nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒07‒10
seven papers chosen by
Fabio Sabatini
Euricse and University of Trento

  1. Human Resource Management and Productivity By Nicholas Bloom; John Van Reenen
  2. The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain. By Panos Sousounis
  3. The Interrelationship between HR, Strategy and Profitability in Service SMEs: Empirical Evidence from the UK Tourism Hospitality and Leisure Sector By Andreas Georgiadis; Christos N. Pitelis
  4. The Crime Reducing Effect of Education By Stephen Machin; Olivier Marie; Suncica Vujic
  5. Networks Effects in International Migration : Education versus Gender By Michel BEINE; Sara SALOMONE
  6. School Attendance and Literacy before the Famine: A Simple Baronial Analysis By Cormac Ó Gráda
  7. The Relationship Between the Effects of a Wife’s Education on her Husband’s Earnings and her Labor Participation: Japan in the period 2000 -2003 By Yamamura, Eiji; Mano, Yukichi

  1. By: Nicholas Bloom; John Van Reenen
    Abstract: In this chapter we examine the relationship between Human Resource Management (HRM)and productivity. HRM includes incentive pay (individual and group) as well as many nonpayaspects of the employment relationship such as matching (hiring and firing) and workorganization (e.g. teams, autonomy). We place HRM more generally within the literature onmanagement practices and productivity. We start with some facts on levels and trends of bothHRM and productivity and the main economic theories of HRM. We look at some of thedeterminants of HRM - risk, competition, ownership and regulation. The largest sectionanalyses the impact of HRM on productivity emphasizing issues of methodology, data andresults (from micro-econometric studies). We conclude briefly with suggestions of avenuesfor future frontier work.
    Keywords: human resource management, productivity, personnel economics
    JEL: L2 M2 O32 O33
    Date: 2010–05
  2. By: Panos Sousounis (Department of Economics, University of the West of England)
    Abstract: Using data from the British Household Panel Survey for the years 1998-2005, this study estimates the impact of work-related training on earnings levels. Different measures for general and specific training are constructed from available information. The analysis diverges from the standard fixed effects framework for earnings determination modelling and presents evidence in support of the predictions of the standard human capital theory with regards to training sponsoring using a random effects formulation for the earnings equation suggested by Nijman and Verbeek (1992) for controlling for attrition bias in unbalanced panels.
    Keywords: work-related training, human capital, earnings
    JEL: J24 J31 C23
    Date: 2009–10
  3. By: Andreas Georgiadis; Christos N. Pitelis
    Abstract: We investigate the strategies, HR attributes and their synergies that are associated withsuperior performance in service SMEs using data from the UK Tourism Hospitality andLeisure (THL) sector. A major advantage of our analysis is that our sample includesinformation also on very small firms which makes results representative of the industry butalso sheds light on a very little investigated area related to the nature of HRM and its linkwith performance of micro businesses. Our results suggest that high-performing SMEs in theTHL sector are managed by more experienced entrepreneurs. Moreover, they employ acombination of technological and know-how firm differentiation strategies together with ahighly skilled workforce, and/or a combination of (product) differentiation strategies basedon quality of service and personal attention to customers, and a generous compensationpackage and attention to employees development.
    Keywords: Value capture strategies, Human capital, Organisation Commitment to Employees, Profitability
    JEL: J2
    Date: 2010–03
  4. By: Stephen Machin; Olivier Marie; Suncica Vujic
    Abstract: In this paper, we present evidence on empirical connections between crime and education, usingvarious data sources from Britain. A robust finding is that criminal activity is negatively associatedwith higher levels of education. However, it is essential to ensure that the direction of causation flowsfrom education to crime. Therefore, we identify the effect of education on participation in criminalactivity using changes in compulsory school leaving age laws over time to account for theendogeneity of education. In this causal approach, for property crimes, the negative crime-educationrelationship remains strong and significant. The implications of these findings are unambiguous andclear. They show that improving education can yield significant social benefits and can be a keypolicy tool in the drive to reduce crime.
    Keywords: Crime, education, offenders
    JEL: I2 K42
    Date: 2010–05
  5. By: Michel BEINE (CREA,University of Luxembourg, IRES and CES-Ifo); Sara SALOMONE (IRES, UniversitŽ catholique de Louvain and Tor Vergata University)
    Abstract: This paper analyses the impact of networks on the structure of international migration flows to OECD countries. In particular, we look at whether diaspora effects are different across education levels and gender. Using new data allowing to include both dimensions, we are able to analyze the respective impact of networks on the proportion of each category of migrant. Therefore, unlike the preceding literature on macro determinants of international migration, we can identify the factors that influence the selection in terms skills and in terms of gender. We find that network effects vary by education level but not by gender.
    Keywords: Migration,Human capital, network/diaspora externalities, Gender
    JEL: F22 O15
    Date: 2010–05–26
  6. By: Cormac Ó Gráda (University College Dublin)
    Abstract: This paper complements a much larger study of school attendance in pre-famine Ireland by FitzGerald (2010). It exploits some of the data generated by that study to analyze further some of the determinants of schooling and literacy in the 1820s and 1840s.
    Keywords: Ireland, economic history, literacy, human capital
    Date: 2010–07–02
  7. By: Yamamura, Eiji; Mano, Yukichi
    Abstract: We analyze the effect of a wife’s human capital on her husband’s earnings, using individual-level data for Japan in the period 2000?2003. We find a positive association between a wife’s education and her husband’s earnings, which can be attributed to the assortative mating effect as well as the positive effect of an educated wife on her husband’s productivity. We divide the sample into those couples with non-working wives and those with working wives, and also employ an estimation strategy proposed by Jepsen (2005), attempting to control for the assortative mating effect. Our regression analysis provides suggestive evidence that educated wives increase their husbands’ productivity and earnings only when they are non-workers and have sufficient time to support their husbands. (120 words)
    Keywords: earnings, human capital, marriage, the family, assortative mating, cross-productivity effect within marriage.
    JEL: J24 J12
    Date: 2010–06–25

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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.