nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2011‒07‒13
twelve papers chosen by
Tommaso Reggiani
Universita' di Bologna

  1. A Model of Multi-Dimensional Human Capital Investment: Specific vs. general investments under uncertainty By ICHIDA Toshihiro
  2. Equilibrium dynamics in two-sector models of endogenous growth. By Ladrón de Guevara, Antonio; Ortigueira, Salvador; Santos, Manuel S.
  3. Network Effects in International Migration: Education versus Gender By Michel Beine; Sara Salomone
  4. Human Capital and the Quantity-Quality Trade-Off during the Demographic Transition: New Evidence from Ireland By Alan Fernihough
  5. Corporate Social Responsibility in the work place - Experimental evidence on CSR from a gift-exchange game By Hannes Koppel; Tobias Regner
  6. Job Anxiety, Work-Related Psychological Illness and Workplace Performance By Jones, Melanie K.; Latreille, Paul L.; Sloane, Peter J.
  7. Job satisfaction in Italy: Individual characteristics and social relations By Fiorillo, D;; Nappo, N;
  8. Fair Wages When Employers Face the Risk of Losing Money By Karina Gose; Abdolkarim Sadrieh
  10. Cardiovascular Consequences of Unfair Pay By Falk, Armin; Menrath, Ingo; Siegrist, Johannes; Verde, Pablo Emilio
  12. Managerial Compensation Contracting. By Engesaeth, E.J.P.

  1. By: ICHIDA Toshihiro
    Abstract: Specialization and the division of labor are the sources of high productivity in modern society. When worker skills are multi-dimensional, workers may face a choice between general versus specific human capital investment. Given that individual agents face uncertainty in the relative output price, what are the optimal strategies for heterogeneous individual agents in human capital investment? In the absence of insurance markets, general investment gives an option value for changes in the environment. We analyze a model in which workers are born heterogeneous and are endowed with two-dimensional skills in different sectors, to determine if incentives exist for workers to invest in skills in which they had originally excelled or struggled. We find that some workers choose to invest in their weaker skill, via specific human capital investment, provided that the scale of the risk is big and that the parameter of relative risk aversion is greater than one. We find that there exist agents whose optimal human capital investment decisions reverse their ex ante comparative advantages ex post.
    Date: 2011–07
  2. By: Ladrón de Guevara, Antonio; Ortigueira, Salvador; Santos, Manuel S.
    Abstract: This paper presents an account of the dynamics of endogenous growth models with physical capital and human capital. We consider some important extensions of the basic framework of Lucas (1988) and Uzawa (1964), including physical capital in the human capital technology and leisure activities as an additional argument of agents' welfare.
    Keywords: Endogenous growth; Physical capital; Human capital; Long-term growth; Transitional dynamics;
  3. By: Michel Beine (CREA, University of Luxembourg, IRES, CREAM and CES-Ifo); Sara Salomone (IRES, Université catholique de Louvain and Tor Vergata University)
    Abstract: This paper analyzes the impact of networks on the structure of international migration flows. In particular, we investigate whether diaspora externalities are dif- ferent across education levels and gender. Using new data including both dimensions, we analyze the respective impact of networks on the proportion of each category of migrant. Therefore, in contrast to 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: 2011
  4. By: Alan Fernihough (University College Dublin)
    Abstract: In this article I measure the child quantity-quality relationship in 1911 Ireland. My analysis shows that sibship size had a strong impact on the probability of school enrollment in both Belfast and Dublin. However, the magnitude of the relationship varied considerably across different cohorts, most noticeably between the two cities. The existence of this relationship shows how the demographic transition played a vital role in the expansion of human capital and is highly consistent with the theoretical foundations of various long-run growth theories.
    Keywords: Quantity-Quality, Human Capital, Demographic Transition, Unified Growth Theory
    Date: 2011–07–05
  5. By: Hannes Koppel (Max Planck Institute of Economics, Jena); Tobias Regner (Max Planck Institute of Economics, Jena)
    Abstract: We analyze the effect of investments in corporate social responsibility (CSR) on workers' motivation. In our experiment, a gift exchange game variant, CSR is captured by donating a certain share of profits to a charity. We are testing for CSR effects by varying the possible share of profits given away. Additionally, we investigate the effect of a mission match, i.e., a worker prefering the same charity the firm is actually donating to. Our results show that on average workers reciprocate investments into CSR with increased effort. A mission match does result in higher effort, but only when investment into CSR is high.
    Keywords: Corporate Social Responsibility, gift-exchange game, experiment, labor market, incentives
    JEL: C73 C91 J01 M14 M52
    Date: 2011–06–30
  6. By: Jones, Melanie K. (Swansea University); Latreille, Paul L. (Swansea University); Sloane, Peter J. (Swansea University)
    Abstract: This paper uses matched employee-employer data from the British Workplace Employment Relations Survey (WERS) 2004 to examine the determinants of employee job anxiety and work-related psychological illness. Job anxiety is found to be strongly related to the demands of the job as measured by factors such as occupation, education and hours of work. Average levels of employee job anxiety, in turn, are positively associated with work-related psychological illness among the workforce as reported by managers. The paper goes on to consider the relationship between psychological illness and workplace performance as measured by absence, turnover and labour productivity. Work-related psychological illness is found to be negatively associated with several measures of workplace performance.
    Keywords: job anxiety, stress, absence, labour productivity
    JEL: I0 J28 J81 J20
    Date: 2011–06
  7. By: Fiorillo, D;; Nappo, N;
    Abstract: This paper investigates the determinants of job satisfaction in Italy with particular emphasis on social relations. Our econometric analysis is based on four waves (1993, 1995, 1998 and 2000) of the Multipurpose Household Survey conducted annually by the Italian Central Statistics Office. The results of ordered probit regressions and robustness tests show that volunteering and meetings with friends are significantly and positively correlated with job satisfaction, with religious participation playing the biggest role. Our findings also show that meetings with friends increase job satisfaction through self-perceived health.
    Keywords: Job satisfaction, social relations, social capital, health, statistical matching, Italy
    JEL: C31 J28 Z1
    Date: 2011–06
  8. By: Karina Gose (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Abdolkarim Sadrieh (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: We study the behavior of employers and employees in a gift exchange game and find that employers offer lower wages when there is the risk of losing money. This, however, does not lead to lower effort level choices. In fact, effort per wage unit is significantly higher in the treatment with potential employer losses. This result can be in line with social comparison theories that are based on relative payoff differences. Alternatively, this result is also in line with the hypothesis that the risk of losing money increases the credibility of the employer's trust signal and, thus, the employee's reciprocity.
    Keywords: fair wage, efficiency wage, social comparison, loss aversion
    JEL: C92 J41
    Date: 2011–04
  9. By: Samanvitha Swaminathan; P. David Jawahar (Bharathidasan Institute of Management, Tiruchirapalli, Tamil Nadu, India)
    Abstract: Job Satisfaction at work has a gross influence on the level of Organizational Citizenship Behavior and in turn on work performance. This study aims at determining and establishing a relationship between Job Satisfaction and Organizational Citizenship Behavior among faculty in higher learning institutions. The study has employed the Wong’s Job Satisfaction (Wong, 2010) and Organ’s Organizational Citizenship Behavior (Organ, 1988) inventories to quantify the Job Satisfaction and Organizational Citizenship Behavior levels respectively. Samples from 252 faculty members in Tamil Nadu, India were used to obtain the empirical base for the study. Correlation and multiple regression analyses were used to interpret the data
    Keywords: Job satisfaction, Organizational Citizenship Behavior
    JEL: M00
    Date: 2011–06
  10. By: Falk, Armin; Menrath, Ingo; Siegrist, Johannes; Verde, Pablo Emilio
    Abstract: This paper investigates physiological responses to perceptions of unfair pay. In a simple principal agent experiment agents produce revenue by working on a tedious task. Principals decide how this revenue is allocated between themselves and their agents. In this environment unfairness can arise if an agent's reward expectation is not met. Throughout the experiment we record agents' heart rate variability. The latter is an indicator of stress-related impaired cardiac autonomic control, which has been shown to predict coronary heart diseases in the long run. Establishing a causal link between unfair pay and heart rate variability therefore uncovers a mechanism of how perceptions of unfairness can adversely affect cardiovascular health. We further test potential adverse health effects of unfair pay using data from a large representative data set. Complementary to our experimental findings we find a strong and highly significant association between health outcomes, in particular cardiovascular health, and fairness of pay.
    Keywords: experiments; fairness; health; heart rate variability; inequality; social preferences; SOEP
    JEL: C91 D63
    Date: 2011–06
  11. By: Md Sahanur Islam (Assistant Professor, Meghnad Saha Institute of Technology, Nazirabad, p.o- Utchepota, Kolkata, India)
    Abstract: Quality of work life (QWL) is one of the major parts for the employees’ motivation in organizations. People can deliver their best potential if the QWL is improved and satisfactory. Researcher has seen many organizations have poor QWL and they are not aware of the conditions. Growth of Insurance sector is expected to be US$ 350-400 by 2020 and it is also expected that Indian Insurance market will reach the top 3 insurance market in the world. To achieve those insurance companies must have to reduce the attrition rate, which is very high in present conditions. Many insurance companies have taken various steps to prevent that, but researcher thought that quality of work life may be one of the reasons for the attrition. This paper aims to develop a model on the various factors affecting the attrition in insurance industry in India to overpower the drawbacks to achieve the desired objective
    Keywords: Quality of work life, Insurance sector, attrition rate, motivation, best potential
    JEL: M00
    Date: 2011–06
  12. By: Engesaeth, E.J.P. (Universiteit van Tilburg)
    Date: 2011

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