The Human Capital Hypothesis

Discussion: Can Engagement Strengthen the Economy?

February 16, 2012
In September 2011, “Civic Health and Unemployment: Can Engagement Strengthen the Economy?” was released. It found that states and cities with higher civic engagement rates saw less growth in unemployment during the height of the recession. One reason this might exist is the “Human Capital Hypothesis.” The hypothesis, as printed in the brief, states:

Participation in civil society can develop skills, confidence, and habits that make individuals employable and strengthen the networks that help them to find jobs. Fifty-nine percent of volunteers in national service programs believe their service will improve their chance of finding jobs. National service participation has also been found to boost “basic work skills, including gathering and analyzing information, motivating coworkers, and managing time.” Middle school and high school students who participate in service-learning during class or who serve in school government succeed much better academically than peers with similar backgrounds. Many individuals owe their employment to fellow members of social or civic groups or have learned their most marketable skills in national and volunteer service. National service itself can engage the unemployed in productive work at low-cost through existing networks of community-based nonprofits.



We want to hear from you: Do you agree or disagree with this hypothesis? Why? Do you have data or stories that illustrate this story? Please share them.

In the “Continue Reading” section below, you can scroll through and comment on the other hypotheses we’ve proposed about why this connection exists.
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