nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2019‒05‒06
two papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Estimated human capital externalities in an endogenous growth framework By Jim Malley; Ulrich Woitek
  2. (When) Is Hiring Strategic? Human Capital Management as a Design Decision in Organizations By Elfenbein, Daniel W.; Sterling, Adina

  1. By: Jim Malley; Ulrich Woitek
    Abstract: To better understand the quantitative implications of human capital externalities at the aggregate level, we estimate a two-sector endogenous growth model with knowledge spill-overs. To achieve this, we account for trend growth in a model consistent fashion and employ a Markov-chain Monte-Carlo (MCMC) algorithm to estimate the model's posterior parameter distributions. Using U.S. quarterly data from 1964-2017, we find significant positive externalities to aggregate human capital. Our analysis further shows that eliminating this market failure leads to sizeable increases in education-time, endogenous growth and aggregate welfare.
    Keywords: human capital externalities, endogenous growth, Bayesian estimation
    JEL: C11 C52 E32
    Date: 2019
  2. By: Elfenbein, Daniel W. (Washington University in St. Louis); Sterling, Adina (Stanford University)
    Abstract: This paper examines when and under what conditions whom to hire is a strategic decision. We identify four mechanisms involved in hiring that add to the “strategicness†of human capital decisions. We posit that, to the degree that human capital outcomes are influenced by these mechanisms, hiring cannot be effectively delegated or treated independently from a firm’s other strategic decisions, nor will a “best athlete†approach to hiring lead to optimal results. We outline the shifts in scholarly attention required for scholars to conceptualize hiring as a strategic process, and we argue that this conceptualization is critical given the increasing use of data science tools by industry to support and automate hiring decisions. By delving into the mechanisms and conditions that make hiring strategic, we contribute to a broader understanding of how and why firms acquire human capital and highlight gaps and opportunities for future research.
    Date: 2018–08

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