A STRATEGIC PLAN FOR THE HUMAN CAPITAL INITIATIVE
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Table of Contents:
- Acknowledgements
- Executive Summary
- I. The Nature of the Problem
- II. Background to This Document
- III. The Contribution of Science
to Problems of Human Capital
- IV. An Agenda for Future Research
- V. Data Needs
- VI. Methodological Needs
- VII. Organizing a Research Strategy
on Human Capital
- VIII. Prospects for Success
in the Human Capital Initiative
- IX. Conclusion
- Appendix A: Employing a Productive Workforce
- Appendix B: Educating for the Future
- Appendix C: Fostering Successful Families
- Appendix D: Building Strong Neighborhoods
- Appendix E: Reducing Disadvantage in a Diverse
Society
- Appendix F: Overcoming Poverty and Deprivation
Acknowledgements
The views and comments contained in this document are not necessarily those
of the National Science Foundation, but are exclusively those of the
workshop participants.
This document was drafted by Rebecca Blank of Northwestern University. It is
a synthesis of the reports of working groups convened at the National
Science Foundation on March 17-18, 1994, and composed of invited experts on
human resource issues. The reports themselves are presented in the six
appendices. The working groups were charged by NSF to produce research
agendas for high priority areas in response to the Human Capital Initiative
launched by the professional associations in the behavioral sciences. The
principal objective was to create a strategic plan for basic research within
the Human Capital Initiative that encompassed the perspectives of the entire
social and behavioral sciences community.
The working groups were:
1. EMPLOYING A PRODUCTIVE WORKFORCE
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Report Drafter and Group Convener:
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Henry Farber, Princeton University (Economics)
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Participants:
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Barry Bluestone, University of Massachusetts (Geography)
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Daniel Ilgen, University of Michigan (Psychology)
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Arne Kalleberg, University of North Carolina (Sociology)
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Robert Kraut, Carnegie Mellon University (Psychology)
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Katherine Newman, Columbia University (Anthropology)
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Margaret Weir, Brookings Institution (Political Science)
2. EDUCATING FOR THE FUTURE
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Report Drafter and Group Convener:
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Jacquelynne Eccles, University of Michigan (Psychology)
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Participants:
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Karl Alexander, Johns Hopkins University (Sociology)
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James Heckman, University of Chicago (Economics)
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Charles Murray, American Enterprise Institute (Political Science)
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Ann Marie Palinczar, University of Michigan (Education)
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Barbara Rogoff, University of California, Santa Cruz (Psychology)
3. FOSTERING SUCCESSFIJI FAMTT TFS
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Report Drafter and Group Convener:
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Martin Whyte, University of Michigan (Sociology)
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Participants:
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Daphne Bugental, University of California, Santa Barbara (Psychology)
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Andrew Cherlin, Johns Hopkins University (Sociology)
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Sheldon Danziger, University of Michigan (Economics)
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Susan Hanson, Clark University (Geography)
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Ross Matsueda, University of Iowa (Sociology)
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Carol Stack, University of California, Berkeley (Anthropology)
4. BUILDING STRONG NEIGHBORHOODS
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Report Drafter and Group Convener:
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Ronald Mincy, Ford Foundation (Economics)
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Participants:
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Scott Bernstein, Center for Neighborhood Technology
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Frank Cancian, University of California, Irvine (Anthropology)
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Richard Freeman, Harvard University (Economics)
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Robert Sampson, University of Chicago (Sociology)
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Elaine Sharp, University of Kansas (Political Science)
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Jennifer Wolch, University of Southern California (Geography)
5. REDUCING D1SADVANTAGE IN A DIVERSE SOCIETY
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Report Drafter and Group Convener:
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James Jones, University of Delaware (Psychology)
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Participants:
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Francine Blau, University of Illinois (Economics)
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Lawrence Bobo, University of California, Los Angeles (Sociology)
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George Borjas, University of California, San Diego (Economics)
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Kenneth Meier, University of Wisconsin-Milwaukee (Political Science)
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Lawrence Hirschfeld, University of Michigan (Anthropology)
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Alexander Stepick, Florida International University (Anthropology)
6. OVERCOMING POVERTY AND DEPRIVATION
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Report Drafter and Group Convener:
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Rebecca Blank, Northwestern University (Economics)
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Participants:
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Lindsay Chase-Lansdale, University of Chicago (Psychology)
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Robert Hauser, University of Wisconsin (Sociology)
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James Johnson, University of North Carolina (Geography)
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Paul Peterson, Harvard University (Political Science)
Special thanks for their encouragement and guidance are due to Milton D.
Hakel of Bowling Green University, Chair of the Human Capital Initiative
Research Agenda Coordinating Committee; Cora B. Marrett, NSF Assistant
Director for Social, Behavioral and Economic Sciences; Jeffrey
Fenstermacher, NSF Executive Officer for Social, Behavioral and Economic
Sciences; Allan Kornberg, NSF Division Director for Social, Behavioral and
Economic Research; Alan G. Kraut, Executive Director of the American
Psychological Society; and Howard Silver, Executive Director of the
Consortium of Social Science Associations.
This document represents the joint efforts of the workshop committees and
NSF staff. We would like to thank NSF's Human Capital Initiative Organizing
Committee (Daniel Newlon, Economics Program Director & Chair; William
Bainbridge, Sociology Program Director; Merry Bullock, Human Cognition and
Perception Program Director; and Leslie Zebrowitz, Social Psychology Program
Director) and other NSF staff who participated in the workshop.
Executive Summary
The human capital of a nation is a primary determinant of its strength A
productive and educated workforce is a necessity for long-term economic
growth. Worker productivity depends on the effective use and development of
the human capital of all citizens, which means that schools, families, and
neighborhoods must function effectively. Unfortunately, there is substantial
evidence that the United States is not developing or using the skills of its
citizens as fully as possible. Only if the United States invests wisely in
its human resources will it be able to maintain its place in a global
economy where human creativity and human skill are increasingly more
important than raw materials or physical infrastructure
The document, "Investing in Human Resources: A Strategic Plan for the Human
Capital Initiative," lays out a research strategy on human capital issues
designed to increase understanding of the nature and causes of existing
problems and to evaluate the effectiveness of policies aimed at improving
the human resources of America's citizens. Past scientific research on
issues of human capital has made a significant contribution to the public
understanding of these issues as well as to the specific design of policy. A
coordinated, multi-disciplinary research effort, focussed on key theoretical
and empirical gaps in the scientific literature, promises substantial future
rewards.
Now is a propitious time to launch a major new human capital research
initiative. The research community is better prepared than ever before to
effectively undertake such an endeavor. The policy community has
demonstrated a rising interest in these problems and is increasingly looking
to the scientific community to help design and evaluate policies aimed at
human capital development.
A research agenda in six key areas is proposed.
1. EMPLOYING A PRODUCTIVE WORKFORCE
America needs a skilled workforce and the organization of the workplace must
fully utilize workers' skills. A human capital research initiative would
improve the scientific understanding of how individual behavior, group
interaction, and organizational structure relate to employment and
productivity. Among the key questions: How are workers and jobs effectively
matched? How are workers motivated to acquire new skills and how are the
skills demanded by employers changing? How are high-performance workplaces
best organized?
2. EDUCATING FOR THE FUTURE
Not all of America's youth are bemg adequately educated. Research focused on
education and development of human capital among youth can improve our
understanding of the human learning process and how it interacts with school
structure and organization. Among the key questions: How can students
sustain motivation to learn and perform in school? What organizational
reforms are effective in improving student achievement and developing skills
that foster life-long learning and productivity?
3. FOSTERING SUCCESSFUL FAMILIES
Families must provide children and adolescents with the resources to become
competent adults and productive citizens. Research focused on families can
improve our knowledge about the causes and consequences of recent radical
shifts in the structure of American domestic life. Among the key questions:
What is the effect of America's changing family structure on children's
development and behavior? What child/adult interactions within families most
impact children's development and result in successful parenting?
4. BUILDING STRONG NEIGHBORHOODS
A neighborhood environment can facilitate or inhibit the life chances and
human capital development of its residents. Research focused on
neighborhoods can improve our knowledge of the impact of neighborhoods on
their residents. Among the key questions: What are the neighborhood-level
social process that determine the nature of peer influences, criminal
behavior, employment or civic responsibility? How do neighborhood
organizations affect activities and future expectations of children and
adults?
5. REDUCING DISADVANTAGE IN A DIVERSE SOCIETY
America's population is growing in diversity. This creates challenges for
workplaces, schools, and public policy. Diversity is also closely linked
with disadvantage as certain groups are excluded from economic
opportunities. Research in this area can foster understanding of the nature
of diversity and help overcome the problems of disadvantage. Among the key
questions: How and why do humans categorize people into groups? What are the
consequences of categorization? What are the causes of group disadvantage
and how is it perpetuated?
6. OVERCOMING POVERTY AND DEPRIVATION
Problems of poverty and deprivation remain remarkably stubborn among certain
groups in the U.S. Research focused on poverty could better define and
describe the causes of poverty and help design and evaluate anti-poverty
efforts. Among the key questions: What economic changes are causing
deteriorating wages among less skilled workers? How have changes in families
interacted with changes in poverty in the U.S.? How do programs designed to
reduce poverty shape the lives of low-income families?
OTHER RESEARCH NEEDS
In addition to research on the above topics, expanded data collection and
the development of new methodologies would produce returns for researchers
from all disciplines who are involved in investigating human capital
formation and utilization. As our research knowledge expands, there is also
a need to create stronger bridges between the research community and the
community which designs, implements and evaluates policies that increase our
nation's human capital.
I. The Nature of the Problem
The human capital of a nation is a primary determinant of its strength. A
productive and educated workforce is a necessity for long-term economic
growth. Worker productivity depends on the effective use and development of
the human capital of all citizens. Schools must function effectively to
produce literate and skilled graduates. Families must function effectively
to nurture children and assist in their cognitive and emotional development.
Neighborhoods must be safe locations where children are raised and educated
and where individuals and families participate in the public and private
institutions that undergird the work of our society. Only if the United
States invests wisely in its human resources will it be able to maintain its
place as a dominant economic competitor in a global economy where human
creativity and human skill are increasingly more important than raw
materials or physical infrastructure.
There are disturbing trends in the United States today that indicate we are
not developing nor using the skills of our citizens as effectively as we
might. Workforce productivity has grown only slowly in recent decades.
Widening wage inequality between more and less skilled workers raises a
concern that some group of American adults are becoming increasingly
obsolete in today's economy. Growing racial and ethnic diversity within the
adult population has created social tensions that spill over into work
environments and limit economic opportunities for disadvantaged groups. Even
greater concern surrounds the preparation of today's youth for tomorrow's
workplace. On every international comparison of elementary and secondary
school achievement in mathematics and science, U.S. students perform worse
than students in most other industrialized countries. Substantial changes in
America's family structure and functioning also raise questions about how
well families are providing children with a secure environment in which to
mature and learn. The overall litany of social problems that appears daily
on the television screen only underscores these concerns further: problems
of crime and violence, particularly among youth; a large underground economy
in our nation's cities; continuing economic inequality between different
racial and ethnic groups; and stubbornly high levels of poverty,
particularly among children and single mothers.
In response to these concerns, this document lays out a research strategy,
designed to increase understanding of the nature and causes of these
problems and to develop the tools and data necessary to evaluate the
effectiveness of policies aimed at improving the human resources of
America's citizens. It proposes a coordinated, multi-disciplinary approach
that is designed to advance knowledge across a broad spectrum of
interconnected issues.
II. Background to This Document
The National Science Foundation's mission statement calls for it to work for
the advancement of knowledge for the benefit of humankind. This includes
exploring the social and economic world as well as the natural and physical
world. NSF has long been deeply involved in the development of human capital
through its work to improve science and mathematics education. The creation
of the Directorate for Social, Behavioral, and Economic Sciences was
intended to provide a more coherent research approach to scientific
questions best addressed by the social and behavioral sciences. The
formation of this directorate positions the NSF to take the lead in
developing a research agenda that will generate knowledge useable by both
the public and private sectors in their efforts to develop the nation's
human capital.
Interest in human capital issues has grown substantially in both the
scientific and the public realms. In 1990, a coalition of professional
associations in the behavioral sciences came together to propose a research
agenda for their members. They named this the Human Capital Initiative, and
it has received widespread interest and political support. For example, the
Senate Committee on Appropriations was "pleased to see that the behavioral
and psychological sciences communities have produced a comprehensive vision
for research in their disciplines called the human capital initiative." This
document builds on these efforts within the behavioral sciences, expanding
the Human Capital Initiative to include a broader range of issues from both
the social and behavioral sciences.
III. The Contribution of
Science to Problems of Human Capital
Given these widespread concerns with the use and development of our nation's
human resources, the amount of research funding available to study the
conditions that better facilitate or constrain human capital resources is
amazingly small. Within the National Science Foundation, only 3.2 percent of
the FY 1994 budget for research and related activity went to the Division of
Social, Behavioral, and Economic Research, and only a limited share of that
money went into research on problems directly related to human capital
issues.
Yet researchers who work on issues of human capital, from employment to
schools to families, have made significant contributions to the public
understanding of these issues as well as the specific design of policy. Much
of this work is well-known within the scientific community because it has
frequently used models, tools, and research methodologies that advanced
theoretical and empirical agendas within specific disciplines. An indication
of the scientific prominence of this work is exemplified by the recent Nobel
Prize awarded to Gary Becker at the University of Chicago, who popularized
the term human capital within economics, and whose work on rational models
of individual decision-making has influenced researchers throughout the
social and behavioral sciences.
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Listed here are a few examples of the many research areas where scientific
analysis has shaped our current understanding of human capital problems.
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Example 1: Labor market research has described the recent
deterioration in wage rates and long-term earnings opportunities for
less-skilled workers. These changes have been causally related to the
growing internationalization of the U.S. economy, changing technologies in
the workplace, and changes in labor market institutions. This research has
provided direction for the current policy discussion about job training
programs and wage subsidies for low-wage workers.
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Example 2: A substantial number of studies carried out at the firm
level indicate a clear link between profit sharing and productivity. There
seems to be a much weaker relationship between productivity and other
compensation and ownership arrangements (such as employee stock ownership
plans), however. The private sector is paying close attention to this and
other research on how workplace structure and organization affects
productivity.
Example 3:Research on the impact of single-parent families shows
that children from these families have substantially higher high school
dropout rates and out-of-wedlock childbearing rates than children raised
in two-parent families. The greater poverty and economic insecurity of
single-parent families is the most important factor in accounting for
these differences; the differing amount of time parents in different
family structures spend with children is also important. This research has
motivated growing interest in improved systems of child support collection
from absent parents.
Example 4: An ongoing body of research has explored what matters
about schools, classrooms, and teachers for student achievement. These
studies indicate that children learn more in schools that are integrated
into the community and have close connections with families, businesses
and other community institutions. These studies have also shown that
schools are more likely to improve children's educational outcomes if they
target specific problems and encourage broad participation in the planning
and implementation of reforms. This work has been widely cited in the
ongoing discussion about school reform.
Example 5: Research has demonstrated that criminal events are
disproportionately concentrated in certain neighborhoods and ecological
places (such as taverns or parking lots.) This evidence on crime
"hotspots", combined with other criminological research on the importance
of informal social control in local communities for reducing crime, has
led to major changes in recent police practice. Many cities are now
implementing community policing strategies that stress the involvement of
local residents and pay attention to the geography of the neighborhood and
the location of crimes.
Example 6: The social sciences have defined and measured labor
market discrimination by determining when pay and occupational differences
exist that cannot be accounted for by measurable productivity differences
or differences in qualifications. This research has been highly
influential in determining the standards of statistical evidence the
courts have used in employment discrimination cases.
IV. An Agenda for Future Research
This report identifies six areas of substantial research importance, where
further work in the social and behavioral sciences promises significant
returns. A more extended discussion of the research agenda in each of these
areas is available in six attached appendices to this report. The research
agenda in each of these areas has emerged from consultation with a broad
group of social and behavioral scientists. This section summarizes some of
the key issues for future research within each topical area.
1. Employing a Productive Workforce
If America is to remain competitive in the world economy, American
workers must have the skills required to compete effectively. It
is also essential that the strategic decisions of firms and the
organization of the workplace be conducive to full utilization of
workers' skills. Future research in this area can improve our understanding
of how human behavior, group behavior, and organizational structure
relate to employment and productivity. Such work can have a substantial
effect on the private sector as it works to design and staff workplaces
for the future that are productive and that support a reasonable
quality of life for workers and their families. Appendix A lays out a more detailed future research
agenda in this area, including investigation into such issues as:
Effective matching between workers and jobs. Effectively matching
workers into jobs where they can best use their skills and talents is
important in fostering productivity. For instance, the process by which new
workers find jobs is only partially understood, and more should be known
about the role of social networks, the provision of employment-related
information in the schools, or the role of public training and placement
efforts. Similarly, we need to know more about the ways in which older
workers can most effectively find new work and/or train for new skills when
displaced from their jobs.
Skill acquisition among workers. The acquisition of skills by workers
is highly important in helping them move through a career and cope with
changing skill demands in the workplace. More work needs to be done to
understand how workers are motivated to acquire new skills, the changing
nature of skill demands, and the types of programs that foster skill
acquisition.
Effective organization of the workplace. The workplace takes inputs
(human and physical capital) and transforms them into outputs. Vast changes
in modern workplaces have raised a host of new issues about this process,
however. Concern with the need for high-performance workplaces has made it
imperative that we understand better how individual workers respond to
incentives, and what type of management and organizational systems produce
greater worker efforts and worker satisfaction.
2. Educating for the Future
Not all of America's youth are being adequately educated for the
future, as indicated by the poor performance by U.S. students on
standardized tests, high school drop out rates and extensive criticism
of the public schools. Schools face increasingly difficult challenges
in preparing a wide range of students to be productive and involved
citizens. For instance, violence is a major concern inside many
schools; growing population diversity means schools must cope with
issues of multiculturalism, bilingualism, and racism; changes in
family structure suggest that children are receiving less help and
support at home for their school work. Appendix
B lays out a more detailed future research agenda in this area,
including investigation into such issues as:
Sustaining motivation among students to learn and perform well in
school. Researchers have documented the importance of motivation for
learning. There is evidence that both student and teacher motivation
declines over time in the schools, however. We need to understand the nature
of the activities that occur in the classroom, and how specific
student/teacher, student/student, and student/curriculum interactions help
or hinder learning. We also need to understand more about how school
activities relate to other activities and events in children's lives,
particularly family and peer influences.
Making educational systems more effective. While there is widespread
agreement that our current public school system is not working as it should,
there is little agreement about how to improve this situation. For instance,
we need to understand more about the link between what is learned in school,
the skills needed in work settings, and how those skills are acquired.
High-quality evaluations of a number of new or proposed school reform
efforts would provide better direction for future reforms. We also need good
research on how school reforms can be most effectively implemented, and the
nature of the barriers that hinder the adoption of new procedures within
schools. Finally, we need to know more about how to nourish the intellectual
and cognitive potential of our best students and how to maximize educational
benefits of college and other post-high school training.
3. Fostering Successful Families
Families play a pivotal role in the creation of human capital. Families
must be able to provide children and adolescents with the resources
to become competent adults and productive citizens and (eventually)
to be effective parents themselves. American families are undergoing
radical changes, however, and there is concern that today's children
are not being nurtured as effectively as in the past. More limited
economic opportunities are putting new stresses on lower-income
families, while the growing number of single-parent families at
all income levels is creating a new set of challenges and potential
problems for parents and children. Appendix C lays out a more detailed future research
agenda in this area, including investigation into such issues as:
The new demography of families. While a vast amount of research has
studied changes in the composition and behavior of American families, there
is still much we do not understand about these changes. The causes of
changing marital and fertility patterns are still only partly understood.
Researchers are only in the beginning stages of understanding how increases
in divorce, rising non-marital fertility, and other changes in family
composition are affecting America's children.
The internal world of the family. One of the most important
determinants of children's development is their intimate emotional and
interaction patterns with other family members. We need to spend more time
studying successful families, looking at how a child interacts with other
family members as he or she goes through various maturation stages. Are
there particular times or transitions when the quality of family
interactions is especially crucial for healthy development? Why are some
children more resilient to family problems than others? Continuing research
about families that exhibit serious problems, such as sexual abuse and
family violence, is also important in understanding how to help children and
adults cope with and overcome these destructive experiences.
The value of social capital for human capital development. Families
are imbedded in complex social relationships with other individuals,
families, and institutions. A family's social capital is the set of
resources and opportunities that exist through its relationship with other
individuals and institutions. We need to understand the ways in which
families create and maintain social networks with extended relatives and
friends or use the resources of local community organizations. We also need
to understand how these networks foster the development of skills among
children and adults.
4. Building Strong Neighborhoods
Neighborhoods and the capital they contain (both social, physical,
and human capital) strongly shape social networks and the daily
activities of local residents. A neighborhood environment can facilitate
or inhibit the life chances of its residents. As our society becomes
increasingly urban and segregated by race, class, and income, the
neighborhoods may be increasingly important in shaping the opportunities
of their residents. Research on neighborhoods includes looking at
the importance of social networks among geographically proximate
adults and children, the role of neighborhood organizations and
institutions on the lives of residents, the negative effects of
crime, decaying housing, or gangs within a neighborhood, and the
causes of local economic development. Appendix
D lays out a more detailed future research agenda in this area,
including investigation into such issues as:
Neighborhood change. Neighborhood change has typically been viewed as
evolutionary, proceeding through specific stages. More expanded and
multivariate models need to be developed, focusing on such issues as the
rapid industrialization of previously rural communities, the role of
financial and land development sectors in influencing neighborhood change,
or the role of increasing ethnic diversity in neighborhood change.
Neighborhood social processes. We need to understand the processes
that occur within the confines of the neighborhood, such as peer
interactions, or street level social control exerted by gangs or by
neighbors. We also need to understand the interaction between neighborhoods
and their larger environment, such as population migration, diffusion of
social norms and practices between areas, or the interaction between
neighborhood institutions and larger economic and urban institutions.
Neighborhood organizations. Neighborhood organizations are important
in developing human capital among residents. We know too little about the
long-term effects of the involvement by neighborhood residents in such
activities as local political parties, youth centers, or religious
institutions.
5. Reducing Disadvantage in a Diverse Society
America is and always has been a society of diverse peoples. Growing
immigration has led to increases in diversity in recent years. Diversity
has been linked to disadvantage as certain groups, identified by
race or ethnicity, have long faced different economic opportunities
and outcomes, limiting their contribution. To develop the human
skills of all citizens of this country, we need to find ways to
meet the social challenges that diversity represents. Appendix
E lays out a more detailed future research agenda in this area,
including investigation into such issues as:
The nature and consequences of diversity. The tendency to categorize
people into groups is fundamental to the human species. We need to
understand better how people categorize different ethnic, racial, and gender
groups. Potential insight into policies that address the problems of
diversity can emerge from research into how individual perceptions of social
categories are changed, including the role of interpersonal contact, the
expressed opinions of public leaders, and the role of the mass media.
Understanding group disadvantage and its effects. We know that groups
differ in outcomes ranging from education, to income, to health status.
While we are able to document the direct role of discrimination in producing
disadvantage in some of these areas, we have had less success in
understanding how discrimination and disadvantage overlap and reinforce each
other. For instance, there is often a marked difference between what is
judged discriminatory by different persons and groups. We need to better
understand the persistence of behaviors that are categorized as
discriminatory, as well as the development of perceptions of discrimination
by disadvantaged groups. At the level of the individual, we need to
understood why some persons are better able to cope with and overcome
disadvantage and discrimination in their background, while others are
blocked by it.
Economic and political influences on group disadvantage. Not all
group outcome differences are due to current discrimination. The impact of
past disadvantage and discrimination have left some groups more vulnerable
to economic and social change. By better modelling and measuring the impact
of economic change on more disadvantaged families, we can develop a clearer
idea of how disadvantage is perpetuated. Similarly, we need to explore the
differential impact of government policies designed to correct disadvantage
on different groups.
6. Overcoming Poverty and Deprivation
Problems of poverty and deprivation have been remarkably stubborn
in the United States. In 1992, 37 million Americans (14.5 percent
of the population) lived in families whose income was below the
U.S. poverty line. Other problems of deprivation, beyond income
poverty, may be even more disturbing: growing homelessness, rising
incarceration rates due to violence and drugs, or high illiteracy
rates. Scientific research on poverty and deprivation has helped
to better define and describe the causes of poverty and has been
instrumental in both designing policies to combat poverty and in
accurately evaluating their effectiveness. Appendix
F lays out a more detailed future research agenda in this area,
including investigation into such issues as:
Jobs and the changing economy. Real wages in low skilled jobs have
fallen steadily, increasing concern about prospects for the working poor. We
do not yet fully understand the causal forces behind these changes. Further
research is needed to model and measure the effect of changes in
international product and labor markets on less skilled U.S. workers. We
also need to better understand the incentives that drive the working poor,
as well as the barriers and disincentives that affect those who don't work.
Such research could investigate how demographic changes in family structure
relate to long-term trends in labor market participation by different gender
and ethnic groups.
Families and poverty. Families serve as the primary social
institution that nurtures children and prepares them for adulthood. Research
indicates that family poverty negatively affects the cognitive and emotional
development of children. Further research in this area could focus on the
causes and consequences of the growing number of single mothers, particular
those who are never married, where we know too little about the causes of
teen pregnancy or how to prevent it. Similarly, we understand too little
about family-level differences that produce wide differences in
child-related outcomes among low-income families. Some children from poor
families become effective and successful adults while others develop serious
emotional and behavioral problems. More attention to the parenting
strategies associated with resilient and effective children is necessary.
Institutions, policy and poverty. Individual behavior is shaped by
government institutions and policies, such as education, criminal justice,
transportation and political systems, as well as key government programs
like social security, welfare, or tax systems. We need to learn more about
the way in which programs designed to reduce poverty actually shape the
lives of low-income families. Among other things, this includes attention to
school effectiveness, to welfare and income transfer programs, and to
criminal justice institutions and policies.
V. Data Needs
Our research on human capital issues is limited by the data available. There
are several key areas where additional attention to data set design and
collection could provide substantial scientific rewards.
The extension of longitudinal data sets. Over time, persons invest in
skills, form families, and make employment decisions. While point-in-time
data on individual behavior is useful, many of the human capital questions
discussed in this report demand longitudinal data. Existing longitudinal
data sets have vastly increased our knowledge of dynamic behavior. Their
ongoing collection and extension is crucial. For instance, we are just
beginning to have enough data within the Panel Survey of Income Dynamics to
relate childhood family characteristics to the labor market outcomes of
young adults 10 to 15 years later.
Collecting data from multiple sources with multiple perspectives.
Research on human behavior is complex because human beings are affected by
so many external forces. Much of our data focusses on limited aspects of
human behavior. For example, economists tend to collect data on income and
employment; sociologists focus on family and neighborhood environments;
psychologists ask about mental and cognitive functioning. More data sets
need to link information from multiple disciplinary perspectives. This may
mean including economic and psychological measures on individual surveys,
and linking this with external data on neighborhood and school
characteristics, as well as the workplace where individuals are employed.
Only with this sort of multiple-source and multiple-perspective information,
can we effectively investigate the linkages between individuals and
families, families and neighborhoods, and families and public or private
institutions.
Embedded studies, that merge alternative forms of empirical analysis.
Some of the most promising new empirical work in recent years has used
multiple empirical techniques, administering large-scale individual surveys
of employment and family behavior while also directing more intensive
interview techniques to a subset of the survey population. For instance,
researchers may use focus groups, psychological methods, or ethnographic
work to gather more nuanced and complete individual information as a
supplement to standard survey results.
VI. Methodological Needs
Methodological limitations also constraint research on human capital issues.
Across the social and behavioral sciences, there is a need for greater
development of our theoretical and analytical tool-kit to analyze key
questions.
Analytical techniques for dynamic questions. Questions about dynamic
behavior require complex modelling and empirical techniques, that estimate
the effect of multiple events in a persons' past history on current
behavior. While our understanding of time-dependent analysis has greatly
increased over the past few years, there are still serious limits to what we
can do. Expanded methodologies for dynamic modelling would provide much
clearer answers to questions about sequential employment and promotion
patterns, movements in and out of schooling and training among younger
workers, or changes in family composition over time.
Models that link individual behavior to family and environmental
characteristics. Providing better policy prescriptions from research on
human capital issues requires better modeling of the simultaneous nature of
the interactions between individuals and their families. It also requires
the development of better models that link micro-level development and
decision-making processes among individuals with the macro-level
institutions and environments with which individuals interact.
Improved techniques for policy evaluation. There has been steady
progress within the social and behavioral sciences improving the
methodologies that are available to evaluate the effectiveness of political
interventions. Further development in this area is necessary, however, as
new work continually uncovers methodological difficulties with past
evaluation strategies. The use of experimental random-assignment techniques
to evaluate social programs has flourished in recent years, and further
expansion of this methodology to new settings may produce substantial new
knowledge. Yet, in many cases experimental evaluation is not possible; much
developmental work remains to be done to provide a base of knowledge about
how to effectively evaluate policies when random assignment is not possible.
VII. Organizing a Research Strategy on Human Capital
A coordinated strategy for major new research on human capital issues will
necessarily have many components.
Individual research projects within disciplines. The core of any
research initiative is top quality scholars with the interest and background
to conduct useful research on human-capital related questions out of their
disciplinary perspective. Funding individual research projects by one or a
small group of within-discipline collaborators is central to encouraging
scholars to become engaged in human capital-related research.
Research centers or research networks. While much good work is done
by scholars working on their own, it is often useful to fund groups of
scholars who may not be collaborating on single projects, but whose work and
research interests overlap. Any such funding should be explicitly designed
to include researchers from a variety of disciplinary perspectives. While
this traditionally means providing funds to a university which then serves
as the geographic location for a research center, those involved in these
centers should include researchers from other locations as well.
Graduate training programs. Attracting the best young scholars into
active research on human capital questions throughout the social and
behavioral sciences is the best way of encouraging long-term scientific
interest in this topic. Some of this occurs when students are hired to work
as research assistants for senior scholars funded through the initiative.
There may also be a role for graduate training programs aimed at attracting
and training young scholars, such as the one currently funded by the NSF on
race and urban poverty issues. Run jointly by two universities, it is
designed to supplement the disciplinary training of graduate students in the
social sciences.
Data collection efforts. In addition to specific research projects,
building the tool-kit of scientists through improved data is important.
Section V of this report lists some key data needs with regard to human
capital research. Any research strategy should involve expanded data
collection efforts, with priority to data that can be useful in a broad
range of research questions.
Multi-disciplinary coordination. Any research strategy should
explicitly work to expand conversations and research networks across
scholars working on similar problems from different disciplinary
perspectives. This will provide opportunities to share results, to talk
about different theoretical and methodological perspectives, and encourage
future collaboration.
Dissemination of research results in the policy community. One of the
primary reasons to undertake the human capital initiative is its close
connection to key policy concerns. Any research strategy should promote the
dissemination of research results within public forums, help establish
networks and conversations between policy-analysts, policy-makers and
researchers, and find ways to assure that the policy world is aware of
scientific advances with regard to our understanding of human capital
issues.
VIII. Prospects for Success
in the Human Capital Initiative
There are a variety of reasons to believe that this is an extremely
promising time to launch a major research agenda on human capital issues. In
particular, the research community is better prepared than ever before to
effectively undertake such an initiative and the policy community is better
prepared to effectively utilize the results of the new research findings
such an initiative would generate.
There is rising social concern with these problems. Recent years have
seen a resurgence of attention to issues of stagnant productivity,
inadequate worker skills, and related social problems of families, schools
and neighborhoods. Both growing concern with economic competition from
abroad and rising awareness of social problems in this country has fueled an
expanded public discussion of the problems of inadequate skills and
underutilized (or misutilized) human resources in America.
Policy-makers are increasingly consulting with the social and behavioral
research community in their work. The social and behavioral sciences are
more closely involved with the policy community than ever before. In part,
wanting to know which policies have worked and which have not, the policy
world has turned to the scientific community to design and implement
evaluation studies. In part, this is due to the growing number of persons in
policy-related positions who have training in the social and behavioral
sciences due to the growing popularity of masters degrees in public policy
analysis. Finally, stronger connections between the scientific and the
policy world reflect the emergence of a number of applied policy research
and advocacy organizations, who disseminate research findings and link
researchers with policy analysts.
There is rising interest in the research community about these
topics. The number of social and behavioral scientists working on
human-capital related topics has grown in the social and behavioral
sciences. In part, this is because rising social interest in these problems
has fueled a rise in scientific interest. In addition, the availability of
new data sets and new research questions relating to human resources and
human capital has produced research on the cutting edge of theoretical and
empirical analysis in a number of disciplines. This in turn has attracted
younger scholars into the field.
There is rising interest in coordinated and multi-disciplinary
conversations on these topics. Over the past several years, a variety of
multi-disciplinary groups have been formed to work on some of these issues.
For instance, the Social Science Research Council brought together a broad
group of social and behavioral scientists to study extremely poor urban
ghetto neighborhoods in the late 1980s, generating a series of new research
studies and data collection projects. These projects have created research
networks among scholars in different disciplines interested in human capital
questions and increased the general interest throughout the research
community in such shared conversations.
IX. Conclusion
This report proposes a research strategy to launch the human capital
initiative within the National Science Foundation. The NSF is particularly
well positioned to coordinate this effort, with the establishment of the new
Division of Social, Behavioral, and Economic Research. The impetus for this
initiative comes out of growing social concern over this nation's inadequate
utilization and development of the human capital of its citizens, and the
awareness that better use of our human resources is necessary to maintain
the long-term economic strength and social health of this country. Past
research in this area has been used extensively in the design of policy and
in the public understanding of these issues. Further research, particularly
a major coordinated research effort that engages top quality scientists in a
wide variety of questions relating to the development of human skills and
human resources, promises large future rewards. A research agenda in six key
topical areas is developed in this report, along with proposed directions
for the organization and implementation of the research strategy. To be
successful, such an initiative will require expanded resources. If
successfully implemented, however, this research strategy can help further
the development and effective utilization of America's human resources.
INVESTING IN HUMAN RESOURCES
Appendix A: Employing a Productive Workforce
Appendix B: Educating for the Future
Appendix C: Fostering Successful Families
Appendix D: Building Strong Neighborhoods
Appendix E: Reducing Disadvantage in a Diverse
Society
Appendix F: Overcoming Poverty and Deprivation