nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2008‒05‒17
nine papers chosen by
Fabio Sabatini
University of Siena

  1. Healthy, Wealthy, and Wise Socioeconomic Status, Poor Health in Childhood, and Human Capital Development By Janet Currie
  2. Statutory Retirement Age and Lifelong Learning By Thomas Gries; Stefan Jungblut; Tim Krieger; Henning Meier
  3. Return Migration as Channel of Brain Gain By Karin Mayr; Giovanni Peri
  4. Parents Investments and Education Returns By Francesc Dilme
  5. Specific Capital and Technological Variety By Boyan Jovanovic; Peter L. Rousseau
  6. Higher Education: (Almost) Free Tuition vs. Quotas vs. Targeted Vouchers By Andrade, Eduardo C.
  7. Intrahousehold Allocation of Education Expenditure and Returns to Education: The Case of Sri Lanka By Rozana Himaz
  8. Benefit Incidence of Public Spending on Education in the Philippines By Manasan, Rosario G.; Cuenca, Janet S.; Villanueva, Eden C.
  9. The Role of Families in Shaping Youth Social Participation: Evidence from Singapore By Irene Y.H. Ng; Kong Weng Ho; K.C. Ho

  1. By: Janet Currie
    Abstract: There are many possible pathways between parental education, income, and health, and between child health and education, but only some of them have been explored in the literature. This essay focuses on links between parental socioeconomic status (as measured by education, income, occupation, or in some cases area of residence) and child health, and between child health and adult education or income. Specifically, I ask two questions: What is the evidence regarding whether parental socioeconomic status affects child health? And, what is the evidence relating child health to future educational and labor market outcomes? I show that there is now strong evidence of both links, suggesting that health could play a role in the intergenerational transmission of economic status.
    JEL: I12 J24
    Date: 2008–05
  2. By: Thomas Gries (University of Paderborn); Stefan Jungblut (University of Paderborn); Tim Krieger (University of Paderborn); Henning Meier (University of Paderborn)
    Abstract: As societies age, pension reforms become a central issue. One proposition is to extend worklife. However, due to the endogenous depreciation of human capital in many countries the effective retirement age is even below the present statutory retirement age. We analyze this effect in a putty-putty human capital vintage model where the economic retirement age is endogenous. While a higher rate of technical progress will shorten working life, effects of international competition and outsourcing are determined by the terms of trade. As education is expected to solve the problem of too rapidly depreciating human capital we introduce a two stage education system with initial schooling and lifelong learning. However, not even lifelong learning is able to align the economic with the statutory retirement.
    Keywords: lifelong learning, retirement, unemployment, education system
    JEL: J26 O33 J64
    Date: 2008–05
  3. By: Karin Mayr (Johannes Kepler University, Linz); Giovanni Peri (UC Davis and NBER)
    Abstract: Recent theoretical and empirical studies have emphasized the fact that the prospect of international migration increases the expected returns to skills in poor countries, linking the possibility of migrating (brain drain) with incentives to higher education (brain gain). If emigration is uncertain and some of the highly educated remain, such a channel may, at least in part, counterbalance the negative effects of brain drain. Moreover, recent empirical evidence seems to show that temporary migration is widespread among highly skilled migrants (such as Eastern Europeans inWestern Europe and Asians in the U.S.). This paper develops a simple tractable overlapping generations model that provides an economic rationale for return migration and which predicts who will migrate and who will return among agents with heterogeneous abilities. We use parameter values from the literature and the data on return migration to calibrate our model and simulate and quantify the effects of increased openness on human capital and wages of the sending countries. We find that, for plausible values of the parameters, the return migration channel is very important and combined with the incentive channel reverses the brain drain into significant brain gain for the sending country.
    Keywords: Skilled Migration, Return Migration, Returns to Education.
    JEL: F22 J61 O15
    Date: 2008–04
  4. By: Francesc Dilme (Universitat de Barcelona)
    Abstract: This paper analyses the relation between parents earnings and their childrens education. In a context of perfect altruism, the model describes parents decisions on how much to consume and how much to invest in their childrens education. The model predicts that returns on education in terms of wages should be linear. Using this model in a competitive economy, we show how the outcome depends on government subsidies or taxes on education. The usual tradeoff equality-efficiency arises in this context. Finally, the model provides some insights into the relation between education and productivity.
    Keywords: intergenerational altruism, education returns
    JEL: E24 J26 I22 I28 I32
    Date: 2008
  5. By: Boyan Jovanovic; Peter L. Rousseau
    Abstract: Growth of technological variety offers more scope for the division of labor. And when a division of labor requires some specific training, the technological specificity of human capital grows and, with it, probably the firm specificity of that capital. We build a simple model that captures this observation. The model implies that a rising specialization of human and physical capital raises the rents in the average match between a firm and its human and physical capital. We document that in the last 40 years the firm’s share of those rents has also grown, and we use the model to explain why this shift may have taken place.
    JEL: O0 O4
    Date: 2008–05
  6. By: Andrade, Eduardo C.
    Date: 2007–10
  7. By: Rozana Himaz
    Abstract: This paper uses demand analysis to explore whether intrahousehold allocation of education expenditure differs between boys and girls in rural Sri Lanka. Contrary to most countries in South Asia a significant bias favouring girls is found in 1990/91 for the 5-9 and 17-19 age groups and in 1995/96 for the 5-9 and 14-16 age groups. The 5-9 age group captures the run-up to the Year 5 scholarship exams that are used to gain entry into better performing secondary schools. The 14-16 and 17-19 age groups capture those who read for important National level qualifications vital in the job market. The paper argues that these household level decisions are rational because wage returns to junior and senior secondary education have been higher for females than for males through the 1980s and 1990s.
    Keywords: Intrahousehold Allocation, Returns to Education, Gender
    JEL: D13 I21 J16
    Date: 2008
  8. By: Manasan, Rosario G.; Cuenca, Janet S.; Villanueva, Eden C.
    Abstract: Government education spending is expected to improve the well-being of beneficiaries and enhance their capability to earn income in the future. In this sense, directing education expenditures to the poor holds a promise for breaking the intergenerational transmission of poverty. Given this perspective, the paper addresses the question: to what extent has the poor benefited from government spending on education? In particular, it uses benefit incidence analysis to evaluate whether expenditures on education had redistributive impact.
    Keywords: targeting, education, poverty reduction, benefit incidence analysis, Gini coefficient, concentration coefficient, concentration curve
    Date: 2008
  9. By: Irene Y.H. Ng (Department of Social Work, National University of Singapore, Singapore); Kong Weng Ho (Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, Singapore); K.C. Ho (Department of Sociology, National University of Singapore, Singapore)
    Abstract: Youth participation in social groups is important in developing skills and experience for successful transition to adulthood. What kinds of families do youth who are active in social groups and who take on leadership positions come from? Using data from the National Youth Survey 2005, this research studies the social participation of Singaporean youth aged 15 -18. Through probit regression analysis, it examines how youth participation in Singapore is associated with two types of family characteristics. First, it examines the role of maternal education. As a proxy for social class, maternal education represents the roles of cultural capital formation and concerted involvement by middle class parents. Second, it studies the role of family challenge and support. Maternal education is found to predict both high participation and leadership. While additional family challenge induces greater participation, family support increases participation only when the level of support is high.
    Keywords: youth participation; family challenge; family support; social class
    Date: 2008–01

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