Defining and Measuring Investment in Organisational Capital: Using US Microdata to Develop a Task-based Approach
AbstractThis work seeks to quantify investment in Organisational Capital (OC) by looking at the task content of occupations. It relies on the literature suggesting OC to be embodied in a firm’s workforce and defines OC as those tasks performed by employees – irrespective of their occupational titles – likely to affect a firm’s medium to long-term functioning. Using US Occupational Information Network (O*NET) data, it operationalises the task-based definition and identifies 84 occupations, including 22 managerial occupations, performing OC related tasks. Employment and earnings data from the US are used to calculate investment in OC at macro and 2-digit sectoral levels. Estimates suggest that previous measures seemingly underestimated investment in OC at the macro level, and that large sectoral differences exist. Manufacturing shows significant own-account investment in OC relative to the value added it generates. Services appear as larger purchasers of OC from external sources, relative to own-account investment. Building on the insights of the labour mobility literature about the disruptive effect of (voluntary) job separations, this work uses employee tenure and turnover data for the US to obtain sector specific depreciation rates. Estimates mainly range between 10% and 25% and suggest that OC depreciates more slowly than previously assumed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by OECD Publishing in its series OECD Science, Technology and Industry Working Papers with number 2012/5.
Date of creation: 25 Sep 2012
Date of revision:
embeddedness; O*NET; Organisational capital; tasks; US Job Openings and Labor Turnover Survey; US Current Population Survey (CPS);
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dahl, Michael S. & van Praag, Mirjam C. & Thompson, Peter, 2014.
IZA Discussion Papers
8186, Institute for the Study of Labor (IZA).
- Niebel, Thomas & O'Mahony, Mary & Saam, Marianne, 2013. "The contribution of intangible assets to sectoral productivity growth in the EU," ZEW Discussion Papers, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research 13-062, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.