nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2012‒05‒02
seventeen papers chosen by
Tommaso Reggiani
Universita' di Bologna

  1. Horizontal Transfer and Promotion: New Evidence and an Interpretation from the Perspective of Task-Specific Human Capital By Sasaki, Masaru; Takii, Katsuya; Wan, Junmin
  2. Corporate culture and satisfaction at work By Jocelyne Robert; Aigul Asfarova
  3. Alternative theories for explaining the spatial wage inequality: a multilevel competition among human capital, NEG and amenities By Dusan Paredes
  4. America’s Human Capital Paradox By Thomas A. Kochan
  5. Performance Related Pay and Firm Productivity: New Evidence from a Quasi-Natural Experiment in Italy By Lucifora, Claudio; Origo, Federica
  6. Local Multipliers and Human Capital in the US and Sweden By Moretti, Enrico; Thulin, Per
  7. The Two Faces of R&D and Human Capital: Evidence from Western European Regions By Johanna Vogel
  8. Gender differences and dynamics in competition: the role of luck By Gill, David; Prowse, Victoria
  9. Performance-related pay in the public sector : a review of theory and evidence By Hasnain, Zahid; Manning, Nick; Pierskalla Henryk
  10. The relative importance of social and cultural capital for educational performance: Eastern versus Western Europe By Prokic-Breuer, Tijana
  11. Does the gender wage gap exist among male and female workers with similar human capital? A Coarsened Exact Matching for Chile between 1992 and 2009 By Dusan Paredes
  12. Socially - optimal level of co-determination of labor and the European directive on workers' councils By Josheski, Dushko
  13. The effect of team learning on student profile and student performance in accounting education By E. OPDECAM; P. EVERAERT; H. VAN KEER; F. BUYSSCHAERT
  14. Lessons from sports: What corporate management can learn from sports management By Nufer, Gerd; Bühler, André W.
  15. The Response of Ontario Primary Care Physicians to Pay-for-Performance Incentives By Jeremiah Hurley; Phil DeCicca; Jinhu Li; Gioia Buckley
  16. Salesperson Efficiency Benchmarking Using Sales Response Data: Who is Working Hard and Working Smart? By Bielecki, Andre; Albers, Sönke; Mantrala, Murali
  17. Gender wage gaps within a public sector: Evidence from personnel data By S Bradley; Colin Green; J Mangan

  1. By: Sasaki, Masaru (Osaka University); Takii, Katsuya (Osaka University); Wan, Junmin (Fukuoka University)
    Abstract: This paper provides new evidence about horizontal transfer and promotion using the largest available personnel panel data in Japan and interprets them from the perspective of task-specific human capital. We find that firms synchronize their employees’ promotion and horizontal transfers. Then, we show theoretically that task-specific human capital can naturally generate such synchronization. We also find that the directors in an accounting department have the highest probability of being promoted to become board members, while those in a research department have the lowest. This suggests that top managers need a balanced skill set, in which allocative skill is relatively important.
    Keywords: rotation, promotion, task-specific human capital
    JEL: J62 M51
    Date: 2012–04
  2. By: Jocelyne Robert (management et leadership - Université de Liège); Aigul Asfarova (management et leadership - Université de Liège)
    Abstract: This study present in the first part different statistics about employment and satisfaction at work in Belgium : working conditions, relationship with colleagues, quality of management and implication as well as everyday life within the organisation. Dissatisfaction factors as well as stress, work accidents and "male-female" inequalities are also be mentioned. In the secound part, we present the result of interviews of human rfesource managers about coporate culture, satisfaction at work, social responsibility
    Keywords: Corporate culture, satisfaction at work, human resource, social responsibility
    Date: 2012–01
  3. By: Dusan Paredes (IDEAR - Department of Economics, Universidad Católica del Norte - Chile)
    Abstract: This paper presents an empirical framework for analyzing the spatial wage inequality in a Latin American country: Chile. This country is mainly characterized by two stylized facts: the high spatial concentration around metropolitan areas and the key role of natural resources. We consider both elements with a competition between NEG versus amenity framework. Both theories are combined with human capital through a Multilevel Analysis. The results show the low performance of NEG for Chile and how the natural resources are a winner causal mechanism for the case. Additionally, the spatial wage variability is extremely small when it is compared with the wage variation at individual level.
    Keywords: Spatial wage inequality, spatial concentration, natural resources, NEG, amenity framework, wage variation at individual level
    Date: 2012–04
  4. By: Thomas A. Kochan (Massachusetts Institute of Technology)
    Abstract: It is widely recognized that human capital is essential to sustaining a competitive economy at high and rising living standards. Yet acceptance of persistent high unemployment, stagnant wages, and other indicators of declining job quality suggests that policymakers and employers undervalue human capital. This paper traces the root cause of this apparent paradox to the primacy afforded shareholder value over human resource considerations in American firms and the longstanding gridlock over employment policy. I suggest that a new jobs compact will be needed to close the deficit in jobs lost in the recent recession and to achieve sustained real wage growth.
    Keywords: social contract, jobs compact, job growth, wages
    JEL: J01 J08 J53
    Date: 2012–03
  5. By: Lucifora, Claudio (Università Cattolica del Sacro Cuore); Origo, Federica (University of Bergamo)
    Abstract: This paper investigates the causal effect of a switch from fixed wages to collective performance-related pay on firm productivity, exploiting an exogenous variation in the institutional environment regulating collective bargaining. We find that the introduction of collective performance related pay significantly increases productivity by around 3-5 per cent, but such effect varies greatly by firm size, industry and union density. We show that the design of the PRP scheme – in terms of number and type of parameters used – is also relevant for firm productivity.
    Keywords: performance related pay, productivity, unions
    JEL: J31 J33 J52 L61
    Date: 2012–04
  6. By: Moretti, Enrico (Department of Economics); Thulin, Per (Swedish Entrepreneurship Forum)
    Abstract: We show that every time a local economy generates a new job by attracting a new business in the traded sector, a significant number of additional jobs are created in the non-traded sector. This multiplier effect is particularly large for jobs with high levels of human capital and for high tech industries. These findings are important for local development policies, as they suggest that in order to increase local employment levels, municipalities should target high tech employers with high levels of human capital.
    Keywords: Local multipliers; Local labor markets; Labor demand
    JEL: J23 R11 R12 R23
    Date: 2012–04–13
  7. By: Johanna Vogel
    Abstract: This paper investigates two channels through which research and development (R&D) and human capital may affect regional total factor productivity growth in the manufacturing sector, using panel data on 159 EU-15 regions from 1992 to 2005. Based on the endogenous growth model of Griffith, Redding and Van Reenen (2003), we allow R&D and human capital to influence productivity growth both directly, reflecting own innovation, and indirectly, reflecting imitation of frontier technology. Further, the model allows for conditional convergence to a long-run level of TFP relative to the frontier. We also develop an extension that captures geographically localised technology spillovers. Our preferred system-GMM estimates provide evidence of a positive and significant direct effect of human capital, and a positive and significant indirect effect of R&D on productivity growth. This may be interpreted as lending support to the recent focus of EU regional policy on raising educational attainment and R&D expenditures, although their channels of influence appear to differ. Our results also suggest that TFP convergence has taken place over our sample period and that geographic distance to the technology frontier matters.
    Keywords: Total factor productivity, Convergence, Human capital, Research and development, European regions
    JEL: O30 O47 I25 C23
    Date: 2012
  8. By: Gill, David; Prowse, Victoria
    Abstract: In a real effort experiment with repeated competition we find striking differences in how the work effort of men and women responds to previous wins and losses. For women losing per se is detrimental to productivity, but for men a loss impacts negatively on productivity only when the prize at stake is big enough. Responses to luck are more persistent and explain more of the variation in behavior for women, and account for about half of the gender performance gap in our experiment. Our findings shed new light on why women may be less inclined to pursue competition-intensive careers.
    Keywords: Real effort experiment; Gender differences; Gender gap; Competition aversion; Tournament; Luck; Win; Loss; Competitive outcomes
    JEL: J33 C91 J16
    Date: 2012–01–24
  9. By: Hasnain, Zahid; Manning, Nick; Pierskalla Henryk
    Abstract: The objective of this paper is to provide a review of the theoretical and, in particular, empirical literature on performance-related pay in the public sector spanning the fields of public administration, psychology, economics, education, and health with the aim of distilling useful lessons for policy-makers in developing countries. This study to our knowledge is the first that aims to disaggregate the available evidence by: (i) the quality of the empirical study; (ii) the different public sector contexts, in particular the different types of public sector jobs; and (iii) geographical context (developing country or OECD settings). The paper's main findings, based on a comprehensive review of 110 studies of public sector and relevant private sector jobs are as follows. First, we find that overall a majority (65 of 110) of studies find a positive effect of performance-related pay, with higher quality empirical studies (68 of the 110) generally more positive in their findings (46 of the 68). These show that explicit performance standards linked to some form of bonus pay can improve, at times dramatically, desired service outcomes. Second, however, these more rigorous studies are overwhelmingly for jobs where the outputs or outcomes are more readily observable, such as teaching, health care, and revenue collection (66 of the 68). There is insufficient evidence, positive or negative, of the effect of performance-related pay in organizational contexts that that are similar to that of the core civil service, characterized by task complexity and the difficulty of measuring outcomes, to reach a generalized conclusion concerning such reforms. Third, while some of these studies have shown that performance-related pay can work even in the most dysfunctional bureaucracies in developing countries, there are too few cases to draw firm conclusions. Fourth, several observational studies identify problems with unintended consequences and gaming of the incentive scheme, although it is unclear whether the gaming results in an overall decline in productivity compared to the counterfactual. Finally, few studies follow up performance-related pay effects over a long period of time, leaving the possibility that the positive findings may be due to Hawthorne Effects, and that gaming behavior may increase over time as employees become more familiar with the scheme and learn to manipulate it.
    Keywords: Labor Policies,Educational Sciences,E-Business,Tertiary Education,Economic Theory&Research
    Date: 2012–04–01
  10. By: Prokic-Breuer, Tijana
    Abstract: --
    Date: 2011
  11. By: Dusan Paredes (IDEAR - Department of Economics, Universidad Católica del Norte - Chile)
    Abstract: This paper estimates the gender wage gap for Chile between 1992-2009, but using by first time a matching comparison. In order to contribute to the empirical literature, this paper uses a novel technique called Coarsened Exact Matching which imposes the comparison among comparable workers. The results suggest that the wage gap exists, but it is lower than previous estimations, specially when only comparable workers are considered. This result opens the discussion about how well estimated is the gap when exist a high heterogeneity between male and female workers. The results also show a increment in wage gap from 2000. Finally, only the 58% of comparable male workers earns more wage than similar females workers. However, this 58% presents larger differential than its comparable 42% of female workers. This differential is also growing during the last years.
    Keywords: Gender wage gap, matching comparison, Coarsened Exact Matching
    Date: 2012–04
  12. By: Josheski, Dushko
    Abstract: In the past employee interest and influence have been presented mainly through trade unions and collective bargaining (economic regulation). Socially optimal levels of co-determination may be prevented by the existence of high fixed costs of establishing councils. Job security can resolve the adverse selection problem and raise economic efficiency i.e. worker or agent will work efficiently or socially optimal. Co-determination reinforces well functioning social democracy, recent studies discover that consultation and participation increase than innovativeness of the company. The US and EU approach to employment are different under common and civil law, that differ in many ways. The US employment –at- will is liberal individualist model, laissez-faire approach and any regulation is considered to be potentially welfare reducing. And mandatory employment rights model; EU model that seeks it’s rationale in the previously mentioned market failures (agency problems, hold-up problems) caused by asymmetric information and incomplete employment contracts, and the presence of monopolies, monopsonies that reduce workers mobility. Harmonious relations between” social partners” – labor and management are the aim of the European Work Council directive. European law continues to focus on workers and shareholders interest.
    Keywords: Asymmetric informations; European model; Employee councils; Co-determination; European Work Council Directive
    JEL: M50
    Date: 2012–04–18
    Abstract: The first objective of this study is to investigate students’ preferences for learning methods in relation to their learning strategy, motivation, gender, and ability. Two learning methods are considered: team learning and lecture-based learning. The second objective is to explore the effectiveness of the chosen learning method by comparing academic achievement between the lecture-based and team-learning groups. A quasi-experiment was administered, consisting of an untreated control group with a pre-test and a post-test, for a first-year undergraduate accounting class. Students choose one of the two learning paths and subsequently follow their chosen learning path. The results show that female students had a higher preference for team learning than male students. Furthermore, team-learning students were more intrinsically motivated, had a lower ability level, and had less control of their learning beliefs, but they were more willing to share their knowledge with peers. The teamlearning approach also resulted in increased performance in an advanced accounting course while controlling for the differences in gender and ability. This beneficial impact of team learning on performance was not found for other courses, leading to the conclusion that team learning offers an appropriate learning method at the university level for a first-year accounting course.
    Keywords: Team learning, cooperative learning, academic performance, MSLQ, instructional preferences
    Date: 2012–02
  14. By: Nufer, Gerd; Bühler, André W.
    Abstract: Sporting organizations increased their degree of professionalism step by step within the last decades because being just a pure sporting organization is not enough. These days, sporting bodies and codes have to be professional in order to survive in an extremely competitive mar-ket. Therefore, sporting organizations adopt and adapt management practices and techniques, human resource approaches and marketing strategies. They learn from corporate businesses of other industry sectors. However, in this paper we seek to examine the opposite perspective: What can a company learn from sports? In which ways can sports management serve as a role model for corporate management? We start with the description of some existing parallels between sports and corporate management in general. We then focus on how sporting organizations make use of globalization, human resources and marketing. Especially with regard to human resources and marketing, we will see that sports is far ahead of today's corporate management in these areas - there is a lot to learn for corporate management from the strategies and approaches used in the world of sports. --
    Date: 2011
  15. By: Jeremiah Hurley (Department of Economics, Centre for Health Economics and Policy Analysis, McMaster University, Department of Clinical Epidemiology and Biostatistics, McMaster University); Phil DeCicca (Department of Economics, Centre for Health Economics and Policy Analysis, McMaster University); Jinhu Li (Centre for Health Economics and Policy Analysis, McMaster University); Gioia Buckley (Centre for Health Economics and Policy Analysis, McMaster University)
    Abstract: Beginning in 1999, Ontario introduced pay-for-performance incentives for selected preventive primary care services and defined sets of other services provided by family physicians, with the goal of improving the quality of patient care. These performance incentives were considerably expanded in 2004. At the request of the Ministry and as part of the collaborative research program between the Ontario Ministry of Health and Long-Term Care (MOHLTC) and the Centre for Health Economics and Policy Analysis (CHEPA), CHEPA researchers undertook an evaluation of the effect of performance incentives on service provision in Ontario. This report presents the results of that evaluation.
    Date: 2011
  16. By: Bielecki, Andre; Albers, Sönke; Mantrala, Murali
    Abstract: A key to enhancing sales force productivity is finding ways to help existing reps sell more. In this paper, we focus on the process of internal efficiency benchmarking of a firm’s sales representatives aimed at identifying strong and weak performers and providing meaningful and actionable directions for improving productivity of relatively inefficient performers. We propose to do this by utilizing measures of two fundamental attributes of a salesperson’s controllable work activity as inputs in a DEA (data envelopment analysis) – based procedure: how hard and how smart s/he works. The suggested metrics are derived in an empirical application using archival sales response data from a pharmaceutical company sales force. The application shows that, on average, working smart has larger effects on sales than working hard. In comparison to a conventional DEA benchmarking that simply uses raw sales calls as input measures, the proposed model that uses more ‘processing’ of the sales response data to derive working smart and hard input measures shows much larger potential for efficiency improvement and offers more meaningful and actionable guidance for improving sales force productivity. --
    Keywords: Working Smart,Working Hard,Salesperson Benchmarking,Data Envelopment Analysis,Efficiency Analysis
    JEL: M30 M10
    Date: 2012–04–23
  17. By: S Bradley; Colin Green; J Mangan
    Abstract: A standard finding in the literature on gender wage gaps is that the public sector exhibits much lower gaps than in the private sector. This finding is generally attributed to the existence of less gender discrimination in the public sector. In this paper we show that this conclusion is flawed because the standard finding for the public sector is biased by the dominating influence of large feminised occupational groups, such as those in nursing and teaching, both of which have relatively flat job hierarchies and hence low overall wage variance. However, when we examine other occupations within the public sector, there is evidence of sizeable wage gaps, much of which cannot be explained by observable or unobservable workplace or worker characteristics. This finding implies that gender discrimination is substantial in some occupations in the public sector.
    Date: 2011

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