nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒05‒02
fourteen papers chosen by
Fabio Sabatini
University of Siena

  1. Human Capital Diversity and Product Innovation: A Micro-Level Analysis By Rene Söllner
  2. The impact of human and social capital on entrepreneurs' knowledge of finance alternatives By Seghers, A.; Manigart, S.; Vanacker,T.
  3. Human Capital and Regional Growth in Switzerland By Polasek, Wolfgang; Schwarzbauer, Wolfgang; Sellner, Richard
  4. Brain Drain, Brain Gain and Economic Growth in China By Wei Ha; Junjian Yi; Junsen Zhang
  5. Migration and Educational Outcomes of Children By Kristina A. Schapiro
  6. Changes in the Gender Wage Gap in Germany during a Period of Rising Wage Inequality 1999-2006: Was it Discrimination in the Returns to Human Capital? By Usamah Fayez Al-Farhan
  7. Return migrants : The rise of new entrepreneurs in rural China By Sylvie Demurger; Hui Xu
  8. Education and household inequality change: a decomposition analysis for India By Pieters, Janneke
  9. First-round valuation of angel-backed companies: the role of investor human capital By Collewaert, V.; Manigart,S.
  10. Do sporty people have access to higher job quality ? By Charlotte Cabane
  11. Short-term training programs for immigrants: do effects differ from natives and why? By Aldashev, Alisher; Thomsen, Stephan L.; Walter, Thomas
  12. Human Deprivation Index: A Measure of Multidimensional Poverty By Sivakumar, Marimuthu; Sarvalingam, A
  13. A new approach to testing the effects of entrepreneurship education among secondary school pupils By Lepoutre, J.; Van den Berghe, W.; Tilleuil, O.; Crijns, H.
  14. Interrelations between Education, Health, Income and Economic Development in Europe with Emphasis on New Members of European Union By Boboc, Cristina; Driouchi, Ahmed; Titan, Emilia

  1. By: Rene Söllner (Friedrich Schiller University Jena, DFG-RTG "The Economics of Innovative Change")
    Abstract: The paper investigates the relationship between human capital diversity measured in terms of occupational diversity and a firm's likelihood to innovate. The empirical analysis is based on a linked employer-employee panel dataset of German firms over the period 1998 to 2007. Despite notable differences between service and manufacturing rms, our results clearly indicate a positive relationship between occupational diversity and the propensity to innovate.
    Keywords: Human Capital, Diversity, Innovation
    JEL: J24 L20 O31
    Date: 2010–04–19
  2. By: Seghers, A.; Manigart, S.; Vanacker,T. (Vlerick Leuven Gent Management School)
    Abstract: This paper examines how entrepreneurs’ human and social capital influence their knowledge of finance alternatives. For this purpose, we use survey data from 125 Belgian start-ups. Results demonstrate that entrepreneurs with a business education and entrepreneurs with experience in accountancy or finance have a broader knowledge of finance alternatives. Having a strong network in the financial community further enhances the knowledge of finance alternatives. However, more generic human capital has almost no impact on the knowledge of finance alternatives. Overall, this study demonstrates how not only supply-side factors, but also demand-side factors may constrain entrepreneurs in their search for finance.
    Date: 2009–11–19
  3. By: Polasek, Wolfgang (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria); Schwarzbauer, Wolfgang (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria); Sellner, Richard (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria)
    Abstract: This paper develops a regional production function model for Swiss cantons that incorporates human capital together with spatial effects. Within a spatial panel framework we find that controlling for time effects the spatial spillover effect becomes insignificant. Our results are sensitive with respect to the human capital proxy. We find that the share of academics in the workforce is the main component of human capital driving productivity growth in Swiss cantons. This is in line with findings of previous studies suggesting that mostly highly skilled workers matter for productivity growth in technologically advanced economies.
    Keywords: Production function with human capital, spatial panel, regional growth
    JEL: C21 C23 I22 J23 R11 R12
    Date: 2010–04
  4. By: Wei Ha (Policy Specialist at the Human Development Report Office, UNDP); Junjian Yi (Economics Department of the Chinese University of Hong Kong); Junsen Zhang (Economics Department of the Chinese University of Hong Kong)
    Abstract: This paper examines the effects of both permanent and temporary emigration on human capital formation and economic growth of the source regions. To achieve this end, this paper explores the Chinese provincial panel data from 1980 to 2005. First, the fixed effects model is employed to estimate the effect of emigration on school enrollment rates in the source regions. Relative to this aspect, we find that the magnitude (scale) of permanent emigrants (measured by the permanent emigration ratio) is conducive to the improvement of both middle and high schools enrollments. In contrast, the magnitude of temporary emigrants has a significantly positive effect on middle school enrollment but does not have a significant effect on high school enrollment. More interestingly, different educational attainments of temporary emigrants have different effects on school enrollment. Specifically, the share of temporary emigrants with high school education positively affects middle school enrollment, while the share of temporary emigrants with middle school education negatively affects high school enrollment. Second, the instrumental variable method is applied to estimate the effect of emigration on economic growth within the framework of system Generalized Method of Moments (GMM). The estimation results suggest that both permanent and temporary emigrations have a detrimental effect on the economic growth of the source regions. Our empirical tests provide some new evidence to the "brain drain" debate, which has recently received increasing attention.
    Keywords: Brain drain, human capital, emigration, economic growth
    JEL: J22 J24 O12 O15 F22
    Date: 2009–08
  5. By: Kristina A. Schapiro (Monitor Group, London)
    Abstract: This paper examines the impact of migration on educational outcomes of children. It looks at the outcomes of internationally as well as internally migrating children and identifies the specific barriers they face in access to quality schooling. It discusses the various channels through which migration affects the education and wellbeing of non-migrant children in migrant households. It subsequently examines the variations in educational attainment of second-generation migrant children. To conclude, the paper recognizes the policy challenges surrounding the migration-education linkage and considers some of the strategies that have been implemented to improve the schooling outcomes of children affected by migration.
    Keywords: Migration, children, education, human capital, human development, policy
    JEL: O1 O15 F22 F2
    Date: 2009–10
  6. By: Usamah Fayez Al-Farhan
    Abstract: In this article I analyze the changes in the gender wage gap in the western region, eastern region and in reunified Germany during the period 1999 – 2006. I use data from the German Socio-Economic Panel and implement two alternative decomposition methodologies; the Juhn, Murphy and Pierce (1991) decomposition, and a methodology that totally differences the Oaxaca-Blinder (1973) decomposition, found in Smith and Welch (1989). I conclude that most of the increase in the gender wage gap occurred during a period of remarkably rising wage inequality and argue that both trends are caused simultaneously by the same set of factors. Furthermore, German women were, on average, treated favorably in the returns to their educational attainment, potential experience and tenure compared men, and that the increasing gender wage gap was mainly due to changes in the gender differentials in human capital endowments, particularly worker’s potential experience, changes in the gender distribution across industries, company sizes and occupational positions and to changes in discrimination in the returns to job-specific training.
    Keywords: Wages, gaps, discrimination, decomposition, characteristics effect, coefficient effect
    JEL: D30 J31
    Date: 2010
  7. By: Sylvie Demurger (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Hui Xu (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    Abstract: This paper analyzes return migrants' occupational choice upon their return to their home village, by using an original rural household survey conducted in Wuwei county (Anhui province, China) in 2008. We apply two complementary approaches : a horizontal comparative analysis of occupational choice between non-migrants and return migrants, and a vertical investigation of the impact of migration experience on returnees only. Two main findings are drawn up from the estimation of probit models which account for potential selection bias and endogeneity. First, return migrants are more likely to be self-employed and to opt for higher ability jobs than non-migrants. Second, both return savings and the frequency of job changes during migration increase the likelihood for return migrants to become self-employed. These findings suggest that (a) working experience during migration enhances individual's human capital and entrepreneurial ability, and (b) repatriated migration experience is a key stimulating factor in promoting rural entrepreneur activity.
    Keywords: Return migrants ; occupational change ; entrepreneurship ; Asia ; China
    Date: 2010
  8. By: Pieters, Janneke (Groningen University)
    Abstract: Previous studies show that rising returns to education have lead to higher wage inequality in developing countries. However, given the importance of non-wage employment and indirect effects of education through labour supply and fertility choices, a similar relationship does not necessarily hold for inequality between households. Based on a decomposition analysis for India, we find counteracting impacts of education on household expenditure inequality. Declining returns to education of household heads reduced inequality, driven by the self-employed. In contrast, rising returns to spouses? education increased inequality in urban areas. We also find that changes in education levels increased rural and urban inequality, due to persistently high illiteracy. Finally, the indirect effect on fertility had a small equalizing impact in urban areas, but slightly increased inequality in rural areas.
    Date: 2010
  9. By: Collewaert, V.; Manigart,S. (Vlerick Leuven Gent Management School)
    Abstract: This paper investigates how angel investors’ human capital affects the valuation of their portfolio companies at initial investment, based on the pre-money valuation of 59 investments in young Belgian companies. We show that entrepreneurs are able to negotiate higher valuations with angel investors who have a business degree, more entrepreneurial experience or previous professional law experience. As such, this result is in contrast with the behavior of venture capital investors. Angel investors with financial experience, however, value their investments lower: their financial background leads them to stress the financial side of the deal more.
    Keywords: risk capital, business angels, angel investors, human capital, valuation
    Date: 2009–11–19
  10. By: Charlotte Cabane (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: It is known that non-cognitive skills are an important determinant of success in life. However, their returns are not simple to measure and, as a result, only relatively few studies have dealt with this empirical question on the labour market. We consider sports practice as a way to improve or signal non-cognitive skills endowment. Therefore, the analysis of its impact on the labour market integration allows us to evaluate the returns of some specific non-cognitive skills. We test the hypothesis that sporty people -ceteris paribus- have access to higher quality of job thanks to the non-cognitive skills they have or they are supposed to have. Using objective measures of job quality, we demonstrate that being sporty does matter and that its effect cannot be award to any other extracurricular activities.
    Keywords: Job quality, sport, non-cognitive skills.
    Date: 2010–03
  11. By: Aldashev, Alisher; Thomsen, Stephan L.; Walter, Thomas
    Abstract: We evaluate the effects of different short-term training programs on the employment chances of immigrant and native welfare recipients in Germany. In particular, we investigate whether program effects differ between both groups and what might cause these potential differences. In a first step, we evaluate program effects separately for immigrants and natives using propensity score matching estimators. To explain potential differences in effects between the groups, we suggest and apply a decomposition method based on the matching procedure that allows identification of differences due to observable characteristics and differences related to an immigrant fixed effect in a second step. --
    Keywords: Immigrants,short-term training programs,evaluation,decomposition,matching,Germany
    JEL: I38 C14 J61
    Date: 2010
  12. By: Sivakumar, Marimuthu; Sarvalingam, A
    Abstract: Poverty is multidimensional in nature. Poverty is associated not only with insufficient income or consumption but also with insufficient outcomes with respect to health, nutrition, and literacy and deficient social relations, insecurity, and low self-esteem and powerlessness. Since poverty is a multidimensional phenomenon, measurement of poverty must cover many dimensions. So far, the income and/or consumption indicator has received most attention. But, now the focus is shifted towards deprivation in different dimensions for example income, health and education. The human development and human deprivation studies have opened new perspectives on measuring and analysing poverty and development with the help of multidimensional concept. The present study, in this context will serve to enrich useful knowledge about human deprivation which analysis the poverty multi dimensionally.
    Keywords: Human Deprivation; Poverty; Multi dimension; Health; Infant Mortality; Education; Illiteracy; India
    JEL: I2 I3 I1 I32
    Date: 2010–04–26
  13. By: Lepoutre, J.; Van den Berghe, W.; Tilleuil, O.; Crijns, H. (Vlerick Leuven Gent Management School)
    Abstract: This papers aims to contribute to a better understanding of the effects of entrepreneurship education among secondary school pupils. Using a combination of retrospective pretest-posttest and self-perceived change measures, we assessed changes in entrepreneurial intent, creativity and attitudes towards entrepreneurs as a result of a variation of 21 entrepreneurship education programs among 3130 pupils in Flanders, Belgium. Furthermore, we grounded entrepreneurial intent in Shapero’s Entrepreneurial Event model and tested the impacts of the entrepreneurship perceived feasibility, perceived desirability and propensity to act. We find that the higher the intensity and experientiality of the entrepreneurship programs, the stronger their impact on some of the variables investigated. Furthermore, we found that the subjective evaluation of the program by the pupils had an even stronger effect on all investigated changes. As such, our findings highlight the importance of both objectively measurable program characteristics, as well as their subjective evaluation by the pupils in order to increase their effectiveness.
    Date: 2010–03–06
  14. By: Boboc, Cristina; Driouchi, Ahmed; Titan, Emilia
    Abstract: This study looks at how health, education, and economic development are inter-related in the case of Europe. Factorial analyses besides econometric models, implemented on a panel data from EUROSTAT show that the included variables are interrelated. The new members of the European Union are found to be investing in education, research and development and health care. Furthermore, they have high economic growth and high improvements in education and health state indicators. However, the instability and economic risks that have appeared during the transition process do affect the level of social protection. The existing social protection system increases poverty rates and slows the convergence towards developed economies. Two main directions for enhancing human development in EU new member economies are identified. They include the strengthening of the social protection system to target the vulnerable members affected by the transition process besides increasing expenditure on research and development.
    Keywords: Interdependencies; Health; Education; Economic Development
    JEL: D31
    Date: 2010–01–19

This nep-hrm issue is ©2010 by Fabio Sabatini. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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