nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2011‒10‒15
fourteen papers chosen by
Tommaso Reggiani
Universita' di Bologna

  1. Regional Inequality in Human Capital Formation in Europe, 1790 - 1880 By Ralph Hippe; Joerg Baten
  2. Firms' Moral Hazard in Sickness Absences By Böheim, René; Leoni, Thomas
  3. The Effect of Temporary Contracts on Human Capital Accumulation in Chile By Susana Carpio; David Giuliodori; Graciana Rucci; Rodolfo Stucchi
  4. The Effects of Training on Own and Co-Worker Productivity: Evidence from a Field Experiment By Andries De Grip; Jan Sauermann
  5. Maternal Off-farm Wage Employment and Primary School Enrollment: Evidence from a Natural Quasi-experiment in Senegal By Maertens, Miet; Verhofstadt, Ellen
  6. Rational Expectation and Education Rewarding: The Case of Chinese Off-Farm Wage Employment By Hou, Linke; Wang, Xiaobing; Yu, Xiaohua
  7. "The "farthest" need the best. Human capital composition and development-specific economic growth" By Fabio Manca
  8. The Human Capital Stock: A Generalized Approach By Benjamin F. Jones
  9. Does high involvement management improve worker wellbeing? By Böckerman, Petri; Bryson, Alex; Ilmakunnas, Pekka
  10. Tasks and Heterogeneous Human Capital By Shintaro Yamaguchi
  11. Incentive Effects of Funding Contracts: An Experiment By J. Phillip Reiss; Irenaeus Wolff
  12. The Role of CSR in the Governance of the "New firm": an Empirical Study of the French Telecommunications Industry By Cécile Cézanne; Marianne Rubinstein
  13. Innovative Work Practices, Information Technologies, and Working Conditions : Evidence for France. By Caroli, Eve; Askenazy, Philippe
  14. Corporate social responsibility, corporate reputation and employee engagement By Ali, Imran; Ali, Jawaria Fatima

  1. By: Ralph Hippe (University of Tuebingen and University of Strasbourg); Joerg Baten (University of Tuebingen and CESifo)
    Date: 2011
  2. By: Böheim, René (University of Linz); Leoni, Thomas (WIFO - Austrian Institute of Economic Research)
    Abstract: Sick workers in many countries receive sick pay during their illness-related absences from the workplace. In several countries, the social security system insures firms against their workers' sickness absences. However, this insurance may create moral hazard problems for firms, leading to the inefficient monitoring of absences or to an underinvestment in their prevention. In the present paper, we investigate firm' moral hazard problems in sickness absences by analyzing a legislative change that took place in Austria in 2000. In September 2000, an insurance fund that refunded firms for the costs of their blue-collar workers' sickness absences was abolished (firms did not receive a similar refund for their white-collar workers' sickness absences). Before that time, small firms were fully refunded for the wage costs of blue-collar workers' sickness absences. Large firms, by contrast, were refunded only 70% of the wages paid to sick blue-collar workers. Using a difference-in-differences-in-differences approach, we estimate the causal impact of refunding firms for their workers' sickness absences. Our results indicate that the incidences of blue-collar workers' sicknesses dropped by approximately 8% and sickness absences were almost 11% shorter following the removal of the refund. Several robustness checks confirm these results.
    Keywords: absenteeism, moral hazard, sickness insurance
    JEL: J22 I38
    Date: 2011–10
  3. By: Susana Carpio; David Giuliodori; Graciana Rucci; Rodolfo Stucchi
    Abstract: This paper studies the probability of receiving employer-paid training and other training independent of who finances it for permanent and temporary workers in Chile. The authors use data from the Social Protection Survey, EPS, allowing them to construct a panel of workers with information from 2002, 2004, 2006, and 2009. The results suggest that having a temporary contract in Chile reduces the probability of receiving employer-paid training. The survey also finds that this deficit is not compensated by other types of training. This finding is important for two reasons. First, the proportion of temporary workers that obtain an open-ended contract is low. Second, the productivity growth in Chile after 1997 is practically zero and human capital accumulation is one of the factors that might help to recover the path of productivity growth.
    Keywords: Labor :: Training & Development, Labor :: Workforce & Employment, IDB-WP253
    JEL: J24 J08 J41
    Date: 2011–03
  4. By: Andries De Grip (Research Centre for Education and the Labour Market (ROA), Maastricht University and Institute for the Study of Labor (IZA), Bonn); Jan Sauermann (Research Centre for Education and the Labour Market (ROA), Maastricht University)
    Abstract: This paper analyses the effects of work-related training on worker productivity. To identify the causal effects from training, we combine a field experiment that randomly assigns workers to treatment and control groups with panel data on individual worker performance before and after training. We find that participation in the training programme leads to a 10 percent increase in performance. Moreover, we provide experimental evidence for externalities from treated workers on their untreated teammates: An increase of 10 percentage points in the share of treated peers leads to a performance increase of 0.51 percent. We provide evidence that the estimated effects are causal and not the result of employee selection into and out of training. Furthermore, we find that the performance increase is not due to lower quality provided by the worker.
    Keywords: Training, field experiment, peer effects, productivity
    JEL: J24 M53 C93
    Date: 2011–10
  5. By: Maertens, Miet; Verhofstadt, Ellen
    Keywords: Labor and Human Capital,
    Date: 2011
  6. By: Hou, Linke; Wang, Xiaobing; Yu, Xiaohua
    Abstract: This study establishes a life-cycle model that a representative agent chooses optimal time of education to maximize his/her life earning, which implies that there may exist nonlinear relation between education and earning. Using the data of Chinese off-farm wage employment, we find that the duration of schooling years will increase by 1.7 years with 1 percent increase in rate of return to education. The empirical results also indicate that controversies about return to education might arise from model misspecification without consideration of nonlinearity and sample selection.
    Keywords: return to schooling, life-cycle model, rational expectation, China, Labor and Human Capital, I20, J43, Q01,
    Date: 2011
  7. By: Fabio Manca (Faculty of Economics, University of Barcelona)
    Abstract: We provide robust and compelling evidence of the marked impact of tertiary education on the economic growth of less developed countries and of its the relatively smaller impact on the growth of developed ones. Our results argue in favor of the accumulation of high skill levels especially in technologically under-developed countries and, contrary to common wisdom, independently of the fact that these economies might initially produce low(er)-technology goods or perform technology imitation. Our results are robust to the different measures used in proxying human capital and to the adjustments made for cross-country differences in the quality of education. Country-specific institutional quality, as well as other indicators including legal origin, religious fractionalization and openness to trade have been used to control for the robustness of the results. These factors are also shown to speed up technology convergence thereby confirming previous empirical studies. Our estimates tackle problems of endogeneity by adopting a variety of techniques, including instrumental variables (for both panel and cross-section analyses) and the two-step efficient dynamics system GMM.
    Keywords: Economic growth, human capital, imitation, innovation, convergence. JEL classification:I20, O30, O40
    Date: 2011–10
  8. By: Benjamin F. Jones
    Abstract: This paper presents a new framework for human capital measurement. The generalized framework can (i) substantially amplify the role of human capital in accounting for cross-country income differences and (ii) reconcile the existing conflict between regression and accounting evidence in assessing the wealth and poverty of nations. One natural interpretation emphasizes differences across economies in the acquisition of advanced knowledge by skilled workers.
    JEL: I2 J2 J3 O1 O4
    Date: 2011–10
  9. By: Böckerman, Petri; Bryson, Alex; Ilmakunnas, Pekka
    Abstract: Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than “like” employees not exposed to HIM. These results are robust to extensive work, wage and sickness absence history controls. We present a model which highlights the possibility of higher short-term absence in the presence of HIM because it is more demanding than standard production and because multi-skilled HIM workers cover for one another’s short absences thus reducing the cost of replacement labour faced by the employer. We find direct empirical support for the assumptions in the model. Consistent with the model, because long-term absences entail replacement labour costs for HIM and non-HIM employers alike, long-term absences are independent of exposure to HIM.
    Keywords: health; subjective wellbeing; sickness absence; job satisfaction; high involvement management; high performance work system
    JEL: M53 J81 J28 M54 M52 I10
    Date: 2011–10–03
  10. By: Shintaro Yamaguchi
    Abstract: This paper proposes a new approach to modeling heterogeneous human capital using task data from the Dictionary of Occupational Titles. The key feature of the model is that it departs from the Roy model, which treats occupations as distinct categories, and conceives of occupations as bundles of tasks. The advantages of this approach are that it can accommodate many occupations without computational burden and provide a clear interpretation as to how and why skills are differently rewarded across occupations. The model is structurally estimated by the Kalman filter using the NLSY79.
    Keywords: Roy model, task approach, human capital, occupational choice, Kalman filter, structural estimation.
    JEL: J24 J32
    Date: 2011–09
  11. By: J. Phillip Reiss; Irenaeus Wolff
    Abstract: We examine the incentive effects of funding contracts on entrepreneurial effort decisions and allocative efficiency. We experiment with four types of contracts (standard debt contract, outside equity, non-monotonic contract, full-subsidy contract) that differ in the structure of investor repayment and, therefore, in the incentives for entrepreneurial effort provision. Theoretically the replacement of a standard debt contract by a repayment-equivalent non-monotonic contract reduces effort distortions and increases efficiency. We test this non-monotonic-contracts hypothesis in the laboratory as well. Our results reveal that the incentive effects of funding contracts need to be experienced before they reect in observed behavior. With sufficient experience observed behavior is consistent with the theoretical predictions and supports the non-monotonic-contracts hypothesis: we find that the replacement of a standard debt contract by a repayment-neutral non-monotonic contract increases entrepreneurial income by 170% and total surplus by 30% in our setting.
    Keywords: hidden information, funding contracts, incentives, experiment, standard debt contract, non-monotonic contract
    Date: 2011
  12. By: Cécile Cézanne (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris-Nord - Paris XIII - CNRS : UMR7234); Marianne Rubinstein (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris-Nord - Paris XIII - CNRS : UMR7234)
    Abstract: The aim of this paper is to propose an instrumental analysis of corporate social responsibility (CSR). After underlining the corporate governance issues raised by the "new firm", which is vertically disintegrated and intensive in specific human capital, we argue that CSR can be useful as a means to regulate power relationships between key productive partners of the firm. Based on the analysis of official reports and interviews of the four major French operators of telecommunications, we show that CSR is voluntarily used by firms to maintain long-term wealth-creative employment and subcontracting relationships, through the deployment of formal and informal mechanisms.
    Keywords: human capital; boundaries of the firm; corporate governance; corporate social responsibility; French telecommunications industry
    Date: 2011–05–22
  13. By: Caroli, Eve; Askenazy, Philippe
    Abstract: We investigate the impact of new work practices and information and communication technologies (ICT) on working conditions in France. We use a unique French dataset providing information on individual workers for the year 1998. New work practices include the use of quality norms, job rotation, collective discussions on work organization, and work time flexibility. Working conditions are captured by occupational injuries as well as indicators of mental strain. We find that individuals working under the new practices face greater mental strain than individuals who do not. They also face a higher probability of work injuries, at least for benign ones. In contrast, our results suggest that ICT contribute to make the workplace more cooperative and to reduce occupational risks and injuries.
    Keywords: New work practices; technology; working conditions; occupational injuries; Working Conditions;
    JEL: J81 L23 J28
    Date: 2010–10
  14. By: Ali, Imran; Ali, Jawaria Fatima
    Abstract: Corporate social responsibility (CSR) has been outlined as voluntarily additional legal duties of organization to serve environment and community. This voluntarily actions of corporate help them to develop reputation which can shape favorable attitude of employees towards work. Employee engagement is an attitude of commitment and involvement of employee towards their work and organization. Researchers have proved that engaged employees are more productive, more likely to achieve corporate goals and are customer centered. Although literature provides many researches that focus on corporate social responsibility, corporate reputation and employee engagement, less work can be seen that integrates all these variables. This study bridges this gap by investigating the influence of CSR and corporate reputation on employee engagement. This study is based on primary data collected from various organizations of Pakistan. Structural equation model technique is adopted to analyze data and test hypotheses. The study confirms the significant relationships between CSR and corporate reputation, CSR and employee engagement and corporate reputation and employee engagement. The implications and applications of this research are also discussed in detail.
    Keywords: Corporate social responsibility; corporate reputation; employee engagement
    JEL: M14 M1
    Date: 2011

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