nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒07‒11
ten papers chosen by
Fabio Sabatini
University of Siena

  1. On the Role of Job Assignment in a Comparison of Education Systems By Katsuya Takii; Ryuichi Tanaka
  2. The Impact of Skill Development and Human Capital Training on Self Help Groups. By Bali Swain, Ranjula
  3. Education, Inovation, and Long-Run Growth By Katsuhiko Hori; Katsunori Yamada
  4. Between the Wokshop and the State: Training Human Capital in Railroad Companies in Mexico and Chile, 1850-1930 By Guajardo, Guillermo
  5. Immigrant Wage Assimilation and the Return to Foreign and Host-Country Sources of Human Capital By Skuterud, Mikal; Su, Mingcui
  6. Cyclical Skill-Biased Technological Change By Balleer, Almut; van Rens, Thijs
  7. Intergenerational Correlation of Labour Market Outcomes By Nicolas Hérault; Guyonne Kalb
  8. Household economic status, schooling costs, and schooling bias against non-biological children in Malawi By Mussa, Richard
  9. Does training on behavioral finance influence fund managers' perception and behavior? By Nikiforow, Marina
  10. The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills By Lundborg, Petter; Nystedt, Paul; Rooth, Dan-Olof

  1. By: Katsuya Takii (Osaka School of International Public Policy (OSIPP),Osaka University); Ryuichi Tanaka (Tokyo Institute of Technology)
    Abstract: This paper reexamines how differences in systems for financing education influence GDP by highlighting a neglected function of education policy: it affects the magnitude of gains from job assignment. When more productive jobs demand more skill, privately financed education can increase productivity gains from matching between jobs and skill by increasing the availability of highly educated people. This differs from the standard argument that publicly financed education increases the total amount of human capital by equalizing educational opportunities. It is shown that if job opportunities have large variations in productivity, education policy may face a serious efficiency--equity trade-off.
    Keywords: Job assignment, Human capital, Education system
    JEL: D31 D72 H42 I22 O11 O15
    Date: 2009–07
  2. By: Bali Swain, Ranjula (Department of Economics)
    Abstract: We evaluate the effect of training, in both skill development and human capital, provided by facilitators of self help groups (SHGs). Indian SHGs are unique in that they are mainly NGOformed microfinance groups but later funded by commercial banks. The results suggest that, in general, training does not impact assets but training can reverse the potentially negative effect of credit on income. Moreover, training is more effective for asset accumulation in villages with better infrastructure. In terms of training delivery, results show that the most effective linkage is when NGOs form groups and banks finance SHGs.
    Keywords: Asia; India; microfinance; impact studies; training; Self Help Groups
    JEL: G21 I32 O12
    Date: 2009–07–01
  3. By: Katsuhiko Hori; Katsunori Yamada
    Abstract: This paper combines three prototype endogenous growth models, themodels with human capital accumulation introduced by Uzawa [1965] andLucas [1988], variety expansion by Romer [1990], and quality improvementsby Aghion and Howitt [1992], in order to investigate how these threeengines of growth interact. We show that a subsidy to human capital accumulation has a positive impact on R&D effort, as well as on human capital accumulation. On the other hand, a subsidy to R&D sectors does not affect human capital accumulation in our model. Moreover, we show that equilibrium dynamics is locally saddle-path stable around the steady growth path. It suggests that Schumpeterian growth models a la Howitt [1999] should share the locally saddle-path stable property. Finally, since in our model the percapita output growth rate is endogenously determined by both technology improvements and human capital accumulation, it bridges the gap between the literature on Schumpeterian growth models and that on growth empirics.
    Date: 2009–02
  4. By: Guajardo, Guillermo
    Abstract: This paper analyzes the human capital training strategies adopted between the 1850s and 1930s by railroad companies in Mexico and Chile. These two countries enable one to contrast the different routes taken by the same type of firm, technology and labor force. A propos of this, we suggest that because of its complexity, capital intensity and new work methods, railway technology had a positive impact on human capital training in the cases studied. During the period when railways were the main form of land transport studied -covered by this study- they combined the labor force with foreign workers and modern technology and it was not until well into the 20th century that a formal system of technical schools was established. Instead, informal and formal learning cycles and routes tended to be followed. That is why this paper considers three aspects: I) the institutional and social factors that helped or hindered industrial operations, maintenance and production training; II) the way learning, training and talent retention cycles were shaped and talent migrated towards other activities or was dispersed or lost; and lastly, III) how training was institutionalized through what were known as “firm schools” responsible for training human capital as an internalization response to coping with shortages in the labor market.
    Keywords: human capital; technology; railways; México; Chile
    JEL: L32 L92 N76
    Date: 2009–06–26
  5. By: Skuterud, Mikal; Su, Mingcui
    Abstract: We compare predicted relative immigrant wage profiles based on returns to YSM and to foreign and host-country sources of schooling and experience. We find the biases inherent in inferring assimilation from a return to YSM appear more substantial than those emanating from the assumptions necessary to estimate foreign and host-country returns directly using standard data sources. Given the policy relevance of allowing entry effects and subsequent wage growth to depend on the foreign human capital immigrants bring and their post-migration schooling and work decisions, our findings suggest the predominance of YSM models in the literature is not well founded.
    Keywords: Immigrant workers; wage differentials; human capital
    JEL: J61 J31 J24
    Date: 2009–06–26
  6. By: Balleer, Almut (University of Bonn); van Rens, Thijs (CREI and Universitat Pompeu Fabra)
    Abstract: Over the past two decades, technological progress has been biased towards making skilled labor more productive. What does skill-biased technological change imply for business cycles? To answer this question, we construct a quarterly series for the skill premium from the CPS and use it to identify skill-biased technology shocks in a VAR with long run restrictions. We find that hours worked fall in response to skill-biased, but not in response to skill-neutral improvements in technology. Skill-biased technology shocks are associated with increases in the relative price of investment, indicating that capital and skill are substitutes in aggregate production.
    Keywords: skill-biased technology, skill premium, VAR, long-run restrictions, capital-skill complementarity, business cycle
    JEL: E24 E32 J24 J31
    Date: 2009–06
  7. By: Nicolas Hérault (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Guyonne Kalb (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper focuses on the correlation of labour market outcomes of parents and children and investigates whether education is an important factor in this correlation, allowing for its potential endogeneity. Based on the Household, Income and Labour Dynamics in Australia (HILDA) data, the multivariate analyses show that men’s labour market outcomes are affected by their fathers’ labour market outcomes. The results show no significant intergenerational correlation of labour market outcomes for women when using the proportion of time in unemployment However, there is a significant relationship between the labour market outcomes of the mother and the proportion of time spent out of work by her daughter. Finally, the results show a significant relationship between parents’ and children’s education levels, indicating that there is an indirect effect of parental education on their children’s labour market outcomes through education. Indeed, it is shown that education significantly reduces the proportion of time in unemployment and not in work.
    Date: 2009–06
  8. By: Mussa, Richard
    Abstract: The paper examines the relationship between household income and schooling costs in the presence of ntrahousehold schooling bias against non-biological children. To this end, we construct a two-period model of intrahousehold schooling bias. The model predicts that there is an symmetry in the impact of changes in costs and income on schooling in the sense that the impact is larger for the non-biological child. It predicts that the asymmetry increases as the relationship distance between the non biological child and the parents gets wider. It also shows that an increase in cost of schooling leads to a bigger reduction in schooling for poor households, and that the di¤erence in the impact of cost changes between the biological and the non-biological child declines as household income increases i.e.there is convergence. And the convergence is faster the more distantly related to the parents the non-biological child is. An empirical nvestigation of these predictions using the Second Malawi Integrated Household Survey (IHS2) data, shows that when current enrolment and grade attainment are used to measure schooling, the price and income elasticities of schooling are larger for non-biological children. The results also indicate that households in the lowest income quintile (the poorest)have the largest price elasticities, and households in the highest income quintile (the wealthiest) have the smallest price elasticities. We also …nd that the price elasticities for biological and non-biological children converge as we move from the lowest income quintile to the highest income quintile, and that the convergence is faster for non-biological children who are non-relatives.
    Keywords: Human capital; schooling bias; household economic status; Malawi
    JEL: D13
    Date: 2009–01–27
  9. By: Nikiforow, Marina
    Abstract: This paper provides survey evidence on the influence of training on behavioral finance on professional fund managers' perception and investment behavior. In particular, it examines whether "trained" fund managers differ from the "untrained" ones in their perception of markets and themselves as well as in their choice of information sources and investment strategies. Additionally, the influence of integration of behavioral finance approaches into investment processes is also considered. The results reveal that training on behavioral finance basically intensifies the perception of biases in the behavior of others, i.e. the reflection effect and the home bias. Training also reduces the affinity to conformity, leading to less reliance on colleagues and other market participants as information sources. However, pure training is insufficient to significantly affect fund managers' investment behavior, but behavioral finance approaches need to be integrated into investment processes.
    Keywords: behavioral finance, fund managers, biases, training, integration
    JEL: G10 D83
    Date: 2009–06
  10. By: Lundborg, Petter (VU University Amsterdam); Nystedt, Paul (Linköping University); Rooth, Dan-Olof (Kalmar University)
    Abstract: The association between stature and favorable labor market outcomes has been extensively documented. Recent studies have attributed this height premium to cognitive and social skills. We offer an alternative explanation, where the premium mainly arises from the positive association between height and physical capacity. Accounting for the latter reduces the height premium by about 80 percent. By also accounting for cognitive and non-cognitive skills, we are able to explain the entire height premium. Our estimates are based on data from the military enlistment register that has been linked to earnings for the entire population of Swedish males aged 28-38 in 2003.
    Keywords: earnings, height premium, cognitive and non-cognitive skills, physical capacity
    JEL: J10 J70
    Date: 2009–06

This nep-hrm issue is ©2009 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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