nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒07‒17
fourteen papers chosen by
Fabio Sabatini
University of Siena

  1. Growth Accounting for the Chinese Provinces 1990-2000: Incorporating Human Capital Accumulation By Xiaolei Qian; Russell Smyth
  2. Religion, Human Capital Investments and the Family in the United States By Lehrer, Evelyn L.
  3. Bohemians, Human Capital, and Regional Economic Growth By Oliver Falck; Michael Fritsch; Stephan Heblich
  4. Immigrant wages in the Spanish labour market: does the origin of human capital matter? By Esteban Sanromà; Raúl Ramos; Hipólito Simón
  5. Education and Economic Growth: A Review of Literature By Akram, Naeem; Pada, Itsham ul Haq
  6. Educational Mismatch: Are High-Skilled Immigrants Really Working at High-Skilled Jobs and the Price They Pay If They Aren't? By Chiswick, Barry R.; Miller, Paul W.
  7. The effect of education on women's propensity to be childless in Spain: Does the field of education matter? By Teresa Martín-García
  8. Human Development Index for Andhra Pradesh By Jatinder S Bedi
  9. Time - Even More Costly Than Money: Training Costs of Workers and Firms By Simone Tuor; Uschi Backes-Gellner
  10. Brains, drains, and roads, growth hills: complementarity between public education and infrastructure in a half-century panel of states By stone, joe/a.; bania, neil
  11. Evaluating the effects of decentralization on educational outcomes in Spain? By Albert Solé-Ollé; Paula Salinas
  12. Inequality and Specialization: The Growth of Low-Skill Service Jobs in the United States By Autor, David; Dorn, David
  13. Entrepreneurial orientation, organizational learning capability and performance in the ceramic tiles industry By Joaquín Alegre; Ricardo Chiva
  14. Noncognitive Skills, Occupational Attainment, and Relative Wages By Cobb-Clark, Deborah A; Tan, Michelle

  1. By: Xiaolei Qian; Russell Smyth
    Abstract: This paper examines the linkage between aggregate real output, capital, labour, education, and productivity within a growth accounting framework for 27 Chinese provinces between 1990 and 2000. The results suggest that human capital has had a significant role in facilitating economic growth of all of the provinces throughout the 1990s. Regional disparities in factor accumulation are also considered. The results suggest that uneven distribution of resources between the coastal and inland provinces increased the regional gap in economic growth throughout the 1990s.
    Keywords: China, Economic growth, Human capital, Reform
    JEL: O40 O15 O53
    Date: 2009–05
  2. By: Lehrer, Evelyn L. (University of Illinois at Chicago)
    Abstract: This paper critically reviews what is known, based on analyses of micro-level U.S. data, about the role of religion in various interrelated decisions that people make over the life cycle, including investments in secular human capital, cohabitation, marriage, divorce, family size and employment. It also identifies gaps in our knowledge, and suggests agenda items for future research in the field. These include use of statistical models that allow for non-linearities in the effects associated with religious participation; consideration of contextual effects; and analyses that address anomalies found in earlier work regarding patterns of non-marital sex and divorce among conservative Protestants. Further work is also needed to increase our understanding of the role that religious factors are playing as various dimensions of the second demographic transition, along with elements of "American exceptionalism," continue to unfold in the U.S.
    Keywords: religiosity, religion
    JEL: J1 J2
    Date: 2009–07
  3. By: Oliver Falck (Ifo Institute for Economic Research, Munich.); Michael Fritsch (University of Jena, School of Economics and Business Administration, and Max Planck Institute of Economics, and German Institute for Economic Research (DIW)); Stephan Heblich (Max Planck Institute of Economics, Jena; Entrepreneurship, Growth, and Public Policy Group)
    Abstract: An emerging literature on the geography of bohemians argues that a region's lifestyle and cultural amenities explain, at least partly, the unequal distribution of highly qualified people across space, which in turn, explains geographic disparities in economic growth. However, to date, there has been little or no empirical attempt to identify a causal relation. To identify the causal impact of bohemians on economic growth, we apply an instrumental variable approach using as an exogenous instrument the geographic distribution of bohemians prior to the Industrial Revolution in Germany. This distribution was primary the result of competition for prestige between courts and not of economic prosperity. Accordingly, the instrument is independent of today's regional economic development. Focusing on the concentration of highly skilled people today that is explained by the proximity to exogenous concentrations of bohemians, the observed local average treatment effect supports the hypothesis of a positive impact of bohemians on regional economic development.
    Keywords: Regional Growth, Human Capital, Bohemians, Instrumental Variables
    JEL: R11 J24 C31
    Date: 2009–07–06
  4. By: Esteban Sanromà (Universitat de Barcelona); Raúl Ramos (Universitat de Barcelona); Hipólito Simón (Universitat de Alicante)
    Abstract: The aim of this paper is to analyse the role played by the different components of human capital in the wage determination of recent immigrants within the Spanish labour market. Using microdata from the Encuesta Nacional de Inmigrantes 2007, the paper examines returns to human capital of immigrants, distinguishing between human capital accumulated in their home countries and in Spain. It also examines the impact on wages of the legal status. The evidence shows that returns to host country sources of human capital are higher than returns to foreign human capital, reflecting the limited international transferability of the latter. The only exception occurs in the case of immigrants from developed countries and immigrants who have studied in Spain. Whatever their home country, they obtain relatively high wage returns to education, including the part not acquired in the host country. Having legal status in Spain is associated with a substantial wage premium of around 15%. Lastly, the overall evidence confirms the presence of a strong heterogeneity in wage returns to different kinds of human capital and in the wage premium associated to the legal status as a function of the immigrants’ area of origin.
    Keywords: Immigration, wages, human capital.
    JEL: J15 J24 J31 J61
    Date: 2009
  5. By: Akram, Naeem; Pada, Itsham ul Haq
    Abstract: Human Capital plays pivotal role for economic growth process. The aim of this paper is to present a brief overview of the studies conducted on the relationship between education and economic growth. Most of the studies are cross-sectional, including developing and developed countries and single country studies are very few in numbers. A general consensus emerges from the review of literature is that there exists a positive relationship between education and economic growth. However in cross section of countries it is assumed that data for each country is same but this assumption become void when studies uses data from opposing conditions of countries. So there is a need for a study on Pakistan that will account fall the impacts of traditional and nontraditional educational systems on economic growth.
    Keywords: Education; Growth; Human capital
    JEL: H5 J24 O4
    Date: 2009–07–12
  6. By: Chiswick, Barry R. (University of Illinois at Chicago); Miller, Paul W. (University of Western Australia)
    Abstract: This paper examines the incidence of the mismatch of the educational attainment and the occupation of employment, and the impact of this mismatch on the earnings, of high-skilled adult male immigrants in the US labor market. Analyses for high-skilled adult male native-born workers are also presented for comparison purposes. The results show that over-education is widespread in the high-skilled US labor market, both for immigrants and the native born. The extent of over-education declines with duration in the US as high-skilled immigrants obtain jobs commensurate with their educational level. Years of schooling that are above that which is usual for a worker's occupation are associated with very low increases in earnings. Indeed, in the first 10 to 20 years in the US years of over-education among high-skilled workers have a negative effect on earnings. This ineffective use of surplus education appears across all occupations and high-skilled education levels. Although schooling serves as a pathway to occupational attainment, earnings appear to be more closely linked to a worker's occupation than to the individual's level of schooling.
    Keywords: immigrants, skill, schooling, occupations, earnings, rates of return
    JEL: I21 J24 J31 J61 F22
    Date: 2009–07
  7. By: Teresa Martín-García
    Abstract: This article investigates the relationship between educational attainment, in terms of both level and field of education, and the probability of being childless in Spain. Findings demonstrate that there is a significant difference in childlessness by education level among women aged 34-50, while this significance disappears when the analysis is not confined to older women but includes all women (aged 18-50) and is controlled for heterogeneity. In this latter case, childlessness has more to do with later childbearing among young women than with the accumulation of human capital. However, women educated in those studies concerned with the care of individuals and/or emphasizing interpersonal skills have a lower probability of being childless than women in other fields of study, irrespective of their education level, in both samples. In addition, the results show that childlessness, departure from education and union formation are jointly determined. Young women who want to be childfree or end up being childless stay in school for a longer period of time and postpone their union formation, whilst those with strong family/fertility intentions accelerate the three processes. I use data from the Spanish Family and Fertility Survey (1995) and apply event history models that take into account unobserved heterogeneity.
    Keywords: childlessness, education, field of study, Spain
    JEL: J12 J13
    Date: 2009
  8. By: Jatinder S Bedi
    Abstract: The method used to measure Human Development are reviewed in order to measure Human Development Index for rural AP by considering indicators such as economic attainment, longevity and education. The estimates are worked out with and without considering inequalities in economic attainment indicator. IAMR survey data for year 2001 is used for this study. However, for making comparison over time, data and analysis of data undertaken in other study is also used. In other words, primarily for the analysis of data for year 2001, inequalities in all indicators were taken into consideration to measure Human Development using both UNDP and Principal Component Analysis. The comparison of results shows that there has been only marginal improvement in Human development during the 1990s in rural AP considering only inequality in economic indicator using UNDP method. However, the results may differ significantly in case inequalities in all the variables are taken into account and depending upon the methodology used as is demonstrated by analysis of data for year 2001.
    Keywords: Human Development; Andhra Pradesh; Rural; Human Development Index; UNDP; education; economic attainment; longevity; indicators; Inequalities Adjusted Indicators; Inequality Adjusted Education Indicator; Inequality Adjusted Health Indicator; inflation
    Date: 2009
  9. By: Simone Tuor (Institute for Strategy and Business Economics, University of Zurich); Uschi Backes-Gellner (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: We empirically investigate the joint training decisions of workers and firms. The aim of our study is to learn how various cost components affect workers’ (non-)participation in training. In particular, we separately consider monetary and non-monetary training costs, which is possible thanks to an especially rich dataset that includes both participants and non-participants. Our estimation results show that workers whose firms cover some of their training costs would generally be more likely to have assumed the full training costs themselves had they not received employer support. Moreover, the share of self-financed training, as compared to employer-supported training, is generally low. Thus, firms moderate virtually all training decisions and, as a result, considerably influence (non-)participation patterns. Interestingly, although training non-participation can be attributed to both monetary and non-monetary costs, the latter seem to comprise the more binding restriction. That is, time is more costly than money.
    Keywords: Training costs, employer-supported training, time vs. money
    JEL: J24 M53
    Date: 2009–03
  10. By: stone, joe/a.; bania, neil
    Abstract: Applying a Barro-style model of endogenous growth to a fifty-year panel of states from 1957 to 2007, We examine the extent to which expenditures on public education and infrastructure— together with the taxes necessary to support them— enhance or impede the steady-state growth of state and local economies, as measured by per capita personal income. Our findings suggest that the independent effect of tax expenditures on either public infrastructure or education alone is significantly negative, but the complementary effect of each on the other is positive enough to make their combined effect significantly positive— except at large scales, where we find diseconomies, consistent with the ‘growth hill’ predicted by theory. Policy effects are identified empirically using a recursive structure with very long lags, GMM/instrumental variables, and controls for both fixed and time-varying heterogeneity. Results are robust to a variety of alternative specifications.
    Keywords: growth human capital public infrastructure
    JEL: H4 H72 H00
    Date: 2009
  11. By: Albert Solé-Ollé (Universitat de Barcelona); Paula Salinas (Universitat de Barcelona)
    Abstract: Several arguments derived from fiscal federalism theory suggest that decentralization may lead to improved levels of efficiency in the provision of public goods and services. The aim of this study is to examine this hypothesis by evaluating the effects of decentralization on educational outcomes in Spain. These are measured using a survival rate, defined as the ratio between the number of students who enrolled in upper-secondary (non-compulsory) education and the number of students enrolled in the final year of lower-secondary (compulsory) education during the previous academic year. We use a panel data set comprising the 50 provinces of Spain for the years 1978 to 2005, a period that covers the entire process of decentralization. Since education competences were devolved to the regions at different points in time, we can estimate the effects of these reforms by applying the differences-in-differences method and by using the non-decentralized autonomous regions as the comparison group. We find that decentralization in Spain had a positive impact on educational outcomes when pupils on vocational training programmes are not taken into account, and that the richer the region is the more marked the effect becomes. However, this improvement in educational outcomes is achieved at the expense of enrolment in vocational training programmes. These effects might reflect a better match between population preferences and educational policies consequent upon decentralization.
    Keywords: Decentralization, Policy Evaluation, Education
    JEL: H11 H43 H52 I28
    Date: 2009
  12. By: Autor, David (MIT); Dorn, David (CEMFI, Madrid)
    Abstract: After a decade in which wages and employment fell precipitously in low-skill occupations and expanded in high-skill occupations, the shape of U.S. earnings and job growth sharply polarized in the 1990s. Employment shares and relative earnings rose in both low and high-skill jobs, leading to a distinct U-shaped relationship between skill levels and employment and wage growth. This paper analyzes the sources of the changing shape of the lower-tail of the U.S. wage and employment distributions. A first contribution is to document a hitherto unknown fact: the twisting of the lower tail is substantially accounted for by a single proximate cause − rising employment and wages in low-education, in-person service occupations. We study the determinants of this rise at the level of local labor markets over the period of 1950 through 2005. Our approach is rooted in a model of changing task specialization in which "routine" clerical and production tasks are displaced by automation. We find that in labor markets that were initially specialized in routine-intensive occupations, employment and wages polarized after 1980, with growing employment and earnings in both high-skill occupations and low-skill service jobs.
    Keywords: skill demand, job tasks, inequality, polarization, technological change, occupational choice
    JEL: E24 J24 J31 J62 O33
    Date: 2009–07
  13. By: Joaquín Alegre (Universitat de València); Ricardo Chiva (Universitat Jaume I)
    Abstract: La orientación emprendedora es susceptible de tener un impacto positivo sobre el desempeño de la empresa. Sin embargo, empíricamente esta relación directa no es completamente consistente. Proponemos el desempeño innovador como una variable intermedia y, además, argumentamos que la relación entre orientación emprendedora y desempeño innovador no es incondicional, sino dependiente de la capacidad de aprendizaje organizativo. Utilizamos modelos de ecuaciones estructurales para contrastar nuestras hipótesis sobre la industria cerámica italiana y española. Los resultados sugieren que (1) el desempeño innovador actúa como una variable mediadora entre la orientación emprendedora y el desempeño de la empresa; (2) la orientación emprendedora puede ser considerada como un antecedente de la capacidad de aprendizaje organizativo; y (3) la capacidad de aprendizaje organizativo juega un papel importante en la determinación de los efectos de la orientación emprendedora sobre el desempeño. Finalmente, señalamos las limitaciones del estudio y proponemos futuras líneas de investigación. Entrepreneurial orientation is considered to have a positive impact on firm performance. However, this direct relationship does not seem to be empirically conclusive. In our research we consider innovation performance as an intermediate variable, and explain that the relationship between entrepreneurial orientation and innovation performance is not unconditional, but subject to organizational learning capability. Structural equation modeling has been used to test our research hypotheses on a data set from the Italian and Spanish ceramic tile industry. Results suggest that (1) innovation performance acts as a mediating variable between entrepreneurial orientation and firm performance; (2) entrepreneurial orientation can be considered as an antecedent of organizational learning capability; and (3) organizational learning capability plays a significant role in determining the effects of entrepreneurial orientation on innovation performance. Finally, we highlight our study¿s limitations and we posit avenues for future research.
    Keywords: Entrepreneurial orientation, organizational learning capability, performance. Orientación emprendedora, capacidad de aprendizaje organizativo, desempeño.
    JEL: L26 L61
    Date: 2009–07
  14. By: Cobb-Clark, Deborah A (Australian National University); Tan, Michelle (Australian National University)
    Abstract: This paper examines whether men's and women's noncognitive skills influence their occupational attainment and, if so, whether this contributes to the disparity in their relative wages. We find that noncognitive skills have a substantial effect on the probability of employment in many, though not all, occupations in ways that differ by gender. Consequently, men and women with similar noncognitive skills enter occupations at very different rates. Women, however, have lower wages on average not because they work in different occupations than men do, but rather because they earn less than their male colleagues employed in the same occupation. On balance, women's noncognitive skills give them a slight wage advantage. Finally, we find that accounting for the endogeneity of occupational attainment more than halves the proportion of the overall gender wage gap that is unexplained.
    Keywords: noncognitve skills, personality, occupation, gender wage gap, decomposition
    JEL: J16 J24 J31
    Date: 2009–07

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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