TURBULENCE AND UNEMPLOYMENT IN A JOB MATCHING MODEL

According to Ljungqvist and Sargent (1998), high European unemployment since the 1980s can be explained by a rise in economic turbulence, leading to greater numbers of unemployed workers with obsolete skills. These workers refuse new jobs due to high unemployment benefits. In this paper we reassess the turbulence‐unemployment relationship using a matching model with endogenous job destruction. In our model, higher turbulence reduces the incentives of employed workers to leave their jobs. If turbulence has only a tiny effect on the skills of workers experiencing endogenous separation, then the results of Ljungqvist and Sargent (1998, 2004) are reversed, and higher turbulence leads to a reduction in unemployment. Thus, changes in turbulence cannot provide an explanation for European unemployment that reconciles the incentives of both unemployed and employed workers. (JEL: E24, J64)     

Wage Cuts as Investment in Future Wage Growth

Abstract. Wage cuts are often presumed to reflect an adverse change in economic constraints. However, several theoretical models have shown they can be a form of investment in future wage growth. This paper provides empirical evidence of the latter by explicitly modeling the worker's job choice when the job offer consists of both a starting wage and expected future wage growth. We use our analytical model to estimate the distribution of job offers faced by workers who are searching across jobs differing in both initial wage and expected wage growth. For females, roughly one‐third of job changes that result in immediate wage cuts are transitions to jobs that have a higher value function than the existing job. For males, the corresponding value is one‐fifth.     

Building an organizational capability for radical innovation: The direct managerial role

Our research examines practices for managing project leaders as a component of an organization's capability for radical innovation. Our qualitative analysis of 246 interviews in twelve industry-leading corporations suggests that managers use performance-based assessment to select project leaders with demonstrated experience and skills for innovation, as well as passion that extends beyond a single project toward an awareness of its broader contribution to the organization's growth objectives. The managerial role includes concurrent hands-off/hands-on involvement, which balances autonomy and accountability with guidance. Additionally, downside/upside management involves removing the negative consequences associated with failure while providing recognition for the project leader's efforts.     

Self–other agreement in empowering leadership: Relationships with leader effectiveness and subordinates' job satisfaction and turnover intention

We investigated the effect of self–other agreement in empowering leadership on leader effectiveness, job satisfaction, and turnover intention using a sample of 50 Norwegian municipal leaders (46 for leader effectiveness) and 168 (158) of their subordinates. The findings indicated that considering both self and subordinate ratings of empowering leadership was useful in predicting the outcome variables. In particular, subordinates of over-estimators reported lower job satisfaction and higher turnover intention. Moreover, leaders who underestimated their leadership were perceived as more effective by their superiors. For agreement (i.e., leader's self-ratings were in agreement with subordinates' ratings) the relationship between empowering leadership and leader effectiveness was curvilinear with an inverted U shape. Agreement in ratings of empowering leadership was not found to be related to subordinates' job satisfaction and turnover intention. The implications of these findings are discussed.     

Toward a Framework for Achieving a Sustainable Globalization

Widespread trade liberalization and economic integration characterize the current era of globalization. While this approach has resulted in significant job creation, improved living standards, and a wider variety of cheaper consumer goods and services, opponents question if globalization's benefits outweigh the dislocations and downsides that it causes. Protestors are intent on stalling or rolling back globalization's progression and our review of the history of globalization reveals that a backlash is not without precedent. The article carefully examines the myth and reality of these two opposing positions on four key areas of the globalization debate: jobs; inequality and poverty; national sovereignty and cultural diversity; and the natural environment. This information is then utilized to derive a broad set of feasible policy recommendations that could help bring about a more sustainable form of globalization.     

Overcoming the dark side of task conflict: Buffering roles of transformational leadership,tenacity, and passion for work

Drawing from the job demands–resources model, this study considers how task conflict reduces employees' job satisfaction, as well as how the negative task conflict–job satisfaction relationship might be buffered by supervisors' transformational leadership and employees' personal resources. Using data from a large organization, the authors show that task conflict reduces job satisfaction, but this effect is weaker at higher levels of transformational leadership, tenacity, and passion for work. The buffering roles of the two personal resources (tenacity and passion for work) are particularly salient when transformational leadership is low. These findings indicate that organizations marked by task-related clashes can counter the accompanying stress by developing adequate leadership and employee resources within their ranks.     

Leader diffuse status and leadership outcomes: Towards an integrative framework

This review seeks to enrich our understanding of how a leader's status influences leadership outcomes such as motivation to lead, leader emergence and perceived leader effectiveness. The focus is on the leader's diffuse status, that is, status derived from demographic (e.g., gender and race) and physical (e.g., height and body shape) characteristics. Drawing insights from empirical findings and their theoretical underpinnings, we (1) highlight the need to explicitly model the leader's diffuse status as a mediator in the relationship between leader demographic and physical characteristics and leadership outcomes, (2) differentiate the effects of the leader's diffuse status as perceived by others (interpersonal level) and the leader's diffuse status as perceived by the leader (intrapersonal level) and (3) synthesize a wide range of contextual factors that influence the degree to which the leader's demographic and physical characteristics affect leadership outcomes through the leader's diffuse status. Moreover, we explain how other status types, such as status derived from the leader's position in the organizational hierarchy and status related to task-relevant leader characteristics, can moderate the effects of the leader's diffuse status. Finally, we discuss the utility of our proposed integrative framework for researchers and practitioners and outline promising future research opportunities.     

Temporary Contracts,Employment Protection,and Collective Bargaining

This paper examines the effect of employment protection in a matching model with endogenous job destruction, collective bargaining, and two types of employment contracts. Using this framework, we show that (i) the impact on job creation and job destruction caused by reducing the firing costs associated with temporary jobs depends on the labour unions' bargaining strength and the gap in firing costs between contracts; (ii) reducing the firing costs associated with permanent jobs unambiguously decreases equilibrium unemployment if labour unions have strong bargaining power; and (iii) the impact caused by the firing costs differs between collective and individual bargaining.     

Single machine group scheduling to minimize mean flow time subject to due date constraints

This paper considers a single machine group scheduling problem. All jobs are classified into groups and the jobs within a group are processed contiguously on the machine. A sequence-independent setup time is incurred between each two consecutively scheduled groups. This paper presents a solution procedure which utilizes Smith's algorithm and a proposed modified Smith's algorithm to find an optimal job sequence and an optimal group sequence which minimizes the mean flow time of jobs subject to the constraint that no jobs are tardy. The complexity of the algorithm is shown to have a polynomial running time in the number of groups and jobs.     

IMMIGRATION,JOBS, AND EMPLOYMENT PROTECTION: EVIDENCE FROM EUROPE BEFORE AND DURING THE GREAT RECESSION

In this paper we analyze the impact of immigrants on the type and quantity of native jobs. We use data on 15 Western European countries during the 1996–2010 period. We find that immigrants, by taking manual‐routine type of occupations pushed natives towards more “complex” (abstract and communication) jobs. This job upgrade was associated to a 0.7% increase in native wages for a doubling of the immigrants' share. These results are robust to the use of an IV strategy based on past settlement of immigrants across European countries. The job upgrade slowed but did not come to a halt during the Great Recession. We also document the labor market flows behind it: the complexity of jobs offered to new native hires was higher relative to the complexity of lost jobs. Finally, we find evidence that such reallocation was larger in countries with more flexible labor laws.     

Fired up with passion: Investigating how job autonomy and passion predict burnout at career start in teachers

This study examines a motivational premise of burnout: in order to burn out, an employee must first be fired up. Based on the dualistic model of passion, we propose that the types of passion – harmonious or obsessive – that drive novice teachers differentially affect the three components of burnout. We further propose that job autonomy (i.e. decision latitude) differentially predict the two types of passion for work. These hypotheses are tested in two studies conducted in Canada in teachers with five years' or less experience. Study 1, using a cross-sectional design, showed that job autonomy positively predicted harmonious passion but negatively predicted obsessive passion. Harmonious passion negatively predicted all three components of burnout, whereas obsessive passion positively predicted emotional exhaustion and depersonalization. A second, 12-month longitudinal study revealed unidirectional effects of job autonomy on the two types of passion. The results also showed unidirectional effects of harmonious passion on professional efficacy and obsessive passion on emotional exhaustion. Neither type of passion predicted cynicism over time. These findings suggest that a more nuanced understanding of passion is required to predict burnout at career start. Implications for theory and further research on burnout and passion for work are discussed.     

Will you trust your new boss? The role of affective reactions to leadership succession

Affective reactions to the departure of work group leaders are proposed as an important determinant of members' trust-related judgments regarding new leaders. A field test of veterinary hospital employees evaluating new leaders revealed that the affective reaction to the departure of the prior group leader predicted trust when there was no history between the individuals. When there was history between the two individuals, the group member's evaluation of the new leader's ability on their prior job was a significant predictor of trust over and above their affective reaction to the succession. The relationships between affective reactions to succession and trust formation were replicated in a longitudinal simulation of trust formation in student groups. The implications of these findings for the study of trust in organizations and leadership succession processes in work groups are discussed.     

Organizational violence and aggression: Development of the three-factor Violence Climate Survey

The aim of this study is to examine the concept of health-specific leadership, differentiate it from sound general leadership and identify whether it has an impact on employee strain, alongside general sound leadership practices. Health-specific leadership is conceptualized as the leader's explicit consideration of and engagement in employee health. The study is based on research in the field of leadership impact on employee strain, health and well-being, extended by recent findings of the importance of domain-specific leadership constructs. As indicated by previous relevant studies, we include psychological climate for health, role ambiguity and job satisfaction as mediating variables. Using structural equation modelling, a sample of 1027 employees of the German tax administration was examined. The results show differential effects for health-specific and general sound leadership. While neither of these two aspects of leadership exhibited a direct association with employee strain, general sound leadership practices were significantly related to lower employee strain through lower levels of role ambiguity, better psychological climate for health and higher job satisfaction. Health-specific leadership was associated with higher levels of psychological climate for health, but also higher role ambiguity.     

“To thine own self be true”: The effects of enactment and life storytelling on perceived leader authenticity

Although researchers have emphasized the importance of antecedents to the construct of authentic leadership, very little empirical research exists to confirm this notion. Combining theoretical approaches from dramaturgy and narrative research, we were able to identify possible antecedents that help followers perceive a leader's authenticity. Using two online experimental designs, we analyzed the concept of perceived leader authenticity. Specifically, we examined how a leader's enactment—that is, a leader's physical actions—(Study 1, n = 105) and a combination of leader enactment and life storytelling (Study 2, n = 334) influenced followers' perceptions of the leader's authenticity, and how this may impact leadership outcomes. The results of these studies, in which leader enactment in the context of authentic leadership was operationalized for the first time, indicate that leader enactment predicts perceived leader authenticity. Life storytelling, however, only partially predicted followers' perceptions of the leader's authenticity. Findings further revealed that followers' trust in the leader and positive emotions are outcomes of perceived leader authenticity. Implications for research and practice are discussed.     

Developmental stability and leadership effectiveness

Developmental stability is the degree to which we can withstand environmental or genetic stressors during development. Fluctuating asymmetry (FA), concerns the extent to which the right and left side of the body is asymmetrical and is one way to measure developmental stability. Two studies were carried out that examined both the predictive value of leader FA with leadership behaviors and its role in facilitating group performance. The first study examined the hypothesis that a leader's FA is correlated with scores on the Multifactor Leadership Questionnaire (MLQ). The results revealed individuals with a more asymmetrical morphology scored higher on the transformational, but not transactional, dimensions of leadership behavior. A second study examined the hypothesis that asymmetrical morphology and leadership effectiveness would share a positive relationship. In this study participants who led a business game exercise, revealed a positive relationship between FA and self-reported well-being and task satisfaction. Importantly, there was also a positive correlation between the leader's FA score and group performance. The role that developmental stability may play in leadership effectiveness is discussed in the wider context of evolutionary psychology.     

Leading for innovation: Conclusions,issues, and directions

The need for innovation in organizations has resulted in a new focus on the role of leaders in shaping the nature and success of creative efforts. The various articles prepared for these special issues of The Leadership Quarterly on Leading for Innovation all, in one way or another, underscored the impact of leadership on the nature and success of creative efforts. These articles, however, also indicate that the leadership of creative efforts is an unusually complex activity. In the present article, the key conclusions emerging from the various articles presented in this two-part special issue are examined with respect to the nature of the leader, the leader's interactions with followers, the effective direction of followers' activities, and the leader's interactions with the organization. Directions for future research, along with certain metatheoretical issues, are discussed.     

Economic and Environmental Assessment of Remanufacturing Strategies for Product + Service Firms

This article provides a data‐driven assessment of economic and environmental aspects of remanufacturing for product + service firms. A critical component of such an assessment is the issue of demand cannibalization. We therefore present an analytical model and a behavioral study which together incorporate demand cannibalization from multiple customer segments across the firm's product line. We then perform a series of numerical simulations with realistic problem parameters obtained from both the literature and discussions with industry executives. Our findings show that remanufacturing frequently aligns firms' economic and environmental goals by increasing profits and decreasing the total environmental impact. We show that in some cases, an introduction of a remanufactured product leads to no changes in the new products' prices (positioning within the product line), implying a positive demand cannibalization and a decrease in the environmental impact; this provides support for a heuristic approach commonly used in practice. Yet in other cases, the firm can increase profits by decreasing the new product's prices and increasing sales—a negative effective cannibalization. With negative cannibalization the firm's total environmental impact often increases due to the growth in new production. However, we illustrate that this growth is nearly always sustainable, as the relative environmental impacts per unit and per dollar rarely increase.     

Did small and medium enterprises maintain better jobs during the early years of the recession? Job quality multidimensional evidence from Spain

While the literature has indeed confirmed a general tendency linking small and medium enterprises (SMEs) to a dynamic of greater job creation, there is little available evidence on what has happened to job quality since the financial crisis. Through a representative sample of 5311 employees in 2008 (first year of job destruction) and 4925 employees in 2010 (last year for which data were available), and using a two-stage structural equation model, this article empirically analyses the multidimensional determinants of job quality, by enterprise-size class, in Spain. The research has revealed three main results. First, job quality in Spain improved in all enterprises, regardless of their size, during the early years of the recession. Second, the greatest improvements were found in SMEs. Although job quality was already better in SMEs than in large enterprises in 2008, the differences between them subsequently widened. Third, this accelerated divergence was explained by the following dimensions: working conditions, work intensity, health and safety at work, and work–life balance. These dimensions were much more positive in SMEs. Employment-related public policy should therefore focus more specifically on SMEs. There are two reasons for this. First, despite the recession, SMEs have shown themselves to be key factors in the explanation of job quality. Second, by making changes to their value generation model, they could continue to drive the creation of better quality jobs.     

New Firms as Employers: The Wage Penalty for Voluntary and Involuntary Job Switchers

According to previous research, new firms pay lower wages. However, previous studies have been unable to control for the possibility that the opportunity costs of accepting employment at new firms may differ across individuals. In this paper, we investigate whether a wage penalty for being employed at a new firm exists if we take the individual employee's experience and status in the labour market into consideration. We focus on individuals who decide to switch jobs and use matched employee–employer data about all firms and employees in Sweden for the period 1998–2010. Our results show that the share of job transitions into lower wages are higher for those who switch to new firms compared with incumbent firms (40 per cent and 31 per cent, respectively). Our endogenous wage equation estimates indicate that being an involuntary job switcher has an equally negative effect on wages at both new and incumbent firms. However, the positive effect of education on wages is more pronounced for job switchers selecting into incumbent firms.     

The Gender Wage Gap in the Turkish Labor Market

Abstract. This paper examines the sources of the gender wage gap in the Turkish labor market by using matched employer–employee data and the standard wage regression estimations as well as the Oaxaca decomposition method. The extensive number of variables in the data set enables a thorough quantitative analysis of the role of various individual‐ as well as firm‐related factors leading to wage differentials between men and women, namely human capital endowments including job tenure, occupational and industrial segregation, private/public sector location, coverage of the workplace under collective labor bargaining, and firm size. It also examines the extent of gender‐based industry and occupational segregation within the confines of data set and computes the Duncan & Duncan segregation index. We find that a large portion of the gender wage gap is attributable to women's considerably lower levels of work experience and job tenure. Other important variables that lead to pay differentials are women's lower concentration in jobs covered by collective labor bargaining and a substantial degree of occupational and industrial segregation. The differential rates of return to many of the wage determinant variables are also found to be significant in the formation of the gender wage gap.