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on Human Capital and Human Resource Management |
| By: | Alexander Ludwig; Thomas Schelkle; Edgar Vogel (Mannheim Research Institute for the Economics of Aging (MEA)) |
| Abstract: | This paper employs a large scale overlapping generations (OLG) model with endogenous education to evaluate the quantitative role of human capital adjustments for the economic consequences of demographic change. We find that endogenous human capital formation is an important adjustment mechanism which substantially mitigates the macroeconomic impact of demographic change. Welfare gains from demographic change for newborn households are approximately three times higher when households endogenously adjust their education. Low ability agents experience higher welfare gains. Endogenous growth through human capital formation is found to increase the long-run growth rate in the economy by 0.2-0.4 percentage points. |
| Date: | 2007–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:mea:meawpa:07151&r=hrm |
| By: | Rubiana Chamarbagwala (Indiana University Bloomington); Gunjan Sharma (University of Missouri) |
| Abstract: | We investigate the relationship between economic deregulation (delicensing), skill upgrading, and wage inequality during the 1980s and 1990s in India. We use a unique dataset on India's industrial licensing regime to test whether industrial deregulation during the 1980s and 1990s played a role in generating demand for skilled workers, as measured by the employment and wagebill shares of white-collar workers, and in raising the returns to skilled labor, as measured by the skill premium. Our analysis focuses not only on the difference between licensed and delicensed industries but also on the comparison of these differences during the 1980s, when India's external sector remained relatively closed to the world economy, and the 1990s, when India underwent massive liberalization reforms and became increasingly integrated with the global economy. We identify two main channels through which industrial delicensing affects the demand for skills and wage inequality: capital- and output-skill complementarities. Our analysis finds two important results. First, capital- and output-skill complementarities existed for firms in both licensed and delicensed industries but were stronger in delicensed industries both before and after 1991. The exception is output-skill complementarities with respect to the skill premium, where delicensed industries experienced lower output-skill complementarities compared to licensed ones both before and after 1991. Second, the contribution of industrial delicensing to both types of complementarities was considerably higher during the 1980s and much smaller after 1991. These results suggest that industrial delicensing benefited skilled labor via capital- and output-skill complementarities during the 1980s, the decade before India liberalized it's trade and investment regime. Thus, much of the increase in the demand for and returns to skill as a result of capital- and output-skill complementarities can be attributed to domestic reforms during the pre-1991 period in India. |
| Keywords: | Capital-skill complementarities, industrial delicensing, trade liberalization, India |
| JEL: | F16 J23 J24 O14 O38 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2008-002&r=hrm |
| By: | Roy Thurik; Isabel Grilo; Peter van der Zwan |
| Abstract: | The determinants of latent (i.e., desired) and actual entrepreneurship are analysed in two ways with nearly 8,000 observations from the 2004 “Flash Eurobarometer survey on Entrepreneurship” covering the 25 European Union member states and the United States. Both methods lead to new and extensive insights in the interrelation of both concepts. First, latent and actual entrepreneurship are investigated simultaneously in a bivariate probit setting. The perception of lack of financial support, the perception of administrative complexities, and the perception of lack of sufficient information do not have significant direct impacts on latent entrepreneurship. This points at indirect effects of these variables on latent entrepreneurship via actual entrepreneurship. Second, four groups of individuals are distinguished, based on their involvement in both measures of entrepreneurship. The analysis enables us for example to discuss the determinants of ‘necessity entrepreneurship’. Results show that the perception of administrative complexities is a significant obstacle in setting up a business, irrespective of the declared preference for self-employment, while the perception of financial constraints does not have a significant influence. Also, necessity entrepreneurs are characterized by a relatively low education level compared to those who are neither latent nor actual entrepreneurs. Each model has its own merits. The multinomial model enables researchers to perform group-wise analyses, while the bivariate probit model makes is possible to take into account the importance of latent entrepreneurship without explicitly including latent entrepreneurship in the set of explanatory variables. |
| Date: | 2007–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h200719&r=hrm |
| By: | Sander Wennekers; Kashifa Suddle; Sjoerd Beugelsdijk |
| Abstract: | This paper investigates the relationship between entrepreneurial culture and the rate of nascent entrepreneurship. Embedded in trait research, we develop a new composite measure of entrepreneurial culture using data from the World Values Survey. To corroborate the results obtained when regressing this newly developed measure on 2002 levels of nascent entrepreneurship in a sample of 28 countries, we also employ existing indicators of entrepreneurial culture, i.e. McClelland’s N achievement index (1961), Granato, Inglehart and Leblang’s Achievement motivation index (1996), Lynn’s Competitiveness index (1991), and GLOBE’s (2004) performance orientation measure. In contrast with the existing measures we find a significant positive effect of our new measure of entrepreneurial culture, leading us to i) discuss the strengths and weaknesses of these existing measures, and ii) interpret the wider implications of our findings for the research into the role of entrepreneurial culture in explaining international differences in entrepreneurship rates. |
| Date: | 2007–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h200715&r=hrm |
| By: | Jolanda Hessels; Kashifa Suddle |
| Abstract: | Abstract This study investigates whether ambitions amongst nascent entrepreneurs regarding innovativeness matter for the national level of innovativeness. We link ambitious nascent entrepreneurship to the national level of innovativeness for 36 countries, using data from the Global Entrepreneurship Monitor. We find a significant positive relation between the level of nascent entrepreneurs who intend to offer a product or service that is new to all or to some of their customers and the national technology level. This may suggest that ambitions to offer new products or services tend to contribute to higher levels of competition and knowledge spillovers, and consequently to the emergence of highly innovative economies. Our results also suggest that this relationship is less strong in poor countries. |
| Date: | 2007–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h200702&r=hrm |