nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒08‒16
eight papers chosen by
Fabio Sabatini
University of Siena

  1. The role of entrepreneurial culture and human capital in innovation By Isabel Pizarro; Juan C.Real; M.Dolores de la Rosa
  2. The Effects of Entrepreneurship Education By Weber, Richard; Graevenitz, Georg von; Harhoff, Dietmar
  3. Credit Constraints, Entrepreneurial Talent, and Economic Development By Bianchi, Milo
  4. Data in the Field of Adult Education and Lifelong Learning: Present Situation, Improvements and Challenges By Corinna Kleinert; Britta Matthes
  5. Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework By Robin Douhan; Mirjam van Praag
  6. Knowing More about Vocational Training. New Demands for Data and Research Infrastructure By Steffen Hillmert
  7. Overskilling Dynamics and Education Pathways By Mavromaras, Kostas; McGuinness, Seamus; Fok, Yin King
  8. Institutions and the Management of Human Resources: Incentive Pay Systems in France and Great Britain By Richard Belfield; David Marsden

  1. By: Isabel Pizarro (Department of Business Administration, Universidad Pablo de Olavide); Juan C.Real (Department of Business Administration, Universidad Pablo de Olavide); M.Dolores de la Rosa (Department of Business Administration, Universidad Pablo de Olavide)
    Abstract: The objective of the present study is to analyze the role played by the entrepreneurial culture of the organization and the value and uniqueness of employees’ knowledge (human capital) in generating innovation. This research has been conducted with a sample of companies in the most innovative sectors of Spanish industry, applying the Partial Least Squares (PLS) technique. The results demonstrate significant relationships between innovation and the two dimensions of the human capital .We have also found that entrepreneurial culture acts as a moderating variable between human capital and innovation, in the way that employees of high value generate more innovation in the presence of this type of culture.
    Keywords: Innovation; human capital; entrepreneurial culture
    Date: 2009–06
  2. By: Weber, Richard; Graevenitz, Georg von; Harhoff, Dietmar
    Abstract: Entrepreneurship education ranks highly on policy agendas in Europe and the US, but little research is available to assess its impacts. In this context it is of primary importance to understand whether entrepreneurship education raises intentions to be entrepreneurial generally or whether it helps students determine how well suited they are for entrepreneurship. We develop a theoretical model of Bayesian learning in which entrepreneurship education generates signals which help students to evaluate their own aptitude for entrepreneurial tasks. We derive predictions from the model and test them using data from a compulsory entrepreneurship course at a German university. Using survey responses from 189 students ex ante and ex post, we find that entrepreneurial propensity declined somewhat in spite of generally good evaluations of the class. Our tests of Bayesian updating provide support for the notion that students receive valuable signals and learn about their own type in the entrepreneurship course.
    Keywords: entrepreneurship; entrepreneurship education; Bayes’ Rule; learning; signals
    JEL: D83 J24 L26 M13
    Date: 2009–08–08
  3. By: Bianchi, Milo
    Abstract: In this paper, we formalize the view that economic development requires high rates of productive entrepreneurship, and this requires an efficient matching between entrepreneurial talent and production echnologies. We first explore the role of financial development in promoting such efficient allocation of talent, which results in higher production, job creation and social mobility. We then show how different levels of financial development may endogenously arise in a setting in which financial constraints depend on individual incentives to misbehave, these incentives depend on how many jobs are available, and this in turn depends on the level of financial development. Such complementarity between labour market and financial marketdevelopment may generate highly divergent development paths even for countries with very similar initial
    Keywords: credit constraints; allocation of entrepreneurial talent; productive and unproductive entrepreneurs; economic development
    Date: 2009
  4. By: Corinna Kleinert; Britta Matthes
    Abstract: Over the last years, political and scientific debates have stressed the growing importance of adult education. Currently important research questions call not only for data sources that collect detailed information on adult education with repeated measurements and in different cohorts, but they should also include data on other life spheres such as education and working histories, partnership and household information, as well as competence development. In Germany, there are several large-scale datasets containing information on adult education. While general panel studies do not provide a systematic overview of educational activities of adults, studies focusing on adult education are either small-scale or cross-sectional and contain little context information. A study that covers information on all educational activities in the life course as well as repeated competence assessment is still missing. In part, these deficits will be resolved by large-scale longitudinal studies focused on adults and education that were either recently conducted or are currently prepared. Thus, we do not call for new data sources on adult education. What is far more important in the next years is analyzing the data of the new large-scale data sources thoroughly, but also developing new theoretical approaches to adult education.
    Keywords: adult education, further education, lifelong learning, continuing training, life course, competencies, data access
    Date: 2009
  5. By: Robin Douhan (Research Institute of Industrial Economics (IFN) and Uppsala University); Mirjam van Praag (University of Amsterdam, Amsterdam Center for Entrepreneurship, Max Planck Institute of Economics, IZA)
    Abstract: We combine two empirical observations in a general equilibrium occupational choice model. The first is that entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second observation is that entrepreneurs enjoy higher returns to human capital than employees. We present an intuitive model showing that more control (observation 1) may be an explanation for higher returns (observation 2); its main outcome is that returns to ability are higher in higher control environments. This provides a theoretical underpinning for the control-based explanation for higher returns to human capital for entrepreneurs.
    Keywords: Entrepreneurship; Ability; Occupational Choice; Human Capital; Wage Structure
    JEL: L26 I20 J24 J31
    Date: 2009–06–29
  6. By: Steffen Hillmert
    Abstract: Modern societies depend on the successful and comprehensive provision of skills, and receiving vocational training in any form has been experienced by a majority of the population in younger cohorts. There has therefore been a constant demand for timely information about the various forms of training and their relations to a broader societal context. Over the recent decades, the patterns of participation in education and training have become more extended, more complex and more heterogeneous. Against this background, the paper discusses to what extent existing and projected data sources are suitable for investigating the relevant scientific and policy-related questions. Among these questions are: How does participation in training develop over the life course? What are the relative chances of receiving specific types of training; who, in particular, is likely to receive the most attractive types? Are training measures effective? When reviewing the current data situation, it becomes clear that progress has undoubtedly been made in the past few years. It is also obvious, however, that fundamental questions can presently not be answered on the basis of the available large-scale data on vocational education and training. Some key recommendations are presented.
    Keywords: Vocational training, data, research infrastructure, overview, Germany
    Date: 2009
  7. By: Mavromaras, Kostas (University of Melbourne); McGuinness, Seamus (ESRI); Fok, Yin King (University of Melbourne)
    Abstract: This paper uses panel data and econometric methods to estimate the incidence and the dynamic properties of overskilling among employed individuals. The paper begins by asking whether there is extensive overskilling in the labour market, and whether overskilling differs by education pathway. The answer to both questions is yes. The paper continues by asking whether overskilling is a self-perpetuating labour market state (state dependence), and whether state dependence differs by education pathway. The paper uses a dynamic random effects probit which includes Mundlak corrections and it models the initial conditions following Heckman?s method. It finds that there is extensive overskilling state dependence in the workplace, and to the degree that overskilling can be interpreted as skills underutilisation and worker-job mismatch, this is an important finding. Overskilled workers with a higher degree show the highest state dependence, while workers with vocational education show none. Workers with no post-school qualifications are somewhere between these two groups. The finding that higher degree graduates suffer the greatest overskilling state dependence, combined with the well-established finding that they also suffer the highest overskilling wage penalty, offers an additional useful perspective to compare the attributes of vocational and degree qualifications.
    Date: 2009–08
  8. By: Richard Belfield; David Marsden
    Abstract: Using data from large-scale establishment surveys in Britain and France, we show thatincentive pay for non-managers is more widespread in France than in Britain. We explain thisfinding in terms of the 'beneficial constraint' arising from stronger employment protection inFrance, which provides an impulse to develop incentive pay; employer networking activitiesin France, which facilitate joint learning about its development and operation; andgovernment fiscal incentives for profit-sharing, which reduces the cost of its operation.
    Keywords: incentive systems, merit pay, profit-sharing, employer networks
    JEL: J3 J5 M5 M52
    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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