nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2011‒11‒21
fourteen papers chosen by
Tommaso Reggiani
Universita' di Bologna

  1. Does High Involvement Management Improve Worker Wellbeing? By Alex Bryson; Petri Böckerman; Pekka Ilmakunnas
  2. The Intergenerational Transmission of Human Capital: Exploring the Role of Skills and Health Using Data on Adoptees and Twins By Lundborg, Petter; Nordin, Martin; Rooth, Dan-Olof
  3. Firm-Sponsored Classroom Training: is it Worth it for Older Workers ? By Benoit Dostie; Pierre Thomas Léger
  4. Schooling and youth mortality: learning from a mass military exemption By Piero Cipollone; Alfonso Rosolia
  5. Motivating Organizational Search By Oliver Baumann; Nils Stieglitz
  6. Team adaptation: a cognitive perspective. By Uitdewilligen, Gerardus Johannes Anna-Maria Ludovicus
  7. Managerial Handling of Employee Resignation on Work Environment By Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
  8. General Education, Vocational Education, and Labor-Market Outcomes over the Life-Cycle By Hanushek, Eric A.; Woessmann, Ludger; Zhang, Lei
  9. Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Style By Antoinette Schoar; Luo Zuo
  10. Childhood Sporting Activities and Adult Labour-Market Outcomes By Charlotte Cabane; Andrew Clark
  11. Social Participation and Hours Worked By Stefano Bartolini; Ennio Bilancini
  12. Improving the school-to-work transition for vocational students - What can we learn from research? By Lindahl, Lena
  13. What Do Boards Really Do? Evidence from Minutes of Board Meetings By Schwartz-Ziv, Miriam; Weisbach, Michael S.
  14. The Effects of Supervisor-Subordinate Genders on Subordinates’ Involvement Across Managerial Functions By Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz

  1. By: Alex Bryson; Petri Böckerman; Pekka Ilmakunnas
    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, pain, high involvement management, high performance work system, performance-related pay, training, team working, information sharing
    JEL: I10 J28 J81 M52 M53 M54
    Date: 2011–11
  2. By: Lundborg, Petter (Lund University); Nordin, Martin (Lund University); Rooth, Dan-Olof (Linneaus University)
    Abstract: In this paper, we focus on possible causal mechanisms behind the intergenerational transmission of human capital. For this purpose, we use both an adoption and a twin design and study the effect of parents' education on their children's cognitive skills, non-cognitive skills, and health. Our results show that greater parental education increases children's cognitive and non-cognitive skills, as well as their health. These results suggest that the effect of parents' education on children's education may work partly through the positive effect that parental education has on children's skills and health.
    Keywords: intergenerational transmission, human capital, education, health, cognitive skills, non-cognitive skills, adoptees, twins
    JEL: I12 I11 J14 J12 C41
    Date: 2011–10
  3. By: Benoit Dostie; Pierre Thomas Léger
    Abstract: We use longitudinal linked employer-employee data and find that the probability of participating in firm-sponsored classroom training diminishes rapidly for workers aged 45 years and older. Although the standard human capital investment model predicts such a decline, we also consider the possibility that returns to training decline with age. Taking into account endogenous training decisions, we find that the training wage premium diminishes only slightly with age. However, estimates of the impact of training on productivity decrease dramatically with age, suggesting that incentives for firms to invest in classroom training are much lower for older workers.
    Keywords: Firm-Sponsored Classroom Training, Wages, Productivity, Aging, Linked Employer-Employee Data
    JEL: C23 D24 J31
    Date: 2011
  4. By: Piero Cipollone (World Bank and Bank of Italy); Alfonso Rosolia (Bank of Italy and CEPR)
    Abstract: We examine the relationship between education and mortality in a young population of Italian males. In 1981 several cohorts of young men from specific southern towns were unexpectedly exempted from compulsory military service after a major quake hit the region. Comparisons of exempt cohorts from least damaged towns on the border of the quake region with similar ones from neighbouring non-exempt towns just outside the region show that, by 1991, the cohorts exempted while still in high school display significantly higher graduation rates. The probability of dying over the decade 1991-2001 was also significantly lower. Several robustness checks confirm that the findings do not reflect omitted quake-related confounding factors, such as the ensuing compensatory interventions. Moreover, cohorts exempted soon after high school age do not display higher schooling or lower mortality rates, thus excluding that the main findings reflect direct effects of military service on subsequent mortality rather than a causal effect of schooling. We conclude that increasing the proportion of high school graduates by 1 percentage point leads to 0.1-0.2 percentage points lower mortality rates between the ages of 25 and 35.
    Keywords: education, mortality, health, schooling, human capital
    JEL: I20 I12
    Date: 2011–06
  5. By: Oliver Baumann; Nils Stieglitz
    Abstract: This paper investigates the value of high-powered incentives for motivating search for novelty in business organizations. While organizational search critically depends on the individual efforts of employees, motivating search effort is challenged by problems of unobservable behavior and the misalignment of individual and organizational interests. Prior work on organizational design thus suggests that stronger incentives can overcome these problems and make organizations more innovative. To address this conjecture, we develop a computational model of organizational search that rests on two opposing effects of high-powered incentives: On the one hand, they promote higher effort by increasing the potential rewards from search; on the other hand, they increase the competition among ideas, as the ability of an organization to implement and remunerate good ideas is limited by its resource base. Our results indicate that low-powered incentives are effective in generating a sufficient stream of incremental innovations, but that they also result in a shortage of more radical innovations. Stronger incentives, in contrast, do not systematically foster radical innovations either, but instead create a costly oversupply of good ideas. Nonetheless, higher-powered incentives can still be effective in small firms and if strong persistence is required to develop a new idea. Based on the analysis of our model, we develop a set of propositions that appear to be consistent with extant evidence and point to new avenues for empirical research.
    Keywords: Organizational search, incentives, innovation, agent-based simulation
    Date: 2011
  6. By: Uitdewilligen, Gerardus Johannes Anna-Maria Ludovicus (Maastricht University)
    Date: 2011
  7. By: Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
    Abstract: Resignation is the factor which heatedly matters to the organizations and to its existing employee more often, the employees’ resignation at times creates such a condition which turns in to the chocks points for the organizations and paves the way in provoking the rattles among the employee against the organizations. This paper focuses on the ways of handling employee’s resignation and avoiding the bottle necks which are created due to any sudden resignation while investigating the impact of Managerial Handling of Resignation on Work Environment. The findings of the paper suggests that there is a relationship between managerial handling of employee resignation and work environment
    Keywords: Managerial Handling of Resignation; Work Environment; Employee Satisfaction/Dissatisfactions and Motivation
    JEL: A1 J2
    Date: 2011
  8. By: Hanushek, Eric A. (Stanford University); Woessmann, Ludger (Ifo Institute for Economic Research); Zhang, Lei (Tsinghua University)
    Abstract: Policy debates about the balance of vocational and general education programs focus on the school-to-work transition. But with rapid technological change, gains in youth employment from vocational education may be offset by less adaptability and thus diminished employment later in life. To test our main hypothesis that any relative labor-market advantage of vocational education decreases with age, we employ a difference-in-differences approach that compares employment rates across different ages for people with general and vocational education. Using micro data for 18 countries from the International Adult Literacy Survey, we find strong support for the existence of such a trade-off, which is most pronounced in countries emphasizing apprenticeship programs. Results are robust to accounting for ability patterns and to propensity-score matching.
    Keywords: vocational education, apprenticeship, employment, wages, life-cycle, adult education, International Adult Literacy Survey (IALS)
    JEL: J24 J64 J31 I20
    Date: 2011–10
  9. By: Antoinette Schoar; Luo Zuo
    Abstract: This paper examines how early career experiences affect the career path and promotion of managers as well as the managerial style that they develop when becoming CEOs. We identify the impact of an exogenous shock to managers’ careers, in particular the business cycle at the career starting date. Economic conditions at the beginning of a manager’s career have lasting effects on the career path and the ultimate outcome as a CEO. CEOs who start in recessions take less time to become CEOs, but end up as CEOs in smaller firms, receive lower compensation, and are more likely to rise through the ranks within a given firm rather than moving across firms and industries. Moreover, managers who start in recessions have more conservative management styles once they become CEOs. These managers spend less in capital expenditures and R&D, have lower leverage, are more diversified across segments, and show more concerns about cost effectiveness. While looking at the role of early job choices on CEO careers is more endogenous, the results support the idea that certain types of starting positions are feeders for successful long-run management careers: Starting in a firm that ranks within the top ten firms from which CEOs come from is associated with favorable outcomes for a manager – they become CEOs in larger companies and receive higher compensation.
    JEL: D21 D23 G3 G31 G32
    Date: 2011–11
  10. By: Charlotte Cabane (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Andrew Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: It is well known that non-cognitive skills are an important determinant of success in life. However, their returns are not simple to measure and, as a result, relatively few studies have dealt with this empirical question. We consider sports participation while at school as one way of improving or signalling the individual's non-cognitive skills endowment. We use four waves of Add Health data to study how sports participation by schoolchildren translates into labour-market success. We specifically test the hypotheses that participation in different types of sports at school leads to, ceteris paribus, very different types of jobs and labour-market insertion in general when adult. We take seriously the issue of endogeneity of sporting activities in order to tease out a causal relationship between childhood sporting activity and adult labour market success. As such, we contribute to the literature on the returns to non-cognitive skills.
    Keywords: Job quality, sport, non-cognitivr skills.
    Date: 2011–08
  11. By: Stefano Bartolini; Ennio Bilancini
    Abstract: We investigate the relationship between social participation and the hours worked in the market. Social participation is the component of social capital that measures individuals’ engament in groups, associations and non-governmental organizations. We provide a model of consumer choice where social participation may be either a substitute or a complement to material consumption – depending on whether participation is instrumentally or non-instrumentally motivated – and where a local environment with greater social participation increases the return to individual participation. We carry out an empirical investigation of this framework using survey data on United States for the period 1972-2004. We find that non-instrumental social participation substantially decreases the hours worked, while instrumental social participation substantially increases them. Moreover, evidence is consistent with the idea that a local environment with greater social participation fosters individual social participation.
    Keywords: social participation, relational goods, social capital, work hours, instrumental and non-instrumental motivations
    JEL: A13 D62 J22 Z13
    Date: 2011–10
  12. By: Lindahl, Lena (Swedish Institute for Social Research, Stockholm University)
    Abstract: Many countries have had to tackle escalating youth unemployment in the aftermath of the financial crisis of 2008, but compared with other countries in the European Union, youth unemployment has increased particularly sharply in Sweden. Currently, Swedish 20-24 year olds are more than three times as likely to be unemployed than are adult workers, which is the greatest such ratio within the EU-15. The bulk of youth unemployment spells starts directly after upper secondary school ends, which in turn suggests special attention should be directed to the interaction of vocational education and labor markets. This paper discusses in the light of international research findings how to ease the transition from school into the labor market for vocational students. The evidence discussed in the paper centers on which educational structures lead to good labor market outcomes for vocational students and especially what we know about the relative merits of workplace- and school-based education and the role of employer contacts.
    Keywords: -
    Date: 2011–11–15
  13. By: Schwartz-Ziv, Miriam (Hebrew University of Jerusalem and Harvard University); Weisbach, Michael S. (OH State University)
    Abstract: We analyze a unique database from a sample of real-world boardrooms-- minutes of board meetings and We analyze a unique database from a sample of real-world boardrooms--minutes of board meetings and substantial equity interest. We use these data to evaluate the underlying assumptions and predictions of models of boards of directors. These models generally fall into two categories: "managerial models" that assume boards play a direct role in managing the firm, and "supervisory models" that assume that boards monitor top management but do not make business decisions themselves. Consistent with the supervisory models, our minutes-based data suggest that boards spend most of their time monitoring management: 67% of the issues they discussed were of a supervisory nature, they were presented with only a single option in 99% of the issues discussed, and they disagreed with the CEO only 3.3% of the time. In addition, managerial models describe boards at times as well: Boards requested to receive further information or an update for 8% of the issues discussed, and they took an initiative with respect to 8.1% of them. In 63% of the meetings, boards took at least one of these actions or did not vote in line with the CEO. Taken together our results suggest that boards can be characterized as active monitors.
    Date: 2011–11
  14. By: Hasan, Dr. Syed Akif; Subhani, Dr. Muhammad Imtiaz
    Abstract: One of the renowned agendas’ of the management study around the globe encircles the gender biasness or non-biasness in performing the basic managerial functions. Pertaining to the factual studies, mixed views have been brought to light that whether male supervisors have a good relationship with male subordinates or female subordinates and whether female supervisors have good relationship with female subordinates or male subordinates. It is often assumed that cross gender supervisor subordinate relationships are better than same gender supervisor subordinate relationships. The involvement of subordinates in the four managerial functions namely planning, organizing, controlling and motivating are investigated to conclude the effects of gender on subordinate involvement in management functions by the supervisors. A sample of 1000 respondents were specifically chosen from banking sector to identify if gender of supervisor and subordinate has any effect on subordinates’ involvement across managerial functions. To achieve this, firstly, mean of male supervisor with same and cross gender subordinates is compared on the basis of their involvement in managerial functions through applying the split analysis. Results revealed that male supervisors involve male subordinates more in managerial functions than female subordinates. As for female supervisors they have the same level of involvement of both the genders across managerial functions but somehow these involvements are more towards the male subordinates.
    Keywords: Supervisor; Subordinate; Gender; Managerial functions
    JEL: M5 M54
    Date: 2011

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