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on Human Capital and Human Resource Management |
| By: | Sotiris Georganas; Mirco Tonin; Michael Vlassopoulos |
| Abstract: | Peer effects arise in situations where workers observe each others’ work activity. In this paper we disentangle the effect of observing a peer from that of being observed by a peer, by setting up a real effort experiment in which we manipulate the observability of performance. In particular, we randomize subjects into three groups: in the first one subjects are observed by another subject, but do not observe anybody; in the second one subjects observe somebody else’s performance, but are not observed by anybody; in the last group subjects work in isolation, neither observing, nor being observed. We consider both a piece rate compensation scheme, where pay depends solely on own performance, and a team compensation scheme, where pay also depends on the performance of other team members. Overall, we find some evidence that subjects who are observed increase productivity at least initially when compensation is team based, while we find that subjects observing react to what they see when compensation is based only on own performance. |
| Keywords: | peer effects, piece rate, team incentives, real-effort experiment |
| JEL: | D03 J24 M52 M59 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4572&r=hrm |
| By: | François Larmande; Jean-Pierre Ponssard |
| Abstract: | We study a principal-agent model in which the agent can provide ex post additional relevant information regarding his performance. In particular, he can provide a legitimate excuse, that is, evidence that a poor result is only due to factors outside his control. However, building a convincing case requires time, time that is not spent on exerting productive effort, and thus generating information represents an opportunity cost. We obtain necessary and sufficient conditions for the principal to prefer a policy of adjusting ex post the performance measure for the information provided by the agent to a policy of conforming to a result-based system with no adjustments. The risk aversion and a possible limited liability of the agent play an important role in the analysis. This paper clarifies the issues associated with the so-called “excuse culture” prevailing in some organizations. |
| Keywords: | performance measurement, manipulation, controllability principle, excuse culture, influence activity |
| JEL: | D82 M41 M52 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4569&r=hrm |
| By: | Florian Ederer; Richard Holden; Margaret A. Meyer |
| Date: | 2014–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:786969000000000875&r=hrm |
| By: | Tano, Sofia (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | The spatial distribution of human capital plays a fundamental role for regional differences in economic growth and welfare. This paper examines how individual ability indicated by the grade point average (GPA), from comprehensive school, affects the probability of migration among young university graduates in Sweden. Using detailed micro data available from the Swedish population registers, the study examines two cohorts of individuals who enrol in tertiary education. The results indicate that individual abilities reflected by the GPA are strongly influential when it comes to completing a university degree and for the migration decision after graduation. Moreover, there is a positive relationship between the GPA and the choice of migrating from regions with a relatively low tax base and a relatively small share of highly educated people in the population. Analogously, individuals with a high GPA tend to stay at a higher rate in more flourishing regions. |
| Keywords: | Bivariate probit; individual ability; migration; regional clustering; university graduates |
| JEL: | I23 J24 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0879&r=hrm |
| By: | Berck, Peter (Department of Agricultural and Resource Economics and Policy); Tano, Sofia (Department of Economics, Umeå School of Business and Economics); Westerlund, Olle (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | Migration rates are highest among young adults, especially students, and their location choices affect the regional distribution of human capital, growth and local public sector budgets. Using Swedish register data on young adults, the choice of whether to enroll in education and the choice of location are estimated jointly. The results indicate a systematic selection into investment in further education based on school grades and associated preferences for locations with higher per capita tax bases. For students, the estimates indicate lower preferences for locations with higher shares of older people. The importance of family networks for the choice of location is confirmed. |
| Keywords: | Agglomeration; human capital; local public sector; location choice |
| JEL: | J24 J61 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0878&r=hrm |
| By: | Jesus Crespo Cuaresma (Department of Economics, Vienna University of Economics and Business); Anna Raggl (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | We assess empirically the changes in returns to education at the subnational level in Uganda using the Uganda National Household Surveys for 2002/2003 and 2005/2006. Our results indicate that average returns to schooling tended to converge across regions in the last decade. The overall trend in convergence of returns to schooling took place at all levels of educational attainment and this behaviour in returns to education is mostly driven by the dynamics of returns to schooling in urban areas. We analyse subnational convergence in returns to education and unveil deviant dynamics in Northern Uganda. We discuss the potential challenges to inclusive economic growth in Uganda which are implied by our results. |
| Keywords: | Human capital, returns to education, regions, Uganda |
| JEL: | J24 R23 O55 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp169&r=hrm |
| By: | Tano, Sofia (Department of Economics, Umeå School of Business and Economics) |
| Abstract: | The present paper estimates the relationship between migration across labour-market regions and the subsequent changes in earnings in Sweden by using the individual’s grade point average (GPA) from the final year of comprehensive school as a proxy for ability. This measure aims to capture heterogeneity in the effects of mobility on earnings for individuals conditional on educational attainment and other observed traits. Register data from Sweden, including two whole cohorts of individuals, is used. A difference-in-difference propensity score matching estimator is applied to estimate the relationship between income and migration up to seven years after migrating. The results show variation between different ability groups with respect to the return to regional migration. There are indications of larger gains for individuals holding top grades, while the bottom half seems to benefit less, or have slightly negative returns. The difference in return to migration across GPA quartiles is larger for women than for men. |
| Keywords: | Human capital; income; internal migration; propensity score matching |
| JEL: | J24 J31 J61 R23 |
| Date: | 2014–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0880&r=hrm |
| By: | Daron Acemoglu; Francisco A. Gallego; James A. Robinson |
| Abstract: | In this paper we revisit the relationship between institutions, human capital and development. We argue that empirical models that treat institutions and human capital as exogenous are misspecified both because of the usual omitted variable bias problems and because of differential measurement error in these variables, and that this misspecification is at the root of the very large returns of human capital, about 4 to 5 times greater than that implied by micro (Mincerian) estimates, found in some of the previous literature. Using cross-country and cross-regional regressions, we show that when we focus on historically-determined differences in human capital and control for the effect of institutions, the impact of institutions on long-run development is robust, while the estimates of the effect of human capital are much diminished and become consistent with micro estimates. Using historical and cross-country regression evidence, we also show that there is no support for the view that differences in the human capital endowments of early European colonists have been a major factor in the subsequent institutional development of these polities. |
| Keywords: | Economic Development, Institutions, Human Capital |
| JEL: | I25 P16 O10 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:449&r=hrm |
| By: | Tor Eriksson (Department of Economics and Business, Aarhus University, Denmark); Zhihua Qin (Renmin University, China,); Wenjing Wang (Department of Economics and Business, Aarhus University, Denmark) |
| Abstract: | This paper examines the relationship between employee turnover, HRM practices and innovation in Chinese firms in five high technology sectors. We estimate hurdle negative binomial models for count data on survey data allowing for analyses of the extensive as well as intensive margins of firms’ innovation activities. Innovation is measured both by the number of ongoing projects and new commercialized products. The results show that higher R&D employee turnover is associated with a higher probability of being innovative, but decreases the intensity of innovation activities in innovating firms. Innovating firms are more likely to have adopted high performance HRM practices, and the impact of employee turnover varies with the number of HRM practices implemented by the firm. |
| Keywords: | Innovation, HRM Practices, Employee Turnover |
| JEL: | L22 M50 O31 |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2014-09&r=hrm |