nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒04‒24
eight papers chosen by
Fabio Sabatini
University of Siena

  1. A New Data Set of Educational Attainment in the World, 1950–2010 By Robert J. Barro; Jong-Wha Lee
  2. Why do women still earn less than men? By Eva Fransen; Janneke Plantenga; Jan Dirk Vlasblom
  3. Rural Women Empowerment and Entrepreneurship Development By Sathiabama K
  4. Productivity, wages, and the returns to firm-provided training: who is grabbing the biggest share? By Ana Sofia Lopes; Paulino Teixeira
  5. The Effects of Macroeconomic Conditions on the Education and Employment Outcomes of Youth. By Nicolas Herault; Weiping Kostenko; Gary Marks; Rezida Zakirova
  6. Job-training programmes with low completion rates: The case of Projoven-Peru By Crombrugghe Denis de; Espinoza Henry; Heijke Hans
  7. A Model of Destructive Entrepreneurship By Desai,Sameeksha, Acs, Zoltan and Weitzel, Utz
  8. The Effects of School Quality on Long-Term Health By Sansani, Shahar

  1. By: Robert J. Barro; Jong-Wha Lee
    Abstract: Our panel data set on educational attainment has been updated for 146 countries from 1950 to 2010. The data are disaggregated by sex and by 5-year age intervals. We have improved the accuracy of estimation by using information from consistent census data, disaggregated by age group, along with new estimates of mortality rates and completion rates by age and education level. We use these new data to investigate how output relates to the stock of human capital, measured by overall years of schooling as well as by the composition of educational attainment of workers at various levels of education. We find schooling has a significantly positive effect on output. After controlling for the simultaneous determination of human capital and output, by using the 10-year lag of parents‘ education as an instrument variable (IV) for the current level of education, the estimated rate-of-return to an additional year of schooling ranges from 5% to 12%, close to typical Mincerian return estimates found in the labor literature.
    JEL: F43 I21 O11 O4
    Date: 2010–04
  2. By: Eva Fransen; Janneke Plantenga; Jan Dirk Vlasblom
    Abstract: Despite major improvements in women's labour market attachment, women still earn considerably less than men. International research shows that the persistence of the gender pay gap may be due to the fact that although the gap in characteristics between men and women is diminishing, changes in the wage structure counteract this change. This article will study whether this 'swimming upstream' phenomenon is also playing a role in the rather slow convergence between male and female wages in The Netherlands. Our results indicate that this is not the case; most of the changes in the Dutch wage structure have been rather favourable to women. The lacking convergence in wages has to be explained from the fact that despite the favourable changes, the Dutch wage structure still contains a considerable implicit gender bias.
    Keywords: gender pay gap, wage structure, human capital, discrimination
    JEL: J31 J71
    Date: 2010–04
  3. By: Sathiabama K
    Abstract: Empowerment of women has emerged as an important issue in recent times. The economic empowerment of women is being regarded these days as a Sine-quo-non of progress for a country; hence, the issue of economic empowerment of women is of paramount importance to political thinkers, social scientists and reformers. The Self Help Groups (SHGs) have paved the way for economic independence of rural women. The members of SHGs are involved in Micro – Entrepreneurships. Through that, they are becoming economically independent and providing employment opportunities to others. This article deals with empowerment of rural women through entrepreneurship and the advantages entrepreneurship among the rural women. “Economic empowerment of women led to development of family and communityâ€. This statement is proved by a collective Micro Entrepreneurship in Tamilnadu.
    Keywords: SHGs, self help groups, empowerment, women, micro, Tamilnadu, employment, rural women, India, political thinkers, economically, economic,
    Date: 2010
  4. By: Ana Sofia Lopes (Departamento de Gestão e Economia, ESTG/Instituto Politécnico de Leiria, Portugal, and GEMF); Paulino Teixeira (GEMF/Faculdade de Economia, Universidade de Coimbra, Portugal)
    Abstract: In spite of the importance of workplace training in human capital accumulation, relatively little is known on its returns for workers and firms. Our investigation tries to fill this gap by developing an alternative modelling that examines the determinants of firm productivity and wages, on the one hand, and the internal rate of return to firm training investments, on the other. Our estimates, obtained using a firm-level dataset in which we have detailed information on firm-provided training, indicate that an additional hour of training per worker implies some 0.1 percent increase in productivity. We also found that 2/3 of the gains in productivity are captured by firms and 1/3 by workers. In turn, the internal rate of return for an average firm in our sample is equal to 11 percent while for workers it is considerably higher at 24 percent. As expected, the dispersion across firms is very high, with 66 percent of firms having a positive internal rate of return for an annual depreciation rate of 35 percent.
    Keywords: Firm-Provided Training, Internal Rate of Return, Human Capital, Productivity, Earnings.
    JEL: J24 J31 I2
    Date: 2010–04
  5. By: Nicolas Herault (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Weiping Kostenko (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Gary Marks (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Rezida Zakirova (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
    Abstract: This paper examines the impact of macroeconomic conditions on the education and employment outcomes of youths in school-to-work transition. The dataset is based on five different cohorts from the Youth in Transition surveys (YIT) and the Longitudinal Surveys of Australian Youth (LSAY) and covers the period from 1985 to 2006, which is long enough to control explicitly for both poor and positive macroeconomic conditions. The multivariate analyses show that both the unemployment rates, and to a lesser extent economic growth rates, have an impact on youths’ education and employment outcomes. Although the effects vary significantly by gender an education level, overall the results reveal that poor macroeconomic conditions tend to drive young people out of full-time work and into inactivity or part-time work. In addition, poor macroeconomic conditions tend to discourage further education. A result worth noticing is that males who did not complete secondary school suffer the largest increase in unemployment risks as the unemployment rate increases.
    Date: 2010–03
  6. By: Crombrugghe Denis de; Espinoza Henry; Heijke Hans (ROA rm)
    Abstract: Projoven is an ongoing Peruvian youth job-training programme started in 1996and conducted in successive waves or ‘public calls’. The programme has twophases of instruction: i) three months of classroom training, followed by ii) threemonths of on-the-job training internship. From 1997 to 2007, less than 60% ofregistrants completed both phases. This paper estimates the effectiveness ofProjoven’s sixth Public Call, in terms of overall and formal employment andwage outcomes, while accounting for the presence of trainees with partialinstruction. Four groups are compared pairwise: the control group, the dropoutgroup with only classroom training, the dropout group with classroom trainingand internship placement, and the group completing the full programme. Ourestimations account for selection effects and the potential endogeneity of trainingcompletion. We find that in terms of overall and formal employment, theprogramme yields returns only in the short run and conditioned on internshipcompletion. The programme seems to increase trainee wages, but these effectsdiminish over time. Projoven is relatively more effective for individuals with nowork experience prior to enrolment.
    Keywords: education, training and the labour market;
    Date: 2010
  7. By: Desai,Sameeksha, Acs, Zoltan and Weitzel, Utz
    Abstract: The current research on entrepreneurship as an economic phenomenon often assumes its desirability as a driver of economic development and growth. However, entrepreneurial talent can be allocated among productive, unproductive, and destructive activities. This process is theorized as driven by institutions. Although the tradeoff between productive and unproductive entrepreneurship has been examined, destructive entrepreneurship has been largely ignored. We build from existing theory and define destructive entrepreneurship as wealth-destroying. We propose three assumptions to develop a model of destructive entrepreneurship that presents the mechanisms through which entrepreneurial talent behaves in this manner. We present four key propositions on the nature and behavior of destructive entrepreneurship. We conclude by identifying policy and research streams that emerge from our model.
    Keywords: destructive entrepreneurship, entrepreneurship, allocation, rent-seeking, incentives, informal institutions
    Date: 2010
  8. By: Sansani, Shahar
    Abstract: In this paper I estimate the relationship between school quality and mortality. Although many studies have linked the quantity of education to health outcomes, the effect of school quality on health has yet to be examined. I construct synthetic birth cohorts and relate the quality of education they attained to their mortality rates. I find that there is a statistically significant relationship between the mortality-schooling gradients, which depict the return to a year of schooling, and the length of school term and relative teacher wage. For instance, increasing the relative teacher wage by one standard deviation results in about 1.9 less deaths per 1,000 people per extra year of education. My results suggest that one way to improve the health of the population is to improve school quality.
    Keywords: quality of education; health production
    JEL: I0 I12
    Date: 2009–08

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