ERRATA CORRIGE: “ARE MUSLIM IMMIGRANTS DIFFERENT IN TERMS OF CULTURAL INTEGRATION?”

We are thankful to Michael Lundholm and Mahmood Arai for pointing us towards a coding error which invalidates the regressions in our paper. Correcting the code leads to a decrease in sample sizes, though much smaller than Arai et al. (2011) claim based on their “replication”. An appropriate redefinition of the variables and of the model specification allows us to reproduce the substance of the empirical analysis in our original published paper. Although the results are now less clear‐cut, our analysis remains essentially unchanged.     

Are we going towards a society of “activity” or “work”?*

Abstract. The aim of the article is to discuss the perspective of a decline in dependent work - which Dahrendorf and Braverman had argued was coming - either due to an emerging society of “activities” or a process of work “degradation”. Why did such a scenario not prove to be realistic? The author shows from which concepts such a downgrading stems and points out the responsibility of approaches that do not see work as a social activity and see technology as a deus ex machina. As a matter of fact, the western world is not experiencing a dissolution but, rather, a persistent (if not growing) importance of work. The author sketches the great technical and organizational transformation in the ongoing production patterns and work schemes in contemporary society. He maintains that these processes, decreasing the homogeneity and increasing the heterogeneity of work, make a society of “works” more likely than one of “activities”.     

Should Firms Go “Beyond Profits”? Milton Friedman versus Broad CSR1

When attempting to articulate the nature and scope of corporate social responsibility (CSR), a variety of opinions emerge. The primary CSR issue appears to be: Should firms go “beyond profits”? In order to address this normative question, this article will explore the theoretical underpinnings of CSR and its practical application. Part one of the paper begins by discussing common CSR definitions. Part two outlines the CSR debate in terms of the “narrow view” of CSR (as represented by Milton Friedman) versus the “broad view” (i.e., beyond profits). Part three applies both the narrow and broad approaches to CSR in analyzing two classic business and society cases: (1) the Ford Pinto; and (2) Merck's river blindness pill. The article concludes with a proposed synthesis of the CSR approaches discussed.     

“U.S. Pharmaceutical Gray Markets: Why Do They Persist—and What to Do about Them?”

This article illustrates how a traditional U.S. pharmaceutical industry supply chain operates, beginning with pharmaceutical compounds and ending at patient‐dispensing hospitals or pharmacies. Furthermore, to place the problem of U.S. drug shortages in historical perspective, a review of the annual volume of such shortages over the last decade is undertaken. Following this review of recent drug shortages is an analysis of the market forces and business decisions that drive the creation of a pharmaceutical gray market, its attendant “price gouging” and product integrity issues, and the alterations in the traditional pharmaceutical industry supply chain model. In response to persistent drug shortages, the U.S. Food and Drug Administration (FDA) has recently been empowered by the executive and legislative branches of the U.S. government to actively address this issue. To reflect these FDA challenges, a thorough review of these new agency charges and responsibilities is undertaken. Lastly, an analysis of the results of recent FDA public policy actions on mitigating drug shortages, as well as recommendations tor market‐based solutions to the gray market problem that pharmaceutical manufacturers, hospitals and pharmacies could institute as industry‐wide standards of business practice, are discussed in the conclusion.     

Can Businesses Be Too Good? Applying Susan Wolf's “Moral Saints” to Businesses

Susan Wolf famously argues that moral sainthood is not an ideal for which persons should aim because it requires one to cultivate moral virtues to the exclusion of significant, nonmoral interests, and skills. I find Wolf's argument compelling in her context of persons, and seek to demonstrate that it remains so when the context is expanded to businesses. I argue that just as moral perfection precludes individuals from challenging societal norms and traditions in ways that benefit us, moral perfection prevents businesses from challenging norms and traditions in ways that can promote positive social change. I also describe, and respond to, three possible objections to my position, most notably the claim that businesses' greater social power justifies demanding moral perfection from them even though we should not demand moral perfection from persons.     

Choice or Chance? A Duration Analysis of Unemployment Using Information from “Restart” Interviews

A dataset containing details of the personal characteristics and search behaviour of 1,094 long-term unemployed males is used to analyse the importance of individual choice in the determination of unemployment durations for this group. The role played by individuals' decisions (concerning factors such as the range of jobs which they are prepared to consider, or the minimum weekly wage which they would accept) is quantified relative to that played by chance (measured by factors which will affect the probability of receiving an offer, e.g. the local unemployment rate).     

Are “Overpaid” Workers Really Unhappy? A Test of the Theory of Cognitive Dissonance

ABSTRACT: Using data on individual perceptions of deserved pay for workers in six British local labour markets, this paper tests the implicit proposition of cognitive dissonance theory that workers who express themselves as being overpaid should exhibit lower job satisfaction than equitably paid workers. The regression results do not provide any evidence in support of the proposition.     

What Number is “Fifty‐Fifty”?: Redistributing Excessive 50% Responses in Elicited Probabilities

Studies using open-ended response modes to elicit probabilistic beliefs have sometimes found an elevated frequency (or blip) at 50 in their response distributions. Our previous research suggests that this is caused by intrusion of the phrase "fifty-fifty," which represents epistemic uncertainty, rather than a true numeric probability of 50%. Such inappropriate responses pose a problem for decision analysts and others relying on probabilistic judgments. Using an explicit numeric probability scale (ranging from 0-100%) reduces thinking about uncertain events in verbal terms like "fifty-fifty," and, with it, exaggerated use of the 50 response. Here, we present two procedures for adjusting response distributions for data already collected with open-ended response modes and hence vulnerable to an exaggerated presence of 50%. Each procedure infers the prevalence of 50s had a numeric probability scale been used, then redistributes the excess. The two procedures are validated on some of our own existing data and then applied to judgments elicited from experts in groundwater pollution and bioremediation.     

A Comment on “Can Relaxation of Beliefs Rationalize the Winner's Curse?: An Experimental Study”

Ivanov, Levin, and Niederle (2010) use a common‐value second‐price auction experiment to reject beliefs‐based explanations for the winner's curse. ILN's conclusion, however, stems from the misuse of theoretical arguments. Beliefs‐based models are even compatible with some observations from ILN's experiment.     

“A 30% Chance of Rain Tomorrow”: How Does the Public Understand Probabilistic Weather Forecasts?

The weather forecast says that there is a "30% chance of rain," and we think we understand what it means. This quantitative statement is assumed to be unambiguous and to convey more information than does a qualitative statement like "It might rain tomorrow." Because the forecast is expressed as a single-event probability, however, it does not specify the class of events it refers to. Therefore, even numerical probabilities can be interpreted by members of the public in multiple, mutually contradictory ways. To find out whether the same statement about rain probability evokes various interpretations, we randomly surveyed pedestrians in five metropolises located in countries that have had different degrees of exposure to probabilistic forecasts--Amsterdam, Athens, Berlin, Milan, and New York. They were asked what a "30% chance of rain tomorrow" means both in a multiple-choice and a free-response format. Only in New York did a majority of them supply the standard meteorological interpretation, namely, that when the weather conditions are like today, in 3 out of 10 cases there will be (at least a trace of) rain the next day. In each of the European cities, this alternative was judged as the least appropriate. The preferred interpretation in Europe was that it will rain tomorrow "30% of the time," followed by "in 30% of the area." To improve risk communication with the public, experts need to specify the reference class, that is, the class of events to which a single-event probability refers.     

Low‐wage Jobs — Springboard to High‐paid Ones?

We examine whether low‐paid jobs have an effect on the probability that unemployed persons obtain better‐paid jobs in the future (springboard effect). We make use of data from the German Socio‐Economic Panel (SOEP) and apply a dynamic random effects bivariate probit model. Our results suggest that low‐wage jobs can act as springboards to better‐paid work. The improvement of the chance to obtain a high‐wage job by accepting low‐paid work is particularly large for less‐skilled persons and for individuals who experienced longer periods of unemployment. Low‐paid work is less beneficial if the job is associated with a low social status.     

WHO IS ‘BEHAVIORAL’? COGNITIVE ABILITY AND ANOMALOUS PREFERENCES

In this paper, we ask whether variation in preference anomalies is related to variation in cognitive ability. Evidence from a new laboratory study of Chilean high‐school students with similar schooling backgrounds shows that small‐stakes risk aversion and short‐run discounting are less common among those with higher standardized test scores. The relationship with test scores survives controls for parental education and wealth. We find some evidence that elementary‐school GPA is predictive of preferences measured at the end of high school. Two laboratory interventions provide suggestive evidence of a possible causal impact of cognitive resources on expressed preferences.     

Reading the Tea Leaves—Did Citigroup Risk Their Reputation During 2004–2005?Presented at ICAA's Second International Conference Globalization – The Good Corporation June 26–28, 2007 Baruch College,New York City

In this paper, we challenge the conventional wisdom that high‐quality news reports of questionable corporate business practices will stimulate various marketplace negative responses, which in turn, will pressure management to undertake actions designed to protect the organization's reputation. Analysis is confined to a relatively brief period of bad news relating to Citigroup, Inc. We conclude that while none of the expected negative marketplace responses are evident in widely available news sources, the CEO did exhibit significant concern and instituted a targeted reputation risk management program. In the absence of a concerned CEO, analysts should not, we suggest, expect a management team to respond with reputation‐enhancing corrective action solely as a reaction to negative publicity regarding questionable business practices.     

What Explains the 2007–2009 Drop in Employment?

We show that deterioration in household balance sheets, or the housing net worth channel, played a significant role in the sharp decline in U.S. employment between 2007 and 2009. Counties with a larger decline in housing net worth experience a larger decline in non‐tradable employment. This result is not driven by industry‐specific supply‐side shocks, exposure to the construction sector, policy‐induced business uncertainty, or contemporaneous credit supply tightening. We find little evidence of labor market adjustment in response to the housing net worth shock. There is no significant expansion of the tradable sector in counties with the largest decline in housing net worth. Further, there is little evidence of wage adjustment within or emigration out of the hardest hit counties.     

Work Absence — A Signalling Factor for Temporary Workers?

This paper investigates whether low levels of absence increase the probability of permanent employment and reduce that of unemployment for Swedish temporary workers. We investigate two reasons for absence: worker sickness and sickness of a dependent child. Using a competing risk estimation model, we find that sick leave reduces the probability of permanent employment for women and increases the probability of unemployment for men. Absence due to child sickness increases the risk of unemployment for women. Although the influence of sick leave varies substantially among different temporary jobs, replacement and probation workers are generally the most affected.