nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒06‒18
twelve papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. Public Education Expenditure, Growth and Welfare By Konstantinos Angelopoulos; Jim Malley; Apostolis Philippopoulos
  2. Absorption in Human Capital and R&D Effects in an Endogenous Growth Model By Sequeira, Tiago Neves
  3. Imported Equipment, Human Capital and Economic Growth in Developing Countries By Uwe Dulleck; Neil Foster
  4. The Intergeneratinal Transmission of Poverty in Industrialized Countries By Stephen P. Jenkins; Thomas Siedler
  5. School to Work Transitions and the Impact of Public Expenditure on Education By Maite Blázquez, José Ignacio García Pérez; José Ignacio García Pérez
  6. Gender-bias in Education Opportunities for Population Aged 12-18 in Mexico: 1992-2004 By Aguayo, Ernesto; Chapa, Joana; Rangel, Erick; Treviño, Lourdes; Valero-Gil, Jorge
  7. Wage differences between women and men in Sweden - the impact of skill mismatch By Johansson, Mats; Katz, Katarina
  8. The Tennessee Education Lottery Scholarship: A Reward for Past Achievement or Motivator for Future Performance? By David A. Penn; Reuben Kyle
  9. A Note on Human Development Indices with Income Equalities By Mishra, SK
  10. Rural Management Education in India: A Retrospect By Sriram M.S.
  11. Transnational Networking and Business Success: Ethnic entrepreneurs in Canada By Dafna Kariv; Teresa V. Menzies; Gabrielle A. Brenner; Louis Jacques Filion
  12. Value of Intangible Job Characteristics in Workers' Job and Life Satisfaction: How much are they worth? By Namkee Ahn

  1. By: Konstantinos Angelopoulos; Jim Malley; Apostolis Philippopoulos
    Abstract: In this paper we study the quantitative macroeconomic effects of public education spending in USA for the post-war period. Using comparable measures of human and physical capital, from Jorgenson and Fraumeni (1989, 1992a,b), we calibrate a standard dynamic general equilibrium model where human capital is the engine of long-run endogenous growth and government education spending is justified by externalities in human capital. Our base calibration, based on moderate sized human capital externalities, suggests that public spending on education is both growth and welfare promoting. However, given that pubic education spending crowds-out private consumption, the welfare maximising size of the government is less than the growth maximising one. Our results further suggest that welfare gains, as high as four percent of consumption, are obtainable if the composition of public spending can be altered in favour of education spending relative to the other components of total government spending.
    Date: 2007–06
  2. By: Sequeira, Tiago Neves
    Abstract: Until now, in models of endogenous growth with physical capital, human capital and R&D such as in Arnold [Journal of Macroeconomics 20 (1998)] and followers, steady-state growth is independent of innovation activities. We introduce absorption in human capital accumulation and describe the steady-state and transition of the model. We show that this new feature provides an effect of R&D in growth, consumption and welfare. We compare the quantitative effects of R&D productivity with the quantitative effects of Human Capital productivity in wealth and welfare.
    Date: 2007
  3. By: Uwe Dulleck; Neil Foster
    Abstract: De Long and Summers (1991) began a literature examining the impact of equipment investment on growth. In this paper we examine such a relationship for developing countries by considering imports of equipment from advanced countries as our measure of equipment investment for a sample of 55 developing countries. We examine whether the level of human capital in a country affects its ability to benefit from such investment. We find a complex interrelationship between imported equipment and human capital. Generally, the relationship between imported equipment and growth is lowest, and often negative, for countries with low levels of human capital, highest for countries within an intermediate range and somewhat in between for countries with the highest level of human capital.
    Keywords: Capital Goods Imports, Human Capital, Developing Countries, Technology Diffusion
    JEL: F43 O15 O40
    Date: 2007–05–25
  4. By: Stephen P. Jenkins; Thomas Siedler
    Abstract: This paper reviews research about the intergenerational transmission of poverty in industrialized countries. In order to make our survey manageable, we restrict attention to studies that consider the relationship between parental poverty (or 'income') during childhood and later-life outcomes; we do not explicitly consider the impact of other family background variables such as parental education. The general message is that growing up poor has a deleterious impact on later-life chances, and that this impact is not wholly explained by other factors that are themselves correlated with childhood poverty. At the same time, the studies also show that one should be cautious about drawing more specific conclusions. For example, the degree of intergenerational persistence appears to vary depending on the definition of the outcome variable, and different estimation methods provide a range of estimates. In addition, most of re-search about intergenerational links has been undertaken using US data, and it is not clear that any specific conclusions should carry over to another country with very different social norms and institutions including e.g. differences in labour market regulation, and in systems of edu-cation and social security benefits. However we conclude that, broadly speaking, the analyti-cal framework that has been used for high-income countries can also be applied to low-income countries.
    Keywords: Poverty, intergenerational transmission, mobility, family background, income, industrialized countries
    Date: 2007
  5. By: Maite Blázquez, José Ignacio García Pérez; José Ignacio García Pérez
    Abstract: In this paper we analyse how the decentralization process of the Spanish educational system has affected the school-to-work transition of youths over the last years. Using individual data from the Spanish Labor Force Survey for the period 1993-2002, we estimate a simultaneous equation model for the unemployment and employment hazard rates of these workers. We include public expenditure on education, at the regional level, as an explanatory factor in both hazards. Furthermore we account for cross-regional differences regarding the decision-making authority over education. Our results reveal that for both, university and non-university levels, public expenditure on education significantly improves the chances of Spanish youths in finding the first job after completing the educational system. However, it seems that the decentralization of university education has negative effects on youths’ labor market prospects in terms of exiting from unemployment, while no effects are observed for the case of non-university education.
  6. By: Aguayo, Ernesto; Chapa, Joana; Rangel, Erick; Treviño, Lourdes; Valero-Gil, Jorge
    Abstract: There is considerable evidence that resources are not allocated randomly within households, and that resources are unequally distributed within the family in many developing countries. Such an unequal distribution of goods usually takes the form of a bias against females. For example, girls lag markedly behind boys in schooling in many developing countries even though this gender gap has been declining in recent years. Using an OLS-Robust model and a ML-Random Effects model for the years 1992, 1998 and 2004 of ENIGH, we did not find enough statistical evidence to support the idea that poor families, nether in rural nor in urban areas, provide more education to their 12 to 18 years old sons or daughters. In fact, contrary to the common belief, we found that non-poor families, invest more in the education of their daughters, especially in the urban areas. However, this education discrimination against male children has been decreasing over the years. It is also found that female head of households are more likely to have children with higher levels of schooling and that children having both parents at home or having older brothers or sisters present higher levels of educational attainment.
    Keywords: Gender-bias; discrimination; Poverty; Mexican studies; intra-household allocation;
    JEL: I39 I29 O54
    Date: 2007–05–07
  7. By: Johansson, Mats (Institute for Futures Studies); Katz, Katarina (Department of Economics and Business, Karlstad University)
    Abstract: We investigate skill mismatch and its impact on gender differences in wage gap and in returns to education in Sweden 1993 to 2002.Women are more likely to have more formal education than what is normally required for their occupation (overeducation), while men are more likely to have less (undereducation).Over- and undereducation contribute far more to the gender wage gap than years of schooling and work experience. In decompositions, adjusting for skill mismatch decreases the gender wage gap by between one tenth and one sixth. This is roughly a third to a half as much as is accounted for by segregation by industry. Thus, taking skill mismatch into account is essential for the analysis of gender wage differentiation, even though it does not alter the result that the estimated returns to education are smaller for women than for men in Sweden.
    Keywords: Gender differentials; discrimination; over- and undereducation
    JEL: J16 J24 J31 J71
    Date: 2007–06–07
  8. By: David A. Penn; Reuben Kyle
    Abstract: The Tennessee lottery scholarship (TELS) program is intended to make college more affordable for young people in Tennessee, with the aim of increasing higher education enrollment and retention rates. One way to evaluate the effectiveness of TELS is to determine to what extent did the scholarship change student behavior? That is, does TELS induce desirable behavior that would not otherwise occur? Using a logit model to predict year-over-year college retention, we conclude that TELS has a positive, but small, effect on student behavior in Tennessee. The biggest impact of TELS occurs among continuing students, with no effect for first-time students.
    Keywords: lottery, scholarship
    JEL: H75 H7 I21
  9. By: Mishra, SK
    Abstract: Human Development Index (HDI) is a composite index obtained by a weighted aggregation of other three indices, each measuring one aspect, namely life expectancy, education and real per capita income. Intra-country equality in income distribution, however, is very important with regard to quality of life and, thus, human development. This paper is concerned with the question that if the measure of income equality also were included in construction of the HDI, then what would be the relative weights of different indices. One method could be to assign equal weights to all the four, but it is too pragmatic. Alternatively, the principal component analysis (PCA) may be applied to derive weights. But, again, the PCA is an overly elitist method that undermines the poorly correlated set of variables, which might be very important in their own right, in favor of highly correlated set of variables. We propose an alternative method that maximizes the sum of absolute coefficients of correlation of the composite index with the constituent indices. Such an index is inclusive in nature and gives proper representation to weakly correlated variables also. The method has been applied to data of 125 countries and the HDI so constructed has been compared with the PCA HDI and HDR (UNDP) HDI. We find substantial ups and downs in the HDI ranks of different countries.
    Keywords: Human development index; International comparison; HDI; income distribution; equality; relative weights; representation; inclusive; elitist; principal component; alternative method; UNDP; correlation; absolute
    JEL: D63 C43 O57
    Date: 2007–06–11
  10. By: Sriram M.S.
    Abstract: The paper reviews the state of rural management education in India. Using the setting up of the Institute of Rural Management Anand [IRMA] as a pivot, the paper examines the difficulties in establishing specialized management schools, the design of the curriculum and the management of the expectations of both the students who come in and the recruiters. It then identifies the problems in running rural management programmes particularly the dilemma between explicit value orientation towards the betterment of the poor and the value neutral optimization approach of conventional management education. The paper then examines the paradigm shift that has happened in the marketplace for rural managers, and concludes with some further questions on how the future of rural management education can be addressed.
    Date: 2007–04–05
  11. By: Dafna Kariv; Teresa V. Menzies; Gabrielle A. Brenner (IEA, HEC Montréal); Louis Jacques Filion
    Abstract: It is agreed that transnational networking plays an important role in the effectiveness of ethnic entrepreneurial firms. Yet, distinctions between the different types of transnational networking and their effects on business effectiveness have received scant attention in the literature, probably because ethnicity has been considered the main actor in the networkingeffectiveness relationship. This paper argues that one of the reasons business effectiveness differs across ethnic entrepreneurial firms is that ethnic entrepreneurs engage in dissimilar types of transnational networking. Analyses of the data generated by 720 ethnic entrepreneurs in Canada, revealed that ethnicity, human capital and push-pull factors play a central role in the engagement of different types of transitional networking; and the different types of transnational networking affect the business turnover (sales) and the business survival (age). Push-pull factors were found to play a marginal role in the business effectiveness. These results highlight the competitive market immigrants and members of ethnic minority groups encounter in the hosting economy and stress the value of transnational networking.
    Keywords: Transnational Entrepreneurship, Networks, Immigrant Entrepreneurs, Ethnic Entrepreneur, Push and Pull Factors, Business Success, Business Outcomes
    Date: 2006–12
  12. By: Namkee Ahn
    Abstract: Using the data from the Spanish survey on life quality at work, we examine the importance of intangible job characteristics in workers’ job and life satisfaction. Our analysis shows that on both job and life satisfaction, the combined monetary value of intangible job characteristics such as flexibility, independence, social usefulness, pleasant work environment, pride, stress and the perception of receiving an adequate wage, is several times more worthy than that of objective job characteristics such as wage, sector and hours of work. Furthermore, we find that some intangible job characteristics such as flexibility, work environment and stress affect directly workers’ life satisfaction rather than indirectly through their effects on job satisfaction.

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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