nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2011‒12‒19
fourteen papers chosen by
Tommaso Reggiani
Universita' di Bologna

  1. Structural change and human capital in Italy’s productive economy By Roberto Torrini; Fabiano Schivardi
  2. Does founders’ human capital matter for innovation? Evidence from Japanese start-ups By Masatoshi Kato; Hiroyuki Okamuro; Yuji Honjo
  3. A Comparative Perspective on Italy’s Human Capital Accumulation By Giuseppe Bertola; Paolo Sestito
  4. The role of information systems in human resource management By Dorel, Dusmanescu; Bradic-Martinovic, Aleksandra
  5. Manager impartiality? Worker-firm matching and the gender wage gap By Hensvik, Lena
  6. Working in family firms: less paid but more secure? Evidence from French matched employer-employee data By Andrea Bassanini; Eve Caroli; Antoine Rebérioux; Thomas Breda
  7. See No Evil: Information Chains and Reciprocity in Teams By Roi Zultan; Eva-Maria Steiger
  8. Employment Protection and Productivity: Evidence from firm-level panel data in Japan By OKUDAIRA Hiroko; TAKIZAWA Miho; TSURU Kotaro
  9. Work Values in Western and Eastern Europe By Benno Torgler
  10. Impacts of an early education intervention on students' learning achievement: Evidence from the Philippines By Yamauchi, Futoshi; Liu, Yanyan
  11. Improving the quality of human resources by implementation of internal marketing By Ioan, Done; Ivana, Domazet
  12. A Note on Schooling in Development Accounting By Francesco Caselli; Antonio Ciccone
  13. Job Separations, Job Loss and Informality in the Russian Labor Market By H. Lehmann; T. Razzolini; A. Zaiceva
  14. Importance of the management incentives for the improvement of company’s activities By Slavica, Stevanovic; Ivana, Simeunovic

  1. By: Roberto Torrini (Bank of Italy and ANVUR); Fabiano Schivardi (Cagliari University and EIEF)
    Abstract: We study the role of human capital in the restructuring of the Italian economy. The share of university graduates in the population has long been far lower in Italy (12 per cent in 2007) that in the rest of Europe (24 per cent). The 3+2 reform of Italian degree programmes has significantly increased the supply of graduates, mostly absorbed by the private sector. Firm-level evidence shows that the growth in graduate employment is due almost entirely to a “within” firm component rather than to a shift of the productive structure from low to high human capital activities. We also find that a higher share of university graduates at local level is positively associated with restructuring activities and with productivity growth. This suggests that increasing the workforce’s level of educational attainment is crucial to overcome the stagnation in productivity that has characterized the Italian economy since the mid-nineties.
    Keywords: human capital, tertiary education, firm restructuring, growth
    JEL: J24
    Date: 2011–11
  2. By: Masatoshi Kato (School of Economics, Kwansei Gakuin University); Hiroyuki Okamuro (Graduate School of Economics, Hitotsubashi University); Yuji Honjo (Faculty of Commerce, Chuo University)
    Abstract: Using a sample from an original questionnaire survey in Japan, this paper explores whether and how founders’ human capital affects innovation outcomes by start-ups. The results provide evidence that founders with greater human capital are more likely to yield innovation outcome. However, because certain types of founders’ human capital may boost R&D investment, which possibly results in innovation outcomes, we estimate the determinants of innovation outcomes by an instrumental variable probit model taking into account the endogeneity of R&D investment. Our findings suggest that specific human capital for innovation, such as founders’ prior innovation experience, is directly associated with innovation outcomes after start-up, while generic human capital, such as founders’ educational background, indirectly affects innovation outcomes through R&D investment.
    Keywords: Founder, Human capital, Innovations, R&D investment
    JEL: L24 M13 O31
    Date: 2011–12
  3. By: Giuseppe Bertola (Edhec Business School and CEPR); Paolo Sestito (Bank of Italy)
    Abstract: This paper reviews the evolution of educational institutions and outcomes over the 150 years since Italy’s unification, and discusses their interaction with national and regional growth patterns. While initial educational conditions contributed to differentiate across regions the early industrial take off in the late 19th century, and formal education does not appear to have played a major role in the postwar economic boom, the slowdown of Italy’s economy since the 1990s may be partly due to interactions between its traditionally low human capital intensity and new comparative advantage patterns, and to the deterioration since the 1970s of the educational system’s organization.
    Keywords: Education systems, tracking, economic growth, regional convergence
    JEL: N30
    Date: 2011–10
  4. By: Dorel, Dusmanescu; Bradic-Martinovic, Aleksandra
    Abstract: Persistency of the organization, competitive advantage and realization of extra profit, in contemporary environment, are directly connected with balance of the resources available to the firm. One of the key issues of successful business is human resource management and that process is under great influence of modern information technology. Human Resources Information Systems (HRIS) are systems used to collect, record, store, analyze and retrieve data concerning an organization’s human resources, but it is not merely reduction of administrative procedures. The importance of HRIS system is multifaceted, ranging from operational assistance in collecting, storing and preparing data for reports, simplifying and accelerating the processes and controlling the available data, reducing labour costs for HR departments, and providing timely and diverse information to the management of the company, based on which it is possible to make quality strategic decisions related to human capital. The aim of this paper is to highlight the importance of HRIS and to give a comprehensive insight of the subject. Special focus in the paper will be on companies in Serbia, which have started to apply this concept, but in most situations not widely, but just partially. They must be aware that positive results can be expected only if this subject is approached in the right way
    Keywords: Human resource management; information systems; HRIS; ERP
    JEL: M14 J24
    Date: 2011–10–17
  5. By: Hensvik, Lena (IFAU - Institute for Labour Market Policy Evaluation)
    Abstract: This paper examines whether women benefit from working under female management using Swedish matched employer-employee panel data. I account for unobserved heterogeneity among both workers and firms potentially correlated with manager gender. The results show a substantial negative and statistically significant correlation between the proportion of female managers and the establishment’s gender wage gap. However, estimates that account for sorting on unobserved worker skills do not support that that managers favor same-sex workers in wage setting. Additional results show female-led organizations recruit more non-managerial, high-wage women but this is primarily due to (unobserved) firm attributes rather than gender-specific management practices.
    Keywords: Gender wage gap; managers; worker sorting
    JEL: J24 J31 J53
    Date: 2011–11–30
  6. By: Andrea Bassanini; Eve Caroli; Antoine Rebérioux; Thomas Breda
    Abstract: We study compensation packages in family and non-family firms. Using French matched employer-employee data, we first show that family firms pay on average lower wages. We find that part of this wage gap is due to low wage workers sorting into family firms and high wage workers sorting into non-family firms. However, we also find evidence that company wage policies differ according to ownership status, so that the same worker is paid differently under family and non-family firm ownership. We also find evidence that family firms are characterised by lower job insecurity, as measured by dismissal rates and by the subjective risk of dismissal perceived by workers. In addition, family firms appear to rely less on dismissals – and more on hiring reductions – than non-family firms when they downsize. We show that compensating wage differentials account for a substantial part of the inverse relationship between the family/non-family gaps in wages and job security.
    Keywords: family firms, wages, job security, compensating wage differentials, linked employer-employee data
    JEL: G34 J31 J33 J63 L26
    Date: 2011
  7. By: Roi Zultan (Department of Economics, Ben-Gurion University of the Negev, Beer-Sheva 84105, Israel); Eva-Maria Steiger
    Abstract: Transparency in teams can facilitate cooperation. We study contribution decisions by agents when previous decisions can be observed. We find that an information chain, in which each agent directly observes only the decision of her immediate predecessor, is at least as effective as a fully-transparent protocol in inducing cooperation under increasing returns to scale. In a comparable social dilemma, the information chain leads to high cooperation both in early movers when compared to a non-transparent protocol and in late movers when compared to a fully-transparent protocol. we conclude that information chains facilitate cooperation by balancing positive and negative reciprocity.
    Keywords: team production, public goods, incentives, externality, information, transparency, conditional cooperation
    JEL: C72 C92 D21 J31 M52
    Date: 2011
  8. By: OKUDAIRA Hiroko; TAKIZAWA Miho; TSURU Kotaro
    Abstract: Recent developments in the literature on employment protection legislation (EPL) have revealed that changing the stringency of employment protection can lead to extensive consequences outside of the labour market, by affecting firms' production decisions or workers' commitment levels. This paper provides the first empirical evaluation of the comprehensive effect of restrictions on firing employees in Japan, by exploiting the variations in court decisions. We find that judgments lenient to workers significantly reduce firms' total-factor productivity growth rate. The effect on capital is mixed and inconclusive, although we obtain modest evidence that an increase in firing costs induces a negative scale effect on capital inputs.
    Date: 2011–12
  9. By: Benno Torgler
    Abstract: The paper reports on work values in Europe. At the country level we find that job satisfaction is related to lower working hours, higher well-being, and a higher GDP per capita. Moving to the micro level, we turn our attention from job satisfaction to analyse empirically work centrality and work value dimensions (without exploring empirically job satisfaction) related to intrinsic and extrinsic values, power and social elements. The results indicate substantial differences between Eastern and Western Europe. Socio-demographic factors, education, income, religiosity and religious denomination are significant influences. We find additional differences between Eastern and Western Europe regarding work-leisure and work-family centrality that could be driven by institutional conditions. Furthermore, hierarchical cluster analyses report further levels of dissimilarity among European countries.
    Keywords: work values; job satisfaction; work-leisure relationship; work-family centrality; Eastern Europe; Western Europe
    JEL: P20 D10 J28 J17 J22
    Date: 2011–12
  10. By: Yamauchi, Futoshi; Liu, Yanyan
    Abstract: This paper examines the impact of a large supply-side education intervention in the Philippines, the Third Elementary Education Project, on students' national achievement test scores. We find that the program significantly increased student test scores at grades 4 to 6. The estimate indicates that the six-year exposure to the program increases test scores by about 15 score points. Interestingly, the mathematics score is more responsive to this education reform than other subjects. We also find that textbooks, instructional training of teachers, and new classroom constructions particularly contributed to these outcomes. The empirical results also imply that early-stage investments improve student performance at later stages in the elementary school cycle, which suggests that social returns to such an investment are greater than what the current study demonstrates.
    Keywords: School quality, policy intervention, elementary schools, human capital formation,
    Date: 2011
  11. By: Ioan, Done; Ivana, Domazet
    Abstract: Internal marketing includes programs intended for employees and their development. It is targeted on identifying, motivating and retaining customer oriented employees. For that reason, it is ov great importance for labour intensive, and especially service oriented compa¬nies, since knowledge, expertise, activity and behavior of employees create overall business portfolio that the consumers/clients are buying on external market. Regardless of its industry, adoption and implementation of internal marketing concept lead to long-term growth and success of the company. Internal marketing has important points of contact with human resources field of activity; therefore the analysis of internal marketing concept and its basic dimensions is a significant factor for creating competitive advantage in current business environment. The goal of internal marketing is to focus attention of employees on internal activities that need to be developed, maintained, and promoted for the purpose of business and strengthening competitiveness of the company on the external market. Human resources management through qualifying and motivation of employees to fulfill customer market needs as much as possible, namely to recruit appropriate personnel, and maintain and improve long-term relationship with them, is one of the key prerequisites for company’s business success.
    Keywords: Human Resources; Internal Marketing; Competitiveness Improvement
    JEL: M31 J24
    Date: 2011–10–17
  12. By: Francesco Caselli; Antonio Ciccone
    Abstract: How much would output increase if underdeveloped economies were to increase their levels of schooling? We contribute to the development accounting literature by describing a nonparametric upper bound on the increase in output that can be generated by more schooling. The advantage of our approach is that the upper bound is valid for any number of schooling levels with arbitrary patterns of substitution/complementarity. We also quantify the upper bound for all economies with the necessary data, compare our results with the standard development accounting approach, and provide an update on the results using the standard approach for a large sample of countries.
    Keywords: schooling, production, efficiency, human capital, development accounting,growth accounting
    JEL: I28 J24
    Date: 2011–12
  13. By: H. Lehmann; T. Razzolini; A. Zaiceva
    Abstract: Having unique data we investigate the link between job separations (displacement and quits) and informal employment, which we define in several ways posing the general question whether the burden of informality falls disproportionately on job separators in the Russian labor market. After we have established positive causal effects of displacement and quits on informal employment we analyze whether displaced workers experience more involuntary informal employment than their non-displaced counterparts. Our main results confirm our contention that displacement entraps some of the workers in involuntary informal employment. Those who quit, in turn, experience voluntary informality for the most part, but there seems a minority of quitting workers who end up in involuntary informal jobs. This scenario does not fall on all the workers who separate but predominantly on workers with low human capital. We also pursue the issue of informality persistence and find that informal employment is indeed persistent as some workers churn from one informal job to the next. Our study contributes to the debate in the informality literature regarding segmented versus integrated labor markets. It also contributes to the literature on displacement by establishing informal employment as an important cost of displacement. We also look at the share of undeclared wages in formal jobs and find that these shares are larger for separators than for incumbents, with displaced workers bearing the brunt of this manifestation of informality.
    JEL: J64 J65 P50
    Date: 2011–12
  14. By: Slavica, Stevanovic; Ivana, Simeunovic
    Abstract: In this paper we have emphasized on the importance of the management incentives and their impact on company’s efficiency and effectiveness of corporate governance. Company owners, who regard managerial incentives as an investment rather than as a financial outlay, could expect a commitment of the managers to the interests of the company, achievement of desired results and business prosperity. At the same time, the potential conflict of interests between company’s shareholders and management could be solved by allocation of appropriate management incentives. As the effectiveness of management incentives depends on their good evaluation, it is important to identify potential indicators and to measure their consistency with the value created to business owners. Moreover we have identified financial measures for manager’s contribution to the company operations, used as a criterion for entitlement to managers’ incentives. Paper ends by assessing the need to adjust the company to changing global financial environment, with a special reference to the changes of incentives’ policy in Serbian companies, and the most important motivational factors affecting Romanian employees during the current period of global financial crisis.
    Keywords: Management Incentives; Principal-Agent Problem; Incentive Schemes; Company Performance
    JEL: J32 M12 M52
    Date: 2011–10–17

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