Human Capital Theory

2100 Words Aug 16th, 2009 9 Pages
To what extent can Human Capital Theory provide a plausible explanation for inequalities in the labour market? Illustrate your answer with examples of labour-market segmentation tied to race or gender or social class.


Human capital theory can be identified as studies of organisations, individuals or nations which accumulates stock of productive skills and technical knowledge from study of investments (Becker, 1964).By following the judgement of human capital theory it can be said that it represents a path for the individual to develop his or her charisma to the labour market .Human capital theory is used as a analysis of theoretical frame , development of competence , formal education and job tenure probably are the
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Provisions such as results in working women or women workers being left with the last option that is into dead-end jobs, although first to lay off but still paid low wages, This overcome women’s incentive to remain in labour force to human capital. Treatment for the married workers in the family can be strengthen the traditional specialization of labour with in the statistical discrimination and household .From the perspective of Cigno (1994) there is existence of gender biases in various forms, more often in family treatment as a tax creates disincentives to work for women and taxation due to joint tends women to stay at home rather than separate taxation due to the higher marginal taxes that the earnings of worker which is considered secondary or usually, the wife attract .taxation if separated may increase incentives of women while working and might result in greater participation as compare to the husband in domestic activities.

Apart from this area Gustaffson (1995) believed that divorce laws not to oblige fathers to support their children. Additionally, the financial ability was lacked by women to access the courts .while enabled legal provisions that equal sharing of responsibilities and child care among parents, on work constraints women’s are relaxed and eased so poverty declined among mothers for an example authorities in Sweden serious attempts are made to identify the fathers to make them share the cost of finance for the child
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