nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2015‒07‒04
fourteen papers chosen by
Tommaso Reggiani
Universität zu Köln

  1. Health-Damaging Inputs, Workers' Health Status and Productivity Measurement By Konstantinos Chatzimichael; Margarita Genius; Vangelis Tzouvelekas
  3. MANAGEMENT BY VALUES. RESULTS OF SELF- RESEARCH By Izabela Sta; Tadeusz Oleksyn; Andrzej Herman
  4. Can Bureaucrats Really Be Paid Like CEOs? School Administrator Incentives for Anemia Reduction in Rural China By Renfu Luo; Grant Miller; Scott Rozelle; Sean Sylvia; Marcos Vera-Hernández
  6. Long-run effects of temporary incentives on medical care productivity By Celhay,Pablo A.; Gertler,Paul J.; Giovagnoli,Paula; Vermeersch,Christel M. J.
  7. Human Capital Quality and Aggregate Income Differences: Development Accounting for U.S. States By Hanushek, Eric A.; Ruhose, Jens; Woessmann, Ludger
  8. The Influence of Trust and Knowledge Sharing on Virtual Team Effectiveness By Thomas, Ted
  9. Estimating the External Returns to Education: Evidence from China By Fan, Wen; Ma, Yuanyuan; Wang, Liming
  10. Human capital productivity and uncertainty By AZOMAHOU; Bity DIENE; Mbaye DIENE
  11. 'Are human and social capital linked? Evidence from India' By Baris Alpaslan
  12. The Accumulation of Human and Nonhuman Capital, Revisited By Barbara M. Fraumeni; Michael S. Christian; Jon D. Samuels
  13. Coordinating Contracts in Value-Based Healthcare Delivery: Integration and Dynamic Incentives By Tannaz Mahtoochi; Ignacio Castillo; Logan McLeod
  14. Work Force Composition and Innovation: How Diversity in Employees’ Ethnical and Disciplinary Backgrounds Facilitates Knowledge Re-combination By Mohammadi, Ali; Broström, Anders; Franzoni, Chiara

  1. By: Konstantinos Chatzimichael (Dept of Economics, University of Crete, Greece); Margarita Genius (Department of Economics, University of Crete, Greece); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: In many sectors technological conditions of rm production require the use of specic inputs that are at the same time hazardous for firm workers, i.e., health-damaging inputs. Safety rules on the application of these health damaging inputs are not always followed due to lack of knowledge on the adverse long-run health effects and improper firm management. This in turn implies that firms suffer from important productivity losses due to deterioration of their human capital. Along these lines, we develop a primal decomposition framework to analyze the effects of human capital on individual productivity growth rates while considering the adverse eects of health-damaging inputs. Workers' health indices are estimated using the recently developed generalized propensity score (GPS) methods with continuous treatments (Hirano and Imbens, 2004). The approach is implemented in a unique dataset of greenhouse producers in Western Crete, Greece that combines individual worker health with production data.
    Keywords: health-damaging inputs; workers' health index; TFP growth; greenhouse farms
    JEL: I12 I30 Q12 D24
    Date: 2015–06–19
  2. By: Chokkalingam; Sony Kumari; K.B. Akhilesh and H.R. Nagendra
    Abstract: The personality of employees determine the performance of employee. Agreeableness is one of the Big Five Personality traits which affects the performance of employee. An empirical study is made to assess the effect of practicing Integrated Yoga on personality traits,including agreeableness of employee. 51 employees are given Yoga Intervention for four months and another 51 employees are not given any intervention. Using Big Five Personality Inventory, data is collected before, in the middle, and at the end of the study. The analysis of data using SPSS showed that agreeableness among employees in Integrated Yoga Intervention group improved significantly (p<.01) Key words: Personality, Performance of Employee, Agreeableness, Integrated Yoga
    Date: 2015–06
  3. By: Izabela Sta (Jagiellonian University in Cracow); Tadeusz Oleksyn (Warsaw School of Economics); Andrzej Herman (Warsaw School of Economics)
    Abstract: This paper shall present the synthesis of the results of research carried out in Poland in 2014 by a team of five researchers from three academic centres from Poland with relation to management by respecting and promoting values.These referred to data surveys (N=512) and case studies (five multinational and national corporations operating in Poland). With regard to the research, this related to groups of economic and managerial values, as well as competence and developmental ones, while also ethical and cultural, civic and social ones in terms of their perception and utilization in organizations for the purposes of management itself. The relations of values with that of staffing policies have been analysed, such as decisions on recruitment and redundancies, promotions and demotions, while also appraisal of work and employees, remuneration and intangible rewards. Likewise, the ties betweenthe concept of MBV and the legislative and organizational forms have been placed under analysis.The research at hand was the basis for the formulation of an array of interesting conclusions
    Keywords: values, management, management by values, code of values.
    JEL: J24
    Date: 2015–06
  4. By: Renfu Luo; Grant Miller; Scott Rozelle; Sean Sylvia; Marcos Vera-Hernández
    Abstract: A large literature examines performance pay for managers in the private sector, but little is known about performance pay for managers in public sector bureaucracies. In this paper, we study performance incentives rewarding school administrators for reducing anemia among their students. Randomly assigning 170 schools to three performance incentive levels and two orthogonal sizes of unconditional grants, we analyze performance pay and its complementarity with discretionary resources. We find that both large incentives and larger unconditional grants reduced anemia substantially, but incentives were more cost-effective. Performance incentives led administrators to innovate by working with parents, mitigating potentially offsetting compensatory behavior among households. Strikingly, we also find that larger unconditional grants completely crowded-out the effect of incentives. Our findings suggest that performance incentives can be effective in bureaucratic environments – but also that discretionary resources can fully crowd-out their effect.
    JEL: C93 H40 I12 M52 O15
    Date: 2015–06
  5. By: Akanksha Ritesh; Rajesh Mehrotra
    Abstract: Due to liberalization and globalization, competition has become so intense, that managers have less time to respond to changing market situation. In order to remain competitive they have to cut cost, enhance efficiency in operations and increase profitability. Rapid developments in information and communication technology have provided enormous data to the managers to arrive at decision, comparable to market standards. This leads to complex process. How to make decisions in this complex and competitive environment? How to manage the employee retention? In the today era no one can deny the importance and credibility of roles and responsibilities of Human Resource Management in an organization with reference to women participation as it ensures the achievement of maximum growth for the organization. Now the employers also having strong opinion that,’ their “Human Capitals” are one of the important key drivers in their growth. Women today are present in every field of work. Research has consistently indicated strong correlation between diverse senior management and financial performance of organizations, highlighting business benefits from having considerable number of women employees as part of the workforce. The scarcity of global talent has led to many organizations pro-actively doing their best to recognize, retain, and develop women. In India, keeping women employees on the job has proven difficult in a traditional patriarchal society. With the changing work force demography, and the talent war among the companies to attract and retain the best-in-class candidates, Indian companies continue to work on improving existing policies and facilities for womenwhich projects that now the ability to manage effectively the employee talent within the organization is necessary and becoming more critical everyday due to switchovers in this competitive environment. Employee relationship management (ERM) is a process that companies uses to effectively manage all interactions with employees, ultimately to achieve the goals of the organization. Happy employees are productive employees. Successful businesses know how to manage relationships to build lasting employee satisfaction. The most important part of any business is its people. No business can run effectively without them. But people don’t work in a vacuum; they need to communicate and work with others to get their jobs done. To be successful, employers need to manage relationships in the workplace to keep the business functioning smoothly, avoid problems and make sure individual employees are performing at their best.The purpose of this paper is to investigate the new approach of ERM with special reference to women who are working in software industry and suggest possible ways to communicate the concept more effectively so that this concept could be implemented more successfully in Indian Industry. The objective of this study is to understand Employee Relation Management Role in enhancement of employee performance and it is essential to understand the effectiveness of Employee Relations activities and practices which are contributing positively towards women Employee Performance. This study will be undertaken basically on theoretical Ground and by examining the Annual Reports of Indian Industry and interaction and the collected information will be arranged and analyzed systematically. ERM with especial reference to women includes both quantitative and qualitative factors of Performances. The Employee Management tool is a strategic business tool that can help Indian Software Industry to take more focused approach to developing operating strategies and measure the women workforce retention outcomes. This paper will lead to the awareness of the importance of Employee Relationship Management for women workforce retention in software industry. The organization can introduce assigning appropriate importance to the activities – as they deem fit for women retention. Key words: Employee Relations, work-life balance, safe working conditions, attrition
    Date: 2015–06
  6. By: Celhay,Pablo A.; Gertler,Paul J.; Giovagnoli,Paula; Vermeersch,Christel M. J.
    Abstract: The adoption of new clinical practice patterns by medical care providers is often challenging, even when the patterns are believed to be efficacious and profitable. This paper uses a randomized field experiment to examine the effects of temporary financial incentives paid to medical care clinics for the initiation of prenatal care in the first trimester of pregnancy. The rate of early initiation of prenatal care was 34 percent higher in the treatment group than in the control group while the incentives were being paid, and this effect persisted at least 15 months and likely 24 months or more after the incentives ended. These results are consistent with a model where the incentives enable providers to address the fixed costs of overcoming organizational inertia in innovation, and suggest that temporary incentives may be effective at motivating improvements in long-run provider performance at a substantially lower cost than permanent incentives.
    Keywords: Disease Control&Prevention,Health Systems Development&Reform,Health Monitoring&Evaluation,Population Policies,Labor Policies
    Date: 2015–06–30
  7. By: Hanushek, Eric A. (Stanford University); Ruhose, Jens (Ifo Institute for Economic Research); Woessmann, Ludger (Ifo Institute for Economic Research)
    Abstract: Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. In a complement to international studies of income differences, we investigate the extent to which quality-adjusted measures of human capital can explain within-country income differences. We develop detailed measures of state human capital based on school attainment from census micro data and on cognitive skills from state- and country-of-origin achievement tests. Partitioning current state workforces into state locals, interstate migrants, and immigrants, we adjust achievement scores for selective migration. We use the new human capital measures in development accounting analyses calibrated with standard production parameters. We find that differences in human capital account for 20-35 percent of the current variation in per-capita GDP among states, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses.
    Keywords: economic growth, human capital, cognitive skills, schooling, U.S. states
    JEL: I25 O47 J24
    Date: 2015–06
  8. By: Thomas, Ted
    Abstract: Virtual teams are a growing response to increased de-centralisation and globalization, and the need for organizations to adapt to an ever changing and complex work environment. Their growing prevalence reflects many different factors, including the increased global reach of many organizations, changing workforce demographics, and heightened competitive pressures requiring greater organizational flexibility and responsiveness. This phenomenon has grown rapidly in recent years through advancements and greater access to technologies for communication and collaboration. Organizations however are being challenged with understanding what makes these virtual teams effective and how to measure the achievement of such effectiveness. Combined with the convergence of telephony and data technologies this has enabled voice and video to be delivered ‘on demand’ at a far more affordable price to the end consumer. With the added dynamic of ‘mobile’ becoming such a pervasive technology, this is providing the fuel driving the establishment of greater numbers of virtual teams. We now live in an increasingly “connected world” and with the blurring of work and leisure time, for many, virtual teams have already or are becoming a natural extension of the workplace. Individuals are demanding personal flexibility in the management of their time and space and this is matched by organizations seeking flexibility to scale resources in meeting changing demand. Virtual teams may also be seen as a response to satisfying changing social and organizational aspirations. A range of factors are seen as contributing to the effectiveness of virtual teams and these include technology, trust, sharing of knowledge, empowerment and leadership. This study focuses on trust as a primary factor in achieving virtual team effectiveness, and assesses the significance of trust and the sharing of knowledge amongst team members. Trust determines how people work together, listen to one another, and build effective relationships. When people believe that they are working for trustworthy organizations, they are willing to invest their time and talents in making a difference in an organization. People who feel more connected will invest more of themselves in their work. High trust levels lead to a greater sense of self responsibility, greater interpersonal insight, and more collective action toward achieving common goals. However, with a lack of face-to-face contact, trust based on performance substitutes for trust based on social interaction. Trust is a cornerstone to achieving virtual team effectiveness and from an organizational perspective this highlights the need for regular communication with team members to reinforce the culture and values of the organization. In the age of the knowledge economy, knowledge is seen as a critical resource for competitive advantage. The willingness of team members to share knowledge with others on the team can be attributed to the strength of the trust relationship and this further enhances virtual team effectiveness. The challenges for organizations are to understand what level of trust exists across the team, how this impacts on team effectiveness and to be able to apply interventions when seeking to increase team effectiveness. Active and regular communications programmes, internal marketing campaigns and short surveys are approaches for developing and enhancing the trust relationship. Organizations that are unwilling or unable to use virtual teams may find themselves losing out in an increasingly competitive and rapidly changing global economic and social environment. The technology and communication advances are clear, yet enabling effective participation and team collaboration is a more complex problem.
    Keywords: Virtual team effectiveness, Knowledge sharing, Trust,
    Date: 2014
  9. By: Fan, Wen (Nanjing University); Ma, Yuanyuan (Trinity College Dublin); Wang, Liming (University College Dublin)
    Abstract: Using longitudinal data from the China Health and Nutrition Survey, we examine how individual wages change in line with the share of college graduates in a given province. The individual fixed effect model shows that the external returns to education in China appear to be zero. We estimate an instrumental variables fixed effects model where share of college graduates is instrumented by the number of universities with special status and find positive external returns to education of about 10 per cent to 14 per cent. We also find that the returns are affected by individual heterogeneity. While negligible returns are found for urban, women, and high-educated workers, the returns are positive and statistically significant for rural, men, and low-educated workers. This finding provides the motivation for increasing education investment in rural China and targeting it more toward poorly educated workers.
    Keywords: education, public investment, externalities, China
    JEL: J0 J24 O15
    Date: 2015–06
  10. By: AZOMAHOU; Bity DIENE (Université d'Auvergne(UdA)); Mbaye DIENE
    Abstract: Several policies or interventions have been implemented in developing countries with the ultimate goal of improving educational outcomes and human capital. While lots of empirical studies have pointed to mixed results of these interventions, the role of uncertainty arising from the state of the nature about educational environment, household characteristics, along- side the efficiency of these interventions still lack economic mechanism. This paper aims at developing a theoretical framework that links policy interventions to educational outcomes. We characterize optimal policies and determine the conditions for enhancing social welfare. We also study the optimal growth of the economy under uncertainty and population heterogeneity when human capital is produced and used in the education sector. We show that the growth rate of the unskilled population has a direct impact on the growth of human and physical capitals.
    Keywords: Educational outcome, policy interventions, social welfare, skilled and unskilled labor, endogenous growth
    JEL: C61 O15 J13 I31 I25
    Date: 2015–04
  11. By: Baris Alpaslan
    Abstract: This paper develops a two-period Overlapping Generations (OLG) model of endogenous growth in which a two-way relationship between social capital and human capital is studied. In order to illustrate the impact of public policies, the model is calibrated using the data for a low-income country, India and a sensitivity analysis is reported under di¤erent parameter con...gurations. Based on the numerical analysis, this paper focuses on possible trade-offs in the allocation of government spending between two productive components, that is, social capital-related activities and education. The results of this paper show that a higher share of spending on education promotes growth despite an offsetting cut in social capital-related activities; however, the reverse entails trade-o¤s. In other words, an increase in the share of spending on social capital-related activities through a concomitant cut in education is detrimental to long-run growth.
    Date: 2015
  12. By: Barbara M. Fraumeni; Michael S. Christian; Jon D. Samuels
    Abstract: In the 25 years since Jorgenson and Fraumeni (1989) published their first article on human capital, the U.S. National Income and Product Accounts (NIPA) and the SNA have changed significantly. The contribution of this paper is two-fold: Creation of a contemporary set of accounts which integrate human capital measures into the latest comprehensive revision of the U.S. national income accounts and an analysis of trends in human capital and national income account aggregates over the post-war period. The paper is a national income accounting paper with production and factor outlay, income, receipt and expenditure, capital accumulation , and wealth accounts. All of these accounts are tied to the NIPA accounts, and supplemented with human capital estimates. A key feature of the human capital accounts is presentation of human capital estimates in current and constant prices. The time period covered is 1949-84 and 1998-2009. We update the human capital national income accounts and examine trends in the aggregate time series. The results in the original Jorgenson and Fraumeni paper are for 1982 and the aggregate time series are from 1949-1984. Subsequent research by Christian (2012) developed modified Jorgenson-Fraumeni (J-F) human capital estimates from 1998 through 2009. Unfortunately there is a gap in coverage. Nonetheless, a comparison of the aggregates and their trends between the earlier and later period will be informative. The accounting tables in this new paper are for 2009, the latest base year for the NIPA accounts.
    JEL: D24 E01 E24
    Date: 2015–06
  13. By: Tannaz Mahtoochi; Ignacio Castillo; Logan McLeod
    Abstract: We study a value-based healthcare delivery system with two non-cooperative parties: a purchaser of medical services and an Integrated Practice Unit (IPU). The IPU is capable of providing all healthcare needs of patients with a specific medical condition (homogeneous patient population), is comprised of a multi-disciplinary team of providers, and is responsible for the health outcomes of the patients over the care cycle. The IPU chooses the treatment strategy, incurs the associated cost, and is paid by the healthcare purchaser. The treatment strategy critically determines the health outcomes of the patients. Assuming the existence of universal health insurance for the patient population, the healthcare purchaser’s problem is to determine a payment scheme that will induce social welfare maximizing choices to the IPU. We use a dynamic continuous-time principal-agent model to capture the relationship between the purchaser and the IPU, and determine the optimal payment scheme, referred to as dynamic outcome-adjusted payment. The model characterizes the optimal payment scheme with a single variable. Previous value-based healthcare delivery principles suggest that the IPU should be reimbursed according to a “bundled payment.†Our results suggest payment should depend on the history of health outcomes over the care cycle. The proposed payment scheme combines a bundled payment with a bonus payment for consistently producing superior outcomes. Our results suggest value could be improved by paying for health outcomes over the care cycle; thus supporting the value-based healthcare delivery objective of achieving healthier patients over time. Unlike other performance-based payment schemes, this scheme could result in a single-variable implementation.
    Keywords: value-based healthcare delivery, integrated healthcare delivery, universal health insurance, payment systems, coordinating contracts, dynamic incentives
    JEL: I12 I30 J44 C73
    Date: 2015–06
  14. By: Mohammadi, Ali (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Franzoni, Chiara (Politecnico di Milano)
    Abstract: In this paper, we study how workforce composition is related to firm’s radical innovation. Previous studies have argued that teams composed by individuals with diverse background are able to perform more information processing and make a deeper use of the information, which is important to accomplish complex tasks. We suggest that this argument can be extended to the level of the aggregate workforce of high technology firms. Our theoretical interest is focused on the extent to which insights from the literatures on science and invention can be applied to firms’ abilities to achieve radical innovation. In particular, we argue that having a set of employees with greater ethnical and higher education diversity is associated with superior radical innovation performance. Using a sample of 3,888 Swedish firms, we find that greater workforce ethnic diversity is positively correlated to the share of a firm’s turnover generated by radical innovation, while it is neutral to incremental innovation. Greater diversity in terms of higher educational disciplinary background of the workforce is positively correlated to the share of turnover generated by both radical and incremental innovation. Contrary to our hypothesis, we also find that having more external collaborations reduces the importance of a workforce with a diverse disciplinary background, while the importance of ethnic diversity is hold unchanged. Our findings hold after using alternatives measures of dependent and independent variables, alternative sample sizes, and alternative estimation techniques including panel data, and structural equation modeling for simultaneous estimation of diversity, R&D intensity and external search.
    Keywords: Ethnic diversity; Education diversity; External search; Radical innovation
    JEL: J15 J24 J61 O32
    Date: 2015–06–29

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