nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2015‒12‒01
eleven papers chosen by
Patrick Kampkötter
Universität zu Köln

  1. Signaling Cooperation By Heinz, Matthias; Schumacher, Heiner
  2. Mismatch of talent: evidence on match quality, entry wages, and job mobility By Fredriksson, Peter; Hensvik, Lena; Nordström Skans, Oskar
  3. The Relationship Between Establishment Training and the Retention of Older Workers: Evidence from Germany By Berg, Peter B.; Hamman, Mary K.; Piszczek, Matthew; Ruhm, Christopher J.
  4. Innovative work practices, ICT use and employees' motivations By MARTIN Ludivine
  5. Knowing who you are - The Effect of Feedback Information on Short and Long Term Outcomes By Megalokonomou, Rigissa; Goulas, Sofoklis
  6. Social Interactions in Job Satisfaction By Tumen, Semih; Zeydanli, Tugba
  7. Where Are the Returns to Lifelong Learning? By Coelli, Michael; Tabasso, Domenico
  8. Workforce diversity, productivity and wages in France: the role of managers vs. the proprietary structure of the firm By Andrea Garnero
  9. Do Earnings by College Major Affect Graduate Migration? By Winters, John V.
  10. Gender and the Effect of Working Hours on Firm-Sponsored Training By Matteo PICCHIO; Jan C. VAN OURS
  11. Wage Elasticities in Working and Volunteering: The Role of Reference Points in a Laboratory Study By Christine L. Exley; Stephen J. Terry

  1. By: Heinz, Matthias; Schumacher, Heiner
    Abstract: We examine what an applicant’s vita signals to potential employers about her willingness to cooperate in teams. Intensive social engagement may credibly reveal that an applicant cares about the well-being of others and therefore is less likely to free-ride in teamwork situations. We find that contributions in a public goods game strongly increase in a subject’s degree of social engagement as indicated on her résumé (and rated by an independent third party). Engagement in other domains, such as student or sports associations, is not positively correlated with contributions. In a prediction experiment with human resource managers from various industries, we find that managers use résumé content effectively to predict relative differences in subjects’ willingness to cooperate. Thus, young professionals signal important behavioral characteristics to potential employers through the choice of their extracurricular activities.
    Keywords: extracurricular activities; labor market; public good; signaling
    JEL: C72 C92 D82
    Date: 2015–11
  2. By: Fredriksson, Peter (Department of Economics, Stockholm University); Hensvik, Lena (IFAU - Institute for Evaluation of Labour Market and Education Policy); Nordström Skans, Oskar (Department of Economics, Uppsala University)
    Abstract: We examine the direct impact of idiosyncratic match quality on entry wages and job mobility using unique data on worker talents matched to job-indicators and individual wages. Tenured workers are clustered in jobs with high job-specific returns to their types of talents. We therefore measure mismatch by how well the types of talents of recent hires correspond to the talents of tenured workers performing the same jobs. A stylized model shows that match quality has a smaller impact on entry wages but a larger impact on separations and future wage growth if matches are formed under limited information. Empirically, we find such patterns for inexperienced workers and workers who were hired from non-employment, which are also groups where mismatch is more pronounced on average. Most learning about job-specific mismatch happens within a year. Experienced job-to-job movers appear to match under much less uncertainty. They are better matched on entry and mismatch have a smaller effect on their initial separation rates and later wage growth. Instead, match quality is priced into their starting wages.
    Keywords: Matching; Job search; Comparative advantage; Employer learning
    JEL: J24 J31 J62 J64
    Date: 2015–11–18
  3. By: Berg, Peter B. (Michigan State University); Hamman, Mary K. (University of Wisconsin, La Crosse); Piszczek, Matthew (University of Wisconsin, Oshkosh); Ruhm, Christopher J. (University of Virginia)
    Abstract: In the coming years, a substantial portion of Germany's workforce will retire, making it difficult for businesses to meet human capital needs. Training older workers may be a successful strategy for managing this demographic transition. This study examines relationships between establishment training programs, wages, and retirement among older men and women. Using unique matched establishment-employee data from Germany, the authors find that when establishments offer special training programs targeted at older workers, women – and especially lower wage women – are less likely to retire. Results suggest this relationship may be due to greater wage growth. For men, findings suggest establishment offer of inclusion in standard training programs may improve retention of low wage men, but analysis of pre-existing differences in establishment retirement patterns suggests this relationship may not be causal. Our research suggests targeted training programs likely play an important role in retaining and advancing careers of low wage older women.
    Keywords: workforce training, retirement, establishment training
    JEL: J20 J24 J26
    Date: 2015–11
  4. By: MARTIN Ludivine
    Abstract: I investigate the impact of innovative work practices and of Information and Communication Technologies (ICT) on employees' motivations. While the existing literature assumes that their positive effects on performance are due to employees' motivation but only assess related concepts, this paper directly analyses employees' motivations. The data come from a cross-sectional survey conducted in 2013. The paper provides new and interesting results on how firms can build a motivational environment shaped by work practices and ICT. I resort to an original empirical framework that permits one to take into account the potential reverse causation between, on the one hand, the voluntary participation in innovative work practices and the use of ICT and motivations on the other. Within this framework, I modify what previous analyses reveal about quality circle and training participation. The results confirm the positive role of work practices such as teamwork, quality norms, formal appraisals, management recognition and family-friendly policies on employee's positive attitudes. Moreover, I introduce a large range of ICT compared to existing research and find that the ICT that most contributed to the development of a motivational environment are those that facilitate access to information and knowledge such as workflow, Internet and e-mail.
    Keywords: Innovative work practices; information and communication technologies; Employees' motivations
    JEL: J81 L23 M12 M54
    Date: 2015–11
  5. By: Megalokonomou, Rigissa (Department of Economics University of Warwick); Goulas, Sofoklis (University of North Carolina at Chapel Hill)
    Abstract: We study the effect of disclosing relative performance information (feedback) on students' performance in high-school and on subsequent university enrolment. We exploit a large scale natural experiment where students in some cohorts are provided with their national and school relative performance. Using unique primary collected data, we find an asymmetric response to the relative performance information - high achieving students improve their last-year performance by 0.15 standard deviations whereas the last-year performance of low achieving students drops by 0.3 standard deviations. The results are more pronounced for females indicating greater sensitivity to feedback. We also document the long term effect of feedback provision - high achieving students reduce their repetition rate of the national exams, enrol into 0.15 standard deviations more popular University Departments and their expected annual earnings increase by 0.17 standard deviations. Results are opposite for low achieving students. We find suggestive evidence that feedback encourages more students from low-income neighborhoods to enrol in university and to study in higher-quality programs indicating a potential decrease in income inequality
    Keywords: feedback ; relative performance ; university admission ; rank ; gender differences ; income inequality
    JEL: I23 J21
    Date: 2015
  6. By: Tumen, Semih (Central Bank of Turkey); Zeydanli, Tugba (Collegio Carlo Alberto)
    Abstract: The literature documents that job satisfaction is positively correlated with worker performance and productivity. We examine whether aggregate job satisfaction in a certain labor market environment can have an impact on individual-level job satisfaction. If the answer is yes, then policies targeted to increase job satisfaction can increase productivity not only directly, but through spillover externalities too. We seek an answer to this question using two different data sets from the United Kingdom characterizing two different labor market environments: Workplace Employment Relations Survey (WERS) at the workplace level (i.e., narrowly defined worker groups) and British Household Panel Survey (BHPS) at the local labor market level (i.e., larger worker groups defined in industry x region cells). Implementing an original empirical strategy to identify spillover effects, we find that one standard deviation increase in aggregate job satisfaction leads to a 0.42 standard deviation increase in individual-level job satisfaction at the workplace level and 0.15 standard deviation increase in individual-level job satisfaction at the local labor market level. These social interactions effects are sizable and should not be ignored in assessing the effectiveness of the policies designed to improve job satisfaction.
    Keywords: job satisfaction, social interactions, spillovers, hierarchical model, WERS, BHPS
    JEL: C31 D62 J28
    Date: 2015–11
  7. By: Coelli, Michael (University of Melbourne); Tabasso, Domenico (University of Geneva)
    Abstract: We investigate the labour market determinants and outcomes of adult participation in formal education (lifelong learning) in Australia, a country with high levels of adult education. Employing longitudinal data and fixed effects methods allows identification of effects on outcomes free of ability bias. Different trends in outcomes across groups are also allowed for. The impacts of adult education differ by gender and level of study, with small or zero labour market returns in many cases. Wage rates only increase for males undertaking university studies. For men, vocational education and training (VET) lead to higher job satisfaction and fewer weekly hours. For women, VET is linked to higher levels of satisfaction with employment opportunities and higher employment probabilities.
    Keywords: adult education, lifelong learning, vocational studies, returns to education
    JEL: J24 J28 I23 I28
    Date: 2015–11
  8. By: Andrea Garnero
    Abstract: This paper estimates the impact of workforce diversity on productivity, wages, and productivity–wage gaps in a sample of French firms using data from a comprehensive establishment-level survey (REPONSE) for 2011 matched with companies’ balance sheet data. Controlling for a wide set of workers’ and firms’ characteristics, findings suggest that age and gender diversity are negatively linked to firm’s productivity and wages while education diversity is positively linked. Contrary to some widespread beliefs, the paper finds no differential effect according to manager characteristics (gender, age, education and tenure) but some heterogeneity according to the type of proprietary structures of the firms.
    Keywords: labour diversity; productivity; wages; management; firm ownership
    JEL: D24 J24 J31 M12
    Date: 2015–10–09
  9. By: Winters, John V. (Oklahoma State University)
    Abstract: College graduates are considerably more mobile than non-graduates, and previous literature suggests that the difference is at least partially attributable to college graduates being more responsive to employment opportunities in other areas. However, there exist considerable differences in migration rates by college major that have gone largely unexplained. This paper uses microdata from the American Community Survey to examine how the migration decisions of young college graduates are affected by earnings in their college major. Results indicate that higher major-specific earnings in an individual's state of birth reduce out-migration suggesting that college graduates are attracted toward areas that especially reward the specific type of human capital that they possess.
    Keywords: graduate migration, college major, college graduates, human capital
    JEL: J24 J61 R23
    Date: 2015–11
  10. By: Matteo PICCHIO (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Jan C. VAN OURS (Department of Economics, Tilburg University, The Netherlands)
    Keywords: Part-time employment, firm-sponsored training, gender, human capital, working hours
    JEL: C33 C35 J24 M51 M53
    Date: 2015–11
  11. By: Christine L. Exley (Harvard Business School, Negotiation, Organizations & Markets Unit); Stephen J. Terry (Boston University)
    Abstract: Volunteers provide a large source of labor in the United States, yet volunteer effort is often unresponsive to traditional incentives. To clarify the sources of this unresponsiveness within volunteering, we appeal to a classic explanation: targeting behavior. In particular, we provide a laboratory test of effort response to changes in wages, either accrued to individuals or to a charity, in the presence of expectations-based reference points or targets. When individuals earn money for themselves, higher wages lead to higher effort with relatively muted targeting behavior. When individuals earn money for a charity, higher wages instead lead to lower effort with substantial targeting behavior. For managers contemplating the use of performance goals or targets within nonprofit organizations, our results suggest careful consideration about the extent to which they may render other incentives less effective.
    Keywords: reference points; wage elasticities; labor supply; effort; volunteering; prosocial behavior
    JEL: D12 D64 D84 J22 H41
    Date: 2015–09

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