nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒03‒03
thirteen papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. Human Capital Quality and Economic Growth By Nadir Altinok
  2. Age, Human Capital and the Geography of Innovation By Katharina Frosch; Thusnelda Tivig
  3. Education, corruption and growth in developing countries By Cuong Le Van; Mathilde Maurel
  4. Trade and human capital accumulation: evidence from U.S. immigrants By Domeland, Dorte
  5. Education and labour productivity in New Zealand By Razzak, Weshah; Timmins, Jason
  6. Premium on Fields of Study: The Returns to Higher Education in Singapore By Yeo Khee Yong; Toh Mun Heng; Shandre Mugan Thangavelu; James Wong
  7. Schooling, Inequality and Government Policy By Oleksiy Kryvtsov; Alexander Ueberfeldt
  8. A Macroeconomic perspective on skill shortages and the skill premium in New Zealand By Razzak, Weshah; Timmins, Jason
  9. Emigration and human capital: who leaves, who comes back and what difference does it make? By Aitor Lacuesta
  10. The Role of University Characteristics in Determining Post-graduation Outcomes: Panel Evidence from Three Recent Canadian Cohorts By Betts, Julian; Ferrall, Christopher; Finnie, Ross
  11. Inequality and the Education MDG for Latin America By Eduardo Zepeda
  12. Teaching with Technology to Engage Students and Enhance Learning By Daniel Lass; Bernard Morzuch; Richard Rogers
  13. Spatial Mobility and Returns to Education:<br />Some Evidence from a Sample of French Youth By Philippe Lemistre; Nicolas Moreau

  1. By: Nadir Altinok (IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education - [CNRS : FRE5211] - [Université de Bourgogne])
    Abstract: The estimation of the relationship between education and economic growth is marked by contradictions. These contradictions underline the lack of precision characterizing indicators of human capital. This paper constructs new indicators based on a pool of international surveys concerning pupil assessment. Thus, our new database, which includes 105 countries, makes it possible to confirm or not the positive relationship between education and growth. Taking into account the endogeneity of education, we measure a positive effect of qualitative indicators of human capital and the growth of countries between 1960 and 2000. The contribution of education to growth therefore appears significant, both from a quantitative and a qualitative point of view.
    Keywords: Education quality ; Human capital ; Growth ; Development
    Date: 2007–02–21
  2. By: Katharina Frosch (Rostock Centre for the Study of Demographic Change, Germany); Thusnelda Tivig (University of Rostock and Rostock Centre for the Study of Demographic Change, Germany)
    Abstract: An aging labor force is often associated with a decreasing innovative performance on aggregate, firm or individual level. Using a regional knowledge production function to explain patenting activity in German districts, we propose to include the effect of age in a twofold specification: First, we account indirectly for age by including the aggregate, age-heterogeneous human capital available in each district and estimating its effect on patenting performance. Second, we assume that there is an age effect that is independent of human capital and therefore include the age structure of the districts' labor force directly, too. Possible explanations for an independent age-effect are age-dependent differences in the ability to exploit innovation-relevant human capital or age-specific motivation to lead creative ideas to successful inventions. Departing from these conceptualizations provided by economics and I-O psychology, we estimate a negative binomial regression model appropriate for count data. Results on German district level indicate that engineering knowledge in the younger as well as the prime age group significantly enhances patenting performance, whereas we do not find any efect for the age group 50+. However, for older ages, the stock of experience has a positive influence. On aggregate level, we find a positive independent age effect.
    Keywords: knowledge production function, regional innovation analysis, human capital, aging, demographic change, patents
    JEL: O31 J24
    Date: 2007
  3. By: Cuong Le Van (CES - Centre d'économie de la Sorbonne - [CNRS : UMR8174] - [Université Panthéon-Sorbonne - Paris I]); Mathilde Maurel (CES - Centre d'économie de la Sorbonne - [CNRS : UMR8174] - [Université Panthéon-Sorbonne - Paris I])
    Abstract: Education is key in explaining growth, as emphasized recently by Krueger and Lindahl (2001). But for a given level of education, what can explain the missing growth in developing countries ? Corruption, the poor enforcement of property rights, the government share of property rights, the government share of GDP, the regulations it imposes might influence the Total Factor Productivity (TFP thereafter) of a country's economic system. A number of empirical papers emphasize the consequences bad institutions have on growth, but few are examining the link between education, corruption (more generally bad institutions) and growth. Our model assumes that at low level of GDP per head and high level of corruption education spending has no impact on growth. The slope gets positive only at above critical size of corruption. The implications are tested using the data set of Xavier Sala-i-Martin, Gernot Doppelhofer and Ronald I. Miller (2004), which is extended with the aggregate governance indicators of Kaufman et ali.
    Keywords: Public spending, education, corruption, endogeneous growth.
    Date: 2007–02–08
  4. By: Domeland, Dorte
    Abstract: This study provides empirical evidence that trade increases on-the-job human capital accumulation by estimating the effect of home country openness on estimated returns to home country experience of U.S. immigrants. The positive effect of trade on on-the-job human capital accumulation remains significant when controlling for GDP, educational attainment, and institutional quality. It is not the result of self-selection, heterogeneity in returns to experience, English-speaking origin, or cultural background. The effect persists when restricting the sample to non-OECD countries, thereby resolving the theoretical ambiguity of whether trade increases or decreases learning-by-doing. The role of trade in generating economic growth is therefore likely to be more important than generally considered.
    Keywords: Economic Theory & Research,Country Strategy & Performance,Labor Markets,Population Policies,Inequality
    Date: 2007–03–01
  5. By: Razzak, Weshah; Timmins, Jason
    Abstract: We estimate the effect of four types of education qualifications, as a proxy for human capital and skill levels, on GDP per capita, and compute the average percentage returns. We also test the effect of the product of each proxy of human capital with R&D on GDP per capita. We find that only university qualification and its product with R&D to have a positive effect on the average economy-wide productivity.
    Keywords: Labour productivity; education qualification; R&D
    JEL: D20 J08 C23
    Date: 2007–02–08
  6. By: Yeo Khee Yong (Manpower Research and Statistics Department, Ministry of Manpower); Toh Mun Heng (Department of Business Policy, NUS Business School, National University of Singapore); Shandre Mugan Thangavelu (Singapore Centre for Applied and Policy Economics (SCAPE) Department of Economics, National University of Singapore); James Wong (Senior Assistant Director Manpower Research and Statistics Department Ministry of Manpower)
  7. By: Oleksiy Kryvtsov; Alexander Ueberfeldt
    Abstract: This paper asks: What is the effect of government policy on output and inequality in an environment with education and labor-supply decisions? The answer is given in a general equilibrium model, consistent with the post 1960s facts on male wage inequality and labor supply in the U.S. In the model, education and labor-supply decisions depend on progressive income taxation, the education system, the social security system, and technology-driven wage differentials. Government policies affect output and inequality through two channels. First, a policy change leads to an asymmetric adjustment of working hours and savings of schooled and unschooled individuals. Second, there is a redistribution of the workforce between schooled and unschooled workers. Using a battery of proposed government policies, we demonstrate that skill redistribution dampens the response of wage inequality to a policy change and amplifies the response of output by an additional 1 to 2 percent.
    Keywords: Labour markets; Potential output; Productivity
    JEL: H52 J31 J38
    Date: 2007
  8. By: Razzak, Weshah; Timmins, Jason
    Abstract: Qualification and occupation-based measures of skilled labour are constructed to explain the skill premium – the wage of skilled labour relative to unskilled labour in New Zealand. The data exhibit a more rapid growth in the supply of skilled labour than the skill premium, and a very large increase in the real minimum wage over the period from 1986 to 2005. We estimate the rate of increase in the relative demand for skills and the elasticity of substitution. The data are consistent with skill shortages and a skill-bias technical change. We examine the effects of the minimum wage, capital complementarity, and the exchange rate on the skill premium. We also test whether the demand for skills and the elasticity of substitution varied across industries and over time.
    Keywords: Skill-bias technical change; skill premium; the exchange rate
    JEL: J31 C23 O3
    Date: 2007–02–08
  9. By: Aitor Lacuesta (Banco de España)
    Abstract: This paper studies the loss of human capital that emigration generates in the country of origin. To that end I estimate the human capital distribution of emigrants had they not migrated. Unlike previous studies, I take into account the selection of migrants in terms of unobserved characteristics that affect their productivity. Wages in Mexico of those migrants who come back home after being abroad for some time will be crucial to learn something about the selection of non-returning migrants in terms of unobserved productivity. To test whether returning migrants' wages contain any useful information, I follow two steps. First, I use the model of Borjas and Bratsberg (1986) to show that, regardless of the cause for coming back, the distribution of abilities of non-returning migrants is more similar to the distribution of temporary migrants than to that of non-migrants. Moreover, I test some implications of the model in the data. Second, I show that returning migrants' wages reflect their pre-emigration productivity and are not affected by possible human capital gains derived from the decision to emigrate. Taking into account all this evidence, I use returning migrants' wages in Mexico upon return to estimate the distribution of human capital of non-returning migrants had they not migrated. I show that emigrants come form the middle part of the distribution of human capital in the origin country. I find evidence that taking unobserved human capital factors into account is relevant for the dispersion of the estimated distribution as well as for each of its quantiles. Moreover, it does not greatly affect the aggregate mean of human capital.
    Keywords: emigration, human capital, productivity
    JEL: C14 J10 J31
    Date: 2006–08
  10. By: Betts, Julian; Ferrall, Christopher; Finnie, Ross
    Abstract: This paper models earnings of male and female Bachelor's graduates in Canada five years after graduation. Using a university fixed-effect approach, the research finds evidence of significant (fixed) variations in earnings among graduates from different universities. Within universities, changes over time in various characteristics are correlated with changes in graduates' earnings. Increases in undergraduate enrollment are associated with declines in subsequent earnings for graduates, suggesting crowding out. For men, but not women, increases in the professor - student ratio are associated with meaningful gains in students' subsequent earnings. Models that do not condition on a student's major show increased effects of changes in a university's characteristics, with estimated effects rising up to almost two-fold. For women in particular, changes in several university characteristics are strongly associated with changes in women's choice of major. Changes in university characteristics are not strongly related to the probability of employment five years after graduation.
    Keywords: Education, training and learning, Education finance, Outcomes of education
    Date: 2007–02–26
  11. By: Eduardo Zepeda (International Poverty Centre)
    Keywords: Inequality, Education, Millennium Development Goals, Poverty, Latin America
    Date: 2006–10
  12. By: Daniel Lass (Department of Resource Economics, University of Massachusetts Amherst); Bernard Morzuch (Department of Resource Economics, University of Massachusetts Amherst); Richard Rogers (Office of the Provost, University of Massachusetts Amherst)
    Abstract: Teaching technology effects on student learning in a large lecture introductory statistics course were tested. Findings show in-class personal response systems and on-line homework/quizzes significantly improve student exam scores. We infer proven small class techniques, participating in class and doing homework via technologies, can restore sound pedagogy in larger classes. The experiment was conducted using just one class, but factors usually unaccounted for in assessment research were controlled, especially the instructor and other materials. The technologies investigated here can provide learning benefits to students even in larger courses often criticized for their inability to provide students quality learning experiences.
    Keywords: Teaching, technology, statistics, active learning.
    JEL: A22 C9 C21 I21
    Date: 2007–01
  13. By: Philippe Lemistre (LIRHE - Laboratoire Interdisciplinaire de recherche sur les Ressources Humaines et l'Emploi - [CNRS : UMR5066] - [Université des Sciences Sociales - Toulouse I]); Nicolas Moreau (LIRHE - Laboratoire Interdisciplinaire de recherche sur les Ressources Humaines et l'Emploi - [CNRS : UMR5066] - [Université des Sciences Sociales - Toulouse I])
    Abstract: The purpose of this article is to reevaluate the returns to geographic mobility and to the level<br />of education, taking into account the interaction between these two variables. We have at our<br />disposal an original French database that permits precise calculation of the distance between<br />the place of education and the location of first employment. We thus capture mobility without<br />a priori regarding the geographical areas selected, and we use kilometric thresholds to<br />estimate the returns to spatial mobility. Our results suggest decreasing returns to spatial<br />mobility as the distance covered rises and increasing returns to mobility with higher levels of<br />education. In addition, for all levels of education, including the lowest, returns to geographic<br />mobility prove to be positive, for one threshold at least and several distances.
    Keywords: spatial mobility; returns to schooling; earnings function
    Date: 2007–02–19

This nep-hrm issue is ©2007 by Fabio Sabatini. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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