nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2017‒09‒10
six papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Management, Supervision, and Health Care: A Field Experiment By Felipe A. Dunsch; David K. Evans; Ezinne Eze-Ajoku; Mario Macis
  2. Contests as selection mechanisms: The impact of risk aversion By March, Christoph; Sahm, Marco
  3. Talent Discovery, Layoff Risk and Unemployment Insurance. By Pagano, Marco; Picariello, Luca
  4. Gender differences and the effect of facing harder competition By John, June
  5. Employee stock ownership and the cost of capital By Nicolas Aubert; Alexander Kern; Xavier Hollandts
  6. HRM University Systems and Their Impact on e-HRM By Mazen J. Al Shobaki; Samy S. Abu Naser; Suliman A. El Talla; Youssef M. Abu Amuna

  1. By: Felipe A. Dunsch; David K. Evans; Ezinne Eze-Ajoku; Mario Macis
    Abstract: If health service delivery is poorly managed, then increases in inputs or ability may not translate into gains in quality. However, little is known about how to increase managerial capital to generate persistent improvements in quality. We present results from a randomized field experiment in 80 primary health care centers (PHCs) in Nigeria to evaluate the effects of a health care management consulting intervention. One set of PHCs received a detailed improvement plan and nine months of implementation support (full intervention), another set received only a general training session, an overall assessment and a report with improvement advice (light intervention), and a third set of facilities served as a control group. In the short term, the full intervention had large and significant effects on the adoption of several practices under the direct control of the PHC staff, as well as some intermediate outcomes. Virtually no effects remained one year after the intervention concluded. The light intervention showed no consistent effects at either point. We conclude that sustained supervision is crucial for achieving persistent improvements in contexts where the lack of external competition fails to create incentives for the adoption of effective managerial practices.
    JEL: I15 M10 O15
    Date: 2017–08
  2. By: March, Christoph; Sahm, Marco
    Abstract: We investigate how individual risk preferences affect the likelihood of selecting the more able contestant within a two-player Tullock contest. Our theoretical model yields two main predictions: First, an increase in the risk aversion of a player worsens her odds unless she already has a sufficiently large advantage. Second, if the prize money is sufficiently large, a less able but less risk averse contestant can achieve an equal or even higher probability of winning than a more able but more risk averse opponent. In a laboratory experiment we confirm both, the non-monotonic impact and the compensating effect of risk aversion on winning probabilities. Our results suggest a novel explanation for the gender gap and the optimality of limited monetary incentives in selection contests.
    Keywords: Selection Contest,Risk Aversion,Competitive Balance,Gender Gap
    JEL: C72 D72 J31 K41 M51 M52
    Date: 2017
  3. By: Pagano, Marco (University of Naples Federico II); Picariello, Luca (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: In talent-intensive jobs, workers’ performance reveals their quality. This enhances productivity and wages, but also increases layoff risk. If workers cannot resign from their jobs, firms can insure them via severance pay. If instead workers can resign, private insurance cannot be provided, and more risk-averse workers will choose less informative jobs. This lowers expected Productivity and wages. Public unemployment insurance corrects this inefficiency, enhancing employment in talent-sensitive industries and investment in education by employees. The prediction that the generosity of unemployment insurance is positively correlated with the share of workers in talent-sensitive industries is consistent with international and U.S. evidence.
    Keywords: Talent; Learning; layoff risk; unemployment insurance
    JEL: D61 D62 D83 J24 J65
    Date: 2017–08–01
  4. By: John, June
    Abstract: Gender differences in competition have been demonstrated in a variety of contexts, yet it remains unclear how people respond to competitors they perceive to be hard or easy, and whether gender differences exist in this response. I run an experiment in eighteen public high school classrooms to study the effect of competing in a math task against different levels of competitors. I exploit natural sorting within grade levels in Malaysian public schools to randomly assign competitors of different perceived difficulty levels. Using a standard competition measure, males are significantly more competitive than females. However, when students face harder competitors, males respond by lowering performance while the performance of females does not vary significantly by level of competition.
    Keywords: gender differences; competition; gender performance; tournament; piece-rate; information
    JEL: I20 J16 J24
    Date: 2017–08–22
  5. By: Nicolas Aubert (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université); Alexander Kern (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université); Xavier Hollandts (CRCGM et IFGE - Kedge Business School - Kedge Business School)
    Abstract: This paper investigates the relationship between employee stock ownership and the cost of capital, the main determinant of shareholder value creation computed through economic value added (EVA). By reducing agency conflicts within the firm, we hypothesize that employee share ownership reduces the firm's cost of capital by affecting its two components, i.e. the cost of equity and the cost of debt. We test this hypothesis in France, a leading country in terms of employee ownership, based on a panel of the 120 largest listed companies for the 2000-2011 period. We find: (i) no significant relationship between employee stock ownership and the cost of equity; (ii) a negative curvilinear relationship between employee stock ownership and the cost of debt; (ii) a negative curvilinear relationship relationship between employee stock ownership and the weighted average cost of capital. These results suggest debtholders regard ESO as positive as long it is moderate because it shifts risk from them to employees and that this effect is still perceptible in the weighted average cost of capital.
    Keywords: Shared capitalism,employee ownership,corporate governance,cost of equity,cost of debt,cost of capital,agency conflicts
    Date: 2017
  6. By: Mazen J. Al Shobaki (Department of Information Technology - Al-Azhar University); Samy S. Abu Naser (Department of Information Technology - Al-Azhar University); Suliman A. El Talla (Department of Information Technology - Al-Azhar University); Youssef M. Abu Amuna (Department of Information Technology - Al-Azhar University)
    Abstract: The study aimed to identify the university systems of human resources management and their impact on human resources management electronically. The study population consists of the different administrative levels in the universities, with 239 employees and 35 IT staff. The study sample consisted of (148) individuals from the different administrative levels and (35) from IT centers, and the response rate was (84.31%). The researchers used a questionnaire as a study tool, a descriptive analytical approach to achieve the study objectives, and a SPSS program was used to analyze the study data. The results of the study showed that the university system in the management of human resources differs in varying degrees from one university to another and has a great impact towards the human resources management electronically. The results confirmed that the nature of the university system in human resources management is an indicator of the process of transition to human resources management electronically in terms of the use of IT in some human resources management functions. A gap between e-HRM as a technical concept on the one hand and the use and adoption of management and managers. We noted that there is full agreement in terms of the importance of human resources management, However, e-HRM applications are still limited, in their early formations and have not yet been optimally exploited. The use of ICT to take advantage of human resources management functions is commensurate with the requirements of different organizations, from the focus on self-service staff, including focus on incentives and performance appraisal. The University's system of e-learning has an impact on the functions of eHRM, especially in the areas of training and development, communication and e-learning. The study reached a number of recommendations aimed at enhancing e-HRM functions and activities in the Palestinian universities. The most important of these is the need for cooperation among universities regarding the transition to electronic management. The need to find sources of funding for change projects to electronic management and placed in the priorities of strategic plans for universities. The need to develop computerized information systems to cover all administrative aspects. The need to develop e-HRM in universities because of their key role in the success of the process of transition to electronic management.
    Keywords: university systems,human resource management,electronic human resources management,Palestinian higher education institutions,Palestinian universities
    Date: 2017–07–24

This nep-hrm issue is ©2017 by Patrick Kampkötter. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.