nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2006‒09‒30
eight papers chosen by
Fabio Sabatini
Universita degli Studi di Roma, La Sapienza

  1. Self-Employment and The Intergenerational Transmission of Human Capital By Nathalie Colombier; David Masclet
  2. Minimum Wages and Firm Training By Wolfgang Lechthaler; Dennis J. Snower
  3. International Database on Human Capital Quality By Nadir Altinok; Hatidje Murseli
  4. Adapting the Icelandic Education System to a Changing Environment By Hannes Suppanz
  5. Swedish Labor Market Training and the Duration of Unemployment By Katarina Richardson; Gerard J. van den Berg
  6. Does Atypical Work Help the Jobless? Evidence from a CAEAS/CPS Cohort Analysis By John T. Addison; Christopher J. Surfield
  7. Labour Turnover and Labour Productivity in a Retail Organization By W. Stanley Siebert; Nikolay Zubanov; Arnaud Chevalier; Tarja Viitanen
  8. The long-term impact of French settlement on education in Algeria By Ouarda Merrouche

  1. By: Nathalie Colombier; David Masclet
    Abstract: We use the European Community Household Panel Survey (ECHP) to investigate the determinants of self-employment. More precisely, we consider the influence of immediate social environments and social networks on the choice of self-employment. We conjecture that self-employment is correlated across generations because parents may transmit two classes of informal human capital to their offspring: (1) specific skills for a specific occupation and (2) general managerial skills such as the capacity to acquire autonomy, irrespective of the specific occupation. Our data allow us to dissociate those individuals who are first-generation self-employed from second-generation self-employed (i.e. those whose parents are self-employed), and, among second-generation self-employed, those individuals whose parents are in the same occupation as their offspring. Consistent with our assumptions, we show that having parents who are self-employed increases the probability of being self-employed, even when the individuals do not have the same occupation as their parents. We also observe strong differences between first and second generation self-employed workers. First-generation self-employed are generally younger and more educated than second generation self-employed. Finally our results indicate that first-generation self-employed report higher job satisfaction than second-generation self-employed. <P>Nous étudions dans cet article les déterminants du travail indépendant à partir de l'enquête européenne des ménages (ECHP). Plus particulièrement, nous étudions le rôle joué par l'environnement familial de l'individu. L'originalité de cette étude est de montrer que les parents ne se contentent généralement pas de transmettre à leurs enfants des compétences spécifiques à un métier donné mais également certaines aptitudes managériales non spécifiques à une profession particulière, facilitant ainsi l'accès au statut d'indépendant quel que soit le métier exercé. Nos résultats montrent sans ambiguïté qu'au-delà de la transmission d'un « savoir-faire » favorisant l’accès à un métier spécifique, dans un grand nombre de cas, les parents travailleurs indépendants facilitent également l'accès de leurs enfants au statut d'indépendant et cela bien souvent, quel que soit le métier envisagé. Un autre résultat intéressant de notre étude est qu'’l existe des différences importantes au sein des travailleurs indépendants selon qu’ils ont bénéficié ou non de transmissions intergénérationnelles de la part de parents travailleurs indépendants. On observe par exemple que le niveau d’éducation formelle est davantage discriminant pour les premières générations de travailleurs indépendants (ceux dont les parents ne sont pas travailleurs indépendants) que pour les secondes générations de travailleurs indépendants (ceux dont les parents sont travailleurs indépendants).
    Keywords: human capital, intergenerational links, self-employment, social capital , capital humain, capital social, liens intergénérationnels, travail indépendant
    JEL: J00 J21 C23
    Date: 2006–09–01
    URL: http://d.repec.org/n?u=RePEc:cir:cirwor:2006s-19&r=hrm
  2. By: Wolfgang Lechthaler; Dennis J. Snower
    Abstract: The paper analyzes the influence of minimum wages on firms’ incentive to train their employees. We show that this influence rests on two countervailing effects: minimum wages (i) augment wage compression and thereby raise firms’ incentives to train and (ii) reduce the profitability of employees, raise the firing rate and thereby reduce training. Our analysis shows that the relative strength of these two effects depends on the employees’ ability levels. Our striking result is that minimum wages give rise to skills inequality: a rise in the minimum wage leads to less training for low-ability workers and more training for those of higher ability. In short, minimum wages create a "low-skill trap."
    Keywords: Minimum Wage, Firm Training, Skills Inequality
    JEL: J24 J31
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:kie:kieliw:1298&r=hrm
  3. By: Nadir Altinok (IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education - [CNRS : FRE5211] - [Université de Bourgogne]); Hatidje Murseli (IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education - [CNRS : FRE5211] - [Université de Bourgogne])
    Abstract: In this research work, we have used a methodology which enables us to obtain qualitative indicators of human capital (QIHC) for 105 countries. This methodology relies on the potential to reconsider survey results comparatively by analysing the results of countries which took part in at least two different surveys. This allowed us to build indicators of comparable data concerning the quality of human capital in numerous countries and between 1964-2005: our results represent a valuable comparison to what has been done so far.
    Keywords: Macroeconomic Data ; Educational Quality ; Human Capital
    Date: 2006–09–21
    URL: http://d.repec.org/n?u=RePEc:hal:papers:halshs-00097099_v1&r=hrm
  4. By: Hannes Suppanz
    Abstract: This paper reviews Iceland’s performance in skills accumulation against the backdrop of a rapidly changing economic environment and discusses directions for further improvements. Since the late 1990s, the government has considerably raised expenditure on education, which is now among the highest in the OECD relative to GDP. Nonetheless, Iceland continues to have one of the largest shares of those in the working age population who have not attained upper secondary or higher qualifications, and educational achievements of 15- year olds are not outstanding relative to the country’s advanced state of economic development. This is all the more unsatisfactory because spending per student in the compulsory education sector exceeds the OECD mean considerably, even after controlling for differences in per capita GDP. Measures to improve outcomes include curriculum adjustments and an enhancement of teaching evaluation and quality. While ensuring that students acquire a satisfactory basic set of competencies, there is room for reducing the average duration of primary and secondary education, which is quite long by international comparison. In contrast to upper secondary attainment, that for the tertiary sector is above the OECD average, and higher education has to cope with an enormous rise in participation. With a view to maintaining quality in the face of these developments, the government has introduced legislation that is welcome. However, it does not address the issue of tuition fees, which are authorised in the private but not in the public sector. This Working Paper relates to the 2006 OECD Economic Survey of Iceland (www.oecd.org/eco/surveys/iceland). <P>Adapter le système éducatif Islandais à un nouveau contexte <BR>Ce travail passe en revue les résultats des efforts déployés par l’Islande pour développer les compétences de sa population dans un contexte économique en mutation rapide, et examine la voie à suivre pour progresser encore dans ce domaine. Depuis la fin des années 90, les pouvoirs publics ont sensiblement augmenté les dépenses d’éducation, qui figurent aujourd’hui parmi les plus élevées des pays de l’OCDE par rapport au PIB. Toutefois, l’Islande enregistre toujours l’une des plus fortes proportions de personnes d’âge actif qui n’ont pas achevé le deuxième cycle de l’enseignement secondaire, et les acquis scolaires des jeunes de 15 ans ne sont pas exceptionnels compte tenu du stade avancé de développement économique du pays. Cette situation est d’autant moins satisfaisante que les dépenses par élève dans le secteur de l’enseignement obligatoire sont très supérieures à la moyenne des pays de l’OCDE, même une fois prises en considération les différences de PIB par habitant. Les mesures requises en vue d’y remédier consistent, entre autres, à ajuster les programmes d’enseignement et à renforcer l’évaluation de l’enseignement et la qualité de ce dernier. Il est possible, tout en veillant à ce que les élèves acquièrent un ensemble suffisant de compétences de base, de réduire la durée moyenne de la scolarité dans l’enseignement primaire et secondaire, qui est assez longue par rapport aux autres pays. A la différence de ce que l’on observe dans le cas du deuxième cycle du secondaire, les personnes qui ont fait des études supérieures sont proportionnellement plus nombreuses que la moyenne des pays de l’OCDE et l’enseignement supérieur doit faire face à une énorme augmentation de ses effectifs. Afin que cette évolution ne soit pas préjudiciable à la qualité, les pouvoirs publics ont adopté des textes de loi que l’on peut saluer. Toutefois, ceuxci n’abordent pas le problème des droits de scolarité, dont le prélèvement est autorisé dans le secteur privé mais non dans le secteur public. Ce document de travail se rapporte à l’Etude économique de l’OCDE de l’Islande 2006 (www.oecd.org/eco/etudes/islande).
    Keywords: human capital, education, capital humain, Islande, éducation, education policy, Iceland, politique d'éducation
    JEL: J20 J21 J22 J23 J24
    Date: 2006–09–15
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:516-en&r=hrm
  5. By: Katarina Richardson (IFAU Uppsala); Gerard J. van den Berg (Free University Amsterdam, Princeton University, IFAU Uppsala, IFS, CEPR and IZA Bonn)
    Abstract: The vocational employment training program is the most ambitious and expensive training program in Sweden and a cornerstone of labor market policy. We analyze causal effects on the individual transition rate from unemployment to employment by exploiting variation in the timing of treatment and outcome, dealing with selectivity on unobservables. We demonstrate the appropriateness of this approach in our context by studying the assignment. We also develop a model allowing for duration dependence and unobserved heterogeneity (leading to spurious duration dependence) in the treatment effect, and we prove non-parametric identification. The data cover the population and include multiple unemployment spells for many individuals. The results indicate a large significantly positive effect on exit to work shortly after exiting the program. The effect at the individual level diminishes after some weeks. When taking account of the time spent in the program, the effect on the mean unemployment duration is often close to zero.
    Keywords: vocational training, program evaluation, duration analysis, selectivity bias, treatment effect, duration dependence, identification
    JEL: J64 C14
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2314&r=hrm
  6. By: John T. Addison (University of South Carolina, Queen’s University Belfast, Universidade de Coimbra/GEMF and IZA Bonn); Christopher J. Surfield (Saginaw Valley State University)
    Abstract: Atypical employment, such as temporary, on-call, and contract work, has been found disproportionately to attract the jobless. But there is no consensus in the literature as to the labour market consequences of such job choice by unemployed individuals. Using data from the Current Population Survey, we investigate the implications of the initial job-finding strategies pursued by the jobless for their short- and medium-term employment stability. At first sight, it appears that taking an offer of regular employment provides the greatest degree of employment continuity for the jobless. However, closer inspection indicates that the jobless who take up atypical employment are not only more likely to be employed one month and one year later than those who continue to search, but also to enjoy employment continuity that is no less favorable than that offered by regular, open-ended employment.
    Keywords: atypical/contingent work, open-ended employment, employment continuity, unemployment, inactivity
    JEL: J40 J64 J20
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2325&r=hrm
  7. By: W. Stanley Siebert (University of Birmingham Business School and IZA Bonn); Nikolay Zubanov (University of Birmingham Business School); Arnaud Chevalier (Royal Holloway, University of London and IZA Bonn); Tarja Viitanen (University of Sheffield and IZA Bonn)
    Abstract: We study the impact of labour turnover on labour productivity using a panel dataset of 347 shops belonging to a large UK clothing retailer over1995-1999. For the within-shop link – holding constant the shop’s permanent characteristics – we observe an inverted U-shape effect of labour turnover on productivity. The productivity-maximizing rates of FTE-adjusted quits and hires are each about 20% per year, improving productivity by 2.5% compared to the zero turnover level. We explain the difference between this optimal level of labour turnover and its observed average (quits and hires each around 10%) through the costs of hiring estimated at about £600 per hire. By contrast, between shops, there is a positive link between average rates of turnover and average productivity, suggesting that an unobservable management quality factor generates both high turnover and productivity, which we discuss.
    Keywords: labour productivity, labour turnover, matched employee-firm panel data, retailing
    JEL: J63 J24 L81
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2322&r=hrm
  8. By: Ouarda Merrouche
    Abstract: In settlement colonies, the economic systems, infrastructure and development projects of the settlers exclusively served their own needs. The disastrous outcomes of this discrimination became apparent in the post-colonial era particularly as regards education. In Algeria under French rule (1930-1962) education was almost exclusively reserved to French and other European settlers and as a consequence only ten per cent of Muslim Algerians were literate at independence. While the majority of the settlers left Algeria in 1962, the infrastructure remained. This paper exploits substantial regional variations in the non-Muslims proportion of the population on the eve of the war of independence (1954) in Algeria to evaluate the long term impact of colonial discrimination in public goods allocation on education levels. Using an instrumental variables approach to correct for endogeneous sorting of settlers and natives into regions my results indicate that settlement regions, which inherited a larger stock of infrastructure per capita at independence, have persistently higher literacy rates relative to extractive regions. However, these disparities tend to vanish over time probably as a result of the massive funds allocated to the education sector by the successive governments in the post-independence era.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:ifs:cemmap:14/06&r=hrm

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