nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒08‒14
ten papers chosen by
Fabio Sabatini
Euricse and University of Trento

  1. FDI and Human Capital Development By P. Srinivas Subbarao
  2. Human Capital Values and Returns:Bounds Implied By Earnings and Asset Returns Data By Mark Huggett and Greg Kaplan
  3. Effects of workplace representation on firm-provided further training in Germany By Stegmaier, Jens
  4. Endogenous Growth and Parental Funding of Education in an OLG Model with a Fixed Factor By Lionel Artige
  5. "The Effect of Child Health on Schooling: Evidence from Rural Vietnam" By Thuan Quang Thai; Evangelos M. Falaris
  6. Improving the Measurement of Human Development By Carmen Herrero; Ricardo Martínez; Antonio Villar
  7. The Spatial Dimension of Human Development Index in Indonesia By Rullan Rinaldi; Eva Nurwita
  8. Success and Failure in Human Development, 1970-2007 By Gustav Ranis; Frances Stewart
  9. Hope in Hard Times: Women’s Empowerment and Human Development By Manisha Desai
  10. Advances in sub national measurement of the Human Development Index: The case of Mexico By Rodolfo de la Torre; Hector Moreno

  1. By: P. Srinivas Subbarao
    Abstract: This paper explains importance of human capital skilling, the relation between the FDI and Human Capital development besides the experiences of these two in different regions of the world i.e., Asian and Latin American experiences. [W.P. No.2008-02-01]
    Keywords: FDI, human capital skilling, Human Capital development, Asian, Latin American
    Date: 2010
  2. By: Mark Huggett and Greg Kaplan (Department of Economics, Georgetown University)
    Abstract: We provide theory for calculating bounds on both the value of an individual’s human capital and the return on an individual’s human capital, given knowledge of the process governing earnings and financial asset returns. We calculate bounds using U.S. data on male earnings and financial asset returns. The large idiosyncratic component of earnings risk implies that bounds on values and returns are quite loose. However, when aggregate shocks are the only source of earnings risk, both bounds are tight. Classification-JEL Codes: J24, G12
    Keywords: Value of Human Capital, Return on Human Capital, Asset Pricing
    Date: 2010–07–10
  3. By: Stegmaier, Jens (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Unions are an important indicator of various measures of firm performance in Anglo-Saxon countries. The same holds for the German analogue of workplace unionism - the works council. Using the IAB Establishment Panel I examine the impact of works councils and shop-floor participation on further training and training intensity. As some studies suggest that the impact of workplace representation varies with firm size, I also test for differences between large and small/medium-sized establishments. Pooled logit and count data models are employed to analyze firms' further training activity and training intensity. Because the treatment variables may suffer from endogeneity I also adopt linear and nonlinear instrumental variables techniques. The analysis reveals a positive impact of works councils on firm-provided further training, but provides slightly weaker evidence of firm-size differentials of workplace representation." (author's abstract, IAB-Doku) ((en))
    JEL: J53 J24
    Date: 2010–08–05
  4. By: Lionel Artige
    Abstract: This paper examines the stationary state income level and income growth in an overlapping generations (OLG) model in which production uses three inputs: physical capital, human capital and land. The accumulation of human capital relies on parental funding of education and the past aggregate human capital stock. Four cases exhibiting various possible specifications of returns to scale in output and human capital technologies are studied and compared.
    Date: 2010
  5. By: Thuan Quang Thai (Max Planck Institute for Demographic Research); Evangelos M. Falaris (Department of Economics,University of Delaware)
    Abstract: We study the relationship between long term child health and human capital. Child health may suffer if a child is inadequately nourished or is exposed to disease early in life and this may affect subsequent accumulation of human capital. We use data from rural Vietnam to examine the impact of child health on delay in starting school and schooling progress taking into account that choices of families affect children’s health and schooling. Our instrument is early life rainfall shocks that have differential effects arising from regional economic diversity. Our estimates indicate that better child health results in meaningfully improved schooling outcomes.
    Keywords: child health, z-score, school entry delay, schooling gap, rainfall shocks, Vietnam
    JEL: I12 J24 J13 O15
    Date: 2010
  6. By: Carmen Herrero (University of Alicante and Ivie); Ricardo Martínez (University of Málaga); Antonio Villar (Pablo de Olavide University and Ivie)
    Abstract: We propose a new Human Development Index that involves a number of changes with respect to the present one, even though it keeps the basic structure of the index (namely, preserving “health”, “education” and “material wellbeing” as the three basic dimensions of human development). The first change refers to the substitution of the arithmetic mean by the geometric mean, as a way of aggregating the different dimensions in a more sensible way. The second one leads to the introduction of distributive considerations in the evaluation of material wellbeing. The last change consists of the introduction of new variables to approach health and education, looking for a higher sensitivity of the index with respect to the differences between countries. These new variables are specially indicated for the analysis of human development in highly developed countries. Besides the conceptual discussion, that includes a characterization of the chosen aggregation formula, we present a comparative analysis of this new index and the standard one, focusing on the OECD countries.
    Keywords: Human Development, multiplicative indices, distributive concerns, highly developed countries, HDI
    Date: 2010–07
  7. By: Rullan Rinaldi (Department of Economics, Padjadjaran University); Eva Nurwita (Department of Economics, Padjadjaran University)
    Abstract: As the new paradigm of economic development pioneered by UNDP and Mahbub Ul-Haq undertaken, development processes no longer viewed as monodimensional process of economic growth indicated by GDP growth solely. Human Development Index on the other side offer an indicator that takes into account other aspecta as proxies of life quality such as life expectancy and literacy rate wrapped as a composite index. Several previous researches has try to explain the determinant of HDI, but as HDI was start to calculated at sub national level, the complexity of the task to explain the determinants was escalating due the fact that sub national data has geographical information attached in it. This paper tries to explain the spatial pattern on HDI achievement at sub national level in Indonesia, and estimate the determinants of HDI using spatial econometrics method. The use of the tools based on the necessity to put into account spatial dependence as special form of cross-sectional serial correlation, which is a common situation in observations that has geographical information.
    Keywords: Human Development Index, Spatial Econometrics, Sub National Data
    JEL: O15 R58 R11
    Date: 2010–06
  8. By: Gustav Ranis (Yale University); Frances Stewart (Centre for Research on Inequality, Human Security and Ethnicity, University of Oxford)
    Abstract: The paper reviews experience in advancing Human Development since 1970 by investigating behaviour among countries that made the largest improvements in HD, and those that made the least improvement. The three developing countries with the fastest growth in the HDI over the period are selected from initial low-HDI, middle HDI- and high HDI country groupings, and their experience compared on a range of indicators. Certain characteristics were common to all success cases: good or moderate educational enrolment ratios; good or moderate female/male enrolment ratios; and good or moderate Human Poverty Indices. The other three major inputs into success appear to be growth, social expenditure and income distribution, and the successful countries showed different combinations of performance on these. Weak performers all experienced poor or moderate economic growth. Two classes of weak performance were: low income countries with weak growth, poor distribution and high poverty; and transition countries where economic, institutional and demographic disruptions led to poor progress. We also look beyond the HDI as an indicator of HD, explore such other features as political freedoms, security and environmental sustainability, and find little correlation between achievements on these indicators (both in levels and changes) with success and failure with respect to the HDI. Finally we provide short country vignettes of some of the success and failure cases, exploring some historical and institutional features associated with their performance.
    Keywords: Human Development, growth, income distribution
    JEL: O11 O2 O20 O15
    Date: 2010–07
  9. By: Manisha Desai (University of Connecticut)
    Abstract: This paper addresses the conceptual and methodological issues related to women’s empowerment, the trends in women’s empowerment over the last 20 years in key areas such as education, health, economic and political participation, and finally the best practices of state and non-state actors in empowering women. Following a brief critique of human development, it begins with a discussion of the growing conceptual consensus around empowerment, i.e., empowerment being control over resources, women’s agency, a process and outcomes, to the methodological issues involved in its measurement, specifically focusing on the Gender Empowerment Measure and arguing that minimally the measure needs to move away from its urban, elite, and formal employment bias. The trends in women’s empowerment over the past 20 years show that while there have been gains in primary and secondary education, in political representation at the national level, and in waged labor, and a decline in fertility and maternal mortality, violence against women and HIV/AIDS continue to be endemic and these trends vary across regions and within countries urban and rural poor, ethnic minorities, and older and disabled women fare worse on all indicators with the current economic crisis reversing many gains. Furthermore, a decrease in measures of gender gap do not translate into gender equality and positive trends are often accompanied by negative trends resulting from unintended consequences of development. Finally, it highlights some government best practices such as quotas, cash transfer programs, gender budgeting, and community based micro enterprises, some movement practices, i.e., local women run community based programs to combat violence and HIV/AIDS and transnational exchanges, unions campaigns such as Decent Work for Women and corporate practices such as gender equality seals and corporate social responsibility.
    Keywords: gender, women’s empowerment, human development
    JEL: Y8
    Date: 2010–07
  10. By: Rodolfo de la Torre (Human Development Research Office (HDRO), PNUD Mexico and Centro de Investigación y Docencia Económicas (CIDE)); Hector Moreno (Human Development Research Office (HDRO), PNUD Mexico)
    Abstract: This paper surveys the main informational, conceptual and theoretical adjustments made to the HDI in the Mexican Human Development Reports and presents a way in which the calculation of the HDI could be carried out to the individual level. First, informational changes include redistributing government oil revenues from oil producing regions to the rest of the country in order to obtain a better picture of available resources and imputing per capita average household income to all municipalities combining census and income surveys. Also, state information is used to set counterfactuals about the first effects of internal migration on development, and municipal data is applied to decompose inequality indices to identify the sources and regions contributing to overall human development inequality. Second, conceptual adjustments consider introducing two additional dimensions to the HDI: being free from local crime and the absence of violence against women. Third, a key theoretical contribution from the Mexican National Reports to the HDI literature is the proposal of an inequality sensitive development index based on the concept of generalized means. Finally, the proposed disaggregation of the HDI at the household and individual level allows analyzing development levels for subgroups of population either by age, ethnic condition, sex and income or HDI deciles across time.
    Keywords: Human Development Index, individual HDI, household HDI, inequality, migration, local crime, absence of violence against women, generalized means
    JEL: C81 I3 D63
    Date: 2010–07

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