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Human Capital and Organizational Performance: Evidence from the Healthcare Sector

Ann P. Bartel, Ciaran S. Phibbs, Nancy Beaulieu and Patricia Stone

No 17474, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper contributes to the literature on the relationship between human capital and organizational performance. We use detailed longitudinal monthly data on nursing units in the Veterans Administration hospital system to identify how the human capital (general, hospital-specific and unit or team-specific) of the nursing team on the unit affects patients' outcomes. Since we use monthly, not annual, data, we are able to avoid the omitted variable bias and endogeneity bias that could result when annual data are used. Nurse staffing levels, general human capital, and unit-specific human capital have positive and significant effects on patient outcomes while the use of contract nurses, who have less specific capital than regular staff nurses, negatively impacts patient outcomes. Policies that would increase the specific human capital of the nursing staff are found to be cost-effective.

JEL-codes: I11 I12 J24 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-cse, nep-hea, nep-hrm, nep-lab and nep-lma
Note: EH LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as “Human Capital and Productivity in a Team Environment: Evidence from the Healthcare Sector” (with Nancy Beaulieu, Ciaran Phibbs and Patricia Stone), American Economic Journal: Applied Economics, April 2014.

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