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on Human Capital and Human Resource Management |
| By: | Mendolicchio, Concetta; Paolini, Dimitri; Pietra, Tito |
| Abstract: | The paper studies a two-sector economy with investments in human and physical capital and imperfect labor markets. Workers and firms endogenously select the sector they are active in, and choose the amount of their investments. To enter the high-skill sector, workers must pay a fixed cost that we interpret as direct cost of education. The economy is characterized by two different pecuniary externalities. Given the distribution of the agents across sectors, at equilibrium, in each sector there is underinvestment in both human and physical capital, due to non-contractibility of investments. A second pecuniary externality is induced by the self-selection of the agents in the two sectors. When total factor productivities are sufficiently diverse, subsidies to labor income in the low skill sector and fixed taxes on the direct costs of education increase total surplus, while subsidies to labor income in the high skill sector can actually reduce it. |
| Keywords: | Human capital; Efficiency; Labour income tax |
| JEL: | J24 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:14772&r=hrm |
| By: | O'Connell, Philip J. (ESRI); Byrne, Delma (ESRI) |
| Abstract: | This paper brings together two research fields: on work-related training and high performance work practices (HPWP), respectively. We estimate models of both the determinants and the impact of training using the NCPP/ESRI Changing Workplace Survey. Our models of the determinants of training confirm previous research: age, education, contract, tenure, and firm size all influence training. Several components of HPWP are associated with a higher probability of training, specifically, general (non-firm-specific) training. Participation in general training is associated with higher earnings, as is involvement in highly participative and consultative working arrangements, and performance reward systems. These patterns of training, and returns to training, are broadly consistent with HPWP approaches and represent a challenge to human capital theory. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp289&r=hrm |
| By: | A'Hearn, Brian; Baten, Jörg; Crayen, Dorothee |
| Abstract: | Age data frequently display excess frequencies at attractive numbers, such as multiples of five. We use this "age heaping" to measure cognitive ability in quantitative reasoning, or "numeracy". We construct a database of age heaping estimates with exceptional geographic and temporal coverage, and demonstrate a robust correlation of literacy and numeracy, where both can be observed. Extending the temporal and geographic range of our knowledge of human capital, we show that Western Europe had already diverged from the East and reached high numeracy levels by 1600, long before the rise of mass schooling or the onset of industrialization. |
| Keywords: | Age Heaping; Europe; Human Capital; Literacy; Long-term Growth |
| JEL: | E24 I20 N13 O14 O40 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:7277&r=hrm |
| By: | Wennberg, Karl (Dept. of Business Administration, Stockholm School of Economics); Wiklund, Johan (Whitman School of Management); DeTienne, Dawn (Colorado State University); Cardon, Melissa (Pace University) |
| Abstract: | We develop a conceptual model of entrepreneurial exit which includes exit through liquidation and firm sale for both firms in financial distress and firms performing well. This represents four distinct exit routes. In developing the model, we complement the prevailing theoretical framework of exit as a utility-maximizing problem among entrepreneurs with prospect theory and its recent applications in liquidation of investment decisions. We empirically test the model using two Swedish databases which follow 1,735 new ventures and their founders over eight years. We find that entrepreneurs exit from both firms in financial distress and firms performing well. In addition, commonly examined human capital factors (entrepreneurial experience, age, education) and failure-avoidance strategies (outside job, reinvestment) differ substantially across the four exit routes, explaining some of the discrepancies in earlier studies |
| Keywords: | Entrepreneurial Exit; Prospect Theory; Human Capital |
| Date: | 2009–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhb:hastba:2009_010&r=hrm |
| By: | Lindqvist, Erik (Research Institute of Industrial Economics (IFN)); Westman, Roine (New York University) |
| Abstract: | We use data from the military enlistment for a large representative sample of Swedish men to assess the importance of cognitive and noncognitive ability for labor market outcomes. The measure of noncognitive ability is based on a personal interview conducted by a psychologist. Unlike survey-based measures of noncognitive ability, this measure is a substantially stronger predictor of labor market outcomes than cognitive ability. In particular, we find strong evidence that men who fare badly in the labor market in the sense of long-term unemployment or low annual earnings lack noncognitive but not cognitive ability. We point to a technological explanation for this result. Noncognitive ability is an important determinant of productivity irrespective of occupation or ability level, though it seems to be of particular importance for workers in a managerial position. In contrast, cognitive ability is valuable only for men in qualified occupations. As a result, noncognitive ability is more important for men at the verge of being priced out of the labor market. |
| Keywords: | Personality; Noncognitive ability; Cognitive ability; Intelligence; Human capital |
| JEL: | J21 J24 J31 |
| Date: | 2009–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0794&r=hrm |
| By: | Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto); Rosa Portela Forte (CEF.UP, Faculdade de Economia, Universidade do Porto) |
| Abstract: | Entrepreneurial activities are seen as key drivers of innovation, job creation, and economic growth. Recent efforts are being pursued by several entities, including governments to promote entrepreneurial skills amongst the youngest. However, to design effective programs, policy makers have to uncover the determinants of entrepreneurship. To avoid that such efforts would be fruitless we argue that a multidisciplinary account of entrepreneurial intents among students is mandatory, circumventing past biased analysis towards business and engineering areas. Thus, in this paper we present the results of a survey to all final year university students of the largest Portuguese university. It encompasses a sample of 2431 students enrolled in 60 different undergraduate courses of 14 schools/faculties. Results evidence that the average entrepreneurial intents reaches a reasonable (by international standards) figure of 27%, with students enrolled in non-traditionally entrepreneurial focused areas – Humanities, Sports, Health and Sciences – and courses - Pharmacy, Veterinary, Law, Languages, History, History of the Arts and Archaeology, Sports, Biology and Chemistry, Dentistry - revealing higher entrepreneurial intents. Based on logit estimations, we further found that psychological factors, such as risk propensity, leadership profile, and creativeness, are the most important (positive) determinants of students’ entrepreneurial intents. Contextual factors (e.g., family background and professional experience) failed to emerge as critical factors in explaining students’ entrepreneurial intents - only business context emerged as important. Despite such results might at a first glance convey the idea that education policy for promoting entrepreneurship has limited application, we argue that it is not the case. What is required is different policy measures targeting students’ attitudes and behaviors in both business and non business areas, avoiding the long-established mistake of confining entrepreneurial education related programs within business schools. |
| Keywords: | Entrepreneurship; Intents; Students; Higher Education; Multidisciplinary; Portugal |
| JEL: | M13 I21 A22 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:322&r=hrm |
| By: | Jennifer Hunt |
| Abstract: | Using the 2003 National Survey of College Graduates, I examine how immigrants perform relative to natives in activities likely to increase U.S. productivity, according to the type of visa on which they first entered the United States. Immigrants who first entered on a student/trainee visa or a temporary work visa have a large advantage over natives in wages, patenting, commercializing or licensing patents, and publishing. In general, this advantage is explained by immigrants' higher education and field of study, but this is not the case for publishing, and immigrants are more likely to start companies than natives with similar education. Immigrants without U.S. education and who arrived at older ages suffer a wage handicap, which offsets savings to the United States from their having completed more education abroad. Immigrants who entered with legal permanent residence do not outperform natives for any of the outcomes considered. |
| JEL: | J61 O31 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14920&r=hrm |
| By: | Aidis, Ruta; Estrin, Saul; Mickiewicz, Tomasz |
| Abstract: | In this paper we explore the relationship between the individual decision to become an entrepreneur and the institutional context. We pinpoint the critical roles of property rights and the size of the state sector for entrepreneurial activity and test the relationships empirically by combining country-level institutional indicators for 44 countries with working age population survey data taken from the Global Enterprise Monitor. A methodological contribution is the use of factor analysis to reduce the statistical problems with the array of highly collinear institutional indicators. We find that the key institutional features that enhance entrepreneurial activity are indeed the rule of law and limits to the state sector. However, these results are sensitive to the level of development. |
| Keywords: | access to finance; entrepreneurship; property rights |
| JEL: | L26 P14 P37 P51 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:7278&r=hrm |