nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒06‒03
eleven papers chosen by
Fabio Sabatini
University of Siena

  1. Marijuana Consumption, Educational Outcomes and Labor Market Success: Evidence from Switzerland By Donata Bessey; Uschi Backes-Gellner
  2. Task Organization, Human Capital and Wages in Moroccan Exporting Firms By Christophe Muller; Christophe Nordman
  3. The Impact of Parental Education on Earnings: New Wine in an Old Bottle? By Hudson, John; Sessions, John G.
  4. The Impact of Demographic Change on Human Capital Accumulation By Fertig, Michael; Schmidt, Christoph M.; Sinning, Mathias
  5. Endogenous Skill Formation and the Source Country Effects of Emigration By Hartmut Egger; Gabriel Felbermayr
  6. Antagonistic Managers, Careless Workers and Extraverted Salespeople: An Examination of Personality in Occupational Choice By Ham, Roger; Junankar, Pramod N. (Raja); Wells, Robert
  7. Good Occupation – Bad Occupation? The Quality of Apprenticeship Training By Kathrin Goeggel; Thomas Zwick
  8. Migrants at School: Educational Inequality and Social Interaction in the UK and Germany By Entorf, Horst; Tatsi, Eirini
  9. Should I Stay or Should I Go? : Gender Differences in Professional Employment By Kathrin Leuze; Allessandra Rusconi
  10. Intrapreneurship or Entrepreneurship? By Parker, Simon C.
  11. Life Satisfaction among Rural Low-income Mothers: The Influence of Health, Human, Personal, and Social Capital By Sheila Mammen; Jean W. Bauer; Daniel Lass

  1. By: Donata Bessey (Institute for Strategy and Business Economics, University of Zurich); Uschi Backes-Gellner (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: In this paper, we analyze the impact of onset of marijuana consumption during different periods in youth on educational outcomes and labor market success using a Swiss data set. In order to deal with endogeneity, we estimate a multivariate probit model with an instrumental variables strategy. Our results seem to suggest that onset of marijuana consumption under age 14 leads to a signicantly lower probability of having at least a secondary education, and onset of consumption between age 15 and 16 as well as between age 17 and 18 leads to a signicantly lower probability of having a tertiary education. While we do not find any impact of marijuana consumption on the probability of being unemployed, onset of marijuana consumption under age 14 and between age 15 and 16 leads to a significantly higher probability of working less than 80%.
    Keywords: Risky behavior, production of human capital, multivariate probit
    JEL: I19 I21
    Date: 2009–02
  2. By: Christophe Muller; Christophe Nordman
    Abstract: We conduct a case study of the linkages of task organization, human capital accumulation and wages in Morocco, using matched worker-firm data for Electrical-mechanical and Textile-clothing industries. In order to integrate task organization into the interacting processes of workers’ training and remunerations, we use a recursive model, which is not rejected by our estimates: task organization influences on-the-job training that affects wages. Beyond sector and gender determinants, assignment of workers to tasks and on-the-job training is found to depend on former education and work experience in a broad sense. Meanwhile, participation in on-the-job training is stimulated by being assigned to a team, especially of textile sector and for well educated workers. Finally, task organization and on-the-job training are found to affect wages.
    Keywords: Morocco, Wages, On-the-job training, Human capital, Task organization.
  3. By: Hudson, John (University of Bath); Sessions, John G. (University of Bath)
    Abstract: We examine the impact of parental education on the shape of an individual's experience-earnings profile. A number of factors suggest that parental education will affect the ability of an individual to translate labor market experience into earnings. Our empirical analysis of US data suggests that this is indeed the case. Higher parental education shifts the earnings profile significantly to the left – the profile of individuals with parents who both have 15 years of education peaks at 16 years of experience when their wages are 52% (24%) greater than those whose parents both have only 5 (10) years of education.
    Keywords: parental education, human capital, earnings
    JEL: J30 J31 J33
    Date: 2009–05
  4. By: Fertig, Michael (ISG, Cologne); Schmidt, Christoph M. (RWI Essen); Sinning, Mathias (Australian National University)
    Abstract: This paper investigates whether and to what extent demographic change has an impact on human capital accumulation. The effect of the relative cohort size on educational attainment of young adults in Germany is analyzed utilizing data from the German Socio-Economic Panel for West-German individuals of the birth cohorts 1966 to 1986. These are the cohorts which entered the labor market since the 1980's. Particular attention is paid to the effect of changes in labor market conditions, which constitute an important channel through which demographic change may affect human capital accumulation. Our findings suggest that the variables measuring demographic change exert a considerable though heterogeneous impact on the human capital accumulation of young Germans. Changing labor market conditions during the 1980's and 1990's exhibit a sizeable impact on both the highest schooling and the highest professional degree obtained by younger cohorts.
    Keywords: demographic change, schooling, vocational training
    JEL: J11 J24 C25
    Date: 2009–05
  5. By: Hartmut Egger; Gabriel Felbermayr
    Abstract: In this paper we set up a simple theoretical framework to study the possible source country effects of skilled labor emigration. We show that for given technologies, labor market integration necessarily lowers GDP per capita in a poor source country of emigration, because it distorts the education decision of individuals. As pointed out by our analysis, a negative source country effect also materializes if all agents face identical emigration probabilities, irrespective of their education levels. This is in sharp contrast to the case of exogenous skill supply. Allowing for human capital spillovers, we further show that with social returns to schooling there may be a counteracting positive source country effect if the prospect of emigration stimulates the incentives to acquire education. Since, in general, the source country effects are not clear, we calibrate our model for four major source countries - Mexico, Turkey, Morocco, and the Philippines - and show that an increase in emigration rates beyond those observed in the year 2000 is very likely to lower GDP per capita in poor economies.
    Keywords: Emigration; endogenous skill formation; source country effects
    JEL: F22 J24
  6. By: Ham, Roger (University of Western Sydney); Junankar, Pramod N. (Raja) (University of Western Sydney); Wells, Robert (University of Western Sydney)
    Abstract: This paper is an econometric investigation of the choice of individuals between a number of occupation groupings utilising an extensive array of conditioning variables measuring a variety of aspects of individual heterogeneity. Whilst the model contains the main theory of occupational choice, human capital theory, it also tests dynasty hysteresis through parental status variables. The focus is an examination of the relationship between choice and personality with the inclusion of psychometrically derived personality variables. Occupational choice is modelled using multinomial logit estimation using the Household Income and Labour Dynamics in Australia (HILDA) survey data. Human capital variables are found to exhibit strong credentialism effects. Parental status has a small and limited effect on occupation outcomes indicative of only some small dynasty hysteresis. On the other hand, personality effects are found to be significant, relatively large and persistent across all occupations. Further, the strength of these personality effects are such that they can in many instances rival that of various education credentials. These personality effects include but are not limited to: managers being less agreeable and more antagonistic; labourers being less conscientiousness; and sales people being more extraverted.
    Keywords: occupational choice, personality traits, credentialism, dynasty hysteresis
    JEL: J24 J62 C25
    Date: 2009–05
  7. By: Kathrin Goeggel (Federal Ministry of Labour and Social Affairs, Berlin); Thomas Zwick (LMU München)
    Abstract: Small average wage effects of employer and/or occupation changes after apprenticeship training mask large differences between occupation groups and apprentices with different schooling back-grounds. Apprentices in commerce and trading occupations strongly profit from an employer change. Employer and occupation changers in industrial occupations face large wage disadvantages, however. We are the first to analyse these differences while those quality differences between training firms that have been widely studied before are small. This paper also explains differences between previous findings by comparing their empirical estimation strategies. It demonstrates that selectivity into occupations and changers, unobserved heterogeneity between occupations, and sample selection matter. Finally, it proposes several improvements in the estimation technique to measure apprenticeship quality.
    Keywords: Wage mark-up, apprenticeship training, occupations
    JEL: J24 J31 M53
    Date: 2009–06
  8. By: Entorf, Horst (University of Frankfurt); Tatsi, Eirini (University of Frankfurt)
    Abstract: We test potential social costs of educational inequality by analysing the influence of spatial and social segregation on educational achievements. In particular, based on recent PISA data sets from the UK and Germany, we investigate whether good neighbourhoods with a relatively high stock of social capital lead to larger 'social multipliers' than neighbourhoods with low social capital. Estimated 'social multipliers' are higher for the German early tracking schooling system than for comprehensive schools in the UK. After aggregating data and employing the Oaxaca-Blinder decomposition, the results suggest that the educational gap between natives and migrants is mainly due to the 'endowment effect' provided by the socioeconomic background of parents and cultural capital at home. Some adverse 'integration effects' do exist for female migrants in Germany who lose ground on other groups.
    Keywords: peer effects, identification, social interaction, reflection problem, empirical analysis, education, migrants
    JEL: I20 J15 J18 O15 Z13
    Date: 2009–05
  9. By: Kathrin Leuze; Allessandra Rusconi
    Abstract: Occupational sex segregation is a persistent source of social inequalities. The increasing participation of women in tertiary education and rising female employment rates, however, have given hope that gender inequalities will decline as a result of growing female opportunities for high skill employment in the service sector, e.g. the professions. This paper asks whether such optimistic accounts are justified by comparing male and female professional career trajectories in Germany. Our main assumptions hold that, even today, strong gender differences continue to exist between public and private sector professions, which are further aggravated by different forms of family commitment. Overall, our analyses demonstrate that even among highly qualified men and women, important patterns of sex segregation are present. An initial horizontal segregation between public and private sectors brings about “equal, but different” career prospects, which in the phase of family formation turn into vertical segregation, promoting “different and therefore unequal” labor market chances.
    Keywords: professions, sex segregation, labor market outcomes, family formation, tertiary education, German
    Date: 2009
  10. By: Parker, Simon C. (University of Western Ontario)
    Abstract: I explore the factors that determine whether new business opportunities are exploited by starting a new venture for an employer ('nascent intrapreneurship') or independently ('nascent entrepreneurship'). Analysis of a nationally representative sample of American adults gathered in 2005-06 uncovers systematic differences between the drivers of nascent entrepreneurship and nascent intrapreneurship. Nascent entrepreneurs tend to leverage their general human capital and social ties to organize ventures which sell directly to customers, whereas intrapreneurs disproportionately commercialize unique new opportunities which sell to other businesses. Implications of the findings are discussed.
    Keywords: nascent entrepreneurship, intrapreneurship, sample selection
    JEL: L26 M13
    Date: 2009–05
  11. By: Sheila Mammen (Department of Resource Economics, University of Massachusetts Amherst); Jean W. Bauer (Family Social Sciences Department, University of Minnesota); Daniel Lass (Department of Resource Economics, University of Massachusetts Amherst)
    Abstract: The satisfaction with life (SWL) among rural low-income mothers was assessed using a sample of 163 mothers who participated in a multi-state, three-year longitudinal study. Dependent variables included those that represented various forms of capital (health, human, personal and social) as well as the mothers’ levels of life satisfaction from prior years. Nearly two-thirds of the rural mothers were satisfied with their life in all three years. Their level of satisfaction appeared to be constant, however, such persistence had a time frame of only one year. In all three years, their depression score and the adequacy of their income had a significant effect on SWL. Their confidence as a parent and home ownership affected their life satisfaction during two years. Finally, their satisfaction with social relationships, age of the youngest child, and total number of children had an impact on their life satisfaction for one year.
    Keywords: Satisfaction with life, rural low-income mothers, health capital, human capital, personal capital, social capital, homeostatis
    JEL: I30 I31 I32 I39
    Date: 2009–02

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