and development are needed. And researchers should =

emphasize the notion of brain plasticity in their work rather than =

artificially restrict their exploration with overly rigid notions of =

genetic determinism or critical periods.
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Cognitive Development

Cognitive psychologist Robert Siegler focused on cognitive development =

during the school-age years and used acquisition of mathematics concepts =

to illustrate his points. Dr. Bates summarizes a key finding of his =

research as "the rich get richer." Learning in general, and mathematics =

learning in particular, is like a series of overlapping waves. Through =

experience, children acquire a variety of ways to think about problems. =

The ways vary greatly in their level of sophistication, but once acquired =

become part of the repertoire of available tools. What separates one =

child from another (and one culture and one socioeconomic group from =

another it seems) is how early discovery of advanced ways of thinking =

occurs. What this suggests is that much of what one learns is the =

product of one's thought process. Typically, we approach a problem with =

a strategy. We take an action. That generates an outcome which, in =

turn, tells us something about our strategy. Children who start with the =

right strategy learn more and learn faster. Differences in the goodness =

of selected strategies can have little early effect in development of =

sophistication in mathematics, for example, but the effect cascades or =

snowballs over time. Thus, slow initial learning can substantially =

retard later learning. Studies show that there are socioeconomic =

differences in the U.S. (but not necessarily in other countries) in the =

early acquisition of sophisticated problem solving strategies. The U.S. =

overall has low mean performance in mathematics, however, suggesting that =

our general approach to teaching problem solving strategies may not be =

consistent with the best methods for advancing cognitive development. =

For example, although there is little difference between U.S. and Chinese =

children in mathematical performance at age three, there are tremendous =

differences by age 5, and those differences grow wider through the school =

years. =

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The implications for the U.S. include the need to afford children from =

low socioeconomic backgrounds many more early numerical experiences. =

Children in general should be encouraged to explain their underlying =

reasoning in approaching a problem, to explain why seemingly different =

strategies can bring one to the same end point, and why some seemingly =

plausible strategies don't work. When children explain to themselves why =

what is right is right and what is wrong is wrong, their learning =

improves. Dr. Siegler concluded that we fail to apply much of what we =

already know about cognitive development, and the large questions that we =

can describe but do not understand require more research.
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School-to-Work Transition

Sociologist Marta Tienda provided the final course in the day's =

intellectual feast. In looking at the school-to-work transition, she =

asked the audience to consider whether the country can overcome =

socioeconomic differences and to consider race and ethnicity in answering =

the question. Members of racial and ethnic minorities are =

overrepresented among the non-college bound, and thus among those of =

lesser economic means. Without much research to back it up, a =

presidential commission in the 1970's said there was value to employment =

in high school. Later reports discounted the importance of work in high =

school. So the notion of school-to-work and its role in education is a =

source of disagreement. Dr. Tienda emphasized the need to get beneath =

the surface statistics to begin to see the role of school-to-work in the =

development of human capital.

The gross statistics say, for example, that White youths arrive in the =

labor market earlier than Hispanic and Black youths. But that is the =

case only if work while in school is measured. If work of school-aged =

youths who are not in school is counted, then Hispanics, who tend to drop =

out of school earlier than other groups, also enter the labor market =

earliest. They are followed by Whites. Blacks are more likely than =

Hispanics or Whites to go to school and not work. By age 26, Blacks and =

Hispanics show a dip in full-time employment while Whites continue to =

rise. Early non-school associated entry to the labor market for Blacks =

and Hispanics can mean higher income early in work life, but lack of =

development of strong premarket work skills means that this advantage =

drops away quickly. Concentration on developing these premarket skills =

can mean a longer period of schooling but also a more effective labor =

market entry. A simple fact comes to the fore in the school-to-work =

transition discussion: The biggest human capital return comes simply =

from staying in school. That, and the fact that there are important =

racial and ethnic differences in schooling, skill acquisition, and labor =

force entry patterns must be taken into account in any research on the =

transition from schooling to work.
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The day's speakers demonstrated that human capital is a rich and =

exciting research concept. Will that enthusiasm result in equally =

enthusiastic creation of new human capital research opportunities? The =

Clinton administration's current interest in child-centered research =

suggests that such programs could enjoy favor right now. What is needed =

is a strategy for moving from an exciting meeting to equally exciting =

program implementation plans. =

Briefly Speaking

New HHS, NIH and DOD Research Grants Available

The Health and Human Services Department's Administration for Children =

and Families is inviting applications for projects to combat domestic =

violence. Funding available includes $50,000 for up to four 17-month =

projects to develop services for immigrant and migrant battered women; =

$75,000 for up to four 17-month projects to develop models for services =

to help victims of domestic violence applying for or receiving welfare =

move into the work force; $600,000 for first year funding of a =

cooperative agreement for a special issue resource center to help Indian =

tribes and tribal organizations deal with domestic violence and aid =

victims; and $75,000 per institution for each of four institutions to =

fund four fellowships of $11,250 and a faculty coordinator at $30,000.
Eligibility varies by priority, but generally state and local public =

agencies, territories, federally recognized tribes and native American =

communities, private nonprofit agencies, domestic violence advocacy =

organizations and coalitions; and, for training, historically black =

colleges and universities, Hispanic-serving institutions and tribal =

institutions.
For more information, contact Trudy Hairston, (202) 401-5319; James =

Gray, (202) 401-5705; or William Riley, (202) 401-5529, Administration =

for children and Families, Office of Community Services, 370 L'Enfant =

Promenade SW, Washington, DC 20447. Refer to OCS 97-07. The CFDA number =

is 93.592.

The National Institute on Aging has between $2.5 million and $3 million =

to fund Edward Roybal Centers for Research on Applied Gerontology. This =

funding will support six centers that foster translation of basic =

behavioral and social science research theories and findings into =

practical outcomes to benefit older persons. Domestic for-profit and =

nonprofit organizations are eligible. Letters of intent are due July 24; =

Applications deadline is October 24.
For more information, contact Jared Jobe, Behavioral and Social =

Research, National Institute on Aging, 7201 Wisconsin Ave., Room 533, MSC =

9205, Bethesda, MD 20892-9205; (301) 496-3137; fax (301) 402-0051; =

e-mail, Jared_Jobe who-is-at nih.gov. Refer to RFA AG 97-005. =

The National Institute on Alcohol Abuse and Alcoholism is seeking =

applications for FY 1999 awards for alcohol research centers to conduct =

interdisciplinary research on alcoholism and alcohol abuse. Three awards =

are available for a total of $1.7 million for both nonprofit and =

for-profit organizations, including universities and colleges. Deadline =

for letters of intent is Nov. 19, and Dec. 19 for applications.
For m ore information, contact Ernestine Vanderveen, Centers Program, =

NIAAA, Willco Bldg., Suite 402, 6000 Executive Blvd., MSC 7003, Bethesda, =

MD 20892-7003, (301) 443-2530; fax (301) 594-0673: e-mail, =

tvander who-is-at willco.niaaa.nih.gov. Refer to RFA AA 97-005.

The Department of Defense is seeking proposals to increase university =

research related to national defense by supporting purchase of costly =

research equipment. Approximately $45 million is available for FY 1998. =

Another $44 million will be awarded for FY 1999. Awards are for =

instrumentation in the $50,000 to $1 million range.
U.S. institutions of higher education with degree-granting programs in =

science, math or engineering are eligible to apply. Proposals from =

historically black colleges and universities are being encouraged. =

Proposals should address the impact of the equipment on the institution's =

ability to educate students through research in disciplines important to =

DOD missions. Funds are to be used to acquire major equipment to augment =

current or develop new research capabilities to support research in =

technical areas of interest to sponsoring agencies. Health and life =

sciences areas range from chemical and biological sciences in the Army =

Research Institute to cognitive and neural sciences and biological and =

biomedical sciences in the Office of Naval Research, to chemistry and =

life science, chronobiology and bioenvironmental sciences at the Air =

Force Office of Scientific Research. Application deadline is August 22.
For more information, contact Maj. Linda Steel-Goodwin, AFOSR/NI, 110 =

Duncan Ave., Room B115, Bolling Air Force Base, Washington, D.C. =

20332-8050, (202) 767-8069. For the full proposal see: =

http://web.fie.com/htdoc/fed/afr/afo/edu/text/any/afrdurip.htm. The =

announcement number is AFOSR BAA 97-3.

NIMH Reorganizing To Focus on Special Research Areas

NIMH Director Steven Hyman announced at the last NIMH Advisory Council =

meeting in mid-May that three new divisons are being proposed to more =

efficiently administer research in NIMH's special areas of emphasis. The =

three proposed divisions are the Division of Mental Disorders, Behavioral =

and AIDS Research; the Division of Basic and Clinical Neuroscience; and, =

the Division of Edpidemiology Services and Intervention Research. These =

new divisions will replace the current Division of Neuroscience and =

Behavioral Science; the Division of Clinical and Treatment Research; and =

the Division of Epidemiology and Services Research.
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Hyman said it was necessary to reorganize because science and public =

health needs are changing. Especially obvious is the change in health =

care delivery. He added that decisions are being made by corporate =

benefit managers and others who need a different kind of data. "It =

requires bringing both domains together," he said.

The reorganization will incorporate the four areas of research emphasis =

chosen by NIMH. They are as follows:
=F9Basic research in molecular biology, neuroscience, genetics, and =

behavior
=F9Translational research designed to speed new basic knowledge into =

clinical applications
=F9Controlled efficacy studies, real-world outcome assessments, and health=
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services research
=F9Focused policy-relevant research and targeted research dissemination =

activities =