nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2017‒03‒19
five papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Compensation and Honesty: Gender Differences in Lying By Nieken, Petra; Dato, Simon
  2. Job Tasks, Time Allocation, and Wages By Paul Sullivan;
  3. Managers and Productivity Differences By Nezih Guner; Andrii Parkhomenko; Gustavo Ventura
  4. The Internationalisation of Firms and Management Practices: A Survey of Firms in Viet Nam By Isao Kamata; Hitoshi SatoKiyoyasu Tanaka; Kiyoyasu Tanaka
  5. Competition Entry and Relative Performance Feedback: The Importance of Information Disaggregated by Gender By Jeworrek, Sabrina

  1. By: Nieken, Petra; Dato, Simon
    Abstract: We compare gender differences in lying under two incentive schemes that are widely used in companies: individual performance-pay and tournament incentives. While we do not observe significantly different behavior of males and females given individual performance-pay, females lie significantly less than males if the compensation scheme is switched to tournament incentives. This result is mainly driven by a decrease in the propensity to lie of females in a competitive environment. The gender gap in lying is robust with respect to the gender composition of the pool of opponents. Dishonesty is largest for males competing in a mixed-gender environment.
    JEL: M52 J16 C91
    Date: 2016
  2. By: Paul Sullivan;
    Abstract: While a burgeoning literature has extolled the conceptual virtues of directly measuring the underlying job tasks that define work activities, in practice task-based approaches have been hampered by well-known data limitations. We study wage determination using data collected specifically to address these limitations. Most fundamentally, we construct the first longitudinal dataset containing job-level task information for individual workers. New quantitative task measures detail the amount of time spent performing People, Information, and Objects tasks at different skill levels. These measures have clear interpretations, suggest natural proxies for on-the-job human capital accumulation, and provide methodological guidance for future data collection initiatives. A model of comparative advantage highlights the benefits of our data and guides specification and interpretation of empirical models. We provide several new findings about the effect of current and past tasks on wages. First, current job tasks are quantitatively important, with high skilled tasks being paid double the rate of low skilled tasks. Second, there is no evidence of learning-by-doing (i.e., effects of past tasks) for low skilled tasks, but strong evidence for high skilled tasks. Current and past high skilled information tasks are particularly valuable, although high skilled interpersonal tasks also play a significant role. Shifting 10 percent of work time from low skilled people tasks to high skilled information tasks increases a worker's yearly wage by 22% after ten years. Additional human capital accumulation accounts for 70% of this increase, and the direct effect of performing different tasks accounts for the remainder.
    Keywords: human capital, job tasks, learning-by-doing, wage growth
    JEL: J22 J24 J31
  3. By: Nezih Guner; Andrii Parkhomenko; Gustavo Ventura
    Abstract: We document that for a group of high-income countries (i) mean earnings of managers tend to grow faster than for non managers over the life cycle; (ii) the earnings growth of managers relative to non managers over the life cycle is positively correlated with output per worker. We interpret this evidence through the lens of an equilibrium life-cycle, span-of-control model where managers invest in their skills. We parameterize this model with U.S. observations on managerial earnings, the size-distribution of plants and macroeconomic aggregates. We then quantify the relative importance of exogenous productivity differences, and the size-dependent distortions emphasized in the misallocation literature. Our findings indicate that such distortions are critical to generate the observed differences in the growth of relative managerial earnings across countries. Thus, observations on the relative earnings growth of managers become natural targets to discipline the level of distortions. Distortions that halve the growth of relative managerial earnings (a move from the U.S. to Italy in our data), lead to a reduction in managerial quality of 27% and to a reduction in output of about 7% – more than half of the observed gap between the U.S. and Italy. We find that crosscountry variation in distortions accounts for about 42% of the cross-country variation in output per worker gap with the U.S.
    Keywords: Managers, Management, Practices, Distortions, Size, Skill Investments, Productivity Differences
    JEL: E23 E24 J24 M11 O43 O47
    Date: 2015–12
  4. By: Isao Kamata; Hitoshi SatoKiyoyasu Tanaka (Institute of Developing Economies Japan External Trade Organization(IDE-JETRO)); Kiyoyasu Tanaka (Institute of Developing Economies Japan External Trade Organization(IDE-JETRO))
    Abstract: This study examines the role of management practices in the internationalisation of domestic firms through directly exporting and/or supplying to local affiliates of multinationals. An original survey of manufacturing firms in Viet Nam was conducted, investigating their management practices such as human resource management and internationalisation status. The survey results shed light on similarities and dissimilarities among firms in several dimensions of management practices. Findings reveal that internationalised firms tended to be more enthusiastic about the formal training of production workers, the modernisation of production and operation, and product and process innovation. Differences in skills and experience requirements for newly employed managers were less recognisable, but internationalised firms tended to have managers who studied overseas. Furthermore, the use of public support to employee training, teamwork in production, and unionisation of employees did not show a significant difference between internationalised and non-internationalised firms.
    Keywords: Management Practices, Firm Heterogeneity, Global Value Chains
    JEL: F23 F61 M11 M50
    Date: 2017–03
  5. By: Jeworrek, Sabrina
    Abstract: By providing different forms of performance feedback before choosing between a piece-rate and a tournament compensation scheme, I test whether the gender tournament gap diminishes in size since individuals’ entry decision might be driven by incorrect self-assessments. Only the provision of information on average performance by gender indeed shrinks the gender tournament gap, which is especially due to men with below average ability opting for the piece-rate more often. These results highlight that beliefs on one’s own and others’ abilities are still biased by gender stereotypes.
    JEL: C91 D82 J16
    Date: 2016

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