Work detail

Effects of human capital in developing countries

Author: Mgr. Jan Mouček
Year: 2015 - winter
Leaders: doc. PhDr. Julie Chytilová Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 59
Awards and prizes:
Abstract: Improving education and health of people living in developing countries is an often discussed
topic. We however know relatively little about the effects that investments into schooling and
improving the nutrition and hygiene of people in those countries have on their productivity at
work. This thesis investigates the effects of four variables representing investment into human
capital on income of individuals from Bangladesh and Indonesia. The four studied variables
are education, migration, height and Body Mass Index. The thesis aims at comparing results
of estimation using instrumental variables estimator with previous similar research. It tries to
observe possible differences in size of effects the human capital variables have. It finds
however that the instrumental variables used are of insufficient quality for the estimation to
yield reliable results. Because the instruments used were almost the same as in underlying
works and their quality has not been previously tested the conclusion of this thesis is that
further search for correct instrumental variables describing the human capital variables in
various countries around the globe is necessary.




Patria Finance
Česká Spořitelna