nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2005‒12‒20
thirty-one papers chosen by
Fabio Sabatini
Universitá degli Studi di Roma, La Sapienza

  1. Can Educational Attainment Explain Total Factor Productivity? Growth Accounting Evidence from Seven Transition Countries for the Period 1991-2000 By Kaloyan Ganev
  2. A Reevaluation of the Effect of Human Capital Accumulation on Economic Growth: Using Natural Disasters as an Instrument By Raymond Robertson; Mark Skidmore; Hideki Toya
  3. Human Capital Composition, R&D and the Increasing Role of Services By Reis, Ana Balcao; Sequeira, Tiago Neves
  4. Inside the Family Firm: The Role of Families in Succession Decisions and Performance By Morten Bennedsen; Kasper Nielsen; Francisco Pérez-González; Daniel Wolfenzon
  5. Is Human Capital Losing from Outsourcing? Evidence for Austria and Poland By Andzelika Lorentowicz; Dalia Marin; Alexander Raubold
  6. Does Social Capital Improve Labour Productivity in Small and Medium Enterprises? By Fabio Sabatini
  7. Wage and Employment Effects of Immigration to Germany: Evidence from a Skill Group Approach By Holger Bonin
  8. A Test of the Signalling Hypothesis - Evidence from Natural Experiment By Sebastian Stolorz
  9. Improving the Performance of the Education Sector: The Valuable, Challenging, and Limited Role of Random Assignment Evaluations By Richard J. Murnane; Richard R. Nelson
  10. Ability, sorting and wage inequality By Pedro Carneiro; Simon Lee
  11. Does Immigration Affect the Long-Term Educational Outcomes of Natives? Quasi-Experimental Evidence By Eric D. Gould; Victor Lavy; M. Daniele Paserman
  12. Productivity consequences of workforce ageing - Stagnation or a Horndal effect? By Malmberg, Bo; Lindh, Thomas; Halvarsson, Max
  14. Employer Size or Skill-Group Size Effect on Wages? By Erling Barth; Harald Dale-Olsen
  15. Learning by Exporting: Does It Matter Where One Learns? By Natalia Trofimenko
  16. Social capital, labour precariousness and the economic performance. An empirical assessment of the strength of weak ties in Italy By Fabio Sabatini
  17. Do Institutions of Direct Democracy Tame the Leviathan? Swiss Evidence on the Structure of Expenditure for Public Education By Justina A.V. Fischer
  18. Rising Family Income Inequality in the United States, 1968-2000: Impacts of Changing Labor Supply, Wages, and Family Structure By Chulhee Lee
  19. Is the Discouraged Worker Effect Time-Varying? By Carlo Altavilla, Antonio Garofalo, Concetto Paolo Vinci
  20. Too Much of a Good Thing? The Quantitative Economics of R&D–driven Growth Revisited By Holger Strulik
  21. The Impact of Parental Income and Education on the Health of their Children By Doyle, Orla; Harmon, Colm; Walker, Ian
  22. Efficiency Potential and Efficiency Variation in Norwegian Lower Secondary Schools By Lars-Erik Borge; Linn Renée Naper
  23. Labor Market and Growth in Morocco By Lahcen ACHY
  24. Do Former College Athletes Earn More at Work? A Nonparametric Assessment By Daniel J. Henderson; Alexandre Olbrecht; Solomon Polachek
  25. Stability or change in the Swedish Labour Market Regime? By Olofsson, Jonas
  26. How Changes in Entry Requirements Alter the Teacher Workforce and Affect Student Achievement By Donald Boyd; Pamela Grossman; Hamilton Lankford; Susanna Loeb; James Wyckoff
  27. Reference Dependent Preferences and the Impact of Wage Increases on Job Satisfaction: Theory and Evidence By Christian Grund; Dirk Sliwka
  28. Impact of strategy, HRM Strength and HRM bundles on innovation performance and organizational performance By Cunha, Rita Campos e; Cunha, Miguel Pina e
  29. Women´s Return to Work after First Birth in Sweden during 1980-2000 By Hong, Ying; Corman, Diana
  30. Venture capital as human resource management By Carvalho, Antonio Gledson de; Calomiris, Charles W.; Matos, Joao Amaro de
  31. Importing Equality or Exporting Jobs?: Competition and Gender Wage and Employment Differentials in U.S. Manufacturing By Ebru Kongar

  1. By: Kaloyan Ganev (Agency for Economic Analysis & Forecasting)
    Abstract: In this paper we use growth accounting methodology to study whether human capital explains a part of total factor productivity in transition. The results that are obtained are not in support of the theoretical findings of growth theory that human capital is a major determinant of growth and productivity. However, eventually we continue to believe that the reasons for this misfit to theory lie in the very nature of data and not in the specifics of the methodology used.
    Keywords: educational attainment, productivity, growth, transition, human capital
    JEL: C6 D5 D9
    Date: 2005–12–13
  2. By: Raymond Robertson (Department of Economics, Macalester College); Mark Skidmore (Department of Economics, University of Wisconsin - Whitewater); Hideki Toya (Faculty of Economics, Nagoya City University)
    Abstract: Theoretic growth models and microeconomic evidence suggest that human capital accumulation is an important determinant of per capita income growth. However, outliers, measurement errors, and incorrect specifications may have affected early macroeconomic studies that found a weak relationship between growth and human capital accumulation. While recent studies addressing these problems are beginning to show larger positive effects, the potential endogeneity of human capital accumulation has received relatively little attention. In this paper, we demonstrate that endogeneity is significant and find that natural disasters are a good instrument for changes in schooling. Our resulting instrumental variable estimates are larger than our OLS estimates and are generally larger than those in previous studies. Our analysis also provides some limited evidence of human capital externalities.
    Date: 2005–08
  3. By: Reis, Ana Balcao; Sequeira, Tiago Neves
    Abstract: A growth model with endogenous innovation and accumulation of high-tech and low-tech human capital is developed. The model accounts for a recently established fact about human capital composition, which stated that \the richest countries are investing proportionally less than middle income countries in engineering and technical human capital", due to the consideration of a negative effect of technological development on the accumulation of high-tech human capital. Under this new and reasonable assump- tion, our model also accounts for other previously established stylized facts. Both the evolution of human capital composition and the transition across stages of development are endogenously determined. We relate an increasing R&D activity and a negative relationship between income and the ratio of high to low-tech human capital, both present in developed countries, to the transition to a services economy. Although all growth rates are optimal, we observe under-allocation of high-tech human capital to industry.
    Keywords: human capital composition, high-tech human capital, R&D, Development, structural transition
    JEL: O11 O14 O15 O31 O33
    Date: 2004
  4. By: Morten Bennedsen (Copenhagen Business School); Kasper Nielsen (University of Copenhagen); Francisco Pérez-González (Columbia University); Daniel Wolfenzon (New York University)
    Abstract: This paper uses a unique dataset from Denmark to investigate (1) the role of family characteristics in corporate decision making, and (2) the consequences of these decisions on firm performance. We focus on the decision to appoint either a family or an external chief executive officer (CEO). We show that a departing CEO’s family characteristics have a strong predictive power in explaining CEO succession decisions: family CEOs are more frequently selected the larger the size of the family, the higher the ratio of male children and when the departing CEOs had only had one spouse. We then analyze the impact of family successions on performance. We overcome endogeneity and omitted variables problems of previous papers in the literature by using the gender of a departing CEO’s first-born child as an instrumental variable (IV) for family successions. This is a plausible IV as male first-child family firms are more likely to pass on control to a family CEO than female first-child firms, but the gender of the first child is unlikely to affect firms’ performance. We find that family successions have a dramatic negative causal impact on firm performance: profitability on assets falls by at least 6 percentage points around CEO transitions. These estimates are significantly larger than those obtained using ordinary least squares. Finally, our findings demonstrate that professional non-family CEOs provide extremely valuable services to the organizations they work for.
    Keywords: family firms; successions; CEO turnover; governance
    JEL: G32 G34 M13
    Date: 2005–06
  5. By: Andzelika Lorentowicz; Dalia Marin; Alexander Raubold
    Abstract: Feenstra and Hanson (1997) have argued in the context of the North American Free Trade Agreement that US outsourcing to Mexico leads to an increase in the skill premium in both the US and Mexico. In this paper we show on the example of Austria and Poland that with the new international division of labour emerging in Europe Austria, the high income country, is specializing in the low skill intensive part of the value chain and Poland, the low income country, is specializing in the high skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland. In Austria, relative wages for human capital declined by 2 percent during 1995-2002 and increased by 41 percent during 1994-2002 in Poland. In both countries outsourcing contributes roughly 35 percent to these changes in the relative wages for skilled workers. Furthermore, we show that Austria's R&D policy has contributed to an increase in the skill premium there.
    JEL: F21 F23 J31 P45
    Date: 2005
  6. By: Fabio Sabatini (University of Rome La Sapienza, Department of Public Economics)
    Abstract: This paper carries out an empirical assessment of the relationship between social capital and labour productivity in small and medium enterprises in Italy. By means of structural equations models, the analysis investigates the effect of different aspects of the multifaceted concept of social capital. While the bonding social capital of strong family ties seems to be irrelevant, the bridging social capital of weak ties connecting friends and acquaintances is proved to exert a significant and positive influence both on labour productivity and on human development.
    Keywords: Labour productivity, Small and medium enterprises, Industrial organization, Social capital, Social networks, Structural equations models
    JEL: J24 R11 O15 O18
    Date: 2005–12–16
  7. By: Holger Bonin (IZA Bonn)
    Abstract: The paper analyzes the labor market impact of migration by exploiting variation in the labor supply of foreigners across groups of workers with the same level of education but different work experience. Estimates on the basis of German register data for the period 1975-97 do not confirm the hypothesis that penetration of migrants into skill cells has a significant negative effect on the earnings and employment opportunities of native men. The results indicate that a 10 percent rise of the share of immigrants in the workforce would in general reduce wages by less than one percent and not increase unemployment. Though the adverse effects appear stronger for less-qualified and older workers, the evidence altogether sharply contrasts that from a parallel study for the United States indicating a consistent and substantial negative impact of an immigrant labor supply shock on native competitors.
    Keywords: labor market effects of immigration, skill groups, wage elasticity, Germany
    JEL: J15 J31 J42
    Date: 2005–12
  8. By: Sebastian Stolorz (University of Oregon)
    Abstract: The paper proposes an alternative methodology for testing signalling hypothesis based on chances to get a job in a particular class of the job market. The individuals are ranked and matched by an external mechanism, based on preferences of employers in respect to actual observable and perceived unobservable attributes of individual. This paper tests existence of a relation between the set of observable and revealed attributes and the outcome of the game, specifically: whether signals associated with attained education plays a significant role in determining chances of the individual to get a job. The proposed model is empirically tested by applying a unique dataset from a natural experiment, conducted in Poland in years 2002-2005, where a relatively large set of job market candidates are offered a chance to get a paid internship at an attractive employer, with considerably great chances of getting a permanent job thereafter. Results support the hypothesis, that in the absence of revealed attributes, employers decisions depend upon signals on education. Whenever information is available, the significance of the signals diminishes.
    Keywords: Human Capital, Signal
    JEL: J24
    Date: 2005–12–15
  9. By: Richard J. Murnane; Richard R. Nelson
    Abstract: In an attempt to improve the quality of educational research, the U.S. Department of Education’s Institute of Education Sciences has provided funding for 65 randomized controlled trials of educational interventions. We argue that this research methodology is more effective in providing guidance to extremely troubled schools about how to make some progress than guidance to schools trying to move from making some progress to becoming high performance organizations. We also argue that the conventional view of medical research -- discoveries made in specialized laboratories that are then tested using randomized control trials -- is an inaccurate description of the sources of advances in medical practice. Moreover, this conventional view of the sources of advances in medical practice leads to incorrect inferences about how to improve educational research. We illustrate this argument using evidence from the history of medical research on the treatment of cystic fibrosis.
    JEL: I21
    Date: 2005–12
  10. By: Pedro Carneiro (Institute for Fiscal Studies and University College, London); Simon Lee (Institute for Fiscal Studies and University College London)
    Abstract: In this paper we examine the importance of heterogeneity and self-selection into schooling for the study of inequality. Changes in inequality over time are a combination of price changes, selection bias and composition effects. To distinguish them, we estimate a semiparametric selection model for a sample of white males surveyed (during the 1990s) by the National Longitudinal Survey of Youth, but our results are applicable to broader analyses of inequality. In our data, as college enrollment increases in the economy, average college wages decrease and average high school wages increase, and therefore inequality between college and high school groups decreases. Moreover, selection bias causes us to understate the growth of different measures of the average return to schooling in our sample. It also leads us to understate the increase in wage dispersion at the top of the college wage distribution, and to overstate it at the bottom of the college wage distribution.
    Keywords: Comparative advantage, composition effects, local instrumental variables, selection bias, semiparametric estimation, wage distribution.
    Date: 2005–11
  11. By: Eric D. Gould (Hebrew University CEPR and IZA Bonn); Victor Lavy (Hebrew University CEPR and NBER); M. Daniele Paserman (Hebrew University CEPR and IZA Bonn)
    Abstract: This paper uses the mass migration wave to Israel in the 1990s to examine the impact of immigrant concentration during elementary school on the long-term academic outcomes of native students in high school. To identify the causal effect of immigrant children on their native peers, the empirical strategy must address two sources of bias: the endogenous sorting of immigrants across schools, and the endogenous grade placement of immigrants within schools. We control for the endogeneity of immigrant placement across schools by conditioning on the total number of immigrants in a school and exploit random variation in the number of immigrants across grades within the same school. To address the endogenous grade placement of immigrants within schools, we use the immigrants’ dates of birth as an instrument for their actual grade placement. The results suggest that the overall presence of immigrants in a grade had a significant and large adverse effect on two important outcomes for Israeli natives: the dropout rate and the chances of passing the high school matriculation exam which is necessary to attend college.
    Keywords: school quality, natural experiment, peer effects, dropout rates, immigrant absorption
    JEL: I20 J24
    Date: 2005–12
  12. By: Malmberg, Bo (Institute for Futures Studies); Lindh, Thomas (Institute for Futures Studies); Halvarsson, Max (Institute for Futures Studies)
    Abstract: Data linking the production of value-added at the plant level to the individual employees provide an opportunity to deepen the understanding of how the labor force composition relates to productivity performance. In view of the anticipated aging of the workforce in industrialised economies a body of research has emerged that indicate that individual productivity has a more pronounced hump-shape than the wage profile. This paper studies these issues by examining the composition of the workforce at the plant level in relation to the productivity performance of the plants. Our data cover the Swedish mining and manufacturing industries 1985-1996. The fact that older workers selectively work with older capital may have biased results found in the literature. Endogeneity of workforce composition poses serious estimation problems, but our attempts to cope with these problems tend to indicate that biases in general go in the direction that productivity of the young is overestimated and the productivity of the old is underestimated.
    Keywords: workforce ageing; productivity growth
    JEL: J10 J21 J24
    Date: 2005–12–12
  13. By: John W. Miller (Central Connecticut State University, Office of the President); Mark Skidmore (Department of Economics, University of Wisconsin - Whitewater)
    Abstract: In this paper data from all 50 U.S. states are used to examine factors associated with the level of educational attainment in the population. Specifically, this inquiry examines the relationship between the percentage of the adult population aged 25-39 with a college bachelors degree or more and sets of variables logically grouped under one of two categories : production of degree holders and net migration of degree holders. It was hypothesized that the production of college degree holders is related to factors such as the quality of the K-12 educational system, the quality of the higher education system, and homogeneity of the population. Factors related to net migration of college degree holders include measures of the vibrancy of the economy, quality of life, and relative tax burdens. Analysis demonstrated that nearly all of the variation across the states in the percentage of degree holders in the population can be explained by these factors. These findings are useful to both policymakers and education administrators across the states as they seek to understand needs and set the direction of higher education systems.
    Date: 2005–10
  14. By: Erling Barth (Institute for Social Research, Oslo, University of Oslo and IZA Bonn); Harald Dale-Olsen (Institute for Social Research, Oslo)
    Abstract: It turns out that the employer-size effect on individual wages dwindles away once one control for the number of workers of the same skill-group (educational type) as the observed individual within the establishment. The skill-group size effect on wages is substantial. The main results, a dwindling employer size effect and a significant group size effect, remain after controlling for both individual and establishment specific heterogeneity. This observation rejects most of the proposed explanations for the employer-size effect, while it lends considerable support for the notion that there are frictions in the labor market and that each establishment faces an upward sloping supply curve for each type of labor.
    Keywords: wage differentials, size wage effect
    JEL: J31
    Date: 2005–12
  15. By: Natalia Trofimenko
    Abstract: Learning-by-exporting proponents argue that exporting increases productivity by exposing producers to new technologies or through product quality upgrading. This study is based on the observation that the technological superiority and severity of product quality requirements are not the same in all export markets. If learning occurs through the acquisition of new knowledge, exporting to less developed markets should not generate as much productivity growth as exporting to advanced countries. Using plant-level data from Colombia, I demonstrate that exporting to advanced countries generates the highest productivity premium and that the ability to benefit from exporting in general and exporting to advanced markets in particular increases monotonically as one moves along the conditional productivity distribution.
    Keywords: learning by exporting, total factor productivity, export destination, quantile regression, instrumental variables
    JEL: F10 D24
    Date: 2005–12
  16. By: Fabio Sabatini (University of Rome La Sapienza, Department of Public Economics)
    Abstract: This paper carries out an assessment of the influence that different kinds of social ties exert on labour precariousness, on the state of health of urban environments and on the economic performance in Italy. Overall, the empirical evidence shows that weak ties connecting members of voluntary organizations positively affect the economic performance and the quality of urban ecosystems, differently from strong ties connecting family members and close friends, which, on the other side, are proved to reduce labour precariousness.
    Keywords: Social capital, Social networks, Economic development, Social quality, Civil Society, Labour precariousness, Structural Equations Modelling
    JEL: O P
    Date: 2005–12–11
  17. By: Justina A.V. Fischer
    Abstract: The deleterious impact of institutions of direct legislation on student performance found in studies for both the U.S. and Switzerland has raised the question of what its transmission channels are. For the U.S., an increase in the ratio of administrative to instructional spending and larger class sizes were observed, supporting the hypothesis of a Leviathan-like school administration. For Switzerland, using a cross-sectional time-series panel of sub-federal school expenditure and size of classes, no such effect is detected. This finding is in line with previous analyses in which efficiency gains in the provision of public goods for Switzerland have been found.
    Keywords: direct democracy, median voter, bureaucracy, public education
    JEL: H41 H72 I22
    Date: 2005
  18. By: Chulhee Lee
    Abstract: This study estimates what fraction of the rise in family income inequality in the United States between 1968 and 2000 is accounted for by change in each of the family income components such as wages, employment, and hours worked of family heads and spouses, family structure, and other incomes. The increased disparities in other incomes and labor supply account for, respectively, 29 percent and 28 percent of the rise in the difference in income between the top 10th and bottom 10th families. Structural changes in wages, largely regarded as the major culprit of the increase in income inequality, explain less than a quarter of the rise in the measure of family income inequality. Changing fraction of families with both husband and wife and changes in the composition of the income sources account for 11 percent and 16 percent, respectively, of the widening of the income gap. The relative importance of the effect of changing labor supply declined over time, while that of wage changes increased. For the upper half of the income distribution, wage changes were the dominant cause of the increase in the gap between the richest 10th and middle-income families. For the lower half of the income distribution, in sharp contrast, changes in labor supply and other incomes were the principal causes of the growing distance between the poor and middle-income families.
    JEL: J2 E2 N3
    Date: 2005–12
  19. By: Carlo Altavilla, Antonio Garofalo, Concetto Paolo Vinci (University of Naples Parthenope)
    Abstract: This study investigates the relationship between the female labour force participation and the female employment rate in Italy by adopting non-linear econometric modelling. In our specification we are unable to reject a nonlinear relationship. This implies that the discouraged worker effect is timevarying.
    Keywords: Discouraged Workers, Non-linearity
    JEL: J23 C32
    Date: 2005–09
  20. By: Holger Strulik (Department of Economics, University of Copenhagen)
    Abstract: This paper augments an R&D-based growth model of the third generation with human capital accumulation and impure altruism, calibrates it with U.S. data, and investigates whether the market provides too little or too much R&D. For benchmark parameters the market share of employment in R&D is close to the socially optimal allocation. Sensitivity analysis shows that the order of magnitude of possible deviation between market allocation and optimal R&D is also smaller than suggested by previous studies. Furthermore, the model allows for two additional channels through which population growth may affect the resource allocation so that its overall economic impact is no longer predetermined as being positive. Numerical calibrations show that economic growth at the U.S. average rate during the last century can be consistent with a small and probably negative partial correlation between population growth and economic growth.
    Keywords: human capital; population growth; endogenous economic growth; R&D-spillovers
    JEL: J24 O31 O40
    Date: 2005–12
  21. By: Doyle, Orla; Harmon, Colm; Walker, Ian
    Abstract: This paper investigates the robustness of recent findings on the effect of parental background on child health. We are particularly concerned with the extent to which their finding that income effects on child health are the result of spurious correlation rather than some causal mechanism. A similar argument can be made for the effect of education - if parental education and child health are correlated with some common unobservable (say, low parental time preference) then least squares estimates of the effect of parental education will be biased upwards. Moreover, it is very common for parental income data to be grouped, in which case income is measured with error and the coefficient on income will be biased towards zero and there are good reasons why the extent of bias may vary with child age. Fixed effect estimation is undermined by measurement error and here we adopt the traditional solution to both spurious correlation and measurement error and use an instrumental variables approach. Our results suggest that the income effects observed in the data are spurious.
    Keywords: child health; intergenerational transmission
    JEL: I1
    Date: 2005–11
  22. By: Lars-Erik Borge; Linn Renée Naper
    Abstract: The paper performs an efficiency analysis of the lower secondary school sector in Norway. The efficiency potential is calculated to 14 percent based on a DEA analysis with grades in core subjects (adjusted for student characteristics and family background) as outputs. The analysis of the determinants of efficiency indicates that a high level of municipal revenue, a high degree of party fragmentation, and a high share of socialists in the local council are associated with low educational efficiency. The negative effects of the share of socialists and party fragmentation seem to reflect both higher resource use and lower student performance.
    Keywords: educational efficiency, DEA analysis, determinants of efficiency, political and budgetary institutions
    JEL: I21
    Date: 2005
  23. By: Lahcen ACHY (INSEA, Rabat, Morocco)
    Abstract: The purpose of this paper is to investigate how the functioning of the labor market in Morocco is affecting economic growth. The first section examines the demographic factors affecting the supply side of the labor market such as the population growth, the pace of urbanization, and the increase of female labor force participation over the last decades. These three demographic factors, although dealt with jointly, don’t have the same effects on the labor market conditions and may be connected to economic growth through different channels. The second section explores the potential distorting effects of policy choices undertaken by policy makers in Morocco over the last four decades. For a long time, the government provided much more incentives to capital intensive investment at the extent of labor intensive technologies, which distorted the allocation of resources and crowded out the abundant labor force. As a consequence, formal sector has not crated enough job opportunities while survival activities in the informal sector have expanded very rapidly. The third section investigates the educational system as the main mechanism through which human capital is accumulated. As in Lucas-Uzawa framework, human capital is accumulated endogenously as a result of individual optimal investment decisions on the basis of the expected returns on the labor market. One of the key issues is the increasing rate of graduates unemployed. Does this mean that educational system is not adequately responding to the needs of the productive system? Or that the productive system is still underdeveloped to absorb all the available skilled labor supplied on the marketplace. The fourth section of the paper examines the contribution of the public sector to employment and the nature of qualifications required by public sector jobs. The public sector wage bill in Morocco is excessive and tends to put constantly pressure on the government budget, which threatens macroeconomic stability and restrains growth prospects. The fifth section presents briefly the labor market regulation in Morocco and the extent to which they are effectively enforced. It attempts to assess the extent to which the existence of minimum wage has protected the purchasing power of workers. It also deals with the impact of existing regulations imposed to the formal sector on the expansion of a large informal sector.
    Keywords: Labor Market, Education, Public employment, Morocco
    JEL: J
    Date: 2005–12–14
  24. By: Daniel J. Henderson (State University of New York at Binghamton); Alexandre Olbrecht (Ramapo College of New Jersey at Mahwah); Solomon Polachek (State University of New York at Binghamton and IZA Bonn)
    Abstract: This paper investigates how students’ collegiate athletic participation affects their subsequent labor market success. It uses newly developed distributional tests to establish that the wage distribution of former college athletes is significantly different from non-athletes and that athletic participation is a significant determinant of wages. Additionally, by using newly developed techniques in nonparametric regression, it shows that on average former college athletes earn a wage premium. However, the premium is not uniform, but skewed so that more than half the athletes actually earn less than non-athletes. Further, the premium is not uniform across occupations. Athletes earn more in the fields of business, military, and manual labor, but surprisingly, athletes are more likely to become high school teachers, which pays a relatively lower wage to athletes. We conclude that nonpecuniary factors play an important role in occupational choice, at least for many former collegiate athletes.
    Keywords: nonparametric, generalized Kernel estimation, wage determination, earnings, sports economics, athletics
    JEL: C14 J10 J30 J40 L83
    Date: 2005–12
  25. By: Olofsson, Jonas (Uppsala University)
    Abstract: From the late 1970s to the early 1990s Sweden diverted from the rest of Western Europe. The employment rate was high and unemployment was kept very low. But in the early 1990s unemployment started to rise also in Sweden. <p> In this paper the worsened situation for low educated in general, and youth in particular, are related to two institutional factors: a changed organisation of vocational education in upper secondary schooling and changes in labour market policy, where changes in vocational education is understood as a cause and changes in labour market policy as an effect of rising obstacles for low educated. Of course, there are several other factors that have to be considered in order to get the full picture, but reforms in the upper secondary school system as well as in labour market policy are of great interest as they can be apprehended as parts of broader changes in the traditional Swedish labour market model. Studies of changes in the Swedish model can also be seen as part of a wider research interest concerning the effectiveness of competing institutional models of capitalism. <p> It’s argued that changes in schooling are an important factor behind increasing social marginalisation and income dispersion. The focus is primarily on the ages between 20 and 24. Changes in upper secondary schooling are also valued in connection to the supply of youth measures connected to labour market policy. Since the beginning of the 1990s, there has been a huge increase of participants in programs directed to youth. This is a direct effect of rising unemployment and increasing troubles for those with unfinished upper secondary education. But it’s also possible to trace changes in labour market policy to broader institutional transformations in the Swedish labour market model. These changes will first and foremost be analysed as an expression of stronger segmentation forces.
    Keywords: Swedish Labour Market; low educated; young adults
    JEL: J21 J23 J24 J62
    Date: 2005–12–12
  26. By: Donald Boyd; Pamela Grossman; Hamilton Lankford; Susanna Loeb; James Wyckoff
    Abstract: We are in the midst of what amounts to a national experiment in how best to attract, prepare, and retain teachers, particularly for high poverty urban schools. Using data on students and teachers in grades three through eight, this study assesses the effects of pathways into teaching in New York City on the teacher workforce and on student achievement. We ask whether teachers who enter through new routes, with reduced coursework prior to teaching, are more or less effective at improving student achievement than other teachers and whether the presence of these alternative pathways affects the composition of the teaching workforce. Results indicate that in some instances the new routes provide teachers with higher student achievement gains than temporary license teachers, though more typically there is no difference. When compared to teachers who completed a university-based teacher education program, teachers with reduced course work prior to entry often provide smaller initial gains in both mathematics and English language arts. Most differences disappear as the cohort matures and many of the differences are not large in magnitude, typically 2 to 5 percent of a standard deviation. The variation in effectiveness within pathways is far greater than the average differences between pathways.
    JEL: I0 I2
    Date: 2005–12
  27. By: Christian Grund (University of Bonn and IZA Bonn); Dirk Sliwka (University of Cologne and IZA Bonn)
    Abstract: The impact of wage increases on job satisfaction is explored theoretically and empirically. To do this, we apply a utility function that rises with the absolute wage level as well as with wage increases. It is shown that when employees can influence their wages by exerting effort, myopic utility maximization directly implies increasing and concave shaped wage profiles. Furthermore, employees get unhappier over time staying on a certain job although wages increase. Using data from 19 waves of the German Socio-Economic Panel we find empirical support for both the form of the utility function and the decreasing job satisfaction patterns.
    Keywords: job satisfaction, wage increases, wage profiles, reference dependent utility, habit formation, loss aversion
    JEL: M54 J28 J30 M12
    Date: 2005–12
  28. By: Cunha, Rita Campos e; Cunha, Miguel Pina e
    Abstract: This study uses structural equation modeling to test a model of the impact of human resource management bundles on perceived organizational performance and innovation performance, on a large sample of companies. Strategic management orientation and innovation as a strategic factor are proposed to influence the existence of two types of HR bundles, functional flexibility and performance management, as well as contributing to stronger HR systems. HRM Strength, which integrates the metafeatures of an HRM system and provides a common interpretation of organizational goals, has a strong positive impact on both innovation and organizational performances. Finally, while both the functional flexibility and performance management bundles have a positive impact on organizational performance, they do not seem to affect innovation performance.
    Date: 2004
  29. By: Hong, Ying (Institute for Futures Studies); Corman, Diana (Civilekonomerna)
    Abstract: The goal of this study is to investigate whether and how fast Swedish women returned to work after their first birth and what were the incentives and constraints for their decisions during the latest decades when Sweden was experiencing significant fluctuations both in its economy and in its level of fertility. The analysis is conducted at individual level based on a longitudinal data set from the latest two waves (1991 and 2000) of a long-time running panel survey of "The Swedish Level-of-Living survey" (LNU). We employ the methods of event-history analysis. The findings suggest Swedish women delayed their return to paid work after the first birth in the 1990s due mainly to the gradual extensions in the parental leave benefits in the 1990s, although the economic crisis in the 1990s might result in a faster return for young mothers. In addition to the strong influences of personal and family characteristics such as age at first birth, eligibility for parental leave and father's share of parental leave, whether a woman worked or not prior to the first birth strongly influences the outcomes of her after-birth labour force participation. The study seems to suggest convergences in the timing of return to work in terms of women’s education, the sector (public or private) of employment and the size of the company, but an enlarged gap between women with high job positions and the others.
    Keywords: Return to work; first birth
    JEL: J20
    Date: 2005–12–12
  30. By: Carvalho, Antonio Gledson de; Calomiris, Charles W.; Matos, Joao Amaro de
    Abstract: Part of the way venture capitalists add value to portfolio firms is by obtaining and transferring information about senior managers across firms over time. Information transfer occurs on a significant scale and takes place both among a single venture capitalists portfolio firms and between different venture capitalists firms via a network of venture capitalists, which venture capitalists use to locate and relocate managers. We collect and analyze survey data on the operation of this human resource network. Theoretical and empirical analyses indicate that cross-sectional differences among portfolio firms are associated with differences in the intensity with which venture capitalists network. The observable factors relevant in explaining the intensity with which venture capitalists network include: 1) the value of the information transmitted though the network, 2) the riskiness of the activities of the portfolio firms, 3) the size of the venture capital fund, 4) the degree of difficulty in enticing executives to manage portfolio firms, and 5) the reputation of the venture capitalist for successfully recycling managers. We show that each of these factors reflects the costs and benefits to venture capitalists of participating in the network.
    Date: 2005
  31. By: Ebru Kongar
    Keywords: Gender Wage, Employment, Manufacturing
    Date: 2005

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