nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒04‒18
ten papers chosen by
Fabio Sabatini
University of Siena

  1. Human Capital Externalities in Western Germany By Daniel F. Heuermann
  2. School tracking and development of cognitive skills By Pekkarinen, Tuomas; Uusitalo, Roope; Kerr, Sari
  3. Human Capital and Wages in Exporting Firms By Munch, Jakob Roland; Rose Skaksen, Jan
  4. Occupational Choice: Personality Matters By Ham, Roger; Junankar, Pramod N. (Raja); Wells, Robert
  5. Education and citizenship in the knowledge society - towards the comparative study of national systems of education By Kap, Hrvoje
  6. The rise of individual performance pay By Kvaløy, Ola; Olsen, Trond
  7. The global entrepreneurship index (GEINDEX) By Zoltán J. Ács; László Szerb
  8. Unemployment and subsequent earnings for Swedish college graduates. A study of scarring effects By Gartell, Marie
  9. The Gender Education Gap in China: The Power of Water By Maimaiti, Yasheng; Siebert, W. Stanley
  10. Beyond Kuznets: persistent regional inequality in China By Christopher Candelaria; Mary Daly; Galina Hale

  1. By: Daniel F. Heuermann (Institute for Labour Law and Industrial Relations in the EC, University of Trier)
    Abstract: The paper sheds light on the impact of local human capital endowments on individual wages in Western Germany. Using panel data it shows that regional wage differentials are partly attributable to localized human capital externalities arising from the regional share of highly qualified workers. Employing the regional number of public schools and of students as instrumental variables, the paper shows that human capital externalities are underestimated in ordinary panel regressions for highly qualified workers due to supply shifts of workers of different skills. An an alysis by sector reveals that human capital externalities are more pronounced in manufacturing than in the service sector. We find indication that highly qualified workers benefit from intraindustry knowledge spillovers, while non-highly qualified workers profit from pecuniary externalities between industries. Our findings are stable among a variety of indicators of regional human capital and robust to the inclusion of other sources of increasing returns, as well as wage curve, price level, and amenity effects.
    Keywords: Human Capital Externalities, Agglomeration, Urban Wage Premium
    JEL: D62 D83 J24 J31 O15
    Date: 2009–04
  2. By: Pekkarinen, Tuomas (Helsinki School of Economics); Uusitalo, Roope (Government Institute for Economic Research (VATT)); Kerr, Sari (Charles River Associates)
    Abstract: The Finnish comprehensive school reform replaced the old two-track school system with a uniform nine-year comprehensive school and significantly reduced the degree of heterogeneity in the Finnish primary and secondary education. We estimate the effect of this reform on the test scores in the Finnish Army Basic Skills test. The identification strategy relies on a differences-in-differences strategy and exploits the fact that the reform was implemented gradually across the country during a six-year period between 1972 and 1977. We find that the reform had a small positive effect on the verbal test scores but no effect on the mean performance in the arithmetic or logical reasoning tests. Still in all tests the reform improved the scores of students from families where parents had only basic education.
    Keywords: Education; school system; tracking; comprehensive school; test scores
    JEL: H52 I21
    Date: 2009–03–03
  3. By: Munch, Jakob Roland (Department of Economics, Copenhagen Business School); Rose Skaksen, Jan (Department of Economics, Copenhagen Business School)
    Abstract: This paper studies the link between a firms education level, export performance and wages of its workers. We argue that firms may escape intence competition in international markets by using high skilled workers to differentiate their products. This story is consistent with our empirical results. Osing a very rich matched worker-firm longitudinal dataset we find that firms with high export intensities pay higher wages. However, an interaction term between export intensity and skill intensity has a positive impact on wages and it absorbs the direct effect of the export intensity. That is, we find an export wage premium, but it accrues to workers in firms with high skill intensities. Keywords: Exports, Wages, Human Capital, Rent Sharing, Matched Worker-Firm Data JEL Classification: J30, F10, I20
    Keywords: na
    JEL: G10
    Date: 2009–04–07
  4. By: Ham, Roger (University of Western Sydney); Junankar, Pramod N. (Raja) (University of Western Sydney); Wells, Robert (University of Western Sydney)
    Abstract: In modern societies, people are often classified as "White Collar" or "Blue Collar" workers: that classification not only informs social scientists about the kind of work that they do, but also about their social standing, their social interests, their family ties, and their approach to life in general. This analysis will examine the effect of an individual's psychometrically derived personality traits and status of their parents on the probability of attaining a white collar occupation over the baseline category of a blue collar occupation; controlling for human capital and other factors. The paper uses data from the Household Income and Labour Dynamics in Australia (HILDA) survey to estimate a random effects probit model to capture the effects on the probability of being in a white collar occupation. The results are then examined using the average marginal effects of the different conditioning variables over the whole sample. The analysis confirms the previous findings of human capital theory, but finds that personality and parental status also have significant effects on occupational outcomes. The results suggest that the magnitude of the average marginal effect of parental status is small and the effect of the personality trait "conscientiousness" is large and rivals that of education. Finally, estimates of separate models for males and females indicate that effects differ between the genders for key variables, with personality traits in females having a relatively larger effect on their occupational outcomes due to the diminished effects of education.
    Keywords: occupational choice, personality, human capital, dynasty hysteresis
    JEL: J24
    Date: 2009–04
  5. By: Kap, Hrvoje (Swedish Institute for Social Research)
    Abstract: This paper is an attempt to propose how education systems can be studied in relation to the welfare state and knowledge society in the global age. It begins by discussing the aims of education and relates these to the core values of social citizenship, arguing that access to the provision of education is a fundamental pillar of citizenship with the purpose of extending and enhancing life chances by general principles of social inclusion and equality of opportunity. It further on reviews a large body of comparative research which studies how the design of education institutions in various countries influences one important aspect of these aims, namely school-leavers’ entrance into the labour market. The third and last section investigates the possibilities and difficulties inherent in comparative studies of national systems of education, particularly with regard to questions concerning validity when constructing conceptual models and comparable indicators. The tentative conclusion of the paper is that further comparative endeavours should set out analyzing primarily input- and process-related features of compulsory education, and the dimensions of stratification and standardization of upper secondary education for an assessment of these institutions’ capacity to equip citizens with knowledge and skills for human flourishing.
    Keywords: education systems; social citizenship
    JEL: I21
    Date: 2008–08
  6. By: Kvaløy, Ola (University of Stavanger); Olsen, Trond (Norwegian School of Economics and Business Administration)
    Abstract: x
    Keywords: Relational contracts; Multiagent Moral Hazard; Indispensable human capital
    JEL: D23 J33 L14
    Date: 2008–12–15
  7. By: Zoltán J. Ács (George Mason University); László Szerb (University of Pécs)
    Abstract: This paper constructs a Global Entrepreneurship Index (GEINDEX) that captures the contextual feature of entrepreneurship across countries. We find the relationship between entrepreneurship and economic development to be mildly S-shaped not U-shaped or L-shaped. Our findings suggest moving away from simple measures of entrepreneurship across countries illustrating a U-shaped or L-shaped relationship to more complex measures, which are positively related to economic development. Implications for public policy suggest that institutions need to be strengthened before entrepreneurial resource can be deployed to drive innovation.
    Keywords: Entrepreneurship, Development, Stages of Growth, Globalization, Innovation, Index, Knowledge, Institutions
    JEL: L26 O1 O3
    Date: 2009–04–14
  8. By: Gartell, Marie (Institute for Futures Studies)
    Abstract: The purpose of this paper is to study the long term effects of the college-to-work transition. The results reveal that unemployment immediately upon graduation has substantial and permanent effects on individual future earnings. Even for very short unemployment spells, estimated effects are statistically significant. These results are stable for the inclusion of a rich set of observable control variables, including grade point average from high school and parental educational level, and for choice of method i.e. OLS and propensity score matching.
    Keywords: Scarring; State dependence; Higher education; College-to-work
    JEL: J24 J31 J64
    Date: 2009–01
  9. By: Maimaiti, Yasheng (University of Birmingham, UK); Siebert, W. Stanley (University of Birmingham, UK)
    Abstract: We investigate girls' school dropout rates, bringing forward a novel variable: access to water. We hypothesise that a girl's education suffers when her greater water need for female hygiene purposes after menarche is not met because her household has poor access to water. For testing we use data from rural villages in the China Health and Nutrition Survey. We find that menarche is associated with an increase in the school dropout rate, and indeed the effect is weaker for girls who have good access to water. Water engineering can thus contribute significantly to reducing gender education gaps in rural areas.
    Keywords: education, gender gaps, menarche, water, China
    JEL: I21 J16 O15 L95 Q25
    Date: 2009–04
  10. By: Christopher Candelaria; Mary Daly; Galina Hale
    Abstract: Regional inequality in China appears to be persistent and even growing in the past two decades. We study potential offsetting factors and interprovincial migration to shed light on the sources of this persistence. We find that some of the inequality could be attributed to differences in quality of labor, industry composition, and geographical location of provinces. We also demonstrate that interprovincial migration, while driven in part by wage differences across provinces, does not offset these differences. Finally, we find that interprovincial redistribution did not help offset regional inequality during our sample period.
    Keywords: Income distribution ; China
    Date: 2009

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