nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒03‒17
twelve papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. An extension to the neoclassical growth modelto Estimate Growth and Level Effects By Rao, B. Bhaskara; Singh, Rup; Nisha, Fozia
  2. Returns to Education and Risky Financial Investment By Sarah Brown; Gaia Garino; Karl Taylor
  3. More time is better : an evaluation of the full time school program in Uruguay By Cerdan-Infantes, Pedro; Vermeersch, Christel
  4. Higher Education Facilities: Issues and Trends By Francisco Marmolejo; Reynold Gonzalez; Nils Gersberg; Suvi Nenonen; Pablo Campos Calvo-Sotelo
  5. Mass Tertiary Education, Higher Education Standard and University Reform: A Theoretical Analysis By Massimiliano BRATTI; Stefano STAFFOLANI; Chiara BROCCOLINI
  6. Social Interaction and Intergenerational Skill Transfer By Sarah Brown; Karl Taylor
  7. Education, Risk Preference and Wages. By Sarah Brown; Karl Taylor
  8. The Cost Structure of Higher Education in Further Education Colleges in England By Pamela Lenton
  9. Allocation and Productivity of Time in New Ventures of Female and Male Entrepreneurs By Verheul, I.; Carree, M.A.; Thurik, A.R.
  10. "Obstacles to School Progression in Rural Pakistan: An Analysis of Gender and Sibling Rivalry Using Field Survey Data" By Yasuyuki Sawada; Michael Lokshin
  11. The Over-Education of UK Immigrants: Evidence from the Labour Force Survey. By Joanne Kathryn Lindley; Pamela Lenton
  12. The Impact of Child Labor on Child’s Education: The Case of Indonesia By Pipit Pitriyan

  1. By: Rao, B. Bhaskara; Singh, Rup; Nisha, Fozia
    Abstract: The neoclassical growth model was extended by Mankiw, Romer and Weil (1992) to estimate the level effects of additional factors like human capital. We suggest a further extension to capture their permanent growth effects. Time series data from Fiji are used to show that the growth effect of human capital, although small, is significant. Furthermore, in our sample the specifications with a permanent growth effect performed better than specifications with only level effects.
    Keywords: The Solow Growth Model; Production Function; Shift Variables; Human Capital Level and Growth Effects.
    JEL: O56 O40 O1 I29 O30 O11 I20
    Date: 2006
  2. By: Sarah Brown; Gaia Garino; Karl Taylor (Department of Economics, The University of Sheffield)
    Abstract: The aim of this paper is to explore the relationship between wages, human capital and investment in financial assets with risky returns at the individual level. To explore this relationship from an international perspective, we analyse individual level data from the British Household Panel Survey, the German Socio-Economic Panel and the U.S. Panel Study of Income Dynamics. Our findings suggest that investment in financial assets with risky returns is positively associated with returns to human capital investment.
    Keywords: Education, Financial Investment, Human Capital, Wages.
    JEL: J24 J30
    Date: 2006–10
  3. By: Cerdan-Infantes, Pedro; Vermeersch, Christel
    Abstract: This paper estimates the impact of the full-time school program in Uruguay on standardized test scores of 6th grade students. The program lengthened the school day from a half day to a full day, and provided additional inputs to schools to make this possible, such as additional teachers and construction of classrooms. The program was not randomly placed, but targeted poor urban schools. Using propensity score matching, the authors construct a comparable group of schools, and show that students in very disadvantaged schools improved in their test scores by 0.07 of a standard deviation per year of participation in the full-time program in mathematics, and 0.04 in language. While the program is expensive, it may, if well targeted, help address inequalities in education in Uruguay, at an increase in cost per student not larger than the current deficit in spending between Uruguay and the rest of the region.
    Keywords: Tertiary Education,Education For All,Teaching and Learning,Primary Education,Secondary Education
    Date: 2007–03–01
  4. By: Francisco Marmolejo; Reynold Gonzalez; Nils Gersberg; Suvi Nenonen; Pablo Campos Calvo-Sotelo
    Abstract: Issues that will shape the future of higher education institutions and new trends in campus architecture were the themes of a recent international seminar. Francisco Marmolejo, former consultant to the Organisation for Economic Co-operation and Development (OECD), presents here an overview of the seminar, explaining changes taking place in the area of higher education facilities and providing participants’ views. Presentations from three countries are also described below: Mexico’s Monterrey International Knowledge City; the higher education learning environment and the Finnish technology hub of Otaniemi; and, in Spain, the University of Salamanca’s R&D&I Building.
    Keywords: facilities management, PISA, university management, campus architecture, higher education institution
    Date: 2007–03
  5. By: Massimiliano BRATTI (Universit… di Milano, DEAS); Stefano STAFFOLANI (Universita' Politecnica delle Marche, Dipartimento di Economia); Chiara BROCCOLINI (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: After the "3+2" University reform in Italy there has been a fast increase in the number of students. A common wisdom is that this result was partly achieved by reducing the standard of Higher Education (HE). In this paper we first build a theoretical model in which individuals decide whether to enrol in HE along with their optimal course quality, and whether to dropout. Then, we use the model to analyse the effect of a reduction in the standards of HE courses available in the educational system on overall enrollment and drop-out. We show that a reduction in HE standard helps achieving a mass tertiary education by increasing both the number of students and that of university graduates but it does not necessarily increase the overall efficiency of the HE system measured in terms of drop-out or graduation rates.
    Keywords: ability, drop-out, enrolment, italy, reform, standard, university
    JEL: I21
    Date: 2007–02
  6. By: Sarah Brown; Karl Taylor (Department of Economics, The University of Sheffield)
    Abstract: We explore the relationship between educational attainment and social interaction using individual level data from the British National Child Development Study. To be specific, we analyze whether an intergenerational aspect to this relationship exists by examining the relationship between the educational attainment of children and the degree of formal social activity undertaken by their parents. In accordance with the existing literature, our results support a positive association between education and social interaction. Furthermore, our results suggest that children´s scores in reading, mathematics and vocabulary tests are positively associated with the extent of their parents´ formal social interaction. This relationship is robust to controlling for the degree of intra-family based social interaction and the social activities of the child.
    Keywords: Education, Human Capital, Social Capital, Social Interaction.
    JEL: J24 Z12
    Date: 2006–10
  7. By: Sarah Brown; Karl Taylor (Department of Economics, The University of Sheffield)
    Abstract: We explore the effect of risk preference on the educational attainment and wages of a sample of individuals drawn from the U.S. Panel Study of Income Dynamics (PSID). Using a sequence of questions from the 1996 PSID, we are able to construct measures of risk aversion and risk tolerance allowing us to explore the implications of interpersonal differences in risk preference for educational attainment. Our empirical findings suggest that risk preference has a significant influence on human capital accumulation, with the degree of risk aversion (tolerance) being inversely (positively) associated with educational attainment. In addition, our findings suggest that risk preference is a valid instrument for education in a standard Mincerian earnings function.
    Keywords: Human Capital, Risk Aversion, Risk Preference, Wages.
    JEL: J24 J30
    Date: 2006–02
  8. By: Pamela Lenton (Department of Economics, The University of Sheffield)
    Abstract: This paper examines the cost of the provision of higher education courses within further education colleges in England. The further education sector is complex because of the wide range of courses it provides both in terms of subject type and of qualification level. We believe this to be the first attempt to fit a cost function specifically to the further education sector. Cost functions for a sample of 96 colleges over a two-year period, from 2000 to 2002, are fitted using a panel data methodology as well as stochastic frontier analysis. Our findings indicate that most further education colleges are able to benefit from economies of scale. Results from both methodologies suggest the presence of product-specific economies of scale, substantial ray economies of scale and that higher education classroom-based courses, such as business studies, along with vocational courses display substantial economies of scope.
    Keywords: Stochastic frontier, Education
    JEL: C21 C23 I21
    Date: 2006–09
  9. By: Verheul, I.; Carree, M.A.; Thurik, A.R. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper investigates time allocation decisions in new ventures of female and male entrepreneurs using a new model that distinguishes between preference and (expected) productivity effects on the number of working hours. Using data of 1203 entrepreneurs we find that the preference for work time in new ventures is related to the motivation for starting up a business, the propensity to take risk, the availability of other income sources, firm size and sector. Productivity of work time is explained by human, financial and social capital, outsourcing and firm characteristics. This study also evaluates actual profit effects one year after start-up. With respect to gender we find that ? on average ? women invest less time in the business than men largely due to a lower productivity per working hour, explained by lower endowments of human, social and financial capital.
    Keywords: Time allocation;New ventures;Gender;
    Date: 2007–02–05
  10. By: Yasuyuki Sawada (Faculty of Economis, University of Tokyo); Michael Lokshin (Policy Research Department, World Bank Group)
    Abstract: This paper aims to identify the obstacles to school progression by integrating field surveys conducted in twenty-five Pakistani villages, using economic theory and econometric analysis. The full-information maximum likelihood (FIML) estimation of the sequential schooling decision model reveals important dynamics of the gender difference in educational attainment, intrahousehold resource-allocation patterns, and transitory income and wealth effects. We find a high educational retention rate and observe that school progression rates between male and female students after secondary school are comparable. In particular, we find gender-specific and schooling-stage-specific birth-order effects on education. Our overall findings are consistent with the theoretical implications of optimal schooling behavior under binding credit constraints and the self-selection in education-friendly households. Finally, we find serious supply-side constraints on primary education for females.
    Date: 2007–03
  11. By: Joanne Kathryn Lindley; Pamela Lenton (Department of Economics, The University of Sheffield)
    Abstract: We investigate the incidence of over-education, as well as the effect on earnings, for immigrants and natives drawn from the Labour Force Survey between 1993 and 2003. This paper investigates whether immigrants are more or less likely to be over and under-educated than are natives and if there is any evidence of economic assimilation in such propensity differences. In addition we examine whether immigrants exhibit a larger or smaller earnings for over-education compared to natives. We find that native born non-whites and immigrants are more likely to be over-educated, even after conditioning on all other socio-economic factors (including ethnicity and English speaking country of origin). However, we also find evidence of assimilation in the incidence of immigrant over-education towards that of natives. Finally, we find that over-education implies a lower return to earnings for immigrants and non-white natives, compared to native born whites. The largest loss in earnings due to over-education actually applies to white education entrants, moreover we find no significant return to over-education for non-white labour market entrants, once we distinguish between these two immigrant groups.
    Keywords: over-education, earnings, immigrants, assimilation.
    JEL: J24 J7
    Date: 2006–01
  12. By: Pipit Pitriyan (Department of Economics, Padjadjaran University)
    Abstract: Employing child as a labor is categorized as a violation to the human right. But it seems unavoidable in developing country to prevent children entering labor market. Many extensive literatures on the determinant of child labor have been found, but yet, there is limited research on the impact of children work on socioeconomic outcomes. This paper investigates the impact of child labor on child’s education by using the Indonesian Labor Survey/SAKERNAS 2002 data at the district level.
    Keywords: Child Labor, Bivariate Probit, SAKERNAS, Indonesia
    JEL: I20
    Date: 2006–08

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