nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2018‒12‒03
eight papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Production and Learning in Teams By Kyle Herkenhoff; Jeremy Lise; Guido Menzio; Gordon Phillips
  2. Work Hard or Play Hard? Degree Class, Student Leadership and Employment Opportunities By Baert, Stijn; Verhaest, Dieter
  3. Contractual externalities and systemic risk By Ozdenoren, Emre; Yuan, Kathy
  4. Job Satisfaction, Job Motivation, and Efficiency in Work Performance of the Hotel Employees: A Case of Thainum Riverside Hotel, Thailand By Kanokporn Leksung
  5. How Wage Announcements Affect Job Search - A Field Experiment By Michèle Belot; Philipp Kircher; Paul Muller
  6. The mismanaged soul: existential labor and the erosion of meaningful work By Bailey, Katherine; Madden, Adrian; Alfes, Kerstin; Shantz, Amanda; Soane, Emma
  7. Effect of Transformation Leadership on Innovative Work Behavior ? A case study of Thai Service Provider By Ek-anong TANGRUKWARASKUL; Kiriya KULCHANARAT
  8. Politicians' Promotion Incentives and Bank Risk Exposure By Li Wang; Lukas Menkhoff; Michael Schröder; Xian Xu

  1. By: Kyle Herkenhoff (University of Minnesota); Jeremy Lise (University College London); Guido Menzio (University of Pennsylvania); Gordon Phillips (Dartmouth College Tuck School of Business)
    Abstract: The effect of coworkers on the learning and the productivity of an individual is measured combining theory and data. The theory is a frictional equilibrium model of the labor market in which production and the accumulation of human capital of an individual are allowed to depend on the human capital of coworkers. The data is a matched employer-employee dataset of US firms and workers. The measured production function is supermodular. The measured human capital function is non-linear: Workers catch up to more knowledgeable coworkers, but are not dragged down by less knowledgeable ones. The market equilibrium features a pattern of sorting of coworkers across teams that is inefficiently positive. This inefficiency results in low human capital individuals having too few chances to learn from more knowledgeable coworkers and, in turn, in a stock of human capital and a flow of output that are inefficiently low.
    Keywords: human capital, knowledge diffusion, search frictions
    JEL: E24 J24
    Date: 2018–11
  2. By: Baert, Stijn; Verhaest, Dieter
    Abstract: We investigated the impact on first hiring outcomes of two main curriculum vitae (CV) characteristics by which graduates with a tertiary education degree distinguish themselves from their peers: degree class and extra-curricular activities. These characteristics were randomly assigned to 2,800 fictitious job applications that were sent to real vacancies in Belgium. Academic performance and extra-curricular engagement both enhanced job interview rates by about 7%. The effect of a higher degree class was driven by female (versus male) candidates and candidates with a master’s (versus a bachelor’s) degree. We did not find evidence for these CV characteristics to be substitutes or to reinforce each other’s effect.
    Keywords: degree class,extra-curricular activities,hiring,field experiment
    JEL: J23 J24 I23 C93
    Date: 2018
  3. By: Ozdenoren, Emre; Yuan, Kathy
    Abstract: We study effort and risk-taking behaviour in an economy with a continuum of principal-agent pairs where each agent exerts costly hidden effort. Principals write contracts based on both absolute and relative performance evaluations (APE and RPE) to make individually optimal risk-return trade-o↵s but do not take into account their impact on endogenously determined aggregate variables. This results in contractual externalities when these aggregate variables are used as benchmarks in contracts. Contractual externalities have welfare changing e↵ects when principals put too much weight on APE or RPE due to information frictions. Relative to the second best, if the expected productivity is high, risk-averse principals over-incentivise their own agents, triggering a rat race in e↵ort exertion, resulting in over-investment in e↵ort and excessive exposure to industry risks. The opposite occurs when the expected productivity is low, inducing pro-cyclical investment and risk-taking behaviours
    Keywords: Contractual externalities; relative and absolute performance contracts; procyclical effort exertion and risk taking; many principal-agent pairs
    JEL: D86 G30
    Date: 2017–10–01
  4. By: Kanokporn Leksung (Suan Sunandha Rajabhat University)
    Abstract: The main objectives of this research were to study job satisfaction, job motivations, and efficiency in work performance of employees in the Thainum Riverside Hotel, Thailand and to analyze their demographic profile on their job satisfaction, job motivations, and efficiency in work performance. This study employed a quantitative research methodology. A questionnaire was used to collect the data. The collected data were then analyzed with descriptive analysis including frequency, percentage, mean, standard deviation, and t-test. The sample included 100 employees of the Thainum Riverside Hotel. The research findings showed that the overall satisfaction of the employee on their job was at a high level and their satisfaction on the rate of remuneration was rated the highest, followed by that on superordinate, and the characteristics of their job. In terms of their job motivation, it was found that their motivation was at a high level. The most rated motivation was the unique characteristics of their job, followed by incentives and benefits. As for the efficiency in their work performance, the findings indicated that the work performance of these employees were high. This was evidenced from the compliments from colleagues and superordinate and the achievement of the goals.
    Keywords: Job Satisfaction, Job Motivations, Efficiency in Work Performance
    JEL: Y80
    Date: 2018–11
  5. By: Michèle Belot; Philipp Kircher; Paul Muller
    Abstract: We study how job seekers respond to wage announcements by assigning wages randomly to pairs of otherwise similar vacancies in a large number of professions. High wage vacancies attract more interest, in contrast with much of the evidence based on observational data. Some applicants only show interest in the low wage vacancy even when they were exposed to both. Both findings are core predictions of theories of directed/competitive search where workers trade off the wage with the perceived competition for the job. A calibrated model with multiple applications and on-the-job search induces magnitudes broadly in line with the empirical findings.
    Keywords: online job search, directed search, wage competition, field experiments
    JEL: J31 J63 J64 C93
    Date: 2018
  6. By: Bailey, Katherine; Madden, Adrian; Alfes, Kerstin; Shantz, Amanda; Soane, Emma
    Abstract: Meaningful work has been defined as work that is personally enriching and that makes a positive contribution. There is increasing interest in how organizations can harness the meaningfulness of work to enhance productivity and performance. We explain how organizations seek to manage the meaningfulness employees experience through strategies focused on job design, leadership, HRM and culture. Employees can respond positively to employers’ strategies aimed at raising their level of experienced meaningfulness when they are felt to be authentic. However, when meaningfulness is lacking, or employees perceive that the employer is seeking to manipulate their meaningfulness for performative intent, then the response of employees can be to engage in “existential labor” strategies with the potential for harmful consequences for individuals and organizations. We develop a model of existential labor, drawing out a set of propositions for future research endeavors, and outline the implications for HRM practitioners.
    Keywords: existential labor; meaningful work; job design; values.
    JEL: J50
    Date: 2017–09–01
  7. By: Ek-anong TANGRUKWARASKUL (Kasetsart University); Kiriya KULCHANARAT (Kasetsart University)
    Abstract: Competing in an innovation-driven economy, firms are striving for innovation success in order to stay in a competitive edge. Employee innovative work behavior (IWB) is considered as a source and strategic factor driving organization to become more innovative and, hence to better perform. A number of literatures confirm the effect of leadership on employee performance. Likewise, it is assumed in this study that employee innovative work behavior should also be effected from the leadership of their team leaders. A transformational leader transforms how employees work and innovate. This transformation motivates employees to strive for the collective goals of becoming innovative organization. This study explore the effect of transformational leadership on employee?s work behavior and was carried out on a purposively selected sample of 260 IT employees working in a service provider company in Thailand. While employee?s work behavior was measured using 11-items measure based on the framework developed by De Jong and Den Hartog (2010), transformational leadership was measured in four dimensions; (1) idealized influence, (2) inspirational motivation, (3) intellectual stimulation behavior, and (4) individualized consideration, according to the framework proposed by Bass and Avolio (1990). Factor analysis and multiple regression analysis were carried out. The result suggests that transformational leadership has positive effect on innovative work behavior and could explain employee work behavior up to 26.7%.
    Keywords: Innovative Work Behavior, Transformational Leadership, Service Provider
    JEL: M15 O33
    Date: 2018–11
  8. By: Li Wang; Lukas Menkhoff; Michael Schröder; Xian Xu
    Abstract: This paper shows that politicians’ pressure to climb the career ladder increases bank risk exposure in their region. Chinese local politicians are set growth targets in their region that are relative to each other. Growth is stimulated by debt-financed programs which are mainly financed via bank loans. The stronger the performance pressure the riskier the respective local bank exposure becomes. This effect holds for local banks which are under some control of local politicians, it has increased with the release of stimulus packages requiring local co-financing and it is stronger if politicians hold chairmen positions in bank boards.
    Keywords: Bank lending, bank risk exposure, local politicians, promotion pressure
    JEL: G21 G23 H74
    Date: 2018

This nep-hrm issue is ©2018 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.