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Human Capabilities in Economics: Theory and Applications in Health and Labor

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Handbook of Labor, Human Resources and Population Economics

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Abstract

The paper provides an overview of applications of human capabilities analysis, as described by Sen, to issues in the economics of health labor development and economic growth. Section “Theory and Foundations” offers an accessible introduction to the outline of the theory focusing on functionings (doings and beings), experiential happiness, and capabilities and their production functions and definitions. The primary international policy impact, to the development of a human development index, is then described. Heckman’s contributions to the development of soft skills and parental investment, arguably the most sophisticated and mature econometric analysis that illustrates Sen’s concept of capability in a dynamic context, is introduced. A literature on Sen’s related work related to missing women gender empowerment is then discussed before moving on to a consideration of work on equality of opportunity and multi-dimensional inequality. The following two sections relate to economics on disability and old age that engages directly with Sen’s approach. The final section discusses briefly the economics of happiness and how this relates to the more structured Senian conception of human flourishing. The purpose here is to suggest the theory is a rich source of conceptual resources and offers useful tools for economists to understand different aspects of wellbeing and how they can be connected. The achievement of real-world impact and scope for use in research should not be underestimated and are of real value to economists interested in capabilities as skills or aspects of wellbeing.

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Acknowledgments

Responsible Section Editor: Kompal Sinha

The article has benefitted from valuable comments of the editors and anonymous referees. There is no conflict of sinterest.

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Authors and Affiliations

  1. Open University and London School of Economics, London, UK

    Paul Anand

  2. Paris School of Economics, Paris, France

    Andrew Clark

  3. Brookings Institute and University of Maryland, Washington, DC, USA

    Carol Graham

Authors
  1. Paul Anand
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  2. Andrew Clark
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  3. Carol Graham
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Corresponding author

Correspondence to Paul Anand .

Editor information

Editors and Affiliations

  1. UNU-MERIT & Princeton University, Maastricht, The Netherlands

    Klaus F. Zimmermann

Section Editor information

  1. Department of Economics, Macquarie University, Sydney, NSW, Australia

    Kompal Sinha

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Anand, P., Clark, A., Graham, C. (2023). Human Capabilities in Economics: Theory and Applications in Health and Labor. In: Zimmermann, K.F. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_358-1

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  • DOI: https://doi.org/10.1007/978-3-319-57365-6_358-1

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  • Print ISBN: 978-3-319-57365-6

  • Online ISBN: 978-3-319-57365-6

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