nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2008‒07‒05
eleven papers chosen by
Fabio Sabatini
University of Siena

  1. The Knowledge Trap: Human Capital and Development Reconsidered By Benjamin F. Jones
  2. A Flexible School for Early Childhood Education in Italy By Giorgio Ponti
  3. Persistence in work-related training: evidence from the BHPS, 1991-1998 By Sousounis, Panos; Bladen-Hovell, Robin
  4. International Factor Mobility, Skills Formation and Welfare By Chaudhuri, Sarbajit
  5. Essays on Learning and Macroeconomics By Guillermo Ordonez
  6. Benchmarking the Lisbon Strategy By Demosthenes Ioannou; Marien Ferdinandusse; Marco Lo Duca; Wouter Coussens
  7. Child Work and Other Determinants of School Attendance and School Attainment in Bangladesh By Khanam, Rasheda; Ross, Russell
  8. Prioritizing Educational Investments in Children in the Developing World By David K. Evans; Arkadipta Ghosh
  9. Teacher Quality, Teacher Licensure Tests, and Student Achievement By Richard Buddin; Gena Zamarro
  10. Biological versus Foster Children Education: the Old-Age Support Motive as a Catch-up Determinant? Some Evidence from Indonesia By Karine Marazyan
  11. Bottlenecks in the decentralisation of education funding in Poland By Herbst, Mikolaj

  1. By: Benjamin F. Jones
    Abstract: This paper presents a model where human capital differences - rather than technology differences - can explain several central phenomena in the world economy. The results follow from the educational choices of workers, who decide not just how long to train, but also how broadly. A "knowledge trap" occurs in economies where skilled workers favor broad but shallow knowledge. This simple idea can inform cross-country income differences, international trade patterns, poverty traps, and price and wage differences across countries in a manner broadly consistent with existing empirical evidence. The model also provides insights about the brain drain, migration, and the role for multinationals in development. More generally, this paper shows that standard human capital accounting methods can severely underestimate the role of education in development. It shows how endogenous educational decisions can replace exogenous technology differences in a range of economic reasoning.
    JEL: F22 F23 I20 J24 J31 O11 O15
    Date: 2008–06
  2. By: Giorgio Ponti
    Abstract: The design of this flexible school for early childhood education in Milan, Italy, takes into account children’s development and the different ways they experience space according to their age. The facilities will include not only a nursery school and kindergarten, but also a drop-in day-care centre, a play centre and outdoor areas to develop the senses.
    Keywords: Italy, flexibility, learning environment, educational buildings, early childhood education, educational architecture
    Date: 2008–06
  3. By: Sousounis, Panos; Bladen-Hovell, Robin
    Abstract: In this paper we investigate the role of workers’ training history in determining current training incidence. The analysis is conducted on an unbalanced sample comprising information on approximately 5000 employees from the first seven waves of the BHPS. Our methodology utilizes a two-step dynamic probit model developed by Orme (2001) which allows for unobserved heterogeneity and formal modelling of initial conditions. The results suggest that prior training experience is a significant determinant of a worker’s participation in a current training episode comparable with other formal educational qualifications. State dependence in the model accounts for 53% of the probability of training the current period, conditional on having experienced some form of work-related training in the previous period. For women, however, the corresponding figure is lower at approximately 38% suggesting substantially greater state dependence among male workers.
    Keywords: Training; State dependence; Dynamic probit
    JEL: C23 J24
    Date: 2008–03
  4. By: Chaudhuri, Sarbajit
    Abstract: The paper examines the welfare consequences of an inflow of foreign capital and an emigration of skilled labour in a small open economy in terms of a four sector general equilibrium model in the presence of endogenous skill formation and imperfection in the market for unskilled labour. It finds that both foreign capital and emigration of skilled labour may be welfare-improving although the outcomes of these policies depend on the relative capital intensities of different sectors and the magnitude of imperfection in the market for unskilled labour. Measures like labour market reform and capital subsidy (or tax) to the appropriate sector may be resorted to improve national welfare and ensure higher skills formation.
    Keywords: Foreign capital; Skills formation; Labour market imperfection; National welfare; Labour market reform
    JEL: F11
    Date: 2008–05–18
  5. By: Guillermo Ordonez
    Date: 2008–06–28
  6. By: Demosthenes Ioannou (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Marien Ferdinandusse (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Marco Lo Duca (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Wouter Coussens (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)
    Abstract: This paper reviews the governance framework of the Lisbon Strategy and discusses the specific option of increasing the role of benchmarking as a means of improving the implementation record of structural reforms in the European Union. Against this background, the paper puts forward a possible avenue for developing a strong form of quantitative benchmarking, namely ranking. The ranking methodology relies on the construction of a synthetic indicator using the “benefit of the doubt” approach, which acknowledges differences in emphasis among Member States with regard to structural reform priorities. The methodology is applied by using the structural indicators that have been commonly agreed by the governments of the Member States, but could also be used for ranking exercises on the basis of other indicators. JEL Classification: E5, J1, J2, J6.
    Keywords: Labour supply, employment, participation, hours worked, immigration, skill and education, structural policies, labour demand, unemployment, euro area countries, labour markets, taxes and benefi ts, childcare, pensions, training, human capital, labour quality, working time and contracts, discrimination, mismatch, returns to education.
    Date: 2008–06
  7. By: Khanam, Rasheda; Ross, Russell
    Abstract: The paper examines the linkages between child work and both school attendance and school attainment of children aged 5–17 years using data from a survey based in rural Bangladesh. This paper first looks at school attendance as an indicator of a child’s time input in schooling; then it measures the “schooling-for-age” as a learning achievement or schooling outcome. The results from the logistic regressions show that school attendance and grade attainment are lower for children who are working. The gender-disaggregated estimates show that probability of grade attainment is lower for girls than that of boys. Household permanent income, parental education and supply side correlates of schooling (presence of a primary (grade 1-6) school and secondary (grade 6-10) school in the village) are appeared to be significant determinants of schooling in rural Bangladesh. The results of this study further show that the effect of household permanent income, parental education and presence of secondary school is higher for grade attainment than school attendance.
    Keywords: Schooling; Child Labour; Logit; Bangladesh
    JEL: J13 I21 C25 O12
    Date: 2005–03
  8. By: David K. Evans; Arkadipta Ghosh
    Abstract: The authors bring together 40 randomized and non-randomized evaluations of education programs to compare cost-effectiveness, seeking to facilitate prioritization of different candidate interventions by policymakers. They examine cost-effectiveness across three outcomes (enrollment, attendance, and test scores) and find distinct Òbest interventionsÓ for each outcome. For increasing enrollment, urban fellowships, school consolidation, and extra teachers have proven most cost effective. For school attendance, school-based deworming stands out as most cost effective. And for improving test scores, several interventions seem similarly cost effective, including providing blackboards, workbooks, training teachers, and others. They discuss some of the challenges inherent to comparing interventions.
    Keywords: education, cost-effectiveness
    JEL: O12 O15 I20
    Date: 2008–06
  9. By: Richard Buddin; Gena Zamarro
    Abstract: Teacher quality is a key element of student academic success, but little is known about how specific teacher characteristics influence classroom outcomes. This research examines whether teacher licensure test scores and other teacher attributes affect elementary student achievement. The results are based on longitudinal student-level data from Los Angeles. California requires three types of teacher licensure tests as part of the teacher certification process; a general knowledge test, a subject area test (single subject for secondary teachers and multiple subject for elementary teachers), and a reading pedagogy test for elementary school teachers. The student achievement analysis is based on a value-added approach that adjusts for both student and teacher fixed effects. The results show large differences in teacher quality across the school district, but measured teacher characteristics explain little of the difference. Teacher licensure test scores are unrelated to teacher success in the classroom. Similarly, student achievement is unaffected by whether classroom teachers have advanced degrees. Teacher experience is positively related with student achievement, but the linkage is weak and largely reflects poor outcomes for teachers during their first year or two in the classroom.
    Keywords: teacher quality, teacher licensure, student achievement, two-level fixed effects, education production function
    JEL: J44 J45 H0 H75 I21
    Date: 2008–05
  10. By: Karine Marazyan (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: This paper aims at explaining differences in education among foster-children and between foster and biological children in developing countries. Foster-children whose biological parents are alive may provide old-age support for both their host and biological parents. Therefore foster-children have lower returns to education than biological children and should receive less human capital investment in household where both types of children live together. However, in households where foster-children are alone, host parents will over-invest in their education to ensure that the expected old-age support will equal a minimum amount to survive. Using data from Indonesia, we provide some evidence supporting our hypothesis.
    Keywords: Household Structure, Child Fostering, Sibling Rivalry
    Date: 2008–06–25
  11. By: Herbst, Mikolaj
    Abstract: Ten years after delegating the responsibility for school management and operation maintenance to local governments, the education funding system in Poland still faces open challenges of fundamental importance. Although the decentralisation of education is commonly considered a success, the particular mechanisms of funding and legal solutions are hotly debated and certainly far from perfect. The financial responsibilities of the central government and the local authorities are imprecisely defined, which provokes conflicts and tensions between the main stakeholders. Moreover, the Polish education system lacks even the basic standards describing an efficient way of service provision. The formula used to allocate the so-called education subvention to individual local governments is subject to endless political bargains and trades and hardly reflects any reasonable policy. Recently, several ideas have been raised in the public debate in Poland on how to reform the funding of education. However, it seems that these heavily ideologised projects go far beyond the necessary changes and do not take into account either the complex context of decentralised education system or the experiences of other countries.
    Keywords: edcation finance; decentralisation; Poland
    JEL: H40 H52 I22
    Date: 2008–06

This nep-hrm issue is ©2008 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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