The application of human capital theory in vocational rehabilitation for individuals with mental illness

Abstract

Human Capital Theory posits that investment in education and job training increase employability among the general labor force. This study examined the applicability of Human Capital Theory to an explanation of employment outcomes of individuals with psychiatric illness. The employment rates of participants with mental illness and participants with equivalent human capital but not disability were compared. The study also explored whether human capital variables predicted employability. The study found that participants with mental illness achieved similar re-employment rates within six-months of becoming unemployed when compared to their counterparts with no reported disability. Additionally, later onset of mental illness predicted higher employment rates. Severity of psychiatric symptoms was not predictive of employment rates.These findings suggest that human capital variables are correlated with employment outcomes among persons with mental illness. They also suggest that assisting mental health consumers in the pursuit of education and job training may improve their employability which can lead to financial independence and community integration. The findings also support the development and implementation of Supported Education to assist consumers to succeed in education and job training.

The Role of Educational Attainment in Supported Employment

“…Regarding people with SMI, this theory may have to be augmented to account for the significantly lower rates of employment that are encountered in the workforce. Yet, evidence suggests that there may be little difference between the desires of people with SMI compared with people without mental illness in regard to working (Gao et al, 2010).…”

“…In the last quarter of the 20th century, a theory that connects educational accomplishment to employment and earning emerged. Human capital theory is a relevant theory for rehabilitation counselors working with individuals pursuing vocational goals (Gao, Gill, Schmidt, & Pratt, 2010; Sharf, 2012). Human capital refers to knowledge, skills, and abilities acquired by an individual, traditionally through education and work experience (Bridges, De’Armond, & Dean, 2013).…”

“…The basic premise of human capital theory is that increases in years of schooling and years of labor market experience lead to increased earnings (Becker, 1962). Skills gained through education, work experience, and training will give a person an advantage in the labor market (Gao et al, 2010; Sharf, 2012; Sullivan, 2010). The role of human capital is becoming increasingly crucial in our technology-based economy (Gao et al, 2010; Sullivan, 2010); consequently, rehabilitation counselors will need to consider how to help consumers living with disabilities gain human capital to be competitive in the labor market.…”

“…Understanding the discrepancies in access to human capital among traditionally disenfranchised groups of people will support efforts to overcoming barriers to the development of human capital, which is essential for upward mobility. A key truism of human capital theory is that persons with a higher educational level receive higher pay and have greater job security (Gao et al, 2010; Sharf, 2012; Sullivan, 2010). In the current economy, this is becoming even more pronounced, and persons who lack access to human capital will fall further behind economically (Chen & van der Klaauw, 2008; Lewine, 2005; Linder, 2016).…”

Impact of a biomedical research project on the human capital development of emerging researchers

“…Education and training increase the chances of being employed. 9 When individuals acquire relevant skills and knowledge, they often make better informed decisions about their lives, such as those relating to career path, financial investments, how to live amicably with others, eradicating poverty, nutrition, healthy lifestyles and various other ways of improving their well-being. 5,6,8 Nhamo and Nhamo 10 postulate that education enhances the potential earning capacity of individuals, given that enlightened individuals tend to be more productive and are able to perform more complex tasks.…”