Essays on the Role of Specific Human Capital PDF Download

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Languages : en
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Author: Huoying Wu
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Category : Human capital
Languages : en
Pages : 190

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Author: Tapan Seth
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Category : Capital market
Languages : en
Pages : 140

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This dissertation splits the idea of competitor-specific human capital into two types: competitor-specific-direct (CSD) human capital and competitor-specific-indirect (CSI) human capital, and inspects how these two types of human capital held by IPO Top Management Team (TMT) members are associated with IPO performance. Furthermore, by utilizing research on human capital, competitive dynamics, and knowledge-based view of the firm, this dissertation identifies important antecedents that result in higher degree of impact of such human capital on the IPO firm, and IPO firm's capabilities absorb such knowledge that results in higher valuations at IPO. By employing a multi-year panel data of new IPOs between 1995-2010 within the context of U.S. semiconductor industry, the first chapter shows that the prevalence of CSD and CSI knowledge in the TMT of IPO firms leads to higher market valuations of the IPO firm. Moreover, the results show that the prior employment characteristics such as tenure and the position held at competitor firms, and the complexity of the competitor source firm (the product-market diversity and the learning emphasis) moderate the relationship between CSD and CSI human capital and IPO performance. The second chapter explores internal characteristics of the IPO firm that facilitate its ability to exploit the CSD and CSI human capital. I argue that in the context of new ventures, TMT intellectual capital plays an integral role in churning information into useful knowledge of one's competitors or group of competitors. Additionally, results indicate that TMT's potential absorptive capacity, shared team-specific experience, and CEO's functional background influence the relationship between CSD and CSI human capital and IPO performance.

Author: Neville Francis
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Category : Displaced workers
Languages : en
Pages : 334

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Author: Hyunseok Kim (Ph.D.)
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Category :
Languages : en
Pages : 0

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In this dissertation, I explore human capital accumulation and its implication for economic development. Chapter 1 and 2 focused on the mechanism behind the sustained economic growth of South Korea, which was a war-devastated, aid-recipient country two generations ago but now sells semiconductors and automobiles to the world. I ask how the country shifted its technology to capital-intensive production technique. These chapters consider educational policy change that led to an increase in college graduate. Chapter 3 studies the mechanism behind the divergence in employment between temporary and permanent workers in South Korea. The chapter considers the labor policy change that protects temporary employment. For each chapter, I construct a plant-level panel dataset from a series of censuses and connect it with an industry-level input-output table to consider a spillover effect. Chapter 1 studies how an increase in college graduates has affected the technology shift in South Korea. The analysis is based on the concept of complementarity in technology adoption - i.e., the idea that more adopters increase a marginal adopter's gain. I consider skilled labor as an adoption good needed for technology adoption. If complementarity exists in technology adoption, there could be multiple equilibria, possibly leading to undesirable results from coordination failure. I develop a theoretical framework which predicts that an increase in the adoption good of skilled labor could overcome coordination failure and promote a technology shift. Based on plant-level panel data from 1982-1996, I find that accumulation of more outside human capital, or more adopters, (i) benefits marginal adopting firm's profit and investment, and (ii) promotes the firm's technology shift by increasing the productivity of capital while decreasing that of unskilled workers. This paper contributes to the literature on aggregate growth theory by verifying that outside human capital accumulation and its spillover effect contribute to economic growth. Chapter 2 builds on Chapter 1, where human capital is considered an adoption good, by studying the specific role of human capital. Specifically, I explore whether research and development (R&D) is the channel through which human capital accumulation leads to a technology shift. The analysis is based on previous literature indicating that R&D generates new knowledge and the absorption of outside knowledge. The latter role of R&D, absorptive capacity, matches the concept of complementarity in chapter 1. Based on plant-level panel data, I find that (i) human capital accumulation due to the educational policy change promotes R&D in the manufacturing industries; (ii) the effect of R&D spillovers is increasing in a firm's own R&D, a finding which validates the concepts of absorptive capacity and complementarity; and (iii) more outside R&D promotes a firm's technology shift toward capital-intensity. This paper contributes to the literature on endogenous growth, which so far has focused on R&D spillover's effects on total factor productivity rather than on technology shift, by connecting absorptive capacity with complementarity in technology adoption. Chapter 3 investigates another dimension of human capital: permanent and temporary workers. The labor market in South Korea has witnessed a divergence in employment between permanent and temporary workers. The proportion of permanent workers, which had been stable between 50 and 60 percent for two decades in the 1990s and 2000s, has increased recently to above 70 percent. I point out that legislation requiring firms that hire a worker on a temporary basis for more than two years to offer them permanent status serves as a trigger for the divergence. This legislation limits the advantages (to firms) of flexibility in hiring and capacity for screening new workers. Hence, in a competitive labor market firms expect that other firms are more likely to hire permanent rather than temporary workers. If complementarity exists in permanent employment, the legislation serves as a Big Push to make the divergence happen. Based on plant-level panel data covering 2011-2019, I find that (i) flexibility and screening effect of temporary workers are overwhelmed by human capital effect, and (ii) complementarity in permanent employment holds after the temporary employment protection legislation. This paper deepens the understanding of the recent labor market phenomena in South Korea by adopting the concept of complementarity and a Big Push.

Author: Xiaobo Li
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Category :
Languages : en
Pages : 268

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Author: Chang Gyu Kwag
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Category :
Languages : en
Pages :

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Essay one is concerned with how and why an individual invests in human capital and how tax policy affects investment in human capital. We examine optimal investment in human capital and the effect of tax policy on human capital formation, and test several hypotheses derived from the theory using U.S. time-series data. Investment in human capital in terms of college enrollment rates is positively related to family income, rate of return to human capital, and unemployment rates, while it is negatively related to educational cost, and rate of return to physical capital. In addition, the average income tax rates show a negative effect on college enrollment rates. Essay two discusses human capital and economic growth. We first investigate the elasticities of substitution among inputs using the nested constant elasticity of substitution production function to focus on the so-called capital-skill complementarity hypothesis. We here compare two models: one is a model with human capital and raw labor, and the other is a model with higher skilled labor and lower skilled labor. In both models, the elasticities of substitution among inputs are very low, but the complementarity hypothesis is still weakly confirmed. Human capital turns out to be essential in achieving medium-term economic growth empirically. We also demonstrate the key role of human capital in the long-term steady state within the context of the endogenous growth model. Essay three considers the role of human capital on income distribution. Using the nested CES production function, we first derive factor shares, and then examine the relationship between functional and personal income distribution. An increase in share of labor income reduces overall income inequality, while an increase in share of transfer income has a negative effect on income distribution. Human capital, especially primary and secondary level of human capital stock, is a crucial factor in reducing income inequality. Finally, this study develops and presents new estimates of human capital stock in the United States, as well as annual earnings, and labor force by education level for the period 1947-1989. Data shows that the growth rate of GNP is very closely related to that of human capital stock. (Abstract shortened with permission of author.).

Author: Cody Taylor Orr
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Category : Electronic dissertations
Languages : en
Pages : 145

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This dissertation contains three chapters that study individuals' willingness to work, factors that influence their human capital development, and the interaction between their human capital investment decisions and labor supply.Chapter one examines how college students choose their credit hour enrollment, labor supply, and borrowing, paying particular attention to the role of wages, financial resources and beliefs. To formalize these relationships, I construct a dynamic structural model where students choose their credit hours, work hours, and borrowing to maximize lifetime utility. I collect data from two sources to estimate the model: (1) a unique survey of Michigan State undergraduates eliciting their employment history, family financial support, beliefs about the returns to studying and beliefs about earning a high GPA, and (2) administrative data from the University. Estimates of the model suggest that students' credit hour decision is inelastic with respect to changes in financial aid, tuition, beliefs, or wages. Students' labor supply and borrowing decisions are responsive to changes in wages, and for a subset of students, changes in beliefs. I also conduct two counterfactual simulations, increasing the minimum wage and making college tuition free, and evaluate how these policy changes affect student decisions and outcomes.The second chapter studies the relationship between the gender composition of a student's peers and two of their non-cognitive factors: sense of belonging and self-worth. Using data from Add Health and exploiting idiosyncratic variation in the share of female peers across grades within schools, I find positive but small effects of a higher share of female peers for male students. I do not find statistically significant effects for female students, but I can rule out large positive effects.The third chapter, jointly written with Todd Elder and Steven J. Haider, estimates how the wage elasticity of labor supply has changed for single and married men and women over the last two decades. The wage elasticity of labor supply is arguably one of the most fundamental parameters in economics, but despite the central role of this parameter, few studies have examined how it has evolved past the early 2000s. We find robust evidence that the labor supply elasticities for all four demographic groups have increased modestly. For women, this finding is a substantial departure from earlier evidence. We also contribute to the literature on the robustness of discrete choice labor supply models by estimating elasticities under a variety of assumptions and specifications. Our estimated trends are remarkably similar across specifications.

Author: Margaret M. Blair
Publisher: Brookings Institution Press
ISBN: 0815723628
Category : Business & Economics
Languages : en
Pages : 408

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Human capital and organizational capital are increasingly important as a source of value in many firms. But even as this is happening, organizational forms and employment relationships appear to be changing in ways that reduce loyalty and commitment and encourage mobility on the part of employees. Are these changes consistent in ways that contradict traditional theory and wisdom, or is the corporate sector getting a temporary boost in earnings by restructuring and cutting payrolls; but failing to make necessary new investments in human capital? The essays in this book provide intriguing new evidence on these questions. The contributors quantify the degree to which job stability is declining, and the costs of job loss to long-term workers; provide historical perspective on today's workplace changes; explore the reasons why work is being reorganized and decisionmaking tasks are being pushed downward; examine the rationale for and effect of equity-based compensation systems, both in old industries and in the newest high-tech sectors; and assess the "state of the art" of measuring and accounting for investments in human capital. This book is the result of a joint Brookings-MIT conference. In addition to the editors, authors include Eileen Appelbaum, Laurie Bassi, Avner Ben-Ner, Peter Berg, Joseph Blasi, Timothy Bresnahan, Eric Brynjolfsson, Allen Burns, Peter Cappelli, Greg Dow, Lorin Hitt, Douglas Kruse, Baruch Lev, Julia Liebeskind, Jonathon Low, Daniel McMurrer, Louis Putterman, Charles Schultze, and Anthony Siesfeld.

Author: Yang Wang
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Languages : en
Pages : 107

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My thesis focuses on occupation-specific human capital investment and occupational mobility. The first chapter of my thesis investigates gender disparities in early-career wage returns to firm tenure, occupational tenure, industry tenure, and general labor market experience. I show that the relative importance of various types of tenure differs across genders: occupational tenure matters more than industry tenure in men's wages, while industry tenure matters more than occupational tenure for women. Averaging across all occupations, early-career wage growth associated with occupational tenure is substantially higher for men than women. I then explore the underlying reasons for gender disparities in wage growth with occupational tenure. I show that gender differences in hours of work and occupational choice partially explain the gender gap in tenure returns, but I find no evidence that gender differences in human capital investment in education prior to labor market entry contribute to the gap. Given the evidence that occupational changes tend to improve occupational match quality, the observed higher occupational mobility of men relative to women may also explain the gender gap in wage growth with occupational tenure. The second chapter examines whether negative housing equity affects homeowners' occupational mobility. Homeowners with negative equity face stricter constraints and relatively higher occupational mobility cost than renters and homeowners who are not "underwater" which might potentially limit their ability to change occupations. I don't find any strong evidence that negative equity affects homeowners' occupational mobility in either recourse or non-recourse states. The third chapter examines the extent to which shifts in occupational structure explain the upward trend in occupational mobility during the period of 1968-1997. I find that shifts in occupational composition can partially explain the rising occupational mobility trend for less educated young workers and more educated workers. An approximate 10-20% reduction in the estimated mobility trend when occupation is controlled for implies that occupational composition generally shifted to less stable occupations. In addition, when negative occupational employment shocks are controlled for, workers in most age-education subgroups exhibit higher increases in occupational mobility.