nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒04‒11
eight papers chosen by
Fabio Sabatini
University of Siena

  1. How policy can influence human capital accumulation and environment quality. By Basseti, Thomas; Benos, Nikos; Karagiannis , Stelios
  2. Training or search? evidence and an equilibrium model By Jun Nie
  3. Stakeholder-Oriented Corporate Governance and Firm-Specific Human Capital: Wage analysis of employer-employee matched data By ODAKI Kazuhiko; KODAMA Naomi
  4. Are Recessions Good for Educational Attainment? By Carsten Ochsen
  5. Civic Capital as the Missing Link By Luigi Guiso; Paola Sapienza; Luigi Zingales
  6. A quantitative theory of the gender gap in wages By Andrés Erosa; Luisa Fuster; Diego Restuccia
  7. Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies By Driouchi, Ahmed; Zouag, Nada
  8. Organized Crime, Migration and Human Capital Formation: Evidence from the South of Italy By Nicola D. Coniglio; Giuseppe Celi; Cosimo Scagliusi

  1. By: Basseti, Thomas; Benos, Nikos; Karagiannis , Stelios
    Abstract: This paper considers the implications of education and environment policy for growth in a model where the interactions between health, education, and the environment are taken into account. With respect to previous works, in which one of these three dimensions is omitted, we consider their combined effects, arriving to novel results in the literature. According to our model, higher taxes and environment spending share in total public spending do not affect welfare significantly, but they have an important positive impact on human capital and environment quality. Here, a positive relationship between public education spending and environment quality emerges as well as between environment maintenance expenditure and human capital. At the same time, countries with a high environmental quality should spend less on environment maintenance compared to heavily polluted countries. Finally, for countries with advanced abatement technologies, the relationship between human capital and environment is positive, which is compatible with the environmental Kuznets curve.
    Keywords: Fiscal policy; Health production; Human capital; Environment quality.
    JEL: I12 I28 E60 Q58
    Date: 2010–03–30
  2. By: Jun Nie
    Abstract: Training programs are a major tool of labor market policies in OECD countries. I use a unique panel data set on the labor market experience of individual German workers between 2000 and 2002 to estimate a dynamic model of search and training, which allows me to quantify the impact of training programs and unemployment benefits on employment, unemployment, output, and the government expenditures. ; The model extends Ljungqvist and Sargent (JPE, 1998) by incorporating a training decision and a broader menu of unemployment benefits. Government-sponsored training programs feature a key trade-off with respect to unemployment insurance programs: they offer more generous unemployment benefits but require more time and effort from workers to generate higher skills. As a result, unemployed workers with different human capital and benefits make different decisions about training, search, and job acceptance. ; I use the model to quantitatively study the recent reforms implemented in Germany and run more counterfactual experiments. I simulate the transition path under back-to-back unexpected reforms in 2003-2006 and find the dynamics of the model's unemployment rates are close to the data. In a counterfactual experiment in which I model an economy with a German-like training system and a US-like unemployment benefit structure (roughly, benefits are lower), I find that employment and output rise substantially.
    Date: 2010
  3. By: ODAKI Kazuhiko; KODAMA Naomi
    Abstract: Theories of economic institutions predict that complementarity exists between the nature of corporate governance of a firm and the nature of its human capital investment. The complementarity theory insists that the commitment of a firm and its employees to invest in firm-specific human capital will be reinforced by the commitment of the firm to adopt stakeholder-oriented corporate governance. Using employer-employee matched data from the headquarters of large Japanese firms, this paper investigates the relationship between the wage-tenure profile of a firm and the nature of its corporate governance. Analysis of the wage-tenure profiles shows that firms with stakeholder-oriented corporate governance invest in firm-specific human capital more heavily than those with shareholder-oriented corporate governance.
    Date: 2010–03
  4. By: Carsten Ochsen
    Abstract: In this study, we examine how economic performance during the child-specific primary school phase, during which teachers make recommendations regarding secondary school level, affects the educational level achieved ultimately by these children. Using data for Germany, we find that an economic downturn, coupled with increased unemployment, affects children's education attainment negatively. In terms of monetary units, the average effect of the 1993 German recessionon children's educational attainment corresponds to a loss of average monthly household equivalence income of about 50%. A second important conclusion is that children who live in regions that experience poor economic performance over longer periods are, on average, less educated than children who live in more affluent regions. Since human capital is a determinant of economic growth, declining school performance ultimately hampers future growth potential.
    Keywords: educational attainment, educational tracking, macroeconomic uncertainty, family structure, intergenerational link, parental labor supply
    JEL: I21 E24 J10 J22
    Date: 2010
  5. By: Luigi Guiso; Paola Sapienza; Luigi Zingales
    Abstract: This chapter reviews the recent debate about the role of social capital in economics. We argue that all the difficulties this concept has encountered in economics are due to a vague and excessively broad definition. For this reason, we restrict social capital to the set of values and beliefs that help cooperation—which for clarity we label civic capital. We argue that this definition differentiates social capital from human capital and satisfies the properties of the standard notion of capital. We then argue that civic capital can explain why differences in economic performance persist over centuries and discuss how the effect of civic capital can be distinguished empirically from other variables that affect economic performance and its persistence, including institutions and geography.
    JEL: O43
    Date: 2010–03
  6. By: Andrés Erosa (IMDEA Ciencias Sociales); Luisa Fuster (IMDEA Ciencias Sociales); Diego Restuccia (University of Toronto)
    Abstract: This paper measures how much of the gender wage gap over the life cycle is due to the fact that working hours are lower for women than for men. We build a quantitative theory of fertility, labor supply, and human capital accumulation decisions to measure gender differences in human capital investments over the life cycle. We assume that there are no gender differences in the human capital technology and calibrate this technology using wage-age profiles of men. The calibration of females assumes that children involve a forced reduction in hours of work that falls on females rather thanon males and that there is an exogenous gender gap in hours of work. We find that our theory accounts for all of the increase in the gender wage gap over the life cycle in the NLSY79 data. The impact of children on the labor supply of females accounts for 56% and 45% of the increase in the gender wage gap over the life cycle among non-college and college individuals, while the rest is due to exogenous gender differences in hours ofwork. We also find that children play an important role in understanding the variationof the gender wage gap across recent cohorts of women and the slower wage growth faced by black women relative to non-black women in the U.S. economy.
    Keywords: gender wage gap; employment; experience; fertility; human capital
    JEL: J2 J3
    Date: 2010–03–25
  7. By: Driouchi, Ahmed; Zouag, Nada
    Abstract: Abstract: An economic model is introduced to discuss the impacts of rural migration on skills in source and destination localities and regions. Two versions of the model are used without and with risks. In this context, the model considers that rural migration is determined by the demand for education and urban rural wage differences. The optimal decision rules attained are tested against available aggregate data for series of developing countries. The preliminary empirical results show the existence of country variations of rural emigration with varied impacts on education with likely losses in localities of emigration. Economic and social policies are to account for these impacts mainly when emphasis is placed on regional and local development programs.
    Keywords: Rural migration; bias; education; skilled labor; local development
    JEL: J31
    Date: 2010–02–10
  8. By: Nicola D. Coniglio (University of Bari); Giuseppe Celi (University of Foggia); Cosimo Scagliusi (University of Bari)
    Abstract: The presence of organized crime is a pervasive feature of many developed and developing countries. Even if ‘mafia’ organizations have greatly enlarged the geographical scope of their activities, as in the past they are still deeply rooted in specific territories where their presence generates a host of influences on socio-economic performances (perverse social capital). In this paper we analyse the consequences of the presence of organized crime on the long-term accumulation of human capital, a key determinant of economic growth. To do this we build a unique dataset where - among other information - we identify municipalities where the presence of organized crime is particularly pervasive in an Italian region, Calabria, where is based one of the most powerful international criminal organization, 'Ndrangheta. Our results suggest that the presence of organized crime inhibits the accumulation of human capital both directly (reducing the incentive to invest in formal education) and indirectly by increasing migration outflows.
    Keywords: Organized crime, human capital, social capital, migration
    JEL: J61 J24 O15 O18
    Date: 2010–03

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