nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2007‒07‒27
nine papers chosen by
Fabio Sabatini
University of Rome, La Sapienza

  1. Human Capital and Productivity in Microenterprises By Mungaray, Alejandro; Ramirez-Urquidy, Martin
  2. Human Capital and Economic Growth: Pakistan, 1960-2003 By Abbas, Qaisar; Foreman-Peck, James
  3. The Impact of Entrepreneurship Capital on Spanish's Labor Productivity and Economic Growth By Massón Guerra, José Luis
  4. Integrating internal communications, human resource management and marketing concepts into the new internal marketing philosophy By Dubravka Sinčić; Nina Pološki Vokić
  5. Earnings Prospects for People with Migration Background in Germany By Aldashev, Alisher; Gernandt, Johannes; Thomsen, Stephan L.
  6. The direct foreign investment like a solution to the problem of the gap of capital assets and knowledge in Mexico By Lozano Cortés, René; Cabrera-Castellanos, Luis F.
  7. Poverty and Labor Market Behavior in the Ultra-Orthodox Population in Israel By Gottlieb, Daniel
  8. The Effect of Relative Age in the First Grade of Primary School on Long-Term Scholastic Results: International Comparative Evidence using PISA 2003 By Sprietsma, Maresa
  9. What Makes a Successful Entrepreneur? Evidence from Brazil By Simeon Djankov; Yingyi Qian; Gerard Roland; Ekaterina Zhuravskaya

  1. By: Mungaray, Alejandro; Ramirez-Urquidy, Martin
    Abstract: The hypothesis that human capital increases productivity is tested using data from a sample of low value-added microenterprises. A special attribute of this paper is the join treatment of formal learning or training in education institutions, and informal training by experience of the owner in the firm management. Following previous studies, the relation between human capital and productivity is determined by estimating production functions with the inclusion of dummy variables to control for formal education and informal training by experience. Evidence of the linkage of human capital and productivity is reported. It is also reported that both types of investment in human capital have asymmetrical contribution to productivity, where the impact of experience is predominant. This allows concluding that the long-run existence of the firms in the sample is explained by the accumulation of experience in the management. Returns to education occur primarily for technical education and are lower than those generated by experiential learning in the firm management.
    Keywords: Human Capital; Productivity; Small Enterprises
    JEL: M21
    Date: 2007–04
  2. By: Abbas, Qaisar; Foreman-Peck, James (Cardiff Business School)
    Abstract: This paper investigates the relationship between human capital and economic growth in Pakistan with time series data. The aggregate production function results reject the endogenous growth formulation but indicate broadly similar productivity of secondary schooling to that in OECD economies. Because schooling returns should be higher in a developing economy, this similarity is interpreted as evidence of low average quality schooling. Returns to health spending compare favorably with industrial investment. A substantial portion of growth is due to exogenous factors, including policies, the positive contribution of which appears to have declined after the 1980s. Human capital is estimated to have accounted for about 40 percent of the increase in GDP per head, a figure that is probably biased downwards because of the many unmeasured dimensions of human capital.
    Keywords: Human Capital; Economic Growth; ECM; Pakistan
    JEL: C13 C22 C51 O15 O53
    Date: 2007–07
  3. By: Massón Guerra, José Luis
    Abstract: This paper analyzes the role of entrepreneurship capital as a new explanatory factor of Spanish Labor Productivity of Economic Sectors. Based on the Audretsch and Keilbach’s Model (2004a) that measure the capacity of generating new enterprises, the methodology incorporates this capacity as a new “capital” into a Cobb-Douglas Production Function (1928). Using secondary data from 75 Spanish economic sectors and supported by Resource Based View, Dynamic Capacities, and Endogenous Growth Theories, the results reveals that the creation of small enterprises shows a strong impact in the productivity and the sectorial Spanish growth.
    Keywords: Entrepreneurship Capital; Economic Growth; Economic Development; Knowledge Capital
    JEL: R11 M13 O47
    Date: 2007–07–06
  4. By: Dubravka Sinčić (Faculty of Economics and Business, University of Zagreb); Nina Pološki Vokić (Faculty of Economics and Business, University of Zagreb)
    Abstract: Successful companies attach great importance to human resource management and internal communications, because they are aware of the value of those activities and of strategic advantage they can bring to the organization. They should also realize that it is necessary to live internal marketing philosophy, if they stream to offer quality products and services to both markets: internal and external. The idea of satisfied employees for the benefit of satisfied customers is accepted and developed by both academicians and practitioners, through the concepts of internal marketing, internal communications and human resource management. Consequently, the paper had two objectives: (1) to analyze concepts of internal marketing (IM), internal communications (IC) and human resource management (HRM) parallelly, and define their scopes, overlaps and differences; and (2) to propose a new internal marketing philosophy that combines three before mentioned concepts. The conclusion that emerged after reaching both objectives was that the new internal marketing philosophy should be grounded in a relationship marketing theory. It should not be limited to neither of three functional areas that are commonly connected to it – internal communications, human resource management or marketing. It is for sure that managing internal relationships should not be restricted to any function, and should not apply traditional marketing concepts and tools. That would ruin the nature of internal relationship marketing, and would not encompass all tasks it should fulfill.
    Keywords: internal marketing philosophy, internal marketing, internal communications, human resource management (HRM)
    JEL: M1 M3 M5
    Date: 2007–07–05
  5. By: Aldashev, Alisher; Gernandt, Johannes; Thomsen, Stephan L.
    Abstract: Less than half of the people with migration background living in Germany possess foreign citizenship. Hence, using citizenship to analyze economic issues of immigration may be problematic for two reasons. On the one hand, a quite substantial share of persons with migration background is neglected in the group of interest, and, on the other hand, the reference group (native Germans) may be contaminated by effects from naturalized immigrants. This paper utilizes a wider definition covering all persons with migration background to analyze the earnings prospects. To shed light on differences to the common use of citizenship, estimates are presented in comparison to foreigner and German citizens. The results show that persons with migration background have similar earnings prospects to foreigners. Moreover, earnings prospects for native Germans do not differ much from those of German citizenship. Therefore, using citizenship to approximate natives and non- natives when analyzing earnings issues seems to be reasonable. A second question of the paper is whether degrees obtained in Germany lead to better earnings prospects compared to degrees obtained abroad for persons with migration background. Independently of gender and skill level, the estimates affirm higher earnings to educational attainment in Germany.
    Keywords: Migration background, earnings prospects, education, Germany
    JEL: I12 J15 J61
    Date: 2007
  6. By: Lozano Cortés, René; Cabrera-Castellanos, Luis F.
    Abstract: In this work we made an empirical application of the model of Romer (1993) for the 32 states of Mexico on period 1990-2000, in order to determine if this country faces a gap of physical goods or a technological gap in the ample sense (that is to say, that inlcluye knowledge and ideas). We found that in the indicated period, Mexico faces both gaps, and therefore, it can take advantage from the direct foreign Investment to cover both.
    Keywords: inversion extranjera directa; capital humano; crecimiento; Mexico
    JEL: O47 O54 F21 F43
    Date: 2007
  7. By: Gottlieb, Daniel
    Abstract: The Haredi (Jewish ultra-orthodox) population in Israel is an idiosyncratic community. Its members are committed to the observance of the Bible and its commandments, as interpreted by its sectarian religious leaders. Haredi poverty is exceptionally high, with a share of 20% of the Israeli poor and a population share half that size. Its major causes are very high Haredi fertility (a population growth of 6% p.a.), reducing household income per capita and the mother’s earning capacity; its independent education system’s neglect (particularly among boys) of materially important subjects for future earning capacity such as Mathematics, English and digital skills; and low labor-force participation of Haredi men, due to prolonged learning in religious seminars (Yeshiva), often deeply into the prime working age. A further cause for the sharp increase in poverty in the short term has been the recent large cuts in child benefit payments. The estimation of the size and composition of the Haredi population is based on data from the Israeli Social Survey. Poverty calculations are based on an innovative way of optimally matching data on Haredi group membership from that source with data in the Household Expenditure Survey, thus allowing for improved identification of poor Haredi households compared to previous studies. Poverty is calculated both on a needs-based approach and on the (official) relative approach. The share of Haredi children up to age 4 is nearly 3 times higher than in the Jewish non-Haredi society. This, together with the empirical regularity of a negative relationship between poverty and age, implies an upward trend for Haredi and overall Israeli poverty over time. Haredi Poverty, as measured by the distribution-sensitive Sen-poverty index, nearly doubled over the last three years after a previous significant improvement. This deterioration stands in contrast to developments in the rest of the Israeli-Jewish society, whose poverty intensity increased only slightly over the last couple of years. In 2004 the Haredi men’s labor force participation of 37% only slightly exceeded one half that of the general Jewish population, mainly due to the high enrollment of Haredi men in religious seminars (Yeshiva) during their prime working age. Despite their much higher fertility, women function as the family’s main providers, with a participation rate of 48%, compared to 58% of non-Haredi women.
    Keywords: Poverty; Religion; Israel; Ethnic groups; Ultra-Orthodox; Alternative Poverty Measures;
    JEL: I32 J15
    Date: 2007–07–11
  8. By: Sprietsma, Maresa
    Abstract: In this paper, we estimate the effect of pupil’s relative age within the first grade of primary school on math and reading test scores at age 15. The main objective is to evaluate the long-term causal effect of relative age in the first grades of primary school on pupil’s test in 16 different countries. We use the national rule for admission to primary school to construct the predicted relative age of each pupil. We find that relative age at the start of primary school has a significant positive effect on test scores in most countries. Moreover, we identify some of the channels through which the effect occurs.
    Keywords: pupil performance, relative age, international comparison
    JEL: I21 I29
    Date: 2007
  9. By: Simeon Djankov (the World Bank); Yingyi Qian (UC Berkeley and CERP); Gerard Roland (UC Berkeley and CEPR); Ekaterina Zhuravskaya (New Economic School/CEFIR and CEPR)
    Abstract: We report the results of a new survey on entrepreneurship in Brazil. In September 2006, we interviewed 400 entrepreneurs and 550 non-entrepreneurs of the same age, gender, education and location in 7 Brazilian cities. The data are used to test three competing hypotheses on entrepreneurship: the role of economic and legal institutions (security of property rights; access to credit); the role of sociological characteristics (family background, social networks); and the role of individual features (attitude towards risk, I.Q., self-confidence) in becoming an entrepreneur. In line with our previous research in China and Russia, we find that sociological characteristics have the strongest influence on becoming an entrepreneur. In contrast, success as an entrepreneur is primarily determined by the individual’s smartness and higher education in the family. Entrepreneurs are not more self-confident than non-entrepreneurs; and overconfidence is bad for business success.
    Date: 2007–05

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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