nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2016‒02‒12
twelve papers chosen by
Patrick Kampkötter
Universität zu Köln

  1. The Contingent Effect of Management Practices By Blader, Steven; Gartenberg, Claudine; Prat, Andrea
  2. The retention effect of training – portability, visibility, and credibility By Daniel Dietz; Thomas Zwick
  3. Optimal Monetary Provisions and Risk Aversion in Plural Form Franchise Networks A Model of Incentives with Heterogeneous Agents By Muriel Fadairo; Cintya Lanchimba; Miguel Yangari
  4. Sleep and Human Capital: Evidence from Daylight Saving Time By Lawrence Jin; Nicolas Ziebarth
  5. Spatial distribution of US employment in an urban wage-efficiency setting By José Ignacio Gimenez-Nadal; José Alberto Molina; Jorge Velilla
  6. Back to background risk? By Andreas Fagereng; Luigi Guiso; Luigi Pistaferri
  7. Teaching Styles and Achievement: Student and Teacher Perspectives By Ana Hidalgo-Cabrillana; Cristina Lopez-Mayan
  8. Optimal Openness Level and Economic Performance of Firms: Evidence from Belgian CIS Data By Michele Cincera; Pierre De Clercq; Thomas Gillet
  9. The evolution of the gender gap in industrialized countries. By Olivetti, Claudia; Petrongolo, Barbara
  10. Investing in Human Capital for Inclusive Growth: Focus on Higher Education By Canlas, Dante B.
  11. Features of business career management of the personnel in the modern companies on the example of “O’stin” volga branch office By Berezina, Ekaterina
  12. How Shared Capitalism Affects Employee Withdrawal: An Econometric Case Study Of A French-Listed Company By Nicolas Aubert; Xavier Hollandts

  1. By: Blader, Steven; Gartenberg, Claudine; Prat, Andrea
    Abstract: This paper investigates how the success of a management practice depends on the nature of the long-term relationship between the firm and its employees. A large US transportation company is in the process of fitting its trucks with an electronic on-board recorder (EOBR), which provide drivers with information on their driving performance. In this setting, a natural question is whether the optimal managerial practice consists of: (1) Letting each driver know his or her individual performance only; or (2) Also providing drivers with information about their ranking with respect to other drivers. The company is also in the first phase of a multi-year "lean-management journey", which corresponds to an overhaul of the relational contract with its employees. This phase focuses exclusively on changing employee values, mainly toward a greater emphasis on teamwork and empowerment. The main result of our randomized experiment is that (2) leads to better performance than (1) in a particular site if and only if the site has not yet received the values intervention, and worse performance if it has. The result is consistent with the presence of a conflict between competition-based managerial practices and a cooperation-based relational contract. More broadly, it highlights the role of intangible relational factors in determining the optimal set of managerial practices.
    Keywords: management; relational contracts; relative ranking
    JEL: D2
    Date: 2016–01
  2. By: Daniel Dietz (Department of Business Management, University of Wuerzburg); Thomas Zwick (Department of Business Management, University of Wuerzburg)
    Abstract: This paper analyses the effect of training participation on employees’ retention in the training company. It for the first time empirically combines the human capital and the monopsony theory by jointly controlling for the portability, visibility, and credibility of training. Based on an extensive German linked-employer-employee data set with detailed information on training history (WeLL-ADIAB), we show that training increases employees’ retention. We compare the probability to stay at the same employer between training participants and accidental training non-participants (those who could not participate in planned training on the basis of exogeneous reasons). Higher portability of general human capital contents and visibility of training induced by training certificates however reduce the retention effect of training. Retention is further reduced when training is credibly provided and certified by external institutions, the full training effect on retention is still positive, however. We are careful to control for endogeneity of training participation in retention equations, unobserved time-invariant effects, and extensive individual and employer characteristics including wage increases and general job satisfaction.
    Keywords: Labor Mobility, Turnover, Employment, Training
    JEL: J62 J63 M51 M53
    Date: 2016–01
  3. By: Muriel Fadairo (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Cintya Lanchimba (Escuela Politécnica Nacional, Quito, GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Miguel Yangari (Escuela Politécnica Nacional, Quito)
    Abstract: Existing literature on franchising has extensively studied the presence of plural form distribution networks, where two types of vertical relationships-integration versus franchising-co-exist. However, despite the importance of monetary provisions in franchise contracts, their definition in the case of plural form networks had not been addressed. In this paper, we focus more precisely on the " share parameters " in integrated (company-owned retail outlet) and decentralized (franchised outlet) vertical contracts, respectively the commission rate and the royalty rate. We develop an agency model of payment mechanism in a two-sided moral hazard context, with one principal and two heterogenous agents distinguished by different levels of risk aversion. We define the optimal monetary provisions, and demonstrate that even in the case of segmented markets, with no correlation between demand shocks, the two rates (commission rate, royalty rate) are negatively interrelated.
    Keywords: moral hazard, commission rate, dual distribution, royalty rate,Franchising
    Date: 2016
  4. By: Lawrence Jin; Nicolas Ziebarth
    Abstract: This paper is one of the first to test for a causal relationship between sleep and human capital. It exploits the quasi-experimental nature of Daylight Saving Time (DST), up to 3.4 million BRFSS respondents from the US, and all 160 million hospital admissions from Germany over one decade. We find evidence of mild negative health effects when clocks are set forward one hour in spring. When clocks are set back one hour in fall, effectively extending sleep duration for the sleep deprived by one hour, sleep duration and self-reported health increase and hospital admissions decrease significantly for four days.
    Keywords: sleep, human capital, Daylight Saving Time (DST), BRFSS, hospital admissions, sleep deprivation
    JEL: H41 I18 I31
    Date: 2016–01
  5. By: José Ignacio Gimenez-Nadal (University of Zaragoza); José Alberto Molina (University of Zaragoza; Boston College); Jorge Velilla (University of Zaragoza)
    Abstract: In this paper, we analyze the spatial distribution of US employment and earnings against an urban wage-efficiency background, where leisure and effort at work are complementary. Using data from the American Time Use Survey (ATUS) for the period 2003-2014, we analyze the spatial distribution of employment across metropolitan areas. We also empirically study the relationship between individual earnings and commuting and leisure. Our empirical results show that employment is mostly concentrated in metropolitan cores, and that earnings increase with “expected” commuting time, which gives empirical support to our urban wage-efficiency theory. Furthermore, we use Geographical Information System models to show that there is no common pattern of commuting and the employees-to-unemployed rate, although we find higher wages in comparatively crowded states, where average commuting times are also higher.
    Keywords: urban wage-efficiency, earnings, commuting, leisure, American Time Use Survey
    JEL: J21 J22 J31 R12 R41
    Date: 2016–02–01
  6. By: Andreas Fagereng; Luigi Guiso; Luigi Pistaferri (Statistics Norway)
    Abstract: Estimating the effect of background risk on individual financial choices faces two challenges. First, the identification of the marginal effect requires a measure of at least one component of human capital risk that qualifies as ”background” (a risk that an individual cannot diversify or avoid). Absent this, estimates suffer from measurement error and omitted variable bias. Moreover, measures of background risk must vary over time to eliminate unobserved heterogeneity. Second, once the marginal effect is identified, an evaluation of the economic significance of background risk requires knowledge of the size of all the background risk actually faced. Existing estimates are problematic because measures of background risk fail to satisfy the ”nonavoidability” requirement. This creates a downward bias which is at the root of the small estimated effect of background risk. To tackle the identification problem we match panel data of workers and firms and use the variability in the profitability of the firm that is passed over to workers to obtain a measure of risk that is hardly avoidable. We rely on this measure to instrument total variability in individual earnings and find that the marginal effect of background risk is much larger than estimates that ignore endogeneity. We bound the economic impact of human capital background risk and find that its overall effect is contained, not because its marginal effect is small but because its size is small. And size of background risk is small because firms provide substantial wage insurance.
    Keywords: Background risk; Portfolio Choice; Labor Income Uncertainty
    JEL: G11 D1 D8
    Date: 2016–02
  7. By: Ana Hidalgo-Cabrillana; Cristina Lopez-Mayan
    Abstract: Using data from a Spanish assessment program of fourth-grade pupils, we analyze to what extent using traditional and modern teaching styles in class is related to achievement in maths and reading. As a novelty, we measure in-class work using two different sources of information - teacher and students. Our identification strategy relies on between-class within-school variation of teaching styles. We find that modern practices are related to better achievement, especially in reading, while traditional practices, if anything, are detrimental. There are differences depending on the source of information: the magnitude of coefficients is larger when practices are reported by students. These findings are robust to considering alternative identifications of teaching practices. We obtain heterogeneous effects of teaching styles by gender and type of school but only when using students' answers. Our findings highlight the importance of the source of information, teacher or students, to draw adequate conclusions about the effect of teaching style on achievement.
    Keywords: students and teacher reports, test scores, teacher quality, modern and traditional teaching
    JEL: I20 I21 J24
    Date: 2015–12
  8. By: Michele Cincera; Pierre De Clercq; Thomas Gillet
    JEL: O31 O32 L23
    Date: 2015
  9. By: Olivetti, Claudia; Petrongolo, Barbara
    Abstract: Women in developed economies have made major inroads in labor markets throughout the past century, but remaining gender differences in pay and employment seem remarkably persistent. This paper documents long-run trends in female employment, working hours and relative wages for a wide cross-section of developed economies. It reviews existing work on the factors driving gender convergence, and novel perspectives on remaining gender gaps. The paper finally emphasizes the interplay between gender trends and the evolution of the industry structure. Based on a shift-share decomposition, it shows that the growth in the service share can explain at least half of the overall variation in female hours, both over time and across countries.
    Keywords: female employment; gender gaps; industry structure
    JEL: E24 J16 J31
    Date: 2016–01
  10. By: Canlas, Dante B.
    Abstract: What does the Philippines need to do to transform its economy into a high middle-income economy and ensure that the benefits from such a transformation are within reach of every Filipino? Investment in human capital, especially higher education, is one instrument that serves the twin goals of boosting economic growth with broad-based rewards, that is, inclusive growth. Currently, the Philippines is confronted by a low proportion of enrollees and graduates in higher and scientific education, and needs to raise its stock of labor with higher and scientific education amid rising demand for skilled workers and widening gaps in lifetime earnings between college and high school graduates. Several policies are indicated, but priority must be accorded to instituting loan programs for higher education, accelerating rationalization of the state university and college sector based on instituting regional university systems and centers of excellence, and devising grant programs for content standards for subjects and courses and formulating standardized tests for measuring and monitoring compliance with those standards applied to both public and private institutions of higher learning.
    Keywords: Philippines, higher education institutions (HEIs), higher education, inclusive growth, human capital, student loans
    Date: 2016
  11. By: Berezina, Ekaterina (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Competently constructed management of the career is a factor of efficiency increase of any organization’s activity, a condition of its stability and viability in the changing environment, a driving force, the mechanism of its development. Efficiency from this personnel reserve rather high as it provides to the organization personnel stability and increases interest of employees. Competently created personnel reserve supports at employees motivation to development, increases their loyalty of the company, and also helps to hold key workers that is especially important with top management. Thus employees have to represent accurately the career, and, above all understand how they can influence the advance. At the same time, employees pass training, training, are familiar with model of competences, regularly participate in various trainings. And at observance of certain conditions they have an opportunity on not the fast, but predicted planned career development. In the article the problem of management of personnel’s business career on the example of the Volga branch office of O'STIN is considered. Features of career development, the personnel structure, instruments of career management existing in the organization are analyzed. The main difficulties of career development realization are marked out and ways of their overcoming are offered.
    Keywords: business career; personnel career management; job rotation; careergramma; professionagramma; career self-management technology; career development plan
    Date: 2015
  12. By: Nicolas Aubert (CEROG - Centre d'Etudes et de Recherche sur les Organisations et la Gestion - Université Paul Cézanne - Aix-Marseille 3); Xavier Hollandts (CRCGM et IFGE - Kedge Business School - Kedge Business School)
    Abstract: The academic literature emphasizes that shared capitalism positively affects employees' attitudes at work. This paper investigates that issue by testing the relationship between shared capitalism and withdrawal behaviors (turnover and absenteeism). Recent literature interprets shared capitalism as a gift exchange between employers and employees. This paper builds on that literature. The analysis, based on an econometric case study, focuses on a five-year panel dataset of more than 800 subsidiaries belonging to a unique French-listed company. Our results show that only long-term shared capitalism translates into better withdrawal behaviors.
    Keywords: Shared Capitalism,Employee Ownership,Profit Sharing Turnover Absenteeism
    Date: 2015

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