nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒09‒03
seven papers chosen by
Fabio Sabatini
Euricse and University of Trento

  1. EU Policies and African Human Capital Development By Yaw Nyarko
  2. Human Capital Mismatches along the Career Path By Ljubica Nedelkoska; Frank Neffke
  3. Altruism, Education Subsidy and Growth By Mauricio Armellini; Parantap Basu
  4. Worker Mobility, Employer-Provided Tuition Assistance, and the Choice of Graduate Management Program By Gicheva, Dora
  5. Human Factors: Spanning the Gap between OM & HRM By Neumann, W.P.; Dul, J.
  6. The More the Better? Effects of Training and Information Amount in Legal Judgments By Stephan Dickert; Britta Herbig; Andreas Glöckner; Christina Gansen; Roman Portack
  7. Spinoffs and Entrepreneurial Talent By Mili Shrivastava

  1. By: Yaw Nyarko
    Abstract: Brain Circulation between the European Union (EU) and Sub-Saharan Africa is a crucial ingredient in Human Capital formation in the latter. A major constraint to African development is the very low base of skilled and highly educated workers and professionals. The production of skilled workers has been low, and only recently has seen a dramatic increase. Recent papers by many authors have indicated that a channel for human capital growth has been, paradoxically, the possibility of the brain drain which serves as both an incentive mechanism and which results in higher human capital when the drainers return. After a review of some of the literature, these insights are applied to the debates raging today on European Union migration policy: the Blue Card, Migration Con-tracts, anti-Brain Drain legislation, etc. This paper argues that a careful calibration of the EU policies may enable faster Human Capital growth in Africa, while, at the same time, being beneficial to the EU by supplying critically needed skills into the EU economy. By carefully planning the production of human capital and the consequent flow of skilled migrants into Europe, the EU can assist in the development of vitally needed numbers of trained or skilled workers in Africa.
    Keywords: Brain Drain, Immigration, Migration, Human Capital, Economic Development
    Date: 2010–04–15
  2. By: Ljubica Nedelkoska (Research Training Group "Economics of Innovative Change" at the Friedrich Schiller University Jena); Frank Neffke (Erasmus School of Economics, Rotterdam)
    Abstract: Human capital is transferable across occupations, but only to a limited extent because of differences in occupational skill-profiles. Higher skill overlap between occupations renders less of individuals' human capital useless in occupational switches. Current occupational distance measures neglect that differences in skill complexities between occupations yield skill mismatch asymmetric in nature. We propose characterizing occupational switches in terms of human capital shortages and redundancies. This results in superior predictions of individual wages and occupational switches. It also allows identifying career movements up and down an occupational complexity ladder, and assessing the usefulness of accumulated skill-profiles at an individual's current job.
    Keywords: skill mismatch, skill transferability, occupational change, human capital, wages
    JEL: J24 J30 J63
    Date: 2010–08–24
  3. By: Mauricio Armellini; Parantap Basu
    Abstract: An optimal education subsidy formula is derived using an overlapping generations model with parental altruism. The model predicts that public education subsidy is greater in economies with lesser parental altruism because a benevolent government has to compensate for the shortfall in private education spending of less altruistic parents with a finite life. On the other hand, growth is higher in economies with greater parental altruism. Cross-country regressions using the World Values Survey for altruism lend support to our model predictions. The model provides insights about the reasons for higher education subsidy in richer countries.
    Keywords: Altrusim, Education Subsidy, Human Capital, Growth.
    JEL: D9
    Date: 2010–08–21
  4. By: Gicheva, Dora (University of North Carolina at Greensboro, Department of Economics)
    Abstract: This paper links a worker's propensity to change jobs to her schooling choices. A model of the choice of graduate management program type based on job search theory predicts that more mobile workers are more likely to enroll in a full-time Master of Business Administration program. The study also adds to the literature on employer-sponsored general training; the model predicts that employers are more likely to provide tuition assistance to workers who find quits costly. I use a four-wave panel survey of GMAT registrants to show that these predictions hold true empirically. Observable characteristics that are correlated with stronger job attachment are also positively correlated with the probability of attending a part-time program and, conditional on part-time attendance, with the likelihood of receiving employer-provided tuition reimbursement.
    Keywords: job mobility; employer-provided general training; MBA education
    JEL: J24 J32 J62 M53
    Date: 2010–08–26
  5. By: Neumann, W.P.; Dul, J.
    Abstract: Purpose: This paper examines the claim that the application of human factors (HF) knowledge can improve both human well-being and operations system performance. Methodology: A systematic review was conducted using a general and two specialist databases to identify empirical studies addressing both human effects and operations system effects in examining manufacturing operations system design aspects. Findings: We found 45 empirical studies addressing both the human effects and system effects of operations system (re)design. Of those studies providing clear directional effects, 95% showed a convergence between human effects and system effects (+,+ or -,-), 5% showed a divergence of human and system effects (+,- or -,+). System effects included quality, productivity, implementation performance of new technologies, and also more ‘intangible’ effects in terms of improved communication and co-operation. Human effects included employee health, attitudes, physical workload, and ‘quality of working life’. Research limitations/implications: Future research should attend to both human and system outcomes in trying to determine optimal configurations for operations systems as this appears to be a complex relationship with potential long-term impact on operational performance. Practical implications: The application of HF in operations system design can support improvement in both employee well-being and system performance in a number of manufacturing domains. Originality/value: This paper outlines and documents a research and practice gap between the fields of HF and OM research that has not been previously discussed in the management literature. This gap may be inhibiting the design of operations systems with superior long term performance.
    Keywords: human factors;sustainable competitiveness;productivity;health;operations design;production planning
    Date: 2010–05–28
  6. By: Stephan Dickert (Max Planck Institute for Research on Collective Goods, Bonn); Britta Herbig (Institute for Occupational, Social and Environmental Medicine, Ludwig-Maximilians-University, Munich, Germany); Andreas Glöckner (Max Planck Institute for Research on Collective Goods, Bonn); Christina Gansen (University of Bonn); Roman Portack (University of Bonn)
    Abstract: In an experimental study we investigated effects of information amount and legal training on the judgment accuracy in legal cases. In a two (legal training: yes vs. no) x two (information amount: high vs. low) between-subjects design, 90 participants judged the premeditation of a perpetrator in eight real-world cases decided by the German Federal Court of Justice. Judgment accuracy was assessed in comparison with the Court’s ruling. Legal training increased judgment accuracy, but did not depend on the amount of information given. Furthermore, legal training corresponded with higher confidence. Interestingly, emotional reactions to the legal cases were stronger when more information was given for individuals without legal training but decreased for individuals with training. This interaction seems to be caused by fundamental differences in the way people construct their mental representations of the cases. We advance an information processing perspective to explain the observed differences in legal judgments and conclude with a discussion on the merits and problems of offering more information to lay people participating in legal decision making.
    Date: 2010–08
  7. By: Mili Shrivastava (Graduate College "The Economics of Innovative Change" and Entrepreneurship, Growth and Public policy group, Max Planck Institute of Economics, Jena, Germany)
    Abstract: Spinoffs firms are an important source of industry dynamics and innovation. While an emerging body of literature identifies strategic disagreements and ideas as determinants of spinoffs, neither of them can completely explain the spinoff process. Mere disagreements or brilliant flashes of ideas do not always lead to spinoffs. This study brings individual level determinants at the forefront in spinoff formation. Based on insights from the occupational choice theory, we argue that spinoff process is a distinctive class of entrepreneurial entrants and entrepreneurial talent is a major determinant in formation of spinoffs. Entrepreneurial talent modulates the impact of strategic disagreements and ideas on the decision to spi
    Keywords: Spinoffs, Entrepreneurship, Occupational choice, Disagreements
    JEL: D00 J24 L2
    Date: 2010–08–25

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