nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒05‒19
eight papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. Inside the Black Box of Regional Development - human capital, the creative class and tolerance By Florida, Richard; Mellander, Charlotta; Stolarick, Kevin
  2. Malaria and Primary Education : A Cross-Country Analysis on Primary Repetition and Completion Rates By Josselin Thuilliez
  3. Education inequalities and the Kuznets curves: a global perspective since 1870 By Christian Morrisson; Fabrice Murtin
  4. The Demand for Variety: A Household Production Perspective By Daniel Hamermesh; Reuben Gronau
  5. The Role of Education in Development By Marla Ripoll; Juan Carlos Cordoba
  6. Institutions in Transition: Legitimisation and Cognition in the Educational Field By Ezzamel, Mahmoud Azmy; Robson, Keith; Edwards, Pam
  7. Learning mode of small business owners By A. WILLEM; H. VAN DEN BROECK
  8. Parental Valuation of Charter Schools and Student Performance By Jim VanderHoff

  1. By: Florida, Richard (George Mason University, US); Mellander, Charlotta (Jönköping International Business School (JIBS) and CESIS); Stolarick, Kevin (Carnegie Mellon University , US)
    Abstract: While there is a general consensus on the importance of human capital to regional development, debate has emerged around two key issues. The first involves the efficacy of educational versus occupational measures (i.e. the creative class) of human capital, while the second revolves around the factors that effect its distribution. We use structural equation models and path analysis to examine the effects of these two alternative measures of human capital on regional income and wages, and also to isolate the effects of tolerance, consumer service amenities, and the university on its distribution. We find that human capital and the creative class effect regional development through different channels. The creative class outperforms conventional educational attainment measures in accounting for regional labor productivity measured as wages, while conventional human capital does better in accounting for regional income. We find that tolerance is significantly associated with both human capital and the creative class as well as with wages and income.
    Keywords: Human Capital; Creative Class; Tolerance; Wages; Income; Regional Development
    JEL: J24 O30 R10 R20
    Date: 2007–04–18
  2. By: Josselin Thuilliez (CES - Centre d'économie de la Sorbonne - [CNRS : UMR8174] - [Université Panthéon-Sorbonne - Paris I])
    Abstract: This paper explores the link between P. Falciparum malaria - most of malaria morbidity and mortality is due to the malignant Plasmodium Falciparum - and primary education in terms of school performances at the macroeconomic stage. Cross-country regression analysis shows that the relation between school results (measured by repetition and completion rates) and the P. Falciparum malaria index is strong. The results implies that the achievement of the education Millennium Development Goals will require more than just focusing on expenditure in primary education. It does not imply that resources in education are unnecessary but that increasing resources in education and improving education resources management alone are unlikely to be sufficient. This paper suggests that health conditions and especially diseases that alter cognitive capacities of children such as malaria should be taken into account much more seriously. This study also sees the need to place emphasis on research that will improve the quality of interventions to prevent malaria. Specific education expenditure to face Malaria should be examined in addition to health policies.
    Keywords: Malaria incidence, human capital, development.
    Date: 2007–05–04
  3. By: Christian Morrisson; Fabrice Murtin
    Abstract: This paper presents a new dataset on educational attainment (primary, secondary and tertiary schooling) at the world level since 1870. Inequality in years of schooling is found to be rapidly decreasing, but we show that this result is completely driven by the decline in illiteracy. Then, we turn to inequality in human capital and focus on a Mincerian production function that accounts for diminishing returns to schooling. It explains the negative cross-country correlation between Mincerian returns to schooling and average schooling contrary to other functional forms. As a result, we show that world human capital inequality has increased since 1870, but does not exceed 10% of world income inequality. Next, we analyse the relationships between the national distributions of income and schooling. We show that human capital within countries exhibits an inverted U-shaped curve with respect to average schooling, namely a "Kuznets curve of education". We find that the usual Kuznets curve of income inequality is significant both in pooled and fixed-effects regressions over the period 1870-2000, and is robust to the inclusion of other variables in the regression such as schooling and human capital inequality. However, the "Kuznets effect" associated to GDP per capita is 4 times smaller in magnitude than the externality of average schooling favouring the decrease of income inequality within countries since 1870.
    Date: 2007
  4. By: Daniel Hamermesh (University of Texas at Austin, NBER and IZA); Reuben Gronau (Hebrew University, Jerusalem)
    Abstract: Economists have devoted substantial attention to firms’ supply of variety, but little to consumers’ demand for variety. Employing the framework of home production, we trace differences in demand to differences in the opportunity costs of activities, which are associated with investments in human capital. Schooling alters time costs and changes the variety of activities household members choose. In time budgets from Australia, Israel, and West Germany we find that higher own and spouses’ incomes raise variety (suggesting positive income effects). Education increases variety independent of income and earnings; part of its impact goes beyond a correlation of educational attainment with preferences for variety.
    Keywords: time use, education, gender
    JEL: D13 J22
    Date: 2007–04
  5. By: Marla Ripoll; Juan Carlos Cordoba
    Abstract: . . .
    Date: 2007–05
  6. By: Ezzamel, Mahmoud Azmy (Cardiff Business School); Robson, Keith (Cardiff Business School); Edwards, Pam
    Abstract: The purpose of this paper is to examine the consequences of accounting intervention into institutionalized organizations in transition. The context for the study was the implementation of the 1988 Education Reform Act in England and Wales, known as the Local Management of Schools (LMS) Initiative, which devolved budgets from Local Education Authorities (LEAs) to individual schools. We develop the argument that the emergence of new accounting practices in institutions and the accompanying process of re-institutionalization is not inconsequential, but detail rather the accounting's re-presentation of teachers as costs does accompany a re-distribution of the authority and resources in schools and LEAs, thus implying that administrative changes and organizational actions are not decoupled. Our case study of institutional change focuses as an illustration on the example of school 'carry forwards' (budget under-spends) as we analyze the ability of accounting practices to influence legitimacy and cognition by stimulating new debates, according them increased visibility and endowing them with significance. We assess the contribution of our study to the further development of neo-institutionalist theory; in particular, we consider the new problems of cognitive legitimacy that arose between LEAs and schools, and examine their implications for institutionalized organizations.
    Keywords: neo-institutional theory; legitimation; cognition; educational field; budgeting
    Date: 2005–11
    Abstract: The aim of the paper is to explore the learning mode of small business owners, from a theoretical stance, and based on empirical evidence. We distinguish between the required learning mode, the actual learning mode and the supported learning mode. Data were collected using the focus group method in a very heterogeneous sample of Belgian small business owners. The results indicate several gaps between the required, actual and supported learning modes, of which many are due to unawareness of learning needs and lack of reflective learning among small business owners. The data also indicate among others that solutions to fill learning gaps proposed in the literature are not applicable to all owners, e.g. not all owners are able to learn through networks.
    Keywords: Belgium, learning capability, learning mode, learning gaps, learning process, learning support, reflective learning, research paper, small business owners, focus groups
    Date: 2007–02
  8. By: Jim VanderHoff
    Abstract: This paper reports evidence that parental value of charter schools is primarily determined by the schools’ academically effectiveness. Data on the New Jersey charter schools indicate that not all charter schools are equally effective, measured by student test scores, or equally valued, measured by the number of students on their waiting list. The charter school value model estimates the effect of tests score, student demographics and school characteristics for both the charter school and the home district traditional public schools. The estimates indicate that the charter school test scores have the largest and most robust effect on the size of the waiting list. Neither the charter school students’ race or income nor traditional public school students’ test scores affect charter school parental value. Thus this research supports a basic tenet for competitive, market based public school improvement--parents choose academically effective schools.
    Keywords: Charter Schools, School Choice
    JEL: I21
    Date: 2007–05

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