Job competition, human capital, and the lock-in effect: can unemployment insurance efficiently allocate human capital

2019 ◽  
Vol 20 (1) ◽  
Author(s):  
Jeremy Schwartz
Keyword(s):  
Human Capital ◽  
Skilled Workers ◽  
The Business Cycle ◽  
Lock In Effect ◽  
The One ◽  
Unemployment Spells ◽  
Specific Human Capital ◽  
Lock In ◽  
Job Competition ◽  
General Human Capital

Abstract Workers, firms and policymakers often face a trade-off between shorter unemployment spells on the one hand, and better quality matches on the other. During recessions this manifests itself through job competition, where high skilled workers misallocate their labor to positions for which they are over-qualified in order get back to work faster. In the presence of job-specific human capital, as high skilled workers gain experience in this low skilled sector they may find themselves “locked in” to these jobs. This is because workers will not want to lose their seniority by searching for a job that better utilizes their general human capital. As a result, this misallocation can persist even in economic recoveries leading to inefficient outcomes. This paper explores such an economy and finds that a UI system that becomes more generous during a recession increases welfare and better allocates human capital over the business cycle.

Human capital and export performance in the Spanish manufacturing firms

2020 ◽  
Vol 15 (1) ◽  
pp. 99-119 ◽  
Author(s):  
José López Rodríguez ◽  
Bill Serrano Orellana
Keyword(s):  
Human Capital ◽  
Design Methodology ◽  
Export Performance ◽  
Theoretical Background ◽  
Manufacturing Firms ◽  
Export Intensity ◽  
Resource Based View ◽  
Content Type ◽  
Specific Human Capital ◽  
General Human Capital

Purpose The purpose of this paper is to investigate the effects of firms’ general and specific human capital on the export propensity and intensity. Design/methodology/approach The resource-based view of the firm provides the theoretical background to examine export performance. Empirical analysis is carried out using a national representative sample of Spanish manufacturing firms and employing Logit and Tobit models. Export performance is evaluated in a dual way, as export propensity and export intensity. In relation to human capital a distinction is made between general and specific human capital. Findings The results shown that differences exist in the effect of general and specific human capital. While the firms’ general human capital (education of the firm’s employees) affects both export propensity and intensity, only some dimensions of specific human capital (employees’ experience at the workplace) affects export propensity and intensity but no the employees’ training. Moreover, the firms’ general human capital generates greater changes than the effect of specific human capital on the export behavior. Originality/value This paper extends a line of research underexplored in the literature by analyzing the effect of organizational human capital on the firm’s export performance; moreover, it is the first study for Spanish manufacturing firms; the distinction between general and specific human capital enhances our comprehension of the human capital as a determinant of export performance. In relation to the specific human capital, besides training, we add a new variable related to experience at the workplace.

JOB COMPETITION, CROWDING OUT, AND UNEMPLOYMENT FLUCTUATIONS

2010 ◽  
Vol 16 (1) ◽  
pp. 1-34 ◽  
Author(s):  
Sherif Khalifa
Keyword(s):  
Unemployment Rate ◽  
Job Search ◽  
Crowding Out ◽  
Skilled Workers ◽  
Search Intensity ◽  
Unskilled Workers ◽  
The Business Cycle ◽  
Low Educated ◽  
Unemployment Persistence ◽  
Job Competition

This paper attempts to determine the factors generating the persistence of unemployment over the business cycle. The observations show that the total unemployment rate is highly persistent, and that the persistence of the unemployment rate of unskilled workers is higher than that of skilled workers. To account for these observations, the paper develops a framework that features search frictions. Individuals are either high educated or low educated, and firms post two types of vacancies: the complex, which can be matched with the high educated, and the simple, which can be matched with the high and the low educated. On-the-job search for a complex occupation is undertaken by the high educated in simple occupations. A negative aggregate technological shock induces the high educated unemployed to compete with the low educated by increasing their search intensity for simple vacancies. As the high educated occupy simple vacancies, they crowd out the low educated into unemployment. This downgrading of jobs in a cyclical downturn, or the increase in the labor input of the high educated in simple occupations, and the subsequent crowding out of the low educated into unemployment, provide a possible explanation for unemployment persistence.

The General Human Capital-Firm Specific Human Capital Tradeoff

2016 ◽  
Vol 2016 (1) ◽  
pp. 18004 ◽  
Author(s):  
Prithwiraj Choudhury ◽  
Shinjinee Chattopadhyay
Keyword(s):  
Human Capital ◽  
Specific Human Capital ◽  
General Human Capital

scholarly journals Graduates of Russian Universities in the Labor Market (Data from the Rosstat Survey)

2020 ◽  
Vol 8 (3) ◽  
pp. 108-124
Author(s):  
Galina A. Cherednichenko
Keyword(s):  
Social Sciences ◽  
Higher Education ◽  
Human Capital ◽  
Labor Market ◽  
Capital Social ◽  
Business Law ◽  
Field Of Study ◽  
Specific Human Capital ◽  
Russian Universities ◽  
General Human Capital

The materials from a representative survey of Rosstat in 2016 of higher education graduates in 2010–2015 allowed to analyze the processes of their employment. Almost ½ worked during the education that provided advantages in employment. After graduation, 2/3 searched for work and found it relatively quickly, using most often social networks; 1/3 were not busy looking for work, of which ¼ had a provided job. Imbalances between the structure of supply and the structure of demand in the labor market led to the fact that about 1/3 of graduates got a job that did not related to their field of study; more likely ones from fields that generate more general human capital (social sciences, business, law) – on the contrary, for specific human capital (medicine, computer science). Besides, more than a 1/3 of graduates acquired occupational statuses that do not require higher education; the mismatches “job – field of study” significantly worsened this situation. HE graduates had higher employment and lower unemployment compared to SVE graduates; and the differences in average salaries between them were significantly smaller than for all employees with similar levels of education. The beginning of a career evens out the differences in average salaries of HE graduates who have received different statuses.

scholarly journals Gender Differential Effect Of Business Education Students’ Human Capital On Sustainable Economic Development

2019 ◽  
Vol 9 (1) ◽  
Author(s):  
James E Edokpolor
Keyword(s):  
Sustainable Development ◽  
Human Capital ◽  
Business Education ◽  
Differential Effect ◽  
Core Values ◽  
Education Students ◽  
Male And Female ◽  
Different Types ◽  
Specific Human Capital ◽  
General Human Capital

This research investigates the relationship between business education students’ human capital and core values of sustainable economic development from a gender perspective. This research specifically investigates four interrelated questions. First, do male and female business education students experience different types of general human capital? Second, do male and female business education students possess different types of specific human capital? Third, do differences in both male and female business education students’ general human capital have a differential effect on sustainable development of Nigerian economy? And finally, do differences in both male and female business education students’ specific human capital have a differential effect on sustainable development of Nigerian economy? To answer these questions, bivariate correlation was employed. The hypotheses were tested using analysis of variance and multiple regressions. Using a survey data of all the final-year undergraduate students (<em>N </em>= 375) of business education in Federal Universities in South-South geopolitical region of Nigeria, the results showed a positive correlation between general and specific human capital and core values sustainable development. Male and female business education students experience almost the same type of general human capital. The results also showed that male students possess higher level of specific human capital than female students. The results further showed that changes or variations in core values of sustainable development caused by both general and specific human capital are higher in male than the female students. Logical conclusions and implications for future practices are discussed.

Innovation Culture as a Mediator Between Specific Human Capital and Innovation Performance Among Bumiputera SMEs in Malaysia

2019 ◽  
pp. 1620-1638
Author(s):  
Haniruzila Hanifah ◽  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Ali Vafaei-Zadeh
Keyword(s):  
Human Capital ◽  
Point Of View ◽  
Innovation Performance ◽  
Human Capital Approach ◽  
Skilled Workers ◽  
Policy Makers ◽  
Innovation Culture ◽  
Specific Human Capital ◽  
Innovative Culture

SMEs in Malaysia are dominated by Bumiputera that represent more than 50% of the Malaysian SME's population. However, there are many challenges faced by Bumiputera SMEs such as limited skilled workers, lack of creativity and knowledge. In this point of view, considering the specific human capital approach, the value, uniqueness, creativity, innovativeness and proactiveness are the most relevant features for innovation performance. To have an excellent innovation performance is to have an innovative culture where entrepreneurs needs to have creative employees which simultaneously improve the innovation performance in Bumiputera SMEs. This study focuses mainly on owner-manager of Bumiputera SMEs. It provides useful pointers to entrepreneurs and policy makers on the importance of specific human capital, innovative culture and enhancing innovation performance in Bumiputera SMEs.

scholarly journals Wage Growth Due to Human Capital Accumulation and Job Search: A Comparison between the United States and Germany

ILR Review ◽  
2007 ◽  
Vol 60 (4) ◽  
pp. 562-586 ◽  
Author(s):  
Uta Schönberg
Keyword(s):  
United States ◽  
Human Capital ◽  
Labor Market ◽  
Job Search ◽  
Capital Accumulation ◽  
Wage Growth ◽  
The United States ◽  
Human Capital Accumulation ◽  
Specific Human Capital ◽  
General Human Capital

This paper compares the sources of wage growth of young male workers in two countries with very different labor market institutions, the United States and Germany. The author first develops a simple method for decomposing wage growth into components due to general human capital accumulation, firm-specific human capital accumulation, and job search. The empirical analysis uses data from administrative records (Germany) and the National Longitudinal Survey of Youth (United States) for cohorts entering the labor market in the late 1970s and early 1980s. Although the two countries differed substantially in mobility rates, they were similar in the sources of wage growth, with general human capital accumulation being the most important single source and job search accounting for an additional 25% or more of total wage growth. There is no evidence that returns to firm-specific human capital accumulation were higher for German apprentices than for U.S. high school dropouts or graduates.

scholarly journals Training, Mobility, and Wages: Specific Versus General Human Capital

2006 ◽  
Vol 226 (1) ◽  
Author(s):  
Alfred Garloff ◽  
Anja Kuckulenz
Keyword(s):  
Human Capital ◽  
Second Step ◽  
Job Change ◽  
Wage Effects ◽  
Training Courses ◽  
Subjective Valuation ◽  
Specific Human Capital ◽  
The Relationship ◽  
General Human Capital

SummaryThis paper considers training, mobility decisions and wages together to test for the specificity of human capital contained in continuing training courses. We empirically analyse the relationship between training, mobility and wages in two ways. First, we examine the correlation between training and mobility. In a second step, we consider wage effects of mobility taking training participation into account. First, we find that training participation is negatively correlated with the mobility decision and that training participation decreases the probability of individuals to change the job. Second, we find that wages are lower for job changers for the group of training participants, so wages decrease when trained individuals are mobile. Finally, training participation negatively affects the individuals’s subjective valuation of the quality of their last job change. Taken together, these results suggest that there is some specific human capital, which is incorporated into training and lost when moving between jobs.

The Duality of Internal and External Development of Successors: Opportunity Recognition in Family Firms

2011 ◽  
Vol 24 (2) ◽  
pp. 111-125 ◽  
Author(s):  
Shruti R. Sardeshmukh ◽  
Andrew C. Corbett
Keyword(s):  
Human Capital ◽  
Family Business ◽  
Work Experience ◽  
Family Firms ◽  
Family Firm ◽  
The Family ◽  
New Ideas ◽  
Specific Human Capital ◽  
General Human Capital ◽  
External Development

The study contributes to the family business literature by examining the intersection of succession and opportunities and extends an existing line of research on entrepreneurial behavior in family firms by examining opportunity perception by 119 family business successors. The authors investigate the successors’ self-efficacy, education, and work experience, together with their perception of entrepreneurial opportunities. The results suggest that successors who perceive new opportunities balance and combine their family firm—specific human capital built through experience within the family firm with general human capital built through education and other work experience to generate new ideas leading to the entrepreneurial opportunity perception.

scholarly journals Valuable Experience: How University Internships Affect Graduates’ Income

2021 ◽  
Author(s):  
Thomas Bolli ◽  
Katherine Caves ◽  
Maria Esther Oswald-Egg
Keyword(s):  
Human Capital ◽  
Tertiary Education ◽  
Main Mechanism ◽  
Quality Of Education ◽  
University Curricula ◽  
Specific Human Capital ◽  
General Human Capital

AbstractThis paper analyzes whether and how attending an internship during tertiary education affects income. We address endogeneity with an IV approach that exploits information regarding whether the internship was a mandatory component of the study. We further address selection into programs with mandatory internship by using the share of mandatory internships at the closest university, exploiting the low mobility of Swiss students. The results show that internships increase graduates’ incomes. We explore potential mechanisms for the effect of internships on income, finding that general human capital is the main mechanism rather than firm- or field-specific human capital, signaling, or screening. These results indicate that students should continue to invest in internships and that mandatory internships have a place in university curricula because they improve the quality of education.

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