nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒04‒21
twelve papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. Human Capital, Economic Growth, and Regional Inequality in China By Belton Fleisher; Haizheng Li; Min Qiang Zhao
  2. Book Production and the Onset of Modern Economic Growth By Jörg Baten; Jan Luiten van Zanden
  3. Brain Drain, Fiscal Competition, and Public Education Expenditure By Hartmut Egger; Josef Falkinger; Volker Grossmann
  4. Total Work, Gender and Social Norms By Michael Burda; Daniel S. Hamermesh; Philippe Weil
  5. Is Education the Panacea for Economic Deprivation of Muslims? Evidence from Wage Earners in India, 1987-2004 By Sumon Kumar Bhaumik; Manisha Chakrabarty
  7. Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions By Dean Karlan; Martin Valdivia
  8. From Container Knowledge to Entrepreneurial Learning: The Role of Universities By Gerald Braun
  9. Entrepreneurship Education and Finnish Society By Paula Kyrö
  10. Opportunities for Schools to Develop Entrepreneurship Education: the Example of Estonia By Made Torokoff
  11. Entrepreneurship Education at University Level ? Contextual Challenges By Per Blenker; Poul Dreisler; John Kjeldsen
  12. Today’s German Universities and Dynamic Education Webs: Does it fit? By Voigtländer, Christine; Breitner, Michael H.

  1. By: Belton Fleisher (Ohio State University and IZA); Haizheng Li (Georgia Institute of Technology); Min Qiang Zhao (Ohio State University)
    Abstract: We study the dispersion in rates of provincial economic- and TFP growth in China. Our results show that regional growth patterns can be understood as a function of several interrelated factors, which include investment in physical capital, human capital, and infrastructure capital; the infusion of new technology and its regional spread; and market reforms, with a major step forward occurring following Deng Xiaoping’s "South Trip" in 1992. We find that FDI had much larger effect on TFP growth before 1994 than after, and we attribute this to emergence of other channels of technology transfer when marketization accelerated. We find that human capital positively affects output per worker and productivity growth. In particular, in terms of its direct contribution to production, educated labor has a much higher marginal product. Moreover, we estimate a positive, direct effect of human capital on TFP growth. This direct effect is hypothesized to come from domestic innovation activities. The estimated spillover effect of human capital on TFP growth is positive and statistically significant, which is very robust to model specifications and estimation methods. The spillover effect appears to be much stronger before 1994. We conduct cost-benefit analysis and a policy "experiment," in which we project the impact increases in human capital and infrastructure capital on regional inequality. We conclude that investing in human capital will be an effective policy to reduce regional gaps in China as well as an efficient means to promote economic growth.
    Keywords: regional inequality, TFP growth, FDI, human capital, technology spillovers
    JEL: O15 O18 O47 O53
    Date: 2007–03
  2. By: Jörg Baten; Jan Luiten van Zanden
    Abstract: Endogenous growth theory suggests that human capital formation plays a significant role for the ‘wealth and poverty of nations.’ In contrast to previous studies which denied the role of human capital as a crucial determinant of for really long-term growth, we confirm its importance. Indicators of human capital like literacy rates are lacking for the period of 1450-1913; hence, we use per capita book production as a proxy for advanced literacy skills. This study explains how, and to what extent, growth disparities are a function of human capital formation.
    Keywords: Book Produktion, Economic Growth, Human Capital
    JEL: O14 O40 N10
    Date: 2007–04
  3. By: Hartmut Egger (University of Zurich, CESifo and GEP); Josef Falkinger (University of Zurich, CESifo and IZA); Volker Grossmann (University of Fribourg, CESifo and IZA)
    Abstract: This paper uses a two-country model with integrated markets for high-skilled labor to analyze the opportunities and incentives for national governments to provide higher education. Countries can differ in productivity, and education is financed through a wage tax, so that brain drain affects the tax base and has agglomeration effects. We study unilateral possibilities for triggering or avoiding brain drain and compare education policies and migration patterns in non-cooperative political equilibria with the consequences of bilateral cooperation between countries. We thereby demonstrate that bilateral coordination tends to increase public education expenditure compared to non-cooperation. At the same time, it aims at preventing migration. This is not necessarily desirable from the point of view of a social planner who takes account of the interests of migrants.
    Keywords: brain drain, educational choice, public education policy, locational competition
    JEL: F22 H52
    Date: 2007–04
  4. By: Michael Burda (Humboldt University of Berlin, CEPR and IZA); Daniel S. Hamermesh (University of Texas at Austin, NBER and IZA); Philippe Weil (Université Libre de Bruxelles (ECARES), Institut d’Études Politiques de Paris, CEPR and NBER)
    Abstract: Using time-diary data from 25 countries, we demonstrate that there is a negative relationship between real GDP per capita and the female-male difference in total work time per day - the sum of work for pay and work at home. In rich northern countries on four continents, including the United States, there is no difference - men and women do the same amount of total work. This latter fact has been presented before by several sociologists for a few rich countries; but our survey results show that labor economists, macroeconomists, the general public and sociologists are unaware of it and instead believe that women perform more total work. The facts do not arise from gender differences in the price of time (as measured by market wages), as women’s total work is further below men’s where their relative wages are lower. Additional tests using U.S. and German data show that they do not arise from differences in marital bargaining, as gender equality is not associated with marital status; nor do they stem from family norms, since most of the variance in the gender total work difference is due to within-couple differences. We offer a theory of social norms to explain the facts. The social-norm explanation is better able to account for within-education group and within-region gender differences in total work being smaller than inter-group differences. It is consistent with evidence using the World Values Surveys that female total work is relatively greater than men’s where both men and women believe that scarce jobs should be offered to men first.
    Keywords: time use, gender differences, household production, paid work
    JEL: J22 J16 D13
    Date: 2007–03
  5. By: Sumon Kumar Bhaumik; Manisha Chakrabarty
    Abstract: Few researchers have examined the nature and determinants of earnings differentials among religious groups, and none has been undertaken in the context of conflict-prone multi-religious societies like the one in India. We address this lacuna in the literature by examining the differences in the average (log) earnings of Hindu and Muslim wage earners in India, during the 1987-2004 period. Our results indicate that education differences between Hindu and Muslim wage earners, especially differences in the proportion of wage earners with tertiary education, are largely responsible for the differences in the average (log) earnings of the two religious groups across the years. By contrast, differences in the returns to education do not explain the aforementioned difference in average (log) earnings. Citing other evidence about persistence of educational achievements across generations, however, we argue that attempts to narrow this gap using quotas for Muslim households at educational institutions might be counterproductive from the point of view of conflict avoidance.
    Keywords: earnings gap, education, decomposition, religion
    JEL: J31 J15 I28
    Date: 2007–01–01
  6. By: Alison Booth; Melvyn Coles
    Abstract: This paper considers educational investment, wages and hours of market work in an imperfectly competitive labour market with heterogeneous workers and home production. It investigates the degree to which there might be both underemployment in the labour market and underinvestment in education. A central insight is that the ex-post participation decision of workers endogenously generates increasing marginal returns to education. Although equilibrium implies underinvestment in education, optimal policy is not to subsidise education. Instead it is to subsidise labour market participation which we argue might be efficiently targeted as state-provided childcare support.
    JEL: H24 J13 J24 J31 J42
    Date: 2007–02
  7. By: Dean Karlan; Martin Valdivia
    Abstract: Can one teach basic entrepreneurship skills, or are they fixed personal characteristics? Most academic and development policy discussions about microentrepreneurs focus on their access to credit, and assume their human capital to be fixed. The self-employed poor rarely have any formal training in business skills. However, a growing number of microfinance organizations are attempting to build the human capital of micro-entrepreneurs in order to improve the livelihood of their clients and help further their mission of poverty alleviation. Using a randomized control trial, we measure the marginal impact of adding business training to a Peruvian group lending program for female microentrepreneurs. Treatment groups received thirty to sixty minute entrepreneurship training sessions during their normal weekly or monthly banking meeting over a period of one to two years. Control groups remained as they were before, meeting at the same frequency but solely for making loan and savings payments. We find that the treatment led to improved business knowledge, practices and revenues. The program also improved repayment and client retention rates for the microfinance institution. Larger effects found for those that expressed less interest in training in a baseline survey. This has important implications for implementing similar market-based interventions with a goal of recovering costs.
    Keywords: entrepreneurship, microentrepreneur, business skills, business training, credit
    JEL: M13 M0 M40
  8. By: Gerald Braun (Hanseatic Institute of Entrepreneurship and Regional Development (HIE-RO) at Rostock University, Faculty of Economics and Social Sciences)
    Abstract: The new quality of international competition changes the function of universities dramatically. They have to ? in addition to their traditional role as sources of ideas, knowledge and intellectual capital ? become agents of innovations, i.e. entrepreneurial universities, enhance regional development and international competitiveness. The transformation of university produced knowledge into market-oriented innovations depends on the quality of academic entrepreneurship. The article analyses two competing approaches to promote academic entrepreneurship: The 'knowledge container' and the 'entrepreneurial learning' approach ? and their foundations in neoclassical and evolutionary growth theory. The obstacles to introduce entrepreneurial learning as an educational innovation are being analysed (non-innovative university culture/history/attitudes, bureaucratic over-regulation, defence of vested rights). The article finally discusses some conditions for successful academic entrepreneurship (corporate university entrepreneurs, change agents, inter-university competition, entrepreneurial universities as learning organisations)
    Keywords: Entrepreneurial university, academic entrepreneurship, container knowledge accumulation, entrepreneurial learning, educational innovations
    JEL: E1 E3 F2
    Date: 2006
  9. By: Paula Kyrö (School of Economics and Business Administration at University of Tampere)
    Abstract: The discussion between entrepreneurship and education strengthened towards the end of the 20th century due to the increasing impact of small businesses on societies. It is therefore reasonable to as¬sume that present-day students may soon experience the small business context in some form as their future work environment. The supply of entrepreneurship courses is, in fact, one of the fastest growing themes in university teaching in both sides of the Atlantic. The Finnish government has also taken this fact as one of the key issues in its policy programme and committed to entrepreneurship education throughout its school system. The dilemma will be faced however when it comes to the current contribution of the education to the educational theories. The discussion of how to learn entrepreneurship and develop pedagogy for it has only taken very preliminary steps. So far the focus has changed from the trait theories of biological heritage, i.e. assuming that we are born to be entrepreneurs, towards the belief that we learn to be en¬trepreneurs and we learn how to behave like entrepreneurs. This education-oriented focus has, how¬ever, generated studies in entrepreneurship research rather than attracted education researchers. This article suggests that the lack of this contribution appears as an apparent shortage of pedagogical dis¬cussion. In order to encourage this debate as an interplay between these two sciences, this paper deline¬ates some elements of entrepreneurial pedagogy, compares them to the available learning paradigms and thus gives some ideas for further enhancing entrepreneurial learning in different levels of school system
    Keywords: Entrepreneurship education, entrepreneurial learning, Educational system in Finland, Finnish Society, entrepreneurial qualities, learning paradigms, entrepreneurial learning paradigm
    JEL: A2 R5
    Date: 2006
  10. By: Made Torokoff (University of Tartu, Pärnu College)
    Abstract: One third of Estonian schools have been teaching business in one form or another since 1992, mostly using a Junior Achievement programme. Estonian universities have not had programmes for teachers of business or economics in comprehensive schools until now. How can we implement business teaching in the general education system on a larger scale and how can we promote enterprising behaviour? Research into business teaching is currently at an initial stage in Estonia. In order to establish the steps which must be taken for implementing programmes for business teaching, it is essential to identify our current situation. What are the general attitudes towards business in general? What do business people expect from schools? The author of the paper conducted surveys in both schools and companies in 2003-2005. This paper focuses on the issues of competitiveness and enterprises covered in the surveys. Using the data from the surveys, the paper aims to analyse the attitudes and views of teachers, students and parents towards studies in the general education system, and towards competitiveness in the labour market and enterprises. The teachers’ view is that their students are competitive on the labour market as long as their level of academic knowledge is good. Most students do not see business as a career option. However, the parents’ responses allow us to draw the conclusion that their interest in and need for knowledge in economics has risen sharply. The paper points out that even while there is no systematic training of business teachers, enterprising behaviour and mindset, and students’ leadership skills can be shaped in regular classes by all teachers at a pre-school level (kindergartens), along with primary, basic and secondary education
    Keywords: Estonian school, entrepreneurship education, enterprising behaviour, leader
    JEL: A2 I21
    Date: 2006
  11. By: Per Blenker (School of Economics and Management, University of Aarhus); Poul Dreisler (Department of Management, School of Business, University of Aarhus); John Kjeldsen (Department of Marketing and Statistics, School of Business, University of Aarhus)
    Abstract: Entrepreneurship has been declared the most significant driver in the future development of societal welfare. Businesses, organisations and the individual person should be motivated for – and develop competence in – perceiving new opportunities through reflective action and hence participate in the creation of change and growth in society. This capacity and inclination for change and innovation is thus conceived as an important human trait, which has come to be known as “enterprising behaviour” in international research. In which ways do these demands challenge the universities and its role in regional and societal context? Interaction between universities, business sector and political system through the so-called “triple-helix-model” is said to be the basis for growth and innovation. Does it mean that knowledge creation and exchange should be based on the concept of the entrepreneurial university? Related to that, what are then the internal challenges for the entire education culture and for the role of the teacher / researcher? It is some of the questions the paper tries to answer or at least give some deeper insight to
    Keywords: Entrepreneurial university, triple-helix, enterprising behaviour, entrepreneurial culture, role of teacher / researcher
    JEL: A2 D8 I21
    Date: 2006
  12. By: Voigtländer, Christine; Breitner, Michael H.
    Abstract: Contemporary lifelong learning (L3) concepts require permeability between higher and further education. Today, human resources development is a critical success factor in a global environment. Shorter innovation cycles and the challenges of the service economy imply the alignment of further education concepts to the employees’ working situation. Standardized content offers are no longer sufficient to meet the needs of both learners and companies. Public and private education providers have to collaborate to meet the customers’ learning needs. Providers can and should establish dynamic business webs – so-called dynamic education webs – in this collaborative process. These partnerships are temporary in nature and are based mainly on incentives instead of contracts. We will focus on this new phenomenon and present research results with high practical relevance. The core questions arise: What promotes dynamic education webs? Who are the key players? What are critical success factors? These questions are answered based on literature, market studies and expert questionings of important market players. The recommendations derived can help the management to participate successfully in dynamic education webs. A glance at trends and market potentials as stated by the experts concludes the paper.
    Keywords: Business Webs, Business Models, E-Learning, Further Education
    JEL: I23 M53
    Date: 2007–04

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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