The effect of human capital and gender difference of employees on participation in decision making high positions: a study reference to Eheliyagoda Pradeshiya Sabha area in Sri Lanka

Abstract

Introduction :

In an economic perspective, capital refers to factors of production which are used to produce goods and services. In a broad sense, the concept of capital is semantically a mixture of human capital and physical capital. Human capital is concerned as a production element which could generate added-value to production. The theory of human capital emphasizes that accumulation of human capital among the workforce which enhances labor productivity and increases their earning. Hence, accumulation of human capital largely affects the growth of wage rate and firms’ productivity which finally contributes to national economy (Denison, 1962 and Schultz, 1961).

Human capital investment choices play a major role on differences in human capital accumulation of males and females which leads to gender differences in occupation (Barron et al., 1993). There is no variation in investing in human capital between males and females at the initial stage of human capital formation among the labor force in Sri Lanka. However, there are gender differences found in the decision making role between males and females in higher positions (Bandle and Whilhelm, 2007). These gender differences has two dimensions. A study by Gayle et al., (2012) showed that the uncertainties of employers regarding the capability of females reduce their probability to be hired to high positions compared to males. Edirisinghe (2008) shows that though females have the abilities similar to the male such as efficiency, decision making skills, they are in fewer decision making positions compared to males in Sri Lanka. Jayaweera (2008) found that the decision making power of females in some services is too low compared to males in Sri Lanka, especially in planning, science and technology, education, administration, local income service, accountancy and legal sector services.

The previous studies relating to Sri Lanka do not empirically examine the relationship between gender differences in decision making higher positions and gender differences in investing in human capital. This is the research gap that this study attempts to fill.