nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2009‒10‒03
eight papers chosen by
Fabio Sabatini
University of Siena

  1. Human Capital Convergence in Greece: A Panel Data Analysis By George Liaskos; Christos Papadas
  2. Immigrants and Employer-provided Training By Barrett, Alan; McGuinness, Seamus; O'Brien, Martin; O'Connell, Philip J.
  3. The private and social return to schooling in Italy By Federico Cingano; Piero Cipollone
  4. Inflation, Human Capital and Tobin's <i>q</i> By Basu, Parantap; Gillman, Max; Pearlman, Joseph
  5. Skill Flow: A Fundamental Reconsideration of Skilled-Worker Mobility and Development By Michael Clemens
  6. Does Democracy Explain Gender Differentials in Education? By Arusha Cooray;
  7. Are Gender Differentials in Educational Capabilities Mediated through Institutions of Caste and Religion in India? By Jeemol Unni
  8. Natural disasters, self-Insurance, and human capital investment: Evidence from Bangladesh, Ethiopia, and Malawi By Yamauchi, Futoshi; Yohannes, Yisehac; Quisumbing, Agnes R.

  1. By: George Liaskos (Department of Agricultural Economics and Rural Development, Agricultural University of Athens); Christos Papadas (Department of Agricultural Economics and Rural Development, Agricultural University of Athens)
    Abstract: The neoclassical growth model has been supported by a large amount of regional and cross-country studies providing evidence of â-convergence. Nevertheless, it faces theoretical and empirical challenges which are still the subject of research on the dynamics of growth. Consideration of human capital accumulation has strengthened the theoretical foundations of the model, especially its open economy version. It has also improved the explanatory power of the model and its usefulness in quantitative analysis. Human capital accumulation accounts for that part of observed per capita income and output disparities, not explained adequately by the initial approach. Newer versions of neoclassical growth modeling imply clearly that the process of growth and convergence depends heavily on human capital accumulation and convergence. This study investigates regional human capital convergence in Greece during the period 1971-2001, for the census years of which necessary data are available. Following the usual practice in the literature, human capital quality is expressed in terms of educational achievement. Panel data econometric analysis is conducted using census year data for the Greek prefectures (NUTS III areas). The existence of human capital â-convergence is examined. Changes in the distributions of educational achievement, using different criteria, are also examined in order to see if actual convergence occurs. Results show that both space and time effects are significant and so is the established conditional â-convergence. Nevertheless, actual convergence is not achieved over the examined period and the dispersion of the observed human capital distributions has been increasing.
    Date: 2009
  2. By: Barrett, Alan (ESRI); McGuinness, Seamus (ESRI); O'Brien, Martin (Central Bank & Financial Services Authority of Ireland); O'Connell, Philip J. (ESRI)
    Abstract: Much has been written about the labour market outcomes for immigrants in their host countries, particularly with regard to earnings, employment and occupational attainment. However, much less attention has been paid to the question of whether immigrants are as likely to receive employer-provided training relative to comparable natives. As such training should be crucial in determining the labour market success of immigrants in the long run it is a critically important question. Using data from a large scale survey of employees in Ireland, we find that immigrants are less likely to receive training from employers, with immigrants from the New Member States of the EU experiencing a particular disadvantage. The immigrant training disadvantage arises in part from a failure on the part of immigrants to get employed by training-oriented firms. However, they also experience a training disadvantage relative to natives within firms where less training is provided.
    Date: 2009–09
  3. By: Federico Cingano (Banca d'Italia); Piero Cipollone (Banca d'Italia)
    Abstract: We estimate the private (individual) and social return to schooling in Italy and its macro regions. Our estimates take into account the effects of schooling on employment and wages, as well as the key features of the Italian tax and social security system. We find that the individual return to schooling compares favourably with the return to financial assets (especially in the South). At the social level, the available infrastructure-capital data indicates that the return to schooling exceeds that to infrastructures in the South. Recent evidence on peer effects and the consequences of increased education for health and crime suggest the overall social effects of schooling could be even greater
    Keywords: schooling, wages, employment probability
    JEL: I2 J31 O18 R11
    Date: 2009–09
  4. By: Basu, Parantap; Gillman, Max (Cardiff Business School); Pearlman, Joseph
    Abstract: A pervasive empirical finding for the US economy is that inflation is negatively correlated with the normalized market price of capital (Tobin's q) and growth. A dynamic stochastic general equilibrium model of endogenous growth is developed to explain these stylized facts. In this model, human capital is the principal driver of self-sustained growth. Long run comparative statics analysis suggests that inflation diverts scarce time resource to leisure which lowers human capital utilization. This impacts growth adversely and modulates capital adjustment cost downward resulting in a decline in Tobin's q. For the short run, a Tobin effect of inflation on growth weakens the negative association between inflation and q.
    Date: 2009–09
  5. By: Michael Clemens
    Abstract: Large numbers of doctors, engineers, and other skilled workers from developing countries choose to move to other countries. Do their choices threaten development? The answer appears so obvious that their movement is most commonly known by the pejorative term “brain drain.” This paper reconsiders the question, starting from the most mainstream, explicit definitions of “development.” Under these definitions, it is only possible to advance development by regulating skilled workers’ choices if that regulation greatly expands the substantive freedoms of others to meet their basic needs and live the lives they wish. Much existing evidence and some new evidence suggests that regulating skilled-worker mobility itself does little to address the underlying causes of skilled migrants’ choices, generally brings few benefits to others, and often brings diverse unintended harm. The paper concludes with examples of effective ways that developing countries can build a skill base for development without regulating human movement. The mental shift required to take these policies seriously would be aided by dropping the sententious term “brain drain” in favor of the neutral, accurate, and concise term “skill flow.”
    Keywords: brain drain; migration; development; labor; education; developing; labor mobility; circular migration; higher education; university; training; skilled; high skill; talent; globalization; health workers; high tech; technology transfer
    JEL: F22 J24 O15
    Date: 2009–08
  6. By: Arusha Cooray;
    Abstract: This study shows that despite a strong empirical association between gender differentials in enrolment ratios and democracy, that democracy alone does not explain gender differentials in education in Africa and Asia. The results indicate that income, employment in agriculture, religious heterogeneity and colonialism also help explain the under-representation of girls in education in these regions. Countries in which the duration of suffrage has been longer, tend to perform better on average in terms of gender equality in education.
    JEL: O11 O15 O43 O57
    Date: 2009–08
  7. By: Jeemol Unni
    Abstract: In this paper, with empirical data, the Capabilities Approach to identify 'conversion factors' that are not typically addressed in the utility approach is used. The two approaches are juxtaposed to examine how institutions such as caste and religion mediate access and returns to education of men and women. The effort is to discuss whether, the capabilities approach provides any advantage in addressing questions of inequity that may be mediated through such institutions. The main innovation in this paper is a comparison between the knowledge generated through use of traditional data sources to measure access and returns to education compared with knowledge about the dynamics of capability formation generated through a mixture of traditional quantitative and some qualitative data within the capabilities approach.
    Keywords: institutions, knowledge, attendance,Child Labour, school, children, Education, Capabilities approach, human capital, caste, religion, India, traditional data, quantitative, qualitative, data, men, women,
    Date: 2009
  8. By: Yamauchi, Futoshi; Yohannes, Yisehac; Quisumbing, Agnes R.
    Abstract: "This paper uses panel data from Bangladesh, Ethiopia, and Malawi to examine the impacts of disasters on dynamic human capital production. Our empirical results show that accumulation of biological human capital prior to a disaster helps children maintain investments during the post-disaster period. Biological human capital formed in early childhood (for example, good long-term nutritional status) helps insure resilience to disasters by protecting schooling investments and outcomes, even though disasters have negative impacts on the actual investments (for example, by destroying schools). In Bangladesh, children with more biological human capital are less adversely affected by flood, and the rate of investment increases with the initial human capital stock during the post-disaster recovery process. In Ethiopia and Malawi, where droughts are relatively frequent, repeated drought exposure reduces schooling investments in some cases, with larger negative impacts seen among children who embody less biological human capital. Asset holdings prior to disaster (especially intellectual human capital stock in the household) also help maintain schooling investments to at least the same degree as the stock of human capital accumulated in the children prior to the disaster. Our results suggest that as the frequency of natural disasters increases due to global warming, the insurance value of investments in child nutrition will increase. Public investments in child nutrition therefore have the potential to effectively protect long-term human capital formation among children who are vulnerable to natural disasters." from authors' abstract
    Keywords: Disasters, Human capital, Nutrition, Schooling, Self-insurance, Poverty reduction, Social protection, Shocks, Asset dynamics, Education,
    Date: 2009

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