Wage Bargaining with On‐the‐Job Search: Theory and Evidence

Most applications of Nash bargaining over wages ignore between‐employer competition for labor services and attribute all of the workers' rent to their bargaining power. In this paper, we write and estimate an equilibrium model with strategic wage bargaining and on‐the‐job search and use it to take another look at the determinants of wages in France. There are three essential determinants of wages in our model: productivity, competition between employers resulting from on‐the‐job search, and the workers' bargaining power. We find that between‐firm competition matters a lot in the determination of wages, because it is quantitatively more important than wage bargaining à la Nash in raising wages above the workers' “reservation wages,” defined as out‐of‐work income. In particular, we detect no significant bargaining power for intermediate‐ and low‐skilled workers, and a modestly positive bargaining power for high‐skilled workers.     

Inefficient Job Destructions and Training with Hold‐up

This paper develops an equilibrium search model with endogenous job destructions and where firms decide at the time of job entry how much to invest in match‐specific human capital. We first show that job destruction and training investment decisions are strongly complementary. It is possible that there are no firings at equilibrium. Further, training investments are confronted to a hold‐up problem making the decentralized equilibrium always inefficient. We show therefore that both training subsidies and firing taxes must be implemented to bring back efficiency.     

Job Satisfaction,Comparison Earnings,and Gender

This paper examines sex differences in job satisfaction by utilizing data from the 1986 UK Social and Economic Life Initiative (SCELI) household survey. It attempts to ascertain the relationship between actual and comparison pay and job satisfaction. Employees were asked on a 0–10 scale how satisfied or dissatisfied they were with their present job. They were also asked to state whether they were equitably, over or underpaid and to say how much pay they thought they deserved. Uniquely, therefore, we are able to analyse the effects of both actual and objective and subjective comparative pay measures on job satisfaction. The paper rejects the view that the higher expressed job satisfaction of women represents an innate difference rather than the results of self‐selection into jobs with highly valued attributes.     

Job Losses,Unemployment Duration and New Jobs in Spain

Abstract. This article focuses on workers who permanently lost their jobs for involuntary reasons in Spain. We use a 1985 representative survey of the Spanish labor force containing retrospective questions related to workers' mobility. We evaluate several characteristics of job losers, as compared to other unemployed workers with experience by the end of 1985. Thereafter, an analysis of job losses addresses the following questions: (1) What types of jobs were lost? (2) How did workers perform after their job loss? (3) How long have they been out of work? (4) What are the characteristics of the new jobs found?     

On‐Shelf Availability,Retail Performance,and External Audits: A Field Experiment

A potential answer to retailer's shelf out‐of‐stocks (OOS), where the item is in the store but customers cannot find it, is to employ third‐party service providers to execute audits and corrections. However, given the nontrivial cost of executing external audits, it is still necessary to assess whether external audits are capable of reducing shelf‐OOS, whether they can be performed in an economical way, and whether the benefits from the audits translate into higher sales. In an effort to address these questions, we partnered with a product manufacturer and a retail service provider and conducted a field experiment in a national retailer's store set. We used transactional data to detect abnormal operations and respond to possible shelf‐OOS by sending auditors to correct empty shelves and incorrect inventory records. At the conclusion of the experiment, we found that Stock Keeping Units in the treatment group were less likely to have shelf‐OOS and inventory record inaccuracies, and that our intervention had a positive effect on sales. Furthermore, we found that the external audit initiative is economically viable since these improvements required low auditing efforts after a transitional period, and in steady state the cost of running the program is a small fraction of the benefits it generates. We discuss the limitations of our study and the implications of our findings for researchers and practitioners.     

Green supply‐chain management: A state‐of‐the‐art literature review

There is a growing need for integrating environmentally sound choices into supply‐chain management research and practice. Perusal of the literature shows that a broad frame of reference for green supply‐chain management (GrSCM) is not adequately developed. Regulatory bodies that formulate regulations to meet societal and ecological concerns to facilitate growth of business and economy also suffer from its absence. A succinct classification to help academicians, researchers and practitioners in understanding integrated GrSCM from a wider perspective is needed. Further, sufficient literature is available to warrant such classification. This paper takes an integrated and fresh look into the area of GrSCM. The literature on GrSCM is covered exhaustively from its conceptualization, primarily taking a ‘reverse logistics angle’. Using the rich body of available literature, including earlier reviews that had relatively limited perspectives, the literature on GrSCM is classified on the basis of the problem context in supply chain's major influential areas. It is also classified on the basis of methodology and approach adopted. Various mathematical tools/techniques used in literature vis‐à‐vis the contexts of GrSCM are mapped. A timeline indicating relevant papers is also provided as a ready reference. Finally, the findings and interpretations are summarized, and the main research issues and opportunities are highlighted.     

Temporary Competitive Advantage: A State‐of‐the‐Art Literature Review and Research Directions

In many industries, the traditional sources of competitive advantage tend to evaporate fairly rapidly. Therefore, managers need to continually rethink and reformulate their firm strategies. Likewise, scholars have felt compelled to shift the traditional centre of attention from competitive advantage that is sustainable over time to a focus on how firms compete by achieving a series of temporary advantages. However, the proliferation of research on temporary competitive advantage, far from building a solid body of literature, has produced a series of fragmented studies. This condition calls for detecting the state of knowledge in this realm of strategic inquiry. By leveraging the present status of the literature on temporary competitive advantage, we offer a conceptual map of the current inquiry of the antecedents, management, and consequences of temporary competitive advantage. Then, we identify the key implications for strategy theory and discuss the major challenges for cultivating fertile territories in this intriguing area of research.     

Vacancy Referrals,Job Search,and the Duration of Unemployment: A Randomized Experiment

One goal of the Public Employment Service is to facilitate matching between unemployed job‐seekers and job vacancies; another goal is to monitor job search so as to bring search efforts among the unemployed in line with search requirements. The referral of job‐seekers to vacancies is one instrument used for these purposes. We report results from a randomized Swedish experiment where the outcome of referrals is examined. To what extent do unemployed individuals actually apply for the jobs they are referred to? Does information to job‐seekers about increased monitoring affect the probability of applying and the probability of leaving unemployment? The experiment indicates that a relatively large fraction (one‐third) of the referrals do not result in job applications. Information about intensified monitoring causes an increase in the probability of job application, especially among young people. However, we find no significant impact on the duration of unemployment.     

A Systematic Literature Review on Recent Lean Research: State‐of‐the‐art and Future Directions

Lean management (LM) has attracted the interest of scientists and practitioners since 1990, when Womack et al. (Womack, J.P., Jones, D.T. and Roos, D. (1990). The Machine that Changed the World. New York, NY: Rawson Associates) popularized the Japanese manufacturing approach aimed at eliminating waste to improve operational performance and customer satisfaction. Over the years, the lean concept has evolved becoming a managerial paradigm applicable to different sectors and processes with impressive results. This heterogeneity of implementations and settings makes the recent LM literature diverse and fragmented, and an extensive analysis of the latest contributions on this field is lacking. To address this gap, the authors propose a systematic literature review (SLR) of 240 articles published in 25 peer‐reviewed academic journals from January 2003 to December 2015. The purpose is to analyse the recent trends in this area and to provide a framework that organizes lean researched issues into mature, intermediate and nascent, based on their position in the research life cycle. Starting from the gaps that the SLR highlights, the authors suggest conducting lean research in the following directions: (a) grounding lean studies on existing managerial theories; (b) addressing service settings such as banking/finance, public sector and education; (c) exploring the role of national culture through cross‐country comparisons; (d) defining and conceptualizing ‘lean‐x’ processes; (e) understanding the relationships between lean and safety/environmental issues, and (f) unveiling the effects on social outcomes. Finally, the proposed framework helps scholars find issues not sufficiently explored that require theory‐building research (to move from nascent to intermediate) or theory‐testing research (to move from intermediate to mature).     

Competitive Strategies and Firm Performance: a Comparative Analysis of Pure,Hybrid and ‘Stuck‐in‐the‐middle’ Strategies in Spanish Firms

The purpose of this study was to examine the viability of hybrid competitive strategies, which combine differentiation and cost elements, and their impact on organizational performance in comparison to pure strategies and ‘stuck‐in‐the‐middle’ combinations. Previous studies have focused above all on US data. The analysis carried out in this paper has centred on a multisectorial sample of 164 Spanish firms. The findings show that a large number of the organizations use different types of hybrid strategies and also that such strategies tend to be associated with higher levels of firm performance, particularly those strategies which place emphasis on a greater number of strategic dimensions, and specifically on innovation differentiation.     

A Case Study of Gender Differences in Job Satisfaction Subsequent to Implementation of an Employment Equity Programme

In this research case study, the competing hypothesis of socialization, structural and social role theories were derived and used to explore and compare the job attitudes and satisfaction of women and men in a Canadian insurance company subsequent to voluntary implementation of an employment equity programme. Gender comparisons of both managerial and clerical employees on individual facets of satisfaction indicated the most support for social role theory, some support for structural theory and the least support for socialization theory. These findings indicate that managerial women and men tend to derive work satisfaction from similar sources. The variation in facet results cautions against global conclusions about gender and job satisfaction. Unanticipated consequences such as a 'backlash' (Faludi, 1991) of managerial men and a 'glass escalator' (Williams, 1992) for clerical men were also suggested by the findings in this case. A key implication is the potential benefit to both organizations and managerial women from steps taken to level the structural playing field.     

Gender Differences in Risk Perception: Theoretical and Methodological Perspectives

A substantial body of risk research indicates that women and men differ in their perceptions of risk. This paper discusses how they differ and why. A review of a number of existing empirical studies of risk perception points at several problems, regarding what gender differences are found in such studies, and how these differences are accounted for. Firstly, quantitative approaches, which have so far dominated risk research, and qualitative approaches give different, sometimes even contradictory images of women's and men's perceptions of risk. Secondly, the gender differences that appear are often left unexplained, and even when explanations are suggested, these are seldom related to gender research and gender theory in any systematic way. This paper argues that a coherent, theoretically informed gender perspective on risk is needed to improve the understanding of women's and men's risk perceptions. An analysis of social theories of gender points out some relations and distinctions which should be considered in such a perspective. It is argued that gender structures, reflected in gendered ideology and gendered practice, give rise to systematic gender differences in the perception of risk. These gender differences may be of different kinds, and their investigation requires the use of qualitative as well as quantitative methods. In conclusion, the arguments about gender and risk perception are brought together in a theoretical model which might serve as a starting point for further research.     

Job Stability Trends,Lay‐offs,and Transitions to Unemployment in West Germany

This paper examines the evolution of different aspects of job stability, notably the termination reasons and the transition states. We estimate Semi‐Parametric Cox Hazard Models with competing risks for West Germany and find an increasing hazard of job ending that is driven by an increasing hazard of being laid off, primarily. One explanation found is that men with fixed‐term contracts face increasing risks of being displaced. In accordance with the technological change hypothesis we also find that men with a high degree of non‐routine interactive tasks face a declining risk of displacement.     

Internet‐Based Employer Search and Vacancy Duration: Evidence from Finland

This study investigates the effect of the introduction of the public employment agency's Internet‐based service on the duration of employer search. The analysis exploits the introduction of a web‐based service by the Finnish Employment Agency in October 2002. The results, based on information on job vacancies announced via the public employment agency between 2002 and 2003, indicate that the introduction of the web service, in general, shortened the duration of employer search. However, we find that the introduction of the web‐based service shortened the average duration of vacancies in some regions but not in others. In addition, employers in urban areas were more likely to benefit from the introduction of the online service.     

Integrating a Top‐Down and a Bottom‐Up Approach: Formal and Informal Risk‐Handling Strategies in a Utility Company

In this study, we bring together a top‐down and a bottom‐up approach of risk handling. We do so by conceptualizing and qualitatively and quantitatively measuring formal and informal risk‐handling strategies in a Dutch utility company. We conceive of formal risk handling as regulating, training, and educating safety and enforcing rule compliance, while we distinguish three different informal risk‐handling strategies: discretionary specialization, tacit knowledge, and taking personal responsibility. We show that the formal risk‐handling strategy and the three informal risk‐handling strategies can be measured separately. Hence, we have validated the measurement of all four strategies derived from two different risk‐handling approaches. Moreover, we have demonstrated that the perceived use of the four strategies has different effects on unsafe behavior: formal risk handling and tacit knowledge decrease it, discretion increases it, and taking personal responsibility has no effect on unsafe behavior.     

Identification and Inference in Nonlinear Difference‐in‐Differences Models

This paper develops a generalization of the widely used difference‐in‐differences method for evaluating the effects of policy changes. We propose a model that allows the control and treatment groups to have different average benefits from the treatment. The assumptions of the proposed model are invariant to the scaling of the outcome. We provide conditions under which the model is nonparametrically identified and propose an estimator that can be applied using either repeated cross section or panel data. Our approach provides an estimate of the entire counterfactual distribution of outcomes that would have been experienced by the treatment group in the absence of the treatment and likewise for the untreated group in the presence of the treatment. Thus, it enables the evaluation of policy interventions according to criteria such as a mean–variance trade‐off. We also propose methods for inference, showing that our estimator for the average treatment effect is root‐N consistent and asymptotically normal. We consider extensions to allow for covariates, discrete dependent variables, and multiple groups and time periods.     

Cross‐training Decisions in Field Services with Three Job Types and Server–Job Mismatch*

To be cost‐effective, field service managers must balance the high cost of machine downtime with the high cost of cross‐training technicians in multiple skills. We study a field service system with three job types requiring three different skills. Each server has a primary skill, the cost of which is considered sunk, and up to two secondary skills, which is a managerial decision. We model two important characteristics that distinguish field services: server–job mismatch and the ratio of travel time to service time. We use a queueing framework and simulation to study three cross‐training decisions: the number of servers cross‐trained in secondary skills, the number of secondary skills each server should have, and the efficiency in each secondary skill. We find that complete cross‐training is cost‐effective in some field service situations. Typically, efficiency in secondary skills must be close to 100%, but when the probability of mismatch is high and the ratio of travel time to service time is high, efficiency in secondary skills must be less than 100%.     

Effects of Changes in the Unemployment Insurance Eligibility Requirements on Job Duration — Swedish Evidence

This paper investigates the impact of the unemployment insurance (UI) entrance requirement on employment duration among earlier unemployed in Sweden. I exploit changes in the rules taking place in 1994 and 1997 to study behavioural adjustments in the timing of job separation in 1992, 1996, and 1998, respectively. Performing across‐year analyses with years involving different working requirements, I find some evidence of clustering of job exits at the time of UI qualification. By using predicted hazard rates for each week, I calculate an approximate 2.3‐week extension in average employment duration between 1996 and 1998, due to the 5‐week prolonging of the entrance requirement.     

Training,Production, and Channel Separation in ITC's E‐Choupal Network

In recent years, I.T.C. Limited (hereafter ITC) developed the “e‐Choupals” for the rural areas of India. In this new business model, ITC reaches implicit agreements with some farmers (inside the network) that they can sell the products directly to ITC at the market price in the local market, but allow the farmers, both inside and outside the network, to access valuable information through the e‐Choupals. In this study, we investigate ITC's incentive of offering such opportunities, especially to those farmers outside the network, and analyze the farmers’ strategic quantity decisions. We show that the implicit agreement behaves as a formal contract, regardless of the price elasticity of the local market: Once reaching an agreement with ITC, the farmers always give priority to delivering directly to ITC. The e‐Choupal network leads naturally to the complete separation of selling channels, provided that ITC's capacity constraint is not tight. Surprisingly, in a variety of scenarios, ITC finds it optimal to provide the best available training to the farmers outside the network. We further show that our results are not prone to potential cheating in the mandi system, the possible exploitation via postponed payments, and the stochastic effects on the market‐clearing price.     

Gender Differences in Transitions from Unemployment: Micro Evidence from Finland

Abstract. This paper examines gender differences in labour market transitions in Finland. The empirical analysis carried out using multinomial logit model is based on a 1996 sample of unemployed people. The results indicate that female labour market position is inferior to male and that female labour market outcomes are more responsive to family‐related background characteristics. Previous unemployment is observed to be particularly scarring on male labour market position. According to the results education improves female labour market position significantly. Higher education diminishes gender differences in the labour market and is therefore a particularly equalizing factor.