The returns to training in Russia: a difference‐in‐differences analysis

The experience of developed countries – particularly member‐states of the OECD – has shown that employers are actively investing in developing the human capital of their employees. According to research conducted by the World Bank, more than half of the companies in developed countries provide their employees with training in one form or another. There is, however, reason to believe that the situation is quite different in Russia. Some studies have shown that the level of investment in training in Russia is much lower. This difference can be explained by the fact that employers do not see the point in such investment because it is much easier to lure employees with the required qualifications than to train their own staff. Moreover, Russia faces a problem with high employee mobility, meaning that companies are not sure that they will get a return on their investment. Given these circumstances, the present study examines whether investments in human capital in Russia are profitable. It investigates the wage return to job‐related training using a difference‐in‐differences estimator to control for unmeasured differences in ability and measured differences in past wages as a proxy for ability and motivation. Estimates use panel data from The Russia Longitudinal Monitoring Survey – Higher School of Economics from 2004 to 2011. As predicted, positive returns to training are identified and the returns increase absolutely with the level of past wages.     

Factors affecting Modern Apprenticeship completion in Scotland

Completing an apprenticeship has been shown to be critical to an individual’s future employment, earnings and career development when compared with apprentices who do not complete. International research, notably in England, Australia and Germany, has identified factors specific to the apprentice, employer and training provision that are associated with a higher chance of completion. However, to date, there has been no comparable research in Scotland, which operates its own distinct and well‐established apprenticeship system. Based on the factors identified in other countries, logistic regression was conducted on records of apprenticeship leavers in Scotland, covering the period from 2007 to 2015. Data for a total of 78,952 leavers were analysed, consisting of 59,737 completers and 19,215 non‐completers. It was found that women are more likely to complete an apprenticeship than men, while those from deprived areas are less likely to complete. Apprentices employed by a large employer, those receiving training from public sector organizations and those studying for selected technical subjects are more likely to complete, as are apprentices living in an area with a high local unemployment rate. The paper considers the reasons why some apprentices are more likely to complete than others and discusses the implications for apprenticeship policy in Scotland and beyond.     

An investigation into apprenticeship completion and retention in Northern Ireland: a social exchange perspective

This paper investigates effective strategies for enhancing completion rates of apprentices and their retention after completing their training. The study was cross sectional and qualitative, involving semi‐structured interviews with managers and four focus groups involving current and completed apprentices from within the engineering sector. The findings revealed that the factors that can enhance intentions of completing an apprenticeship were perceived organisation support (POS) factors such as apprentice pay, recognition and employer support. Leader Member Exchange (LMX) factors such as support from trainers and supervisors, would increase their intentions to complete an apprenticeship and stay on with an organisation after training. The key Percieved Organisational Support factors that would enhance intentions to stay with the organisation after completion were post apprenticeship pay, career progression and challenging and interesting work. Participants with high Perceived Organisational Support and Leader‐Member Exchange, had higher intentions of completing an apprenticeship and staying with the employer after completion and vice versa. This research added to the literature on apprenticeships as it analysed the factors influencing current and completed apprentices’ intentions to discontinue or complete an apprenticeship and stay with or leave their employer after completion through the lens of social exchange theory (SET) (Blau, 1964). This is unlike previous studies that emphasised motivation theory. Social Exchange Theory was supported as both employers and apprentices weighed the costs and benefits of their relationship which impacted on their completion and retention choices. The implication of this study is that employers should develop effective strategies for enhancing completion and retention rates to reap the full benefits from apprenticeships.     

The ‘amelioration’ of child labor, ‘a modest proposal’

More than 317 million children between the age of 5 and 17 are working in the world. Child labor is a persistent phenomenon, even though its incidence has subsided with economic development. In this paper, we conduct a panel study of 101 countries from 1980 to 2004 where child labor is proxied by the labor force participation of children aged 10–14. We look at the relationships between child labor and investments in human capital, foreign direct investments, countries’ openness to trade, and credit market constraints. We depart from the contributions of cross-country studies by employing a fixed effects instrumental variable (FE-IV) panel data model by employing a fixed effects instrumental variable (FE-IV) panel data model to account for unobserved heterogeneity and endogeneity of child labor and individual country-specific effects. We find support for the conclusions of the above-mentioned studies: countries that trade more and have a higher stock of foreign direct investment have less child labor. More generally, we find that trade openness, investments in human capital, and financial development are associated with a reduction of child labor. Child labor persists but tailored policies on trade, investment, and financial reform can lessen child labor along with economic growth, improvements in health, and rising standards of living.     

Managing multiple forms of strategic training fit through the Balanced Scorecard

Although the literature recognizes training as an essential driver of organizational effectiveness, little is still known about how to explicitly focus and align training to organizational strategic priorities. This note proposes a model that bridges the strategic human resource management (SHRM) literature and the Balanced Scorecard (BSC) literature – which is one of the most widely recognized strategic performance evaluation approaches intended to foster organizational alignment by translating the firm's strategy into a multidimensional set of financial and non‐financial measures. After having briefly discussed the main differences between the return on investment (ROI) model, which represents one of the major attempt to make training strategic within the existing evaluation research, and the BSC model applied to training management, this note highlights multiple forms of strategic training fit and suggests how to manage training through various scenarios of BSC development. Specifically, the note illustrates four forms of strategic fit – the vertical fit, the horizontal inter‐functional fit, the horizontal intra‐functional fit and the human capital readiness – and discusses their pursuit in terms of six scenarios of training management through the BSC. The note expands some exploratory empirical evidence on the feasibility and usefulness of training scorecards (i.e. the application of the BSC to training) in order to develop some theoretical insights and practical guidance on how they can be leveraged to foster the strategic alignment of training.     

Investment Patterns of Informal Investors in the Alberta Private Equity Market*

This study identifies three main types of informal investors in private equity markets: relationship investors, opportunity‐based investors, and angel investors. We find evidence that the first two investor types are a major total source of capital and they prefer to invest smaller amounts close to home and in the context of existing relationships. With respect to angel investors, we find evidence of stratification in their desired investment amount which is consistent with a model where their investments evolve though a life cycle of investing. We also find evidence that changes to capital market regulations that allow for lower investment amounts by this type of investor increase the amount of capital available for early‐stage firms.     

Export Market Participation,Investments in R&D and Worker Training,and the Evolution of Firm Productivity

This paper uses micro panel data for firms in the Taiwanese electronics industry in 1986, 1991 and 1996 to investigate a firm's decision to invest in two sources of knowledge – participation in the export market and investments in R&D and/or worker training – and assess their effect on the firm's future productivity. The firm's decisions to export and invest in R&D and/or worker training are modelled with a bivariate probit model that recognises the interdependence of the decisions. The effect of these investments on the firm's future productivity trajectory is then modelled while controlling for the selection bias introduced by endo‐genous firm exit. The findings indicate a significant interaction effect between exporting and R&D investments and future productivity, after controlling for size, age and current productivity. Firms that undertake both investment activities have significantly higher future productivity than firms that do one or neither. In addition, these firms are more likely to continue investing in these activities leading to further productivity gains. These findings are consistent with the hypothesis that export experience is an important source of productivity growth for Taiwanese firms and that firm investments in R&D and worker training facilitate their ability to benefit from their exposure to the export market.     

Institutional Distance and Cross‐Border Venture Capital Investment Flows

Cross‐border investments are an increasingly important part of venture capitalists' portfolios. In order to better understand venture capitalists' international investment decisions, we use dyadic pairings of European countries over a 10‐year time span to examine how regulative, normative, and cultural‐cognitive institutional differences are related to cross‐border venture capital investment flows. Results demonstrate that increased normative and cultural‐cognitive distance reduce cross‐border investments, whereas regulative distance shows no relationship. Together, these findings suggest that institutional dimensions do influence venture capital investment decisions and that the type of distance can have differing effects.     

How identification facilitates effective learning: the evaluation of generic versus localized professionalization training

Worldwide, organizations are keen to ensure that they achieve a performance return from the large investment they make in employee training. This study examines the way in which workgroup identification facilitates trainees’ motivation to transfer learning into workplace performance. A 2 × 2 longitudinal study evaluated the effects of a new generic professionalization training program (NGP) – which tapped into distal work identities, and a standard local professionalization program (SLP) – which spoke more to localized work identities, on participant's motivation to transfer their learning to the workplace. The study found that, compared to participants on the SLP (n = 31), participants on the NGP (n = 35) indicated a reduction in 4 measures (perceived utility of training; workplace participation; relatedness and workplace identification). The authors draw on the social identity approach to illustrate how a reduction in these variables is indicative of a reduction in motivation to transfer learning to the workplace. In short, training which does not speak to meaningful localized identities results in reduced motivation to transfer compared to training that does speak to those identities. More broadly, the study demonstrates the capacity of the social identity approach to meet the increasing demands of training researchers for a comprehensive, multi‐dimensional, theoretical framework through which to understand the interplay of trainee and contextual factors that contribute to effective learning and performance in the workplace.     

The Institutional Requirements Of Apprenticeship: Evidence From Smaller EU Countries

To what extent does the experience of other European econom‐ies in which apprenticeship has proved successful suggest scope for reviving apprenticeship in the UK without requiring institutional regulation along German lines? The institutional attributes of apprenticeship in four smaller European economies (Austria, Denmark, Ireland and the Netherlands) are shown to be closer to Germany’s social partnership than to the UK’s deregulated market, in terms of: statutory governance; formal educational requirements; administration at sec‐toral and local levels through social partnership; and funding based upon a clear separation of responsibilities between government and employers, though not between employers and apprentices. At the same time, the introduction of statu‐tory apprenticeship into Irish industry in recent years, in an institutional environment that has traditionally had much in common with that of the UK, suggests that the scope for institutional development in support of apprenticeship has been obscured by the widespread tendency to limit the choice of international comparisons to the Anglo‐Germanic.     

Human capital investments in asymmetric corporate tournaments

We consider a tournament between two workers of different abilities who choose both human capital investment and effort. The employer can influence the workers’ behavior by determining the sequence of human capital investments, i.e. the training design. The workers can either invest simultaneously or sequentially with the favorite being the first mover or sequentially with the underdog as first mover. The results show that the outcome of the tournament crucially depends on the employer’s choice of training design and on the ability difference between the workers. If the two workers clearly differ in their abilities the employer will prefer simultaneous human capital accumulation. However, if the abilities of the two workers are rather similar the employer optimally chooses sequential human capital accumulation with the underdog being the first mover.     

The Trouble with Offshoring: Static and Dynamic Losses in the Presence of Unemployment

This study provides theoretical support for the popular objection to offshoring, whereby firms at home employ services of labour located abroad. In the presence of unemployment, our analysis highlights welfare losses from offshoring – not only for the static case of a fixed stock of capital, but also for the dynamic one of optimal saving and investment. We compare these static and dynamic losses to the gains that would instead arise under full‐employment conditions, assumed by most of the theoretical literature on offshoring. Our results suggest that public concerns over offshoring are justified when unemployment is taken explicitly into account.     

Apprenticeships: The problem of attractiveness and the hindrance of heterogeneity

This paper examines a question posed in 2019 in the International Journal on Training and Development: ‘How do we solve a problem like apprenticeship?’ Data sources covering a substantial number of countries are used to present findings on, and analyse, initiatives that have been implemented or that have been considered, and then to develop some analytical constructs to help address the question. Fundamental issues such as the status of vocational education and training and the status of apprenticed occupations are important, but the nature of the apprenticeship arrangements, within countries and within industries are also major factors affecting perceived attractiveness. The paper therefore argues that the heterogeneity of apprenticeship systems and arrangements is a major barrier to solving the attractiveness problem. Moreover, the heterogeneity of potential apprenticeship applicants means that marketing campaigns or other efforts to attract more, and higher quality, apprentices need to be cognisant of individuals’ backgrounds, characteristics, and aspirations. Some tentative ways of addressing these matters are presented, but the conclusion is that the topic needs large-scale research.     

Managerial Incentives and Investment Policy in Family Firms: Evidence from a Structural Analysis

This paper provides evidence that CEO incentive pay mediates the effect of family preferences on corporate investment policy. Our study focuses on the option portfolio volatility sensitivity vega, which motivates the risk‐taking behavior of undiversified managers. After controlling for factors that affect incentive pay and investment policy simultaneously, we find that one‐third of underinvestment in riskier R&D projects in active family firms can be attributed to a significantly lower vega. Passive family firms allocate more capital to R&D as opposed to active family firms, and are more active in M&A deal making. In contrast to many prior studies, pay incentives and families are not associated with capital expenditures. Overall, our empirical results suggest that CEO pay incentives induce investment policy contingent on firm risk. Family CEO incentive pay manifests the family preference for lower risk, especially in firms with higher firm risk. Nonetheless, after replacing family CEOs with outside professionals, investments in both R&D and M&A increase, which is consistent with the family preference for extended investment horizons. Interestingly, such a preference seems not to be manifested in incentive pay.     

农民工人力资本回报率差异：年龄与类型--基于城市农民工调查数据的实证分析

本文基于城市农民工调查数据,通过修正的Mincer收入方程,分析人力资本投资类型及年龄对农民工收入的影响。研究结果表明,职业培训的收入回报率高于受教育年限的收入回报率,职业培训对较年轻农民工群体收入的影响更为显著。促进农民工的人力资本投资,应首先唤醒农民工对基础义务教育的重视,激励企业加大对年轻农民工群体的职业培训投入,搭建更加多元化、开放化的职业培训平台,为农民工提高职业技能提供支持。     

Employee cooperative behavior in organizations: a vignette experiment on the relationship between training and helping intentions

The mutual‐investment model predicts a positive relation between investments in training and employees’ willingness to behave cooperatively. In this paper, we argue that the extent to which employees increase their cooperative behavior after receiving training depends on the type of training provided, the skillfulness of the employee and the cohesiveness of the team. Focusing on intentions to help coworkers as an indicator for cooperative behavior, we conducted a vignette experiment among 2388 employees working in 127 organizations from four European countries. Multilevel analyses show that training increases employees’ intentions to help coworkers. Training promotes helping intentions the most when organizations provide general instead of firm‐specific training and when given to employees with limited skills. Whereas employees in cohesive teams indicate higher intentions to help coworkers than employees in non‐cohesive teams, training promotes helping intentions equally in both types of teams.     

人力资本收益分配中的货币信息弱势问题

入力资本创造收益,在其收益的分配过程中,各种主体经常产生矛盾,这种矛盾的根源在于人力资本的物质投资者的货币信息弱势地位,即对人力资本的收益状况所知和所得往往较少,人力资本收益分配中的货币信息弱势,会导致外在于人力资本自然人承担者的物质投资者产生人才培养的困惑,他得不到适当的投资回报,往往就放弃投资,从而使人力资本自然人承担者难以获得物质资本投资者的支持,这是一种多输的格局,要破解它需要人才培养者、被培养者和社会共同努力来理顺其中的分配关系.     

Training as a social purpose: are economic and social benefits delivered?

This paper reports original research which measures the social and economic impact of training and skills development on individuals who participated in training provided by social purpose, nonprofit organizations. An implicit policy assumption is that such organizations contribute to social and economic regeneration. Examining the costs and benefits of training to trainees, an adapted Return on Investment methodology measures any economic benefit, while an Index of Social Benefit measures changes in individual well‐being. The results demonstrate that while changes to both the economic and social well‐being of trainees occur, it does not necessarily relate solely to the training they received. Instead, changes reflect other, often complex, aspects of trainees’ lives, although training may facilitate change. Furthermore, social purpose, nonprofit organizations need to evince the socioeconomic benefits of their training programmes to secure future funding, public or private, but proving their successful delivery may be difficult to determine.     

鼓励大企业对外投资减少国际资本净流入

我国对外投资是国际竞争、保持人民币价值稳定形势发展的需要。我国对外投资的发展相对缓慢及存在跨国经营的企业管理机制不健全,对外投资小,缺乏宏观规划,政策与管理不到位,缺乏高素质跨国经营人才等,影响了我国对外开放的水平。应加强对外投资力度,加大中国企业人才培养力度,强化政府服务功能,鼓励倡导大型企业集团进行多元化投资和中国并购,改变国际资本大量流入的现状。     

Human capital and entrepreneurial success: A meta-analytical review

The study meta-analytically integrates results from three decades of human capital research in entrepreneurship. Based on 70 independent samples (N = 24,733), we found a significant but small relationship between human capital and success (r_c = .098). We examined theoretically derived moderators of this relationship referring to conceptualizations of human capital, to context, and to measurement of success. The relationship was higher for outcomes of human capital investments (knowledge/skills) than for human capital investments (education/experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for the dependent variable size compared to growth or profitability. Findings are relevant for practitioners (lenders, policy makers, educators) and for future research. Our findings show that future research should pursue moderator approaches to study the effects of human capital on success. Further, human capital is most important if it is task-related and if it consists of outcomes of human capital investments rather than human capital investments; this suggests that research should overcome a static view of human capital and should rather investigate the processes of learning, knowledge acquisition, and the transfer of knowledge to entrepreneurial tasks.