nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2008‒12‒01
eleven papers chosen by
Fabio Sabatini
University of Siena

  1. Endogenous Determination of FDI Growth and Economic Growth:The OECD Case By Burcu Türkcan; I. Hakan Yetkiner
  2. Job Mobility and Skill Transferability. Some Evidences from Denmark and a Large Italian Region By Rikke Ibsen; Elisabetta Trevisan; Niels Westergaard-Nielsen
  3. The Effects of Maternity Leave Extension on Training for Young Women By Puhani, Patrick A.; Sonderhof, Katja
  4. Labor Demand and Information Technologies: Evidence for Spain, 1980-2005 By Manuel A. Hidalgo Pérez; Jesús Rodríguez López; José María O´Kean Alonso
  5. The Impact of Global Competition on Jobs and Skills in Latin America By Gary Gereffi
  6. The Use of Informal Networks in Italian Labor Markets: Efficiency or Favoritisms? By Ponzo, Michela; Scoppa, Vincenzo
  7. What Makes a Homegrown Terrorist? Human Capital and Participation in Domestic Islamic Terrorist Groups in the U.S.A. By Alan B. Krueger
  8. Education, Corruption and the Natural Resource Curse By Max Iván Aladave Ruiz; Cecilia Garcìa-Peñalosa
  9. "Every Catholic Child in a Catholic School": Historical Resistance to State Schooling, Contemporary Private Competition, and Student Achievement across Countries By West, Martin R.; Woessmann, Ludger
  10. Education for the Third Industrial Revolution By Alan S. Blinder
  11. The Labor Market Consequences of Gender Differences in Job Search By Eriksson, Stefan; Lagerström, Jonas

  1. By: Burcu Türkcan (Department of Economics, Izmir University of Economics); I. Hakan Yetkiner (Department of Economics, Izmir University of Economics)
    Abstract: This paper tests the endogenous relationship between FDI growth and economic growth using a panel dataset for 23 OECD countries for the period 1975-2004. In particular we estimate a two-equation simultaneous equation system with the generalized methods of moments (GMM) that treats economic growth and FDI growth as endogenous variables. We find that FDI growth and economic growth are significant determinants of each other. We also find that export growth rate and human capital are statistically significant determinants of both FDI growth and economic growth. Our findings lead us to conclude that FDI growth and economic growth have an endogenous relationship.
    Keywords: FDI growth, economic growth, Panel Data, GMM
    JEL: C33 O5 F21
    Date: 2008–11
  2. By: Rikke Ibsen (CCP (Center for Corporate Performance), Aarhus Business School); Elisabetta Trevisan (CCP (Center for Corporate Performance), Aarhus Business Schoo and V Ca’ Foscari University of Venice); Niels Westergaard-Nielsen (CCP (Center for Corporate Performance), Aarhus Business School)
    Abstract: This paper investigates the effect of job mobility and tenure on wage dynamics. In this respect, theory assesses that high job mobility and low tenure are associated to lower wage drop when workers experience a job change. We test this theory first comparing two labour market (i.e. Denmark and a large Italian region, Veneto) characterized by different job mobility and tenure, as a consequence of different level of EPL. Secondly, we perform a within Veneto analysis, comparing the different effects when workers are employed in small rather than big firms. Data drawn from the VWH (Veneto Workers History) and IDA (for Denmark) registered data, from 1987 to 2001, are used. In Denmark job mobility has a positive effect on wage increases, while built up on firm-specific human capital has a negative effect. In Veneto, instead, it appears that long tenure are more rewarding. Some evidences of positive impact of moving from job to job when the barriers are lower come from the analysis of the differences between small and big firms in Veneto.
    Keywords: Information sale, Cheap talk, Conflicts of interest, Information Acquisition, Firewalls, Market efficiency
    JEL: C14 C23 J24 J31 J63
    Date: 2008
  3. By: Puhani, Patrick A. (University of Hannover); Sonderhof, Katja (University of Hannover)
    Abstract: Using three representative individual-level datasets for West Germany, we estimate the effect of the extension of maternity leave from 18 to 36 months on young women's participation in job-related training. Specifically, we employ difference-indifferences identification strategies using control groups of older women and older women together with young and older men. We find that maternity leave extension negatively affects job-related training for young women, even if they do not have children, especially when the focus is on employer-arranged training. There is tentative evidence that young women partly compensated for this reduction in employer-arranged training by increasing training on their own initiative.
    Keywords: policy, evaluation, education
    JEL: J16 J24 J58 J83
    Date: 2008–11
  4. By: Manuel A. Hidalgo Pérez (Department of Economics, Universidad Pablo de Olavide); Jesús Rodríguez López (Department of Economics, Universidad Pablo de Olavide); José María O´Kean Alonso (Department of Economics, Universidad Pablo de Olavide)
    Abstract: Using the EU KLEMS dataset we test the capital-skill complementarity hypothesis in a cross-section of sectors in Spain between 1980 and 2005. We analyze three groups of workers, who are classed according to skill level: high, medium and low. Capital assets have been broken down into ICT (information and communication technologies) assets and non-ICT assets. Acquisition and usage costs of ICT assets declined throughout the period studied, both in absolute terms and relative to the other capital assets and workers. Our principal finding is that the substitutibility between workers and ICT assets falls as worker skill level rises. In fact, the ICT assets were strongly complement with highly skilled workers and were not substitutive with them. Throughout the period analyzed, the fraction of employed medium- and high-skill workers rose by 21% and 12%, respectively, to the disadvantage of low-skill workers. After decomposing these changes, we found that the latter were dominated by an ajustment within sectors more than by a composition effect or adjustment between sectors. These adjustments may be explained by reference to the estimated elasticities of substitution.
    Keywords: capital-skill complementarity, ICT, translog cost function, elasticity of substitution.
    JEL: E22 J24 J31 O33
    Date: 2008–11
  5. By: Gary Gereffi (Duke University)
    Date: 2008–08
  6. By: Ponzo, Michela; Scoppa, Vincenzo
    Abstract: A number of papers considers the use of informal networks (the help of relatives, friends and acquaintances) to find an employment as an efficient mechanism to match workers to jobs. However, evidence in Italy shows that informal networks tend to be used more in less productive jobs and less developed regions. We aim to show that informal networks – rather than being an efficient channel of information transmission – may interfere with a genuine process of selection of workers, favoring socially connected people in place of more talented workers. Using the Bank of Italy Survey on Household Income and Wealth (SHIW) we estimate with a Probit model the determinants of the probability of using informal networks. We find that informal networks tend to be used by low educated individuals, in low productivity jobs, in high unemployment areas, where opportunistic behavior are widespread and in jobs paying a wage rent. We offer a stripped-down model of nepotism to explain theoretically these findings.
    Keywords: Keywords: Informal Networks; Favoritism; Nepotism; Italian Labour Markets.
    JEL: D73 J31 J71 M51 J24
    Date: 2008–10–15
  7. By: Alan B. Krueger (Princeton University and NBER)
    Abstract: This paper compares the characteristics of 63 alleged homegrown Islamic terrorists in the U.S.A. to a representative sample of 1,000+ Muslim Americans. The alleged terrorists have about average level of education. Those with higher education were judged closer to succeeding.
    Keywords: terrorism; homegrown terrorism; human capital
    JEL: H56 J24
    Date: 2008–08
  8. By: Max Iván Aladave Ruiz (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579, Central Bank of Peru - Central Bank of Peru); Cecilia Garcìa-Peñalosa (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579)
    Abstract: The empirical evidence on the determinants of growth across countries has found that growth is lower when natural resources are abundant, corruption widespread and educational attainment low. An extensive literature has examined the way in which these three variables can impact growth, but has tended to address them separately. In this paper we argue that corruption and education are interrelated and that both crucially depend on a country’s endowment of natural resources. The key element is the fact that resources affect the relative returns to investing in human and in political capital, and, through these investments, output levels and growth. In this context, inequality plays a key role both as a determinant of the possible equilibria of the economy and as an outcome of the growth process.
    Keywords: natural resources, corruption, human capital, growth, inequality
    Date: 2008–11–24
  9. By: West, Martin R. (Brown University); Woessmann, Ludger (Ifo Institute for Economic Research)
    Abstract: Nineteenth-Century Catholic doctrine strongly opposed state schooling. We show that countries with larger shares of Catholics in 1900 (but without a Catholic state religion) tend to have larger shares of privately operated schools even today. We use this historical pattern as a natural experiment to estimate the causal effect of contemporary private competition on student achievement in cross-country student-level analyses. Our results show that larger shares of privately operated schools lead to better student achievement in mathematics, science, and reading and to lower total education spending, even after controlling for current Catholic shares.
    Keywords: private school competition, student achievement, Catholic schools
    JEL: I20 L33 N30 Z12
    Date: 2008–11
  10. By: Alan S. Blinder (Princeton University)
    Abstract: At the risk of sounding like a crass economist, I want to assert at the outset that one major purpose of the K-12 educational system is “vocational” in the broad sense. Specifically, the K-12 system is a mechanism for preparing cadres of 18-year-olds (many of whom will get some higher education first) to perform the tasks needed and remunerated by the U.S. job market (or of being easily trained to do so). To be sure, this narrowly economic purpose of mass public education is not the only reason to educate America’s youth; an educated citizenry presumably has other social benefits as well. But I believe it is an important purpose and, in any case, it is the perspective that guides this essay. Any reader who does not accept this initial premise can stop reading right now. My second, and much more controversial, premise is that the needs of the U.S. economy are changing (that’s not the controversial part) in ways that are at least somewhat predictable (that is the controversial part). To be sure, I am not foolish enough to believe that we can predict in detail the mix of jobs that will be available in the United States in, say, 2028 or 2038 and then fine-tune the educational system to meet those demands. But I think at least two broad trends are clearly foreseeable.
    Date: 2008–02
  11. By: Eriksson, Stefan (Department of Economics); Lagerström, Jonas (Department of Economics, Åbo Akademi)
    Abstract: This paper studies gender differences in labor market outcomes using data from an Internetbased CV database. The women in the database get fewer firm contacts than men, and we show that this is partly explained by differences in education, experience and other skills, is not explained by differences in occupation and place of residence, and to a large extent is explained by differences in geographical search area. When we take into account differences in search area, the negative gender effect disappears. However, the results differ somewhat across subgroups: For highly skilled women a negative gender effect remains.
    Keywords: Job Search; Gender Differences; Discrimination
    JEL: J61 J71
    Date: 2008–10–24

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