nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2011‒04‒30
ten papers chosen by
Tommaso Reggiani
Universita' di Bologna

  1. Retaining through Training; Even for OlderWorkers By Picchio, M.; Ours, J.C. van
  2. China's Latent Human Capital Investment: Achieving Milestones and Competing for the Top By Constant, Amelie F.; Tien, Bienvenue; Zimmermann, Klaus F.; Meng, Jingzhou
  3. Dips and floors in workplace training: Using personnel records to estimate gender differences By Fitzenberger, Bernd; Muehler, Grit
  4. Social Status, Human Capital Formation and the Long-run Effects of Money By Chen, Hung-Ju
  5. Return migration in Italy: what do we know? By Biondo, Alessio E.; Monteleone, Simona
  6. The consequences of early childhood growth failure over the life course: By Hoddinott, John; Maluccio, John; Behrman, Jere R.; Martorell, Reynaldo; Melgar, Paul; Quisumbing, Agnes R.; Ramirez-Zea, Manuel; Stein, Aryeh D.; Yount, Kathryn M.
  7. Heterogeneous Human Capital, Trade and Growth By Cheng-Te Lee; Deng-Shing Huang
  8. The Sick Pay Trap By Fevang, Elisabeth; Markussen, Simen; Røed, Knut
  9. Power of incentives with motivated agents in public organizations. By Mougeot, Michel; Naegelen, Florence
  10. Incentives, Project Choice and Dynamic Multitasking By Martin Szydlowski

  1. By: Picchio, M.; Ours, J.C. van (Tilburg University, Center for Economic Research)
    Abstract: This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This finding is robust to a number of robustness checks. It also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work.
    Keywords: training;employment;human capital;older workers.
    JEL: C33 C35 J21 J24 M53
    Date: 2011
  2. By: Constant, Amelie F. (DIW DC, George Washington University); Tien, Bienvenue (DIW DC); Zimmermann, Klaus F. (IZA and University of Bonn); Meng, Jingzhou (George Washington University)
    Abstract: In this paper we provide an overview of China’s human capital strategy and educational achievements over the last two decades. While every one acknowledges China as an economic superpower, very few are aware of or realize China’s notable achievements in education as well as its internationalization of education. Since 1978, the landmark for the foundation of the Chinese modern higher education system China has made tremendous strides in education both domestically and internationally. While China maintains 10% growth in GDP, albeit with a GDP per capita at the low level of a developing country, it is also producing serious scholars and a tremendous amount of scholarly output; more and more Chinese students seek higher education abroad; and international students find a rising interest in receiving education in China.
    Keywords: China, human capital, brain drain, higher education
    JEL: F22 J24 N35 O15 O24 O53
    Date: 2011–04
  3. By: Fitzenberger, Bernd; Muehler, Grit
    Abstract: Using personnel records from a single large German firm in the financial industry, this paper provides detailed evidence on the effect of age and the supervisor's gender on gender differences in workplace training, holding constant various workplace characteristics. We implement an age-specific decomposition of the incidence and the duration of training into three terms: an age-specific coefficients effect, an age-specific characteristics effect, and an age composition effect. Our results show that the gender training gap changes with age. Females obtain less training during the early career, and their training occurs at higher age. The timing of the gender training gap seems to be driven by diverging career paths associated with employment interruptions. However, we find no evidence for catching-up effects after parental leave. A decomposition of the training gap including supervisor fixed effects reveals that supervisors do not treat male and female employees differently. Supervisors assign more training to all employees if they themselves participate more in training. --
    Keywords: training participation,age,gender,company data
    JEL: M53 M12 J14
    Date: 2011
  4. By: Chen, Hung-Ju
    Abstract: This study examines the effects of monetary policy in a two-sector cash-in-advance economy of human capital accumulation. Agents concern about their social status represented by the relative physical capital and relative human capital. We find that if the desire for social status depends only on relative physical capital, money is superneutral in the growth-rate sense. However, if the desire for social status depends on relative human capital, the money growth rate will have a positive effect on the long-run economic growth rate. Furthermore, an increase in the desire to pursue human capital will raise the long-run growth rate, but an increase in the desire to pursue physical capital will lower it.
    Keywords: Cash-in-advance economy; Endogenous growth; Social status.
    JEL: O42 E52 C62
    Date: 2011
  5. By: Biondo, Alessio E. (University of Catania); Monteleone, Simona (University of Naples “Parthenope”)
    Abstract: Return migration is the positive counterpart of brain drain. Human capital accumulation increases in a country if skilled agents go back home after a period spent working abroad. Effects of brain drain in Italy could be negative as highly skilled migrants decide not to come back to their native country. Our simple model shows that if preference for home consumption is balanced by career opportunities and life-style conditions, agents leave Italy and prefer to remain abroad. Data support and policy implications are provided.
    Keywords: Return migration; brain drain.
    JEL: F22 J24
    Date: 2010–04–01
  6. By: Hoddinott, John; Maluccio, John; Behrman, Jere R.; Martorell, Reynaldo; Melgar, Paul; Quisumbing, Agnes R.; Ramirez-Zea, Manuel; Stein, Aryeh D.; Yount, Kathryn M.
    Abstract: This paper examines the impact over the life course of early childhood growth failure as measured by achieved height at 36 months. It uses data collected on individuals who participated in a nutritional supplementation trial between 1969 and 1977 in rural Guatemala and who were subsequently reinterviewed between 2002 and 2004. It finds that individuals who did not suffer growth failure in the first three years of life complete more schooling, score higher on tests of cognitive skill in adulthood, have better outcomes in the marriage market, earn higher wages and are more likely to be employed in higher-paying skilled labor and white-collar jobs, are less likely to live in poor households, and, for women, fewer pregnancies and smaller risk of miscarriages and stillbirths. Growth failure has adverse impacts on body size and several dimensions of physical fitness in adulthood but does not have marked effects on risk indicators of cardiovascular and related chronic diseases. These results provide a powerful rationale for investments that reduce early-life growth failure.
    Keywords: Chronic disease, early life growth failure, fertility, Human capital, Poverty, Undernutrition, Wages,
    Date: 2011
  7. By: Cheng-Te Lee (Department of International Trade, Chinese Culture University, Taiwan); Deng-Shing Huang (Institute of Economics, Academia Sinica, Taipei, Taiwan)
    Abstract: Distribution differences in human capital matter for a country’s growth and trade. While the existing literature considers only the diversity difference in talent distribution, we argue that the kurtosis difference is also an important factor. In a two-sector equilibrium growth model, where the production function is supermodular for the consumption-good sector and submodular for the R&D sector, we prove that the diversity effect and kurtosis effect are opposite to each other. A country endowed with more diverse but leptokurtic talent distribution may have lower growth rate and import submodular goods, opposite to the conventional result from considering only the diversity difference.
    Keywords: diversity, kurtosis, growth, trade
    JEL: F11 O41
    Date: 2011–04
  8. By: Fevang, Elisabeth (Ragnar Frisch Centre for Economic Research); Markussen, Simen (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research)
    Abstract: In most countries, employers are financially responsible for sick pay during an initial period of a worker's absence spell, after which the public insurance system covers the bill. Based on a quasi-natural experiment in Norway, where pay liability was removed for pregnancy-related absences, we show that firms' absence costs significantly affect employees' absence behavior. However, by restricting pay liability to the initial period of the absence spell, firms are discouraged from letting long-term sick workers back into work, since they then face the financial risk associated with subsequent relapses. We show that this disincentive effect is statistically and economically significant.
    Keywords: absenteeism, social insurance, experience rating, multivariate hazard rate models
    JEL: C14 C41 H55 I18 J23
    Date: 2011–04
  9. By: Mougeot, Michel; Naegelen, Florence
    Abstract: Public service motivation is often considered as an argument for low- powered incentive schemes in the public sector. In this paper, we characterize the optimal contract between a public regulator and an altruistic agent according to the degree of public service motivation, when the type of the public service consumer is privately observed. We show that the requested effort is non decreasing with and can be higher than the first best level. Moreover we show that the agent is put on a high powered contract when some customers are served but that this contract is associated with different types of consumers according to : In contrast, the agent is never put on a cost-plus contract. Finally, we show that the first best allocation can be achieved under budget balance for a degree of altruism higher than a threshold that we characterize.
    Keywords: altruism; power of incentive schemes; regulation; countervailing incentives; public organization;
    JEL: D2 D8 L3
    Date: 2011
  10. By: Martin Szydlowski
    Abstract: I study the optimal choice of investment projects in a continuous time moral hazard model with multitasking. While in the first best, projects are invariably chosen by the net present value (NPV) criterion, moral hazard introduces a cutoff for project execution which depends on both a project’s NPV as well as its signal to noise ratio (SN). The cutoff shifts dynamically depending on the past history of shocks, current firm size and the agent’s continuation value. When the ratio of continuation value to firm size is large, investment projects are chosen more efficiently, and project choice will depend more on the NPV and less on the signal to noise ratio. I show that the optimal contract can be implemented with an equity stake, bonus payments, as well as a personal account. Interestingly, when the contract features equity only, the project selection rule resembles a hurdle rate criterion.
    JEL: D86 G11 G31 G32 M12 M52
    Date: 2011–04–25

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