nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒09‒05
seven papers chosen by
Fabio Sabatini
University of Siena

  1. Intergenerational transmission of human capital in early childhood By Coneus, Katja; Sprietsma, Maresa
  2. The causal effect of education on aggregate income By Marcelo Soto
  3. Noncognitive skills, school achievements and educational dropout By Coneus, Katja; Gernandt, Johannes; Saam, Marianne
  4. Education, Signaling, and Wage Inequality in a Dynamic Economy By Yuki, Kazuhiro
  5. Good occupation - bad occupation?: the quality of apprenticeship training By Goeggel, Kathrin; Zwick, Thomas
  6. Founder's human capital, entry strategies and start-up size By Gottschalk, Sandra; Müller, Kathrin; Niefert, Michaela
  7. Human Development Reports on North-East India: A Bird’s Eye View By Nayak, Purusottam

  1. By: Coneus, Katja; Sprietsma, Maresa
    Abstract: It is a well-known fact that the level of parents' education is strongly correlated with the educational achievement of their children. In this paper,we shed light on the potential channels through which human capital is transmitted from mothers to their children in early childhood. The main channels through which maternal human capital benefits the child's verbal and social skills are birth weight and father's support. Moreover,reading stories to the child is most relevant for the transmision of verbal skills whereas for social skills, a crucial channel for maternal human capital is the attendance of institutional childcare.
    Keywords: early childhood,skills,intergenerational transmission
    JEL: I20
    Date: 2009
  2. By: Marcelo Soto
    Abstract: Empirical studies assume that the macro Mincer return on schooling is con- stant across countries. Using a large sample of countries this paper shows that countries with a better quality of education have on average relatively higher macro Mincer coeficients. As rich countries have on average better educational quality, differences in human capital between countries are larger than has been typically assumed in the development accounting literature. Consequently, factor accumulation explains a considerably larger share of income differences across countries than what is usually found.
    Keywords: Human capital; income growth; GMM estimation; development accounting.
    JEL: O11 O47 C33
    Date: 2009–09–01
  3. By: Coneus, Katja; Gernandt, Johannes; Saam, Marianne
    Abstract: We analyse the determinants of dropout from secondary and vocational education in Germany using data from the Socio-Economic Panel from 2000 to 2007. In addition to the role of classical variables like family background and school achievements, we examine the effect of noncognitive skills. Both, better school grades and higher noncognitive skills reduce the risk to become an educational dropout. The influence of school achievements on the dropout probability tends to decrease and the influence of noncognitive skills tends to increase with age.
    Keywords: Noncognitive skills,school grades,secondary education,vocational training
    JEL: I21 J13 J24
    Date: 2009
  4. By: Yuki, Kazuhiro
    Abstract: Many empirical works suggest that education has a positive effect on earnings not only because it raises human capital but also because it functions as a signal when employers have incomplete information on employees' skills. The signaling role could have important consequences on the dynamics of education, wages, and wage distribution when there exist intergenerational linkages in educational decisions. This paper examines the dynamic effects in an economy where education has the dual roles and some fraction of individuals is credit constrained from taking education. In particular, it investigates how the number of educated individuals, the importance of the signaling value of education, and the wage inequality between educated and uneducated workers change over time in such economy, and compares the dynamics with those when education does not function as a signal. It also examines whether the signaling role leads to higher aggregate consumption or not in the long run.
    Keywords: Human capital; Education; Signaling; Statistical discrimination; Credit constraint
    JEL: O11 I20 O15 J24
    Date: 2009–07
  5. By: Goeggel, Kathrin; Zwick, Thomas
    Abstract: Small average wage effects of employer and/or occupation changes 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. Quality differences of apprenticeship quality between training firms that have been mainly discussed so far are small, however. This paper also explains differences between previous findings by comparing their estimation strategies. It demonstrates that selectivity into occupations and changers, unobserved heterogeneity between occupations, and the sample selection matter and proposes several improvements in the estimation technique to measure apprenticeship quality.
    Keywords: Wage mark-up,apprenticeship training,occupations
    JEL: J24 J31 M53
    Date: 2009
  6. By: Gottschalk, Sandra; Müller, Kathrin; Niefert, Michaela
    Abstract: This paper analyzes empirically the determinants of new born firms' initial size. As survival prospects of young firms tend to be linked to a firm's start-up size, a better understanding of the factors influencing start-up size is crucial. Most of the rare literature on initial firm size focuses on industry characteristics. We contribute to the understanding of the determinants of initial firm size by analyzing firm specific factors such as founders' human capital composition and entry strategies. We find that in addition to industry effects start-up size is considerably influenced by the human capital of firm founders. We distinguish between generic and specific human capital. Generic human capital refers to the general knowledge acquired through formal education and professional experience and usually coincides with a higher personal wealth. Specific human capital comprises competences that can be directly applied to the entrepreneurial job. For generic human capital we find that having a university degree has a positive influence on start-up size. The same applies for general working experience proxied by the founder's age. For the specific human capital components we find that successful entrepreneurial experience and managerial experience gained in dependent employment support a higher start-up size. Altogether, specific human capital tends to have a larger impact on initial size than generic human capital. Entry strategies are expected to have a crucial influence on start-up size, because objectives of market entry largely determine the resources a firm requires. We distinguish between different types of entry strategies. On the one hand, we look at entry strategies based on innovation. We measure innovation by a variable which indicates if a firm carries out continuous R&D. On the other hand, entry is classified according to the main motive of the founders for firm formation. We conclude that different motives are accompanied by diverse entry strategies. The four main groups of entry strategies are independency entrepreneurship, opportunity entrepreneurship, spin-out entrepreneurship and necessity entrepreneurship. The results indicate that firms conducting R&D continuously start larger than others when measuring initial employment in full-time equivalents. We do not observe a significant effect on start-up size measured in head counts. This suggests that R&D tasks are mostly carried out by fulltime employees and to a lesser extent by persons working part-time for the firm. Further, firms with entry strategies based on the exploitation of new market opportunities as well as spin-out entrepreneurship exhibit a higher initial size while start-ups established from necessity appear to start at a smaller scale.
    Keywords: firm start-up size,human capital,firm foundation
    JEL: L11 L26 J24
    Date: 2009
  7. By: Nayak, Purusottam
    Abstract: The paper is a brief account of findings of various human development reports published either by UNDP or Govt. of India or by individual state governments on the states of northeast India. The findings reveal that achievement of northeastern region is quite reasonable in comparison to all India average situations in respect of human development indicators for both the sexes but it has miserably failed in bringing commensurate economic growth. There exits wide spread disparity of socioeconomic achievements across different states and from urban to rural areas. In spite of being a tribal belt and in some cases having matrilineal society women are to be at par with that of men. If the problems of poor economic growth, overall development and gender disparities are not properly addressed the region may fall into the trap of vicious quadrant instead of moving to a virtuous one.
    Keywords: Human Development; Northeast India
    JEL: O2 O4
    Date: 2009–08–30

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