Seminar by Prof. Christoph Grimpe, Copenhagen Business School


Event details

Date and time 02.02.2018 12:0013:30  
Place and room
Speaker Prof. Christoph Grimpe, Copenhagen Business School
Category Conferences - Seminars
Signaling Valuable Human Capital - Advocacy Group Work Experience and its Effect on Employee Pay in Innovative Firms

Abstract :
How valuable is work experience with advocacy groups, e.g. Greenpeace, for new hires of innovative firms? We integrate strategic human capital with stakeholder theory and suggest that advocacy group work experience creates human capital (knowledge, skills, abilities) which potentially facilitates innovations acceptable and legitimate for stakeholders. Individuals can signal the potential value of their human capital to firms and are therefore likely to obtain higher salaries compared to new hires without such experience. Using matched data for 3,562 employees in Denmark, we find that new hires of innovative firms with advocacy group experience enjoy salary premiums which are stronger when individuals had worked at larger advocacy groups, had top management experience at the advocacy group, and had worked in an occupation with direct stakeholder interaction.