Education, Human Capital Investment, and Innovation in the Contemporary Japanese Economy

Description

This book analyzes education in Japan from the viewpoint of “the stagnant current Japanese economy”. Tomoyuki Tamagawa, a long-time mathematics teacher in junior high school, is now a vice principal. He and Tamotsu Nakamura have written Chapter 1 of this book together because they believe that the loss of vitality in the Japanese economy is due to the problem of human capital formation in school education. Shinji Oi has worked for many years at a Japanese broadcasting station and has extensive experience in human resource development. In Chapter 2, he analyzes the relationship between optimal human capital investment and labor market mobility, based on his recognition of the importance of vocational training, or human capital investment at the firm and the necessity for good allocation of human resources. Tokuji Saita is well versed not only in the realities and practices in the financial industry but also in the financial system as a whole. In Chapter 3, based on his long experience in the financial industry, he analyzes and points out the importance of “openness” of innovation from a macroeconomic point of view. Preface Acknowledgments Contents About the Authors 1 Relationship Between Educational Attainment and Class Size: Effects of Teacher Resource Allocation 1.1 Introduction 1.2 Model 1.2.1 The Basic Setup 1.2.2 Relationship Between Pupil–Teacher Ratios and Educational Attainment 1.3 Simulation Analysis 1.4 Simulation Results 1.4.1 When Educational Attainment P Is Upward Sloping 1.4.2 When the Educational Attainment P Is Downward Sloping 1.4.3 When the Graph for Educational Attainment P Is U-Shaped 1.4.4 When the Graph for Educational Attainment P Is Inverted U-Shaped 1.4.5 Implications 1.5 Conclusion References 2 Investment in General and Specific Human Capital: Social Optimality via Labor Turnover 2.1 Introduction 2.2 The Model 2.2.1 Basic Setup 2.2.2 The Two-Period Setting 2.2.3 Investment Decision 2.3 Comparative Statics 2.3.1 Comparison of Investment Between Social Firms and Private Firms 2.3.2 Comparison of Profits Between Social Firms and Private Firms 2.3.3 The Effects of Turnover and Workers’ Bargaining Power 2.4 Relationship Between the Ratio of General Skill and Matching of Worker and Firm 2.4.1 Case of Social Firms 2.4.2 Case of Private Firms 2.5 Conclusion References 3 Necessity of Openness to Stimulate Innovation: An Investigation into Causes of Slow Innovation 3.1 Introduction 3.2 Arrangement of Innovation Concept 3.3 Optimal Allocation Between Disruptive Innovation and Sustainable Innovation 3.3.1 Economic Performance of Innovation 3.3.2 The Model 3.3.3 The Optimal Allocation of Innovation 3.3.4 Comparative Statics 3.3.5 Discussions or Implication 3.4 The Importance of Open Innovation 3.4.1 The Model 3.4.2 The Impact of Innovation Openness on Economic Performance 3.4.3 Discussion 3.5 Conclusions References