nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒04‒04
eight papers chosen by
Fabio Sabatini
University of Siena

  1. Transferability of Human Capital and Immigrant Assimilation – An Analysis for Germany By Leilanie Basilio; Thomas K. Bauer
  2. Employee Involvement, Technology and Job Tasks By Francis Green
  3. Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain By Almeida-Santos, Filipe; Chzhen, Yekaterina; Mumford, Karen A.
  4. Public Education for the Children Left Behind By Camacho, Carmen; Shen, I-Ling
  5. Estimating the Growth Attributes of Mainland China and Hong Kong SAR By Kui-Wai Li; Tung Liu; Hoi Kuan Lam; Liang Wang
  6. An Analysis on the Growth Attributes of Manufacturing Industries in China By Kui-Wai Li; Tung Liu
  7. School Attendance and Child Labor - A Model of Collective Behavior By Strulik, Holger
  8. Emigration of Highly Skilled Labor: Determinants & Impacts By Driouchi, Ahmed; Boboc, Cristina; Zouag, Nada

  1. By: Leilanie Basilio; Thomas K. Bauer
    Abstract: This paper investigates the transferability of human capital across countries and the contribution of imperfect human capital portability to the explanation of the immigrant-native wage gap. Using data for West Germany, our results reveal that, overall, education and labor market experience accumulated in the home countries of the immigrants receive signicantly lower returns than human capital obtained in Germany. We further fi nd evidence for heterogeneity in the returns to human capital of immigrants across origin countries. Finally, imperfect human capital transferability appears to be a major factor in explaining the wage diff erential between natives and immigrants.
    Keywords: Human capital; rate of return; immigration; assimilation
    JEL: J61 J31 J24
    Date: 2010–01
  2. By: Francis Green
    Abstract: Using new job requirements data for Britain I show that there has been a rise in various forms of communication tasks: influencing and literacy tasks have grown especially fast, as have self-planning tasks. External communication tasks, and numerical tasks have also become more important, but physical tasks have largely remained unchanged. Although the classification of tasks as programmable or otherwise is found to be problematic, computer use accounts for much of the changed use of generic skills. Going beyond the technology, I investigate whether organisational changes requiring greater employee involvement explain some of the new skill requirements. Using either industry or occupation panel analyses, I find that employee involvement raises the sorts of generic skills that human resource management models predict, in particular three categories of communication skills and self-planning skills. These effects are found to be independent of the effect of computers on generic skills.
    Date: 2009–03
  3. By: Almeida-Santos, Filipe (Universidade Catolica Portuguesa, Lisbon); Chzhen, Yekaterina (University of York); Mumford, Karen A. (University of York)
    Abstract: We use household panel data to explore the wage returns associated with training incidence and intensity (duration) for British employees. We find these returns differ depending on the nature of the training; who funds the training; the skill levels of the recipient (white or blue collar); the age of the employee; and if the training is with the current employer or not. Using decomposition analysis, training is found to be positively associated with wage dispersion: a virtuous circle of wage gains and training exists in Britain but only for white-collar employees.
    Keywords: training, wage compression, performance
    JEL: J24 J31 J41
    Date: 2010–03
  4. By: Camacho, Carmen (Université Catholique de Louvain); Shen, I-Ling (Université Catholique de Louvain)
    Abstract: This paper examines the role of public education in the context of parental migration, and it studies the effects of an expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy may exacerbate income inequality in the long run if for the less skilled dynasties, the benefits of more public spending on education does not make up for the negative effects of increased parental absences. However, if the migration-induced tax base erosion is not severe, an expansive income tax policy indeed enhances future human capital for all dynasties, and moreover, it may help the less skilled households escape from the poverty trap, thus reducing long-run income inequality.
    Keywords: human capital, income inequality, parental migration, public education expenditure, tax base erosion
    JEL: H20 H52 O15 O40
    Date: 2010–03
  5. By: Kui-Wai Li (City University of Hong Kong, Hong Kong SAR); Tung Liu (Department of Economics, Ball State University); Hoi Kuan Lam (City University of Hong Kong, Hong Kong SAR); Liang Wang (City University of Hong Kong, Hong Kong SAR)
    Abstract: Since Hong Kong’s reversion of political sovereignty to Mainland China in 1997, the pace of economic integration between the two economies has increased. This paper first examines the economic benefits and institutional differences between Mainland China and Hong Kong. The empirical section of the paper used a stochastic frontier model with the incorporation of a human capital variable to decompose the economic and productivity growth of Mainland China and Hong Kong into the four attributes of input growth, adjusted scale effect, technical progress, and efficiency growth.
    Keywords: technical progress, technical efficiency, returns to scale, human capital, China economy, Hong Kong economy
    JEL: O47 R11
    Date: 2010–02
  6. By: Kui-Wai Li (City University of Hong Kong, Hong Kong SAR); Tung Liu (Department of Economics, Ball State University)
    Abstract: This paper examines the growth attributes of manufacturing industries in China for the sample period of 1999-2007. A revised Solow’s growth decomposition method is used to consider four growth attributes of input growth, scale effect, technical progress, and technical efficiency change. For the aggregates of all industries, we found no technical efficiency change. The technical progress, input growth, and scale effect explain 45%, 38%, and 17% of output growth, respectively. When all manufacturing industries are disaggregated into four major groups and twenty-nine sub-manufacturing industries, we find that estimates exhibit increasing returns to scale and positive scale effect. When the manufacturing industries data are aggregated in different provinces and regions, we find that input growth is more significant in the Southern region than in other regions. Only the Southern region shows an increase in technical efficiency. Technical progress is more important in the Western and Northeastern regions than the other two regions.
    Keywords: technical progress, technical efficiency, economies of scale, human capital, China economy
    JEL: C2 D24 O4 O53
    Date: 2010–03
  7. By: Strulik, Holger
    Abstract: This paper theoretically investigates how community approval or disapproval affects school attendance and child labor and how aggregate behavior of the community feeds back towards the formation and persistence of an anti- (or pro-) schooling norm. The proposed community-model continues to take aggregate and idiosyncratic poverty into account as an important driver of low school attendance and child labor. But it provides also an explanation for why equally poor villages or regions can display different attitudes towards schooling. Distinguishing between three different modes of child time allocation, school attendance, work, and leisure, the paper shows how the time costs of schooling and child labor productivity contribute to the existence of a locally stable anti-schooling norm. It proposes policies that effectively exploit the social dynamics and initiate a permanent escape from the anti-schooling equilibrium. An extension of the model explores how an education contingent subsidy paid to the poorest families of a community manages to initiate a bandwagon effect towards "education for all". The optimal mechanism design of such a targeted transfer program is investigated.
    Keywords: School Attendance, Child Labor, Social Norms, Targeted Transfers
    JEL: I20 I29 J13 O12
    Date: 2010–02
  8. By: Driouchi, Ahmed; Boboc, Cristina; Zouag, Nada
    Abstract: This is an additional contribution to the large body of literature developed in the area of economics of skilled labor migration. It focuses on two major objectives that are the determinants of the migration and its likely impacts on developing economies. Within the framework of the new economics of skilled labor migration, this research has attempted to test empirically the relevance of some components of the most recent new economic models of skilled labor migration. Using available data from international organizations (World Bank, OECD, UNESCO…) and others, in both regressions analyzes and economic simulations, hypotheses have been tested and directions of empirical results identified for larger policy discussions. The theoretical models that have been given priority in these empirical investigations are mainly those of Beine & al, Stark (2005) & al, N. Duc Thanh (2004) and M. Schiff (2005). A major focus has been placed on the models suggested by Duc Thanh (2004) where useful specifications of the functional forms were made. This selected framework uses the similarities that have been observed between this model and that of Stark and Schiff. The empirical results that have been obtained confirm the role of relative wages, the availability of better opportunities such as jobs, the importance of the living conditions as well as the existence of more attractive working conditions in destination countries relative to source economies. Concerning the estimation of the impacts of skilled labor migrations for both developed and developing economies, the specifications have followed Beine, Stark and Duc Thanh models with special emphasis placed on this latter. Given the dynamic nature of Beine’s model and with the limits on the available time series, significant empirical results are obtained and tests of Beine’s propositions achieved. The regressions results using the subcomponent of the knowledge economic index have shown significantly the effects of both domestic education and the attractiveness of foreign relative wages as major determinants that support the explanation of the level of knowledge added by the tertiary sector in each economy. In the sense of these estimations, it appears clearly that any economy is under two major opposite effects. On one hand, there is the relative share of investment in education that affects positively the human capital formation in any country but with higher impact in developing economies. On the other hand, there is the magnitude of the relative wages that negatively affect the performance of developing economies as measured by the subcomponent of the knowledge economic index. These results have been first confirmed through regression analysis. These preliminary findings suggest that local, national, regional and international economic policies consider the new theoretical and empirical trends shown so far by these results.
    Keywords: Key words: Sklled labor; brain drain; development
    JEL: F22
    Date: 2009–09–16

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