nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒07‒28
twelve papers chosen by
Fabio Sabatini
University of Siena

  1. Postsecondary Education Structure and Human Capital Production By Cory Koedel
  2. Brain drain in globalization A general equilibrium analysis from the sending countriesÕ perspective By Luca, MARCHIORI; I-Ling SHEN; FrŽdŽric, DOCQUIER
  3. Past and Future of Human Capital in Southeast Asia: From 1970 to 2030 By Anne Goujon; Samir K.C.
  4. On the robustness of brain gain estimates By Michel, BEINE; FrŽdŽric, DOCQUIER; Hillel, RAPOPORT
  5. The influence of international human capital and international network relationships on the cross-border investment behaviour of private equity firms By S. DE PRIJCKER; S. MANIGART; M. WRIGHT; W. DE MAESENEIRE
  6. The Cultural Dimensions of the Vietnamese Private Entrepreneurship By Quan-Hoang Vuong; Tran Tri Dung
  7. Pro-Poor Progress in Education in Developing Countries? By Kenneth Hartgen; Stephan Klasen; Mark Misselhorn
  8. Skill Dispersion and Trade Flows By Matilde Bombardini; Giovanni Gallipoli; Germán Pupato
  9. Does Perceived Support in Employee Development Affect Personnel Turnover? By Koster Fleur; Grip Andries de; Fouarge Didier
  10. Inequality in Human Development: An empirical assessment of thirty-two countries By Michael Grimm; Kenneth Harttgen; Stephan Klasen; Mark Misselhorn; Teresa Munzi; Timothy Smeeding
  11. Education Across the Life Course By Hans-Peter Blossfeld
  12. A Human Development Index by Internal Migrational Status By Kenneth Harttgen; Stephan Klasen

  1. By: Cory Koedel (Department of Economics, University of Missouri-Columbia)
    Abstract: States differ substantially in the structures of their public four-year university systems. This paper uses micro-level data to evaluate the effects of postsecondary education structure on individuals’ educational and labor-market outcomes. Postsecondary education structure affects whether individuals attend universities at all, whether they attend public or private universities, and whether they attend large or small universities. Individuals who are exposed to more-fractionalized structures are adversely affected in the labor market. In conjunction with evidence that it is more expensive to educate students at smaller universities, this latter result suggests that states with more-fractionalized postsecondary education structures should look to consolidate their resources into fewer, larger universities.
    Keywords: postsecondary education structure, higher education structure, small university, large university, postsecondary education costs
    JEL: I20 I23 J24
    Date: 2009–07–03
  2. By: Luca, MARCHIORI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and UNIVERSITY OF LUXEMBOURG, Faculty of Law, Economics and Finance); I-Ling SHEN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES), UNIVERSITY OF GENEVA, Department of Econometrics and Institute for the Study of Labor (IZA)); FrŽdŽric, DOCQUIER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES), Belgian National Fund of Scientific Research and Institute for the Study of Labor (IZA))
    Abstract: The paper assesses the global effects of brain drain on developing economies and quantifies the relative sizes of various static and dynamic impacts. By constructing a unified generic framework characterized by overlappinggenerations dynamics and calibrated to real data, this study incorporates many direct impacts of brain drain whose interactions, along with other indirect effects, are endogenously and dynamically generated. Our findings suggest that the short-run impact of brain drain on resident human capital is extremely crucial, as it does not only determine the number of skilled workers available to domestic production, but it also affects the sending economyÕs capacity to innovate or to adopt modern technologies. The latter impact plays an important role particularly in a globalized economy where capital investments are made in places with higher production efficiencies ceteris paribus. Hence, in spite of several empirically documented positive feedback effects, those countries with high skilled emigration rates are the most candid victims to brain drain since they are least likely to benefit from the Òbrain gainÓ effect, and thus suffering from declines of their resident human capital.
    Keywords: Brain Drain, Capital Flow, Development, Human Capital, Remittances
    JEL: F22 J24 O15
    Date: 2009–06
  3. By: Anne Goujon; Samir K.C.
    Abstract: This paper examines levels of educational attainment in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam for the period 1970-2030 through the reconstruction and projection of levels of educational attainment. While the study of the past shows that the determination to invest in education has been strong in the six countries, the investments were implemented at different pace and intensity, the projections show the legacy of past investments. In Singapore, Malaysia, and Thailand, there will be tangible increases in the proportion of the working age population with a tertiary education. The Philippines will have a dichotomous society where large proportions will either have a tertiary education or only a primary education. In Indonesia, the bulk of the working age population will shift from primary in 2000 to secondary by 2030. The projection horizon and the trend type of scenario do not allow Vietnam to catch up with the other countries.
    Keywords: Southeast Asia, education, human capital
    Date: 2009–05
  4. By: Michel, BEINE (UNIVERSITY OF LUXEMBURG and CES-Ifo); FrŽdŽric, DOCQUIER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and FNRS); Hillel, RAPOPORT (Department of Economics, BAR-ILAN UNIVERSITY, EQUIPPE (UniversitŽs de Lille))
    Abstract: Recent theoretical studies suggest that migration prospects can raise the expected return to human capital and thus foster education investment at home or, in other words, induce a brain gain. In a recent paper (Beine, Docquier and Rapoport, Economic Journal, 2008) we used the Docquier and Marfouk (2006) data set on emigration rates by education level to examine the impact of brain drain migration on gross (pre-migration) human capital formation in developing countries. We found a positive effect of skilled migration prospects on human capital growth in a cross-section of 127 developing countries, with an elasticity of about 5 percent. In this paper we assess the robustness of our results to the use of alternative brain drain measures, definitions of human capital, and functional forms. We find that the results hold using the Beine et al. (2007) alternative brain drain measures controlling for whether migrants acquired their skills in the home or in the host country. We also regress other indicators of human capital investment on skilled migration rates and find a positive effect on youth literacy while the effect on school enrolment depends on the exact specification chosen.
    Date: 2009–06
    Abstract: This paper studies the international investment behavior of private equity (PE) firms. Perspectives from international service management are integrated with human capital and network theory to test the value of international human capital and international network relationships. Using a sample of 110 private equity firms from five European countries, we demonstrate the positive influence of international human capital and show that the intensity of the foreign network decreases the likelihood to be international. Our results also stress the larger influence of international human capital and network relationships on the likelihood of cross-border investing than on the number of international investments.
    Date: 2009–06
  6. By: Quan-Hoang Vuong (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussels.); Tran Tri Dung (Dan Houtte, Vuong & Partners, Hanoi, Vietnam.)
    Abstract: In this essay, we explore cultural impacts on the private entrepreneurship in the post-Doi Moi Vietnam. Some important aspects of the traditional cultural values of the Vietnamese society are explored in conjunction with the socio-economic changes over the past two decades. Traditional cultural values continue to have strong impacts on the Vietnamese society, and to a large extent to adversely affect the entrepreneurial spirit of the community. Typical constraints private entrepreneurs face may have roots in the cultural facet as legacy of the Confucian society, such as relationship-based bank credit. Low quality business education is both victim and culprit of the long-standing tradition that looks down on the role of private entrepreneurship in the country.
    Keywords: Culture; Confucian values; Confucianism; Entrepreneurship; Market economy; Rent seeking; Vietnam
    JEL: A14 E00 L14 L26 M21 P20 P31 Z10 Z13
    Date: 2009–07
  7. By: Kenneth Hartgen (University of Göttingen); Stephan Klasen (University of Göttingen); Mark Misselhorn (University of Göttingen)
    Abstract: Spurred by international commitments and expanded funding at the national and international level, attendance in education and associated years of schooling have expanded substantially in developing countries in recent years. But has this expansion in enrolments reduced existing inequalities in educational access and achievements? This paper analyzes differences in improvements in the access to the education system and in educational outcomes across the welfare distribution between and within countries, and also by gender and regions for a sample of 37 developing countries using Demographic and Health Surveys (DHS). For the analysis, the toolbox of pro-poor growth analysis is applied to several educational indicators. We find drastic inequalities in educational attendance across the income distribution. Interestingly, inequalities in attendance declines with rising average attendance, while inequality in completion rates or schooling years increases with rising completion rates or schooling years. We find great heterogeneity in the distribution of progress of education, with very little pro-poor progress in educational achievement indicators. Also, progress appears to be less pro-poor in countries with low initial educational achievement and high overall educational progress. We find no correlation between pro-poor progress and free education policies or initial inequality in education. At the regional level, educational progress was generally more pro-poor in Asia and Latin America, while in Africa the experience is very heterogeneous. While gender inequality has decreased slightly, large differences by region tend to persist over time.
    Keywords: education; human capital; inequality; pro-poor growth
    JEL: I20 I29 I31 I32
    Date: 2009–07–15
  8. By: Matilde Bombardini (University of British Columbia, CIFAR, NBER and RCEA); Giovanni Gallipoli (University of British Columbia and RCEA); Germán Pupato (University of British Columbia)
    Abstract: Is skill dispersion a source of comparative advantage? While it is established that a country's aggregate endowment of human capital is an important determinant of comparative advantage, this paper investigates whether the distribution of skills in the labor force can play a role in the determination of trade flows. We develop a multi-country, multi-sector model of trade in which comparative advantage derives from (i) differences across sectors in the complementarity of workers' skills, (ii) the dispersion of skills in the working population. First, we show how higher dispersion in human capital can trigger specialization in sectors characterized by higher substitutability among workers' skills. We then use industry-level bilateral trade data to show that human capital dispersion, as measured by a standard international metric, has a signi…cant effect on trade flows. We …nd that the effect is of a magnitude comparable to that of aggregate endowments. The result is robust to the introduction of several controls for other proximate causes of comparative advantage
    JEL: F12 F16 J82
    Date: 2009–01
  9. By: Koster Fleur; Grip Andries de; Fouarge Didier (ROA rm)
    Abstract: Th is paper focuses on the question whether it is benefi cial for fi rms to invest inthe general skills of their workforce or that these training investments merelyencourage personnel turnover. We examine two contrary theoretical perspectives onhow investments in employee development are related to their turnover behaviour.Estimation results derived from a sample of 2,833 Dutch pharmacy assistants showthat participation in general training does not induce the intention of assistantsto quit, as predicted by human capital theory. We fi nd that a fi rm’s investmentsin general training, signifi cantly contribute to the perceived support in employeedevelopment (PSED) among their workforce. Our results also show that PSED isnegatively related to the intention of employees to quit the fi rm. Th is eff ect is to alarge extent mediated by the job satisfaction of pharmacy assistants. Our fi ndingssupport the importance of social exchange theory in explaining turnover behaviour asa consequence of personnel development practices. It should be noted, however, thatPSED only diminishes the intention to quit for other occupations.
    Keywords: education, training and the labour market;
    Date: 2009
  10. By: Michael Grimm (Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands); Kenneth Harttgen (Göttingen University, Germany); Stephan Klasen (Göttingen University, Germany); Mark Misselhorn (Göttingen University, Germany); Teresa Munzi (Luxembourg Income Study, Luxembourg); Timothy Smeeding (Luxembourg Income Study, Luxembourg)
    Abstract: One of the most frequent critiques of the HDI is that it does not take into account inequality within countries in its three dimensions. In this paper, we apply a simple approach to compute the three components and the overall HDI for quintiles of the income distribution. This allows comparison of the level in human development of the poor with the level of the non-poor within countries, but also across countries. This is an application of the method presented in Grimm et al. (2008) to a sample of 21 low and middle income countries and 11 industrialized countries. In particular the inclusion of the industrialized countries, which were not included in the previous work, implies to deal with a number of additional challenges, which we outline in this paper. Our results show that inequality in human development within countries is high, both in developed and industrialized countries. In fact, the HDI of the lowest quintiles in industrialized countries is often below the HDI of the richest quintile in many middle income countries. We also find, however, a strong overall negative correlation between the level of human development and inequality in human development.
    Keywords: Human Development; Income Inequality; Differential Mortality; Inequality in Education
    Date: 2009–07–15
  11. By: Hans-Peter Blossfeld
    Abstract: There is a huge demand for high-quality longitudinal educational research in Germany. In particular, there is a clear need for both analytical and methodological progress in order to understand educational pathways through the life course and how they lead to different outcomes. This paper identifies the theoretical and methodological challenges of studying education across the life course and describes the structure of the National Educational Panel Study (NEPS) in Germany.
    Keywords: competence development, educational decisions, formal, informal and non-formal educational environments, returns to education, educational trajectories, life course research, longitudinal analysis, panel data
    Date: 2009
  12. By: Kenneth Harttgen; Stephan Klasen
    Abstract: Migration continues to be a very important income diversi¯cation strategy, es- pecially for poor populations in developing countries. However, while there has been much analysis on the economic consequences of migration for migrants and the receiving regions, whether internal migration improves or deteriorates human development is not easy to determine. This papers applies a recently de- velopment analytical framework that allows to calculate the HDI for subgroups of a population. We use this approach to calculate the HDI by internal migra- tional status to assess the di®erences between the levels of human development of internal migrants compared to non-migrants, and also across countries as well as by urban and rural areas. An empirical illustration for a sample of 16 low and middle income countries shows that, overall, internal migrants slightly achieve a higher level of human development than non-migrants. The results further show that di®erences in income between migrants and non-migrants are generally higher than di®erences in education and life-expectancy. Disag- gregating the analysis by urban and rural areas reveals that urban internal migrants are better o® than urban non-migrants and rural migrants are better o® than rural non-migrants.
    Keywords: Human Development; Migration Income Inequality; Differential Mortality; Inequality in Education
    Date: 2009–07–15

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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