nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒06‒23
ten papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. School Systems and Efficiency and Equity of Education By Jung Hur; Kang Changhui
  2. Over-education for the rich, under-education for the poor: a search-theoretic microfoundation By Charlot, Olivier; Decreuse, Bruno
  3. Higher education, employers’ monopsony power and the labour share in OECD countries By Daudey, Emilie; Decreuse, Bruno
  4. Imported Equipment, Human Capital and Economic Growth in Developing Countries By Uwe Dulleck; Neil Foster
  5. Education, Corruption and Constitutional Reform By Theo Eicher; Cecilia García-Peñalosa; Tanguy van Ypersele
  6. Has Higher Education Among Young Women Substantially Reduced the Gender Gap in Employment and Earnings? By Frenette, Marc; Coulombe, Simon
  7. The importance of education for the reallocation of labor: evidence from Swedish linked employer-employee data 1986-2002 By Gartell, Marie; Jans, Ann-Christin; Persson, Helena
  8. Population Growth in a Model of Economic Growth with Human Capital Accumulation and Horizontal R&D By Alberto Bucci
  9. What Determines Productivity in Senegal? Sectoral Disparities and the Dual Labor By Fabrice Murtin; Damien Echevin
  10. Human Capital, Innovation, and Productivity Growth: Tales from Latin America and Caribbean By Yoruk, Baris

  1. By: Jung Hur (Department of Economics, National University of Singapore); Kang Changhui (Department of Economics, National University of Singapore)
    Abstract: How students should be allocated to schools to achieve educational goals is one of important debates on the construction of school systems. Promoters of comprehensive and selective school systems fail to reach a consensus on implications of each system for efficiency and equity of education. This paper examines impacts of different systems of student allocation on educational goals, using a simple economic model. It argues that how a selective system is designed matters a great deal in a comparison between comprehensive and selective systems: different designs of a selective system can yield widely different educational implications compared with those from a comprehensive system. A judicious use of a selective system can at times achieve educational goals better than a comprehensive system. Given our finding that different households prefer different school systems, we suggest that by offering multiple subsystems, the educational planner can enhance educational attainments of households beyond those achieved by a single national system.
    Keywords: Education, Comprehensive and Selective School Systems
    JEL: D11 I20
    Date: 2007
  2. By: Charlot, Olivier; Decreuse, Bruno
    Abstract: This paper studies the efficiency of educational choices in a two sector/two schooling level matching model of the labour market where a continuum of heterogenous workers allocates itself between sectors depending on their decision to invest in education. Individuals differ in ability and schooling cost, the search market is segmented by education, and there is free entry of new firms in each sector. Self-selection in education originates composition effects in the distribution of skills across sectors. This in turn modifies the intensity of job creation, implying the private and social returns to schooling always differ. Provided that ability and schooling cost are not too positively correlated, agents with large schooling costs — the ‘poor’ — select themselves too much, while there is too little self-selection among the low schooling cost individuals — the ‘rich’. We also show that education should be more taxed than subsidized when the Hosios condition holds.
    Keywords: Ability; Schooling cost; Heterogeneity; Matching frictions; Efficiency
    JEL: J24 J60 I20
    Date: 2006
  3. By: Daudey, Emilie; Decreuse, Bruno
    Abstract: This paper examines the impact of higher education on the labour share. It is based on the following idea: as education offers adaptability skills, it should reduce employers’ monopsony power and, therefore, increase the labour share. This idea is developed in a two-sector model with search unemployment and wage competition between employers to attract/keep workers. Using panel data for eleven OECD countries, we show that the proportion of higher educated in the population has a significant positive effect on the labour share: typically, an increase of one standard deviation in higher education induces a three point increase in the labour share. The other determinants of the labour share are compatible with the theoretical model. They include the capital-output ratio (-), minimum to median wage ratio (+), union density (+). We also find that the unemployment rate has a negative and significant impact on the labour share, which, together with the positive impact of higher education, is incompatible with a three-factor model where factors are paid their marginal products.
    Keywords: Search frictions; Adaptability; Labour share; Macroeconomic panel data
    JEL: J60 E25 I20
    Date: 2006–07
  4. 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
  5. By: Theo Eicher; Cecilia García-Peñalosa; Tanguy van Ypersele
    Abstract: We model the two way interaction between education, corruption and the level of output. Corruption reduces income levels and hence educational attainment. Education in turn affects the incentives for corruption: more education increases output and thus the rents from corruption, but it also increases the probability that the electorate identifies corrupt behavior and ousts the incumbent politician. In this context, we identify the conditions under which an opportunist politician has the incentives to take actions that will allow the economy to escape from a poverty trap. Our analysis shows that the relationship between education, output levels and the level of corruption is non-monotonic, and that both institution-led development and education-led development are possible. Which path occurs crucially depends on the initial level of inequality.
    Date: 2006–10
  6. By: Frenette, Marc; Coulombe, Simon
    Abstract: Young women have gained considerable ground on young men in terms of educational attainment in the 1990s. The objective of this study is to assess the role of rapidly rising educational attainment among young women in raising their relative position in the labour market. The findings suggest that the educational trends have not contributed towards a decline in the full-time employment gap. Nevertheless, they have contributed towards a decline in the gender earnings gap, especially in the 1990s. However, university-educated women have lost ground to university-educated men. This is likely due to the fact that men and women continued to choose traditional disciplines during the 1990s, but only male-dominated disciplines saw improvements in average earnings.
    Keywords: Education, training and learning, Society and community, Educational attainment, Outcomes of education, Women and gender
    Date: 2007–06–12
  7. By: Gartell, Marie (Institute for futures studies); Jans, Ann-Christin (Swedish Social Insurance Agency); Persson, Helena (Swedish Confederation of Professional Associations (SACO))
    Abstract: Using employer-employee data covering the whole Swedish economy over a uniquely long time period from 1986 to 2002, we examine how job flows and worker flows have been distributed both on an aggregate level and across educational levels. We find that job and worker flows vary by educational level, not only with respect to magnitude and variation, but with respect to direction as well. Our results show that analyses that do not account for the educational level of workers can be very misleading.
    Keywords: Linked employer-employee data; job and worker flows; education
    JEL: I20 J21 J23
    Date: 2007–05–08
  8. By: Alberto Bucci (University of Milan)
    Abstract: This paper reconsiders the effects of population growth on per-capita income growth within a Romerian (1990)-type endogenous growth model with human capital accumulation. One important novelty of our contribution is that in the human capital accumulation equation we explicitly consider the possibility that agents' investment in skill acquisition might be positively, negatively or not influenced at all by technological progress. We find that both the growth rate and the level of real per-capita income are independent of population size. Moreover, population growth may affect or not real per-capita income growth depending on the size of the degree of altruism of agents towards future generations and on the nature of technical progress, for given agents' degree of altruism.
    Keywords: Horizontal Innovation; Technological Change; Population Growth; Human Capital; Multi-Sector Endogenous Growth, Scale Effects.,
    Date: 2007–02–12
  9. By: Fabrice Murtin (LSE, London; PSE and CREST, GREDI); Damien Echevin (GREDI, Département d'économique, Université de Sherbrooke)
    Abstract: This paper presents evidence concerning the determinants of productivity in Senegal. Using an original data set that combines data on both employers and their employees, we bring to light significant gaps between the formal and informal sectors. These differences are analyzed both at the aggregate and at the individual level. As a result, we find that differences in human and physical capital account for about two thirds (30% for physical capital and 40% for human capital) of the gap in output per worker between the two sectors. Our results also document considerable heterogeneity between branches of activity: in the formal sector, some activities such as the textile or the paper industries boast increasing returns due to large elasticity; in the informal sector, trade and services firms have the same patterns as in formal ones. Two other important findings concern the informal sector. First, older firms have high capital elasticity. Second, overall capital elasticity increases. Those results thus support the idea that a real potential for growth exists in the informal sector. Finally, adopting a development policy perspective, we emphasize that public policies should focus on infrastructures that impact significantly on both sectors, as well as on schooling that triggers considerable externality, especially in the informal sector.
    Keywords: : formal and informal sectors; productivity; externalities
    JEL: O17 O47 J24
    Date: 2007
  10. By: Yoruk, Baris
    Abstract: Why have Latin American and Caribbean countries (LAC countries) not replicated Western economic success? We investigate the reasons behind the economic stagnation of LAC countries for the past four decades. We utilize a nonparametric Malmquist productivity index for relevant cross-country and over time productivity growth, technological change, and technical efficiency change comparisons. We document that productivity growth differences between LAC countries and Western countries can only partially be attributed to human capital differences. We argue that along with inefficient production, differences in civil, political, and economic policies and institutions are promising factors in explaining the long-run economic performance of LAC countries.
    Keywords: Caribbean; Latin America; Institutions; Malmquist productivity index
    JEL: O40 N26 P52
    Date: 2007–05–15

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