nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2010‒12‒23
eight papers chosen by
Fabio Sabatini

  1. The Impact of Labor Market Entry Conditions on Initial Job Assignment, Human Capital Accumulation, and Wages By Brunner, Beatrice; Kuhn, Andreas
  2. Comparing Human Development Patterns Across Countries: Is it Possible to Reconcile Multidimensional Measures and Intuitive Appeal? By Mario Biggeri; Vincenzo Mauro
  3. Political leadership change: A theoretical assessment using a human capital ?learning by doing? model By Miguel Rocha de Sousa
  4. The effect of early cognitive ability on earnings over the life-cycle By Falch , Torberg; Sandgren Massih, Sofia
  5. The Crime Reducing Effect of Education By Machin Stephen; Marie Olivier; Vujić Sunčica
  6. Determinants of Labor Productivity in Iran’s Manufacturing Firms: With Emphasis on Labor Education and Training By Fallahi, Firouz; Sakineh, Sojoodi; Mehin Aslaninia, Nasim
  7. Urban Planning throughout environmental quality and human well-being By Duque, José; Panagopoulos, Thomas
  8. Quality of social networks and educational investment decisions By Blanca ZULUAGA

  1. By: Brunner, Beatrice (University of Zurich); Kuhn, Andreas (University of Zurich)
    Abstract: We estimate the effects of labor market entry conditions on wages for male individuals first entering the Austrian labor market between 1978 and 2000. We find a large negative effect of unfavorable entry conditions on starting wages as well as a sizeable negative long-run effect. Specifically, we estimate that a one percentage point increase in the initial local unemployment rate is associated with an approximate shortfall in lifetime earnings of 6.5%. We also show that bad entry conditions are associated with lower quality of a worker's first job and that initial wage shortfalls associated with bad entry conditions only partially evaporate upon involuntary job change. These and additional findings support the view that initial job assignment, in combination with accumulation of occupation or industry-specific human capital while on this first job, plays a key role in generating the observed wage persistencies.
    Keywords: initial labor market conditions, endogenous labor market entry, initial job assignment, specific human capital
    JEL: E3 J2 J3 J6 M5
    Date: 2010–12
  2. By: Mario Biggeri (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Vincenzo Mauro (Università degli Studi di Firenze, Dipartimento di Scienze Economiche)
    Abstract: The aims of this paper are two. The first is to to present a framework that facilitates the identification and analysis of human development patterns in terms of outcomes performance from a cross and time perspective. The second is to find a method that is effective in summarizing different dimensions that concerns human development progress. We consider human development progress as enhanced throughout virtuous synergies among positive human development outcomes and between these and `positive' economic outcomes. The methodology aims to take into consideration these synergies, while the theoretical framework captures different patterns of human development progress through the distinction between the social dimensions (SD) and the economic dimensions (ED) as `command over resources'. Although this framework is not a sufficient guide for policy, the research findings are an explicit recognition of the need to analyse and to integrate economic and social policies. Furthermore, the explorative empirical results highlight different human development patterns between countries and their connection to the different policies adopted by each country (e.g. by transition economies) and by the impact of different type of crises.
    Keywords: Human Development, HDI, Multidimensional Index
    JEL: H70 H72 H77
    Date: 2010
  3. By: Miguel Rocha de Sousa (Universidade de Évora, Departmento de Economia e NICPRI-UE)
    Abstract: We present an economic growth model with human capital, based upon Arrow (1962), in which we assess the impact of political leadership change either in governments or political parties. The change of leadership might be seen as a change in embedded human capital, and thus we might evaluate the loss or gain for society due to these political activities. The approach is theoretical using Arrowian economic setting. We formulate the conditions in which it is worth it, or how long does it take to recover from a political leadership change. The embedded process is an economic one, known as ?learning by doing?, but this time applied to political processes.
    Keywords: Arrow?s model, Human capital, Learning by doing (LBD), Political leadership, Rotation of leaders, Time to recover from political leadership change
    JEL: J24 O41
    Date: 2010
  4. By: Falch , Torberg (Department of Economics, Norwegian University of Science and Technology); Sandgren Massih, Sofia (Uppsala Center for Labor Studies)
    Abstract: This paper utilizes information on cognitive ability at age ten and earnings information from age 20 to 65 to estimate the return to ability over the life-cycle. Cognitive ability measured at an early age is not influenced by the individual’s choices of schooling. We find that most of the unconditional return to early cognitive ability goes through educational choice. The conditional return is increasing for low levels of experience and non-increasing for experience above about 15-25 years. The return is similar for men and women, and highest for individuals with academic education. Only a small part of the return can be explained by higher probability to have a supervisory position.
    Keywords: Cognitive ability; life-cycle; earnings; IQ; employer learning *
    JEL: I29 J31
    Date: 2010–01–19
  5. By: Machin Stephen; Marie Olivier; Vujić Sunčica (ROA rm)
    Abstract: In this paper, we study the crime reducing potential of education, presenting causalstatistical estimates based upon a law that changed the compulsory school leaving agein England and Wales. We frame the analysis in a regression-discontinuity setting anduncover significant decreases in property crime from reductions in the proportion ofpeople with no educational qualifications and increases in the age of leaving school thatresulted from the change in the law. The findings show that improving education canyield significant social benefits and can be a key policy tool in the drive to reduce crime.
    Keywords: education, training and the labour market;
    Date: 2010
  6. By: Fallahi, Firouz; Sakineh, Sojoodi; Mehin Aslaninia, Nasim
    Abstract: In an era of globalized competition, productivity has become a crucial factor determining profitability, competitiveness and the growth of a firm. High productivity means lower per unit cost and, therefore, ability of the firm to match prices on the global markets. Because of that, there has been an increasing interest recently in the literature on factors affecting productivity. This paper investigates the determinants of labor productivity at the firm level in the Iran’s manufacturing sector. The analysis is based on descriptive statistics and cross sectional regression models on a sample of 12299 Industrial firms. The results show that labor productivity is positively related to wage, fixed capital per employee, export orientation, R&D activity and Education of labor force.
    Keywords: Labor productivity; Industrial firms; Education; Training; Export; R&D
    JEL: J24 J2
    Date: 2010–12–13
  7. By: Duque, José (Huelva University); Panagopoulos, Thomas (vice-president of the CIEO)
    Abstract: The cities of today present some requirements that are not similar to the past. There are cities that the industrial and service sectors are in decline; others begin their journey into the technological and industrial sector. In general, politically and socially are restructured in terms of its economy, which results in an entirely different shape to their primitive structures. As people begin to understand the dynamic nature of landscapes, they will change the way they see the landscape as a static scene. Sustainable cities must be simultaneously economically viable, socially just, politically well managed and ecologically sustainable to maximize human comfort. The present research suggests a multi-disciplinary approach for a holistic understanding of urban environmental quality and human well-being in sustainable urban development.
    Keywords: Well-being; Urban planning; Liveable city; Environmental quality
    JEL: Q01 R10
    Date: 2010–10–29
  8. By: Blanca ZULUAGA
    Abstract: All individuals belong to a social network with certain quality level. This paper analyzes the role of the quality of the social network in the educational decision making process. We propose a measure for quality of network based on the schooling level and the labor position of the members of the net. Our analysis compares individuals who are similar in at least two characteristics: socioeconomic level and intellectual ability. Although they belong to the same type of community (poor), they differ in the composition of their social network. The higher the quality of the network, the higher the probability of investing in education. Hence, socially disadvantaged and equally intelligent individuals may end up acquiring different schooling levels.
    Date: 2010–10

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