What Drives the Demand for Temporary Agency Workers?

As part of the general trend towards increased employment flexibility temporary agency employment has grown steadily in most European countries. The paper examines, first, whether the deregulation of temporary agency employment is responsible for the growth of the flexible staffing industry. Second, we investigate the cyclical behavior of temporary agency employment. Using monthly data for Germany, we show that the liberalization of the law regulating the sector is not the main reason for the surge of this employment form. Our analysis reveals, moreover, that temporary agency employment exhibits strong cyclical behavior and correlates with main economic indicators in real time.     

Does Formal Education for Older Workers Increase Earnings? — Evidence Based on Rich Data and Long‐term Follow‐up

Governments in Europe, Canada and the USA have expressed an ambition to stimulate education of older. In this paper, we analyse if there are effects on annual earnings of formal education for participants aged 42–55 at the time of enrolment in 1994–95. The analysis explores longitudinal population register data stretching from 1982 to 2007. The method used is difference‐in‐differences propensity score matching based on a rich set of covariates, including indicators of health and labor market marginalization. Our findings underline the importance of long follow up periods and imply positive effects for women, especially so for women with children, and no significant average earnings effects for men. These results differ from earlier studies but are stable to several alternative assumptions regarding unobservable characteristics. Data further indicate that the gender gap in our estimates may stem from differences in underlying reasons for enrolment.     

Do Temporary Contracts Increase Work Accidents? A Microeconometric Comparison between Italy and Spain

Abstract. This paper analyses the effect of contract type on the rate of work‐related accidents in Italy and Spain, using the 1999 Labour Force Survey ‘ad hoc module’. We find that, once personal and job characteristics of workers are controlled for, the differences in the probability of suffering a work accident between open‐ended and temporary workers vanish. Furthermore, following a novel decomposition analysis by Yun, we obtain that personal and job characteristics tend to increase the probability of having an accident for temporary workers, but the specific influence of contract type favours the latter, who show a lower probability on this account.     

Decentralizing Wage Bargaining in Germany — A Way to Increase Employment?

Abstract. The area‐wide wage agreement is at the centre of Germany's system of collective bargaining. In recent years, however, there has been a tendency towards the decentralization of collective bargaining. Individual wage agreements have led to more moderate wage developments, whilst collective agreements with individual firms, and agreements at the production unit level, have not had this moderating effect. On the other hand, collective bargaining has become more flexible, leading to greater pay differentiation. The further decentralization of collective bargaining, although desirable, has given rise to objections based in constitutional law and to resistance from employees and employers.     

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—Me Worry?”1“Why So Serious?”:2 A Personal View on the Fukushima Nuclear Reactor Accidents

Infrequently, it seems that a significant accident precursor or, worse, an actual accident, involving a commercial nuclear power reactor occurs to remind us of the need to reexamine the safety of this important electrical power technology from a risk perspective. Twenty‐five years since the major core damage accident at Chernobyl in the Ukraine, the Fukushima reactor complex in Japan experienced multiple core damages as a result of an earthquake‐induced tsunami beyond either the earthquake or tsunami design basis for the site. Although the tsunami itself killed tens of thousands of people and left the area devastated and virtually uninhabitable, much concern still arose from the potential radioactive releases from the damaged reactors, even though there was little population left in the area to be affected. As a lifelong probabilistic safety analyst in nuclear engineering, even I must admit to a recurrence of the doubt regarding nuclear power safety after Fukushima that I had experienced after Three Mile Island and Chernobyl. This article is my attempt to “recover” my personal perspective on acceptable risk by examining both the domestic and worldwide history of commercial nuclear power plant accidents and attempting to quantify the risk in terms of the frequency of core damage that one might glean from a review of operational history.     

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.     

Part-Time Work in the Nordic Countries: A Trap for Women?

Abstract. The aim of the study is to examine the consequences of part-time employment at the individual level, especially for women. Are part-time jobs precarious as compared to full-time jobs, and are they traps, or perhaps rather bridges, in the labour market? The results indicate that the situation of part-timers varies in the Nordic countries. On one hand, the gap between part-time and full-time work has narrowed in Sweden and Norway, which may reflect a normalization of part-time work in these countries. On the other, part-timers' situation in the Finnish labour market still seems more precarious than that of full-timers. However, in most cases part-time work is a bridge rather than a trap in the Nordic labour market.     

Temporary/Permanent Workers' Wage Gap: A Brand‐new Form of Wage Inequality?

By easing restrictions on the use of short‐term contracts, the 30/2003 act represents contemporaneously the more extensive and the more radical policy aimed at introducing flexibility in the Italian labour market. By virtue of a difference‐in‐differences estimator, the paper provides an estimate of the impact of the 30/2003 reform on the wage gap across fixed‐term and long‐term employees. It will be given evidence that the policy has widened the wage differentials and the effect is particularly stronger to skilled workers compared with unskilled workers. These findings would suggest the existence of a possible brand‐new form of wage inequality.     

“MANAGING THE DECISION SCIENCE TECHNOLOGY: A CASE FOR ETHICAL ANALYSIS?”-COMMENT

In the current issue of Decision Sciences, Brightman [2] argues that the growth of the discipline should be managed, and individual decision scientists must ultimately be held accountable for the ethical implications of implementing their research findings. The purpose of this comment is to examine several principles behind Brightman's arguments and to initiate a discussion of some of the important issues that have been raised. The distinction between the inquiry and technological imperatives and questions about the universality of moral reasoning at the ethical-principles leverl further Brightman's analysis and pose important considerations for decision scientists.     

Inept or Badly Matched? — Effects of Educational Mismatch in the Labor Market

Negative wage effects of educational mismatch have become a stylized fact. Whether these are explained by differences in unobserved productivity or poor matching is still to be answered conclusively. In an empirical analysis based on data from the German Socio‐Economic Panel and the International Adult Literacy Survey, a broad econometric strategy is applied to solve the problem of unobserved heterogeneity and reveal the mechanism underlying wage differences between matched and mismatched workers. Results show that wage differentials can be explained by a poor matching in the labor market, rejecting the hypothesis that mismatched workers compensate for unobserved productivity differences.     

“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.     

A future for fishing?

This article outlines the potential in the fishing industry viewed from the present. The author argues that current methods are still relatively inefficient and that increases of 50–100 per cent can be expected in the next 10–20 years. Further that these larger catches can contribute markedly to world protein requirements. The article includes consideration of system fishing and concludes with a picture of the British fishing industry being among the most advanced in the world.     

A Time for Change?

Change is now a way of life; however, change is also a difficult and elusive process to manage effectively. Most change models are task focused and look at the practicalities of managing change as an isolated event very much in the ‘here and now’. This article, however, proposes a meta-model for managing the overall change process along a ‘time’ dimension. By placing time as a central concept in change management and addressing the issues related to the past, creating a viable future vision, and identifying what is needed in the present to move to the desired state, HR practitioners can help manage the whole process more effectively and efficiently.     

Does Future PC Use Determine Our Wages Today? — Evidence from German Panel Data

Abstract. Using 1985–99 data from the German Socio‐Economic Panel Study (GSOEP) we confirm the hypothesis that existing computer wage premiums are determined by ability or other unobserved individual characteristics rather than by productivity effects. In addition to the conventional longitudinal regression analysis, the two competing hypotheses were tested by employing future PC variables in the wage regressions in order to obtain a further control for worker heterogeneity. The finding that future PC variables have a statistically significant effect on current wages leads us to conclude that computer wage differentials can be attributed to worker heterogeneity rather than to computer‐induced productivity.     

ON FRAGILE GROUNDS: A REPLICATION OF “ARE MUSLIM IMMIGRANTS DIFFERENT IN TERMS OF CULTURAL INTEGRATION?”

This study is a replication of “Are Muslim Immigrants Different in terms of Cultural Integration?” by Alberto Bisin, Eleonora Patacchini, Thierry Verdier and Yves Zenou, published in the Journal of the European Economic Association, 6, 445–456, 2008. Bisin et al. (2008) report that they have 5,963 observations in their study. Using their empirical setup, we can only identify 1,901 relevant observations in the original data. After removing missing values we are left with 818 observations. We cannot replicate any of their results and our estimations yield no support for their claims.