IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/1668.html
   My bibliography  Save this paper

The Formation of AI Capital in Higher Education: Enhancing Students' Academic Performance and Employment Rates

Author

Listed:
  • Drydakis, Nick

Abstract

The study evaluates the effectiveness of a 12-week AI module delivered to non-STEM university students in England, aimed at building students' AI Capital, encompassing AI-related knowledge, skills, and capabilities. An integral part of the process involved the development and validation of the AI Capital of Students scale, used to measure AI Capital before and after the educational intervention. The module was delivered on four occasions to final-year students between 2023 and 2024, with follow-up data collected on students' employment status. The findings indicate that AI learning enhances students' AI Capital across all three dimensions. Moreover, AI Capital is positively associated with academic performance in AI-related coursework. However, disparities persist. Although all demographic groups experienced progress, male students, White students, and those with stronger backgrounds in mathematics and empirical methods achieved higher levels of AI Capital and academic success. Furthermore, enhanced AI Capital is associated with higher employment rates six months after graduation. To provide a theoretical foundation for this pedagogical intervention, the study introduces and validates the AI Learning-Capital-Employment Transition model, which conceptualises the pathway from structured AI education to the development of AI Capital and, in turn, to improved employment outcomes. The model integrates pedagogical, empirical and equity-centred perspectives, offering a practical framework for curriculum design and digital inclusion. The study highlights the importance of targeted interventions, inclusive pedagogy, and the integration of AI across curricula, with support tailored to students' prior academic experience.

Suggested Citation

  • Drydakis, Nick, 2025. "The Formation of AI Capital in Higher Education: Enhancing Students' Academic Performance and Employment Rates," GLO Discussion Paper Series 1668, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1668
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/325476/1/GLO-DP-1668.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nick Drydakis, 2022. "Artificial Intelligence and Reduced SMEs’ Business Risks. A Dynamic Capabilities Analysis During the COVID-19 Pandemic," Information Systems Frontiers, Springer, vol. 24(4), pages 1223-1247, August.
    2. Andrew Bell & Malcolm Fairbrother & Kelvyn Jones, 2019. "Fixed and random effects models: making an informed choice," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 1051-1074, March.
    3. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, October.
    4. Nick Drydakis, 2024. "Artificial intelligence capital and employment prospects," Oxford Economic Papers, Oxford University Press, vol. 76(4), pages 901-919.
    5. Drydakis, Nick, 2016. "The effect of university attended on graduates’ labour market prospects: A field study of Great Britain," Economics of Education Review, Elsevier, vol. 52(C), pages 192-208.
    6. Nick Drydakis, 2025. "Artificial intelligence and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 514-514, February.
    7. Ching Sing Chai & Ding Yu & Ronnel B. King & Ying Zhou, 2024. "Development and Validation of the Artificial Intelligence Learning Intention Scale (AILIS) for University Students," SAGE Open, , vol. 14(2), pages 21582440241, April.
    8. Geoffrey M. Hodgson, 2014. "What is capital? Economists and sociologists have changed its meaning: should it be changed back?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(5), pages 1063-1086.
    9. Sen, Amartya, 1997. "Editorial: Human capital and human capability," World Development, Elsevier, vol. 25(12), pages 1959-1961, December.
    10. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nick Drydakis, 2024. "Artificial intelligence capital and employment prospects," Oxford Economic Papers, Oxford University Press, vol. 76(4), pages 901-919.
    2. Milan Kovačević & Teun J. Dekker & Rolf Velden, 2024. "Liberal Arts Graduates in the Labour Market: A Comparative Study of Dutch University Colleges and Conventional Bachelor’s Programmes," Research in Higher Education, Springer;Association for Institutional Research, vol. 65(8), pages 1911-1933, December.
    3. Baert, By Stijn & Neyt, Brecht & Siedler, Thomas & Tobback, Ilse & Verhaest, Dieter, 2021. "Student internships and employment opportunities after graduation: A field experiment," Economics of Education Review, Elsevier, vol. 83(C).
    4. Jimu Tafadzwa & Nhorito Shadreck, 2025. "Do University Rankings Influence Career Outcomes in the Accounting and Auditing Profession?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 2627-2643, May.
    5. Baert, Stijn & Picchio, Matteo, 2021. "A signal of (Train)ability? Grade repetition and hiring chances," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 867-878.
    6. Richard J. Murnane & John B. Willett & Kathryn Parker Boudett, 1999. "Do Male Dropouts Benefit from Obtaining a GED, Postsecondary Education, and Training?," Evaluation Review, , vol. 23(5), pages 475-503, October.
    7. Alexander Patzina & Hans Dietrich & Anton Barabasch, 2022. "Health, Personality Disorders, Work Commitment, and Training‐to‐Employment Transitions," Social Inclusion, Cogitatio Press, vol. 10(2), pages 369-382.
    8. Suresh, Vikram K. & Rawat, Saannidhya, 2025. "Diverging opinions on standardized testing: A survey-based approach," Economics Letters, Elsevier, vol. 250(C).
    9. Ralph Hippe & Roger Fouquet, 2024. "The Human Capital Transition and the Role of Policy," Springer Books, in: Claude Diebolt & Michael Haupert (ed.), Handbook of Cliometrics, edition 3, pages 411-457, Springer.
    10. Drydakis, Nick, 2024. "Business disruptions due to social vulnerability and criminal activities in urban areas," Journal of Criminal Justice, Elsevier, vol. 95(C).
    11. Massimo G. Colombo & Benedetta Montanaro & Silvio Vismara, 2023. "What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions," Small Business Economics, Springer, vol. 61(1), pages 59-84, June.
    12. Kaenat Malik & Prof.Dr.Tariq Jalees, 2019. "The Mediating Role Of Employer Branding Between Employee Satisfaction And Talent Management," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 75-94.
    13. Henrik Hansen & S. Kanay De & John Rand & Neda Trifković, 2023. "Wage returns to workplace training in Myanmar," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    14. Alessa K. Durst, 2021. "Education as a Positional Good? Evidence from the German Socio-Economic Panel," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 745-767, June.
    15. Filipe Almeida‐Santos & Karen A. Mumford, 2004. "Employee Training in Australia: Evidence from AWIRS," The Economic Record, The Economic Society of Australia, vol. 80(s1), pages 53-64, September.
    16. Jean Luc De Meulemeester & Claude Diebolt, 2004. "The economies of education: unkept promises?," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(3-4), pages 303-320.
    17. van der Velden, R.K.W. & Wolbers, M.H.J., 2004. "How much does education matter and why? : the effects of education on socio-economic outcomes," ROA Research Memorandum 2E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    18. Jacek Liwiński & Francesco Pastore, 2021. "Are School-Provided Skills Useful at Work? Results of the Wiles Test," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(1), pages 72-97, February.
    19. Thiel, Hendrik & Thomsen, Stephan L., 2013. "Noncognitive skills in economics: Models, measurement, and empirical evidence," Research in Economics, Elsevier, vol. 67(2), pages 189-214.
    20. He, Yu & Peng, Xiujian & Xu, Hangtian, 2020. "Overeducation, market recognition, and effective labour supply," China Economic Review, Elsevier, vol. 59(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:1668. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.