Defloor, Bart, Luc Van Ootegem, and Elsy Verhofstadt (2009). "Capabilities and the functionings production function with an application to the quality of the first job" Paper presented at the 6th annual conference of the HDCA, 10-12 September 2009, Lima, Peru.

This paper is about transformation efficiency in the capabilities and functionings framework. Some individuals are functionings poor because they are lacking resources, others are functionings poor because of low transformation efficiency. They don’t manage to transform resources into valuable functionings. The former might be helped with an expansion of their resources, the latter might be helped by creating circumstances under which they can use his resources more efficiently. The theory is applied to an individual’s first job after graduation. We investigate causes why some individuals are more efficient in transforming (job) resources into (job) functionings than others. We use a distance function approach and stochastic frontier analysis to measure individual transformation efficiency. The results show that individuals are on average 46% efficient. In the next phase we regress these efficiency numbers on 13 ‘conversion factors, aspects influencing the transformation process. There are individual, social and environmental conversion factors. The results suggests that individuals who make a better impression, who are motivated for the content of the job and not only in material aspects of the job, who are male, who don’t live in a rural area with recent urbanisation, who are member of a club and who didn’t use many search channels to find the job are more efficient in transforming resources into functionings