The value of human capital within Canadian business schools

Abstract

Purpose

The purpose of this paper is to empirically investigate whether an individual’s knowledge, skills and capabilities (human capital) are reflected in their compensation.

Design/methodology/approach

Data are drawn from university academics in the Province of Ontario, Canada, earning more than CAD$100,000 per annum. Data on academics human capital are drawn from Research Gate. The authors construct a regression analysis to examine the relationship between human capital and salary.

Findings

The analyses performed indicates a positive association between academic human capital and academic salaries.

Research limitations/implications

This study is limited in that it measures an academic’s human capital solely through their research outputs as opposed to also considering their teaching outputs. Continuing research needs to be conducted in different country contexts and using negative proxies of human capital.

Practical implications

This study will create awareness about the value of human capital and its contribution towards improving organisational structural capital.

Social implications

The study contributes to the literature on human capital in accounting and business by focussing on the economic relevance of individual level human capital.

Originality/value

The study contributes to the literature on human capital in accounting and business by focussing on the economic relevance of individual level human capital. It will help create awareness of the importance of valuing human capital at the individual level.

Citation

Velayutham, A. and Rahman, A.R. (2018), "The value of human capital within Canadian business schools", Journal of Intellectual Capital, Vol. 19 No. 4, pp. 836-855. https://doi.org/10.1108/JIC-06-2017-0086