Human Capital and Organizational Performance: Evidence from the Healthcare Sector

52 Pages Posted: 30 Sep 2011

See all articles by Ann P. Bartel

Ann P. Bartel

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER)

Ciaran S. Phibbs

Stanford University - School of Medicine

Nancy Dean Beaulieu

HBS Negotiations, Organizations and Markets Unit; National Bureau of Economic Research (NBER)

Patricia Stone

affiliation not provided to SSRN

Date Written: September 2011

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.

Suggested Citation

Bartel, Ann P. and Phibbs, Ciaran S. and Beaulieu, Nancy D. and Stone, Patricia, Human Capital and Organizational Performance: Evidence from the Healthcare Sector (September 2011). NBER Working Paper No. w17474, Available at SSRN: https://ssrn.com/abstract=1935798

Ann P. Bartel (Contact Author)

Columbia Business School - Finance and Economics ( email )

3022 Broadway
New York, NY 10027
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ciaran S. Phibbs

Stanford University - School of Medicine ( email )

291 Campus Drive
Li Ka Shing Building
Stanford, CA 94305-5101
United States

Nancy D. Beaulieu

HBS Negotiations, Organizations and Markets Unit ( email )

Soldiers Field
Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Patricia Stone

affiliation not provided to SSRN ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
28
Abstract Views
826
PlumX Metrics