Defining and Measuring Investment in Organisational Capital: Using US Microdata to Develop a Task-based Approach

Mariagrazia Squicciarini, Marie Le Mouel

Research output: Working paperDiscussion paperOther research output

Abstract

This 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.
Original languageEnglish
PublisherOECD Publishing
Pages44
DOIs
Publication statusPublished - 2012
Externally publishedYes

Publication series

NameOECD Science, Technology and Industry Working Papers
Volume2012/05

Fingerprint

Micro data
Organizational capital
Employees
Workforce
Functioning
Turnover
Manufacturing
Tenure
Depreciation
Labour mobility
Information networks
Value added

Cite this

Squicciarini, M., & Le Mouel, M. (2012). Defining and Measuring Investment in Organisational Capital: Using US Microdata to Develop a Task-based Approach. (pp. 44). (OECD Science, Technology and Industry Working Papers; Vol. 2012/05). OECD Publishing. https://doi.org/10.1787/5k92n2t3045b-en
Squicciarini, Mariagrazia ; Le Mouel, Marie. / Defining and Measuring Investment in Organisational Capital : Using US Microdata to Develop a Task-based Approach. OECD Publishing, 2012. pp. 44 (OECD Science, Technology and Industry Working Papers).
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abstract = "This 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.",
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Squicciarini, M & Le Mouel, M 2012 'Defining and Measuring Investment in Organisational Capital: Using US Microdata to Develop a Task-based Approach' OECD Science, Technology and Industry Working Papers, vol. 2012/05, OECD Publishing, pp. 44. https://doi.org/10.1787/5k92n2t3045b-en

Defining and Measuring Investment in Organisational Capital : Using US Microdata to Develop a Task-based Approach. / Squicciarini, Mariagrazia; Le Mouel, Marie.

OECD Publishing, 2012. p. 44 (OECD Science, Technology and Industry Working Papers; Vol. 2012/05).

Research output: Working paperDiscussion paperOther research output

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AB - This 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.

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