IMPERFECT COMPETITION and BUSINESS CYCLES: AN EMPIRICAL INVESTIGATION

Does imperfect competition increase the magnitude of business cycles? If so, the variability of an industry's employment and output should be positively related to the market power of firms in that industry. This paper demonstrates that the opposite is true: U.S. manufacturing industries with high price-cost margins display less employment variability than do low-markup industries. These high-markup industries display less price variability as well. Highly concentrated industries, however, do display more employment variability. To some degree, markups may reflect labor hoarding rather than market power; this may account for part, but not all, of the negative correlation between markups and variability.     

Tipping as risk sharing

Tipping is often dismissed as an exception to the assumption of rational economic agents. This paper describes situations where tipping is, in fact, an effective mechanism for risk sharing and welfare improvement. When risk-averse customers purchase a service with uncertain quality, tipping can reduce the customer's exposure to risk by making part of the price of the service discretionary. These findings help explain why we tend to tip restaurant workers but not retail workers and why some high-risk service providers, such as lawyers and automobile mechanics, are not typically tipped.     

Factors Associated with the Development of Nonmetropolitan Growth Nodes in Producer Services Industries, 1980–1990*

Abstract Over the 1980–1990 period, employment in producer services industries in the nonmetropolitan United States increased substantially. This growth resulted in the development of nonmetropolitan growth nodes in producer services industries. A growth node refers to a nonmetropolitan area that contains a greater than average concentration of employment in a particular industry sector relative to other nonmetropolitan areas. Moreover, this industry concentration not only increases over time, but also represents an important source of employment growth within the area. With nonmetropolitan counties as the spatial unit of analysis, 317 growth nodes in producer services industries are identified for the 1980–1990 period. Access to workers with clerical and administrative support skills, access to highly educated workers, higher earnings per employed worker, access to recreational amenities, and proximity to metropolitan areas were associated with the development of nonmetropolitan growth nodes in producer services industries during this period.     

Work-related mild-moderate traumatic brain injury and the construction industry

Background: Consequences of traumatic brain injury underscore the need to study high-risk groups. Few studies have investigated work-related traumatic brain injuries (WrTBIs) in the construction industry. Objective: To examine WrTBIs in Ontario for the construction industry compared to other industries. Methods: A retrospective study of individuals who sustained a WrTBI and had a clinical assessment as an outpatient at a hospital-based referral centre. Data were collected for a number of factors including demographic, injury and occupation and were analyzed according to the Person-Environment-Occupation (PEO) model. Participants: 435 individuals who sustained a WrTBI. Results: There were 19.1% in the construction industry, 80.9% in other industries. Compared to other industries, individuals in the construction industry were more likely to be male, to not have attained post-secondary education, and experience multiple traumas. WrTBIs in the construction industry were commonly due to elevated work. The construction occupations involved included skilled workers and general labourers, and compared to other industries, WrTBIs occurred most often for those employed for a short duration in the construction industry.Conclusions: Construction industry workers experience serious WrTBIs that are amenable to prevention. Use of the PEO model increased our understanding of WrTBIs in the construction industry.     

INDUSTRIAL DYNAMICS AND THE NEOCLASSICAL GROWTH MODEL

This paper studies industry-level dynamics and demonstrates the ability of a modified neoclassical growth model to capture a range of empirical facts. The paper begins by using U.S. data to document skilled and unskilled labor trends within industry sector classifications as well as industry sector output trends. Using Current Population Survey data from 1968 to 2004, it is shown that the ratio of skilled workers to unskilled workers employed has risen in all industries. The absolute increase in this ratio was larger in the more skilled industries, while the growth rate was larger in the less skilled industries. Furthermore, using national income account data, it is shown that relatively high-skilled industries have accounted for an increasing share of output over time. A version of the neoclassical growth model is then constructed to match these observations. One important feature of this model is a structure that introduces new goods into the economy at each moment of time. The model is able to capture a rich set of labor market movements between sectors and between skill levels as well as changes in the relative output shares across industries, yet preserves many nice features of the neoclassical growth model. ( JEL E13, J20, 030)     

Do people think about absolute or relative price differences when choosing between substitute goods?

The article presents experimental evidence that shows that people often consider relative price differences in addition to absolute differences when choosing between substitute goods. Because the choice between substitute goods is a very common one, this is an important finding. The experiment uses scenarios in various consumption categories: hotel rooms, flights, and books. Subjects were either students or participants in an economics conference. The data allow to reject the hypothesis that people think only about relative price differences in favor of the hypothesis that people think about both relative and absolute price differences. Whether the price given to the subjects is that of the high-quality good or of the low-quality good makes a large difference, a result that is related to the endowment effect and the status quo bias. Implications of the results for business strategy and other areas are also discussed.     

Tip Work: Examining the Relational Dynamics of Tipping beyond the Service Counter

Tips constitute a growing form of income for roughly three million American workers today. While existing scholarship on tipping focuses on worker‐customer dynamics, it neglects the implications of gratuities beyond the service counter. Drawing on the case of restaurant workers in Los Angeles, this study analyzes tip work, the bundle of social relations and labor experiences framed by tips in commercial settings. I argue that tipping strains relations between subgroups of workers who, despite collectively producing service, are subject to unequal access to tip earnings. Tips thereby shape relations among workers in ways that exacerbate existing organizational and social hierarchies.     

Service gratuities and tipping: A motivational framework

In many countries around the world, consumers leave voluntary payments of money (called “tips”) to service workers who have served them. Since tips are an expense that consumers are free to avoid, tipping is an anomalous behavior that many economists regard as “irrational” or “mysterious”. In this paper, I present a motivational framework that offers plausible explanations for: (1) why people tip, (2) how tipping norms came into existence and evolve over time, (3) why tipping varies across individuals and situations, (4) why tipping is more common for some occupations than others, and (5) why tipping varies across nations. Many hypotheses generated from this framework are supported by existing research, but many other implications of the framework have yet to be adequately tested. Thus, the framework provides a promising and much needed theoretical guide for future research on a fascinating consumer behavior.     

The history of tipping—from sixteenth-century England to United States in the 1910s

Tipping is a multi-billion-dollar phenomenon that challenges the traditional assumption of selfish economic agents who have no feelings and do not care about social norms. This article reviews the early history of tipping and offers an economic analysis of different aspects of tipping. Using the historical evidence, it then addresses two major questions about tipping: why do people tip? And does tipping improve service quality? The reasons for tipping changed over the years, but conforming to social norms and avoiding embarrassment were generally the main reasons. Tipping seems to improve service quality; the extent of the improvement varies across occupations.     

Why are we more likely to tip some service occupations than others? Theory,evidence, and implications

Ideas about why consumers tip some service occupations more often than others are tested using occupation scores derived from online ratings of 122 service occupations. Results indicate that U.S. consumers are more likely to tip occupations for which (i) workers’ performances can be more easily evaluated by consumers than by managers, (ii) workers provide customized service, (iii) workers’ income, skill and needed judgment are low, and (iv) workers are less happy than customers during the service encounter. Occupations with greater frequency of customer patronage and/or greater likelihood of encountering the same service provider on multiple service occasions are not more likely than other occupations to be tipped. These findings support some and disconfirm other expectations derived from a theory that occupational differences in tipping are attributable to occupation characteristics that more strongly/consistently evoke motives for tipping. They also identify types of services for which counter-normative tipping policies are more or less likely to be successful and suggest sources of resistance that must be overcome if those policies are to succeed.     

基于信息化引领的产业融合研究

当前,信息产业融合型的增长模式正在快速改变着社会经济的运行方式。产业融合正在加速产业结构的变动,也在推动产业转型升级。产业间的融合渗透促进了新兴业务的活跃爆发,为产业发展带来了一股全新的力量。应当以此为契机,培育新一代产业增长极,以产业融合有力地推动战略性新兴产业发展。     

Construction doublebreasted operations and pre-hire agreements: Assessing the issues

Labor relations in the construction industry are conducted under a legal framework that is both different and more favorable to unions than is that in industry generally. Thus, construction employers are more subject to challenge than those in other industries if they operate both union and nonunion subsidiaries; construction unions, but not those in most other industries, may enter into agreements before anyone is hired (“pre-hire agreements”), require employees to join unions after ten days of employment instead of thirty, and require the contractor to notify them of job openings. Despite these advantages, construction unions represented only 22.2 percent of all construction workers in 1987, down from 40.1 percent in 1973, while nonunion, or “open shop,” construction accounted for more than 70 percent of the construction dollar volume as early as 1984. Attempting to overcome these trends, the construction unions have sponsored legislation in the current and last two congresses which would outlaw “doublebreasting,” i.e., one company owning both unionized and open shop subsidiaries, eliminate any restrictions on pre-hire agreements, and have the effect of forcing thousands of construction workers into unions regardless of their wishes. This article examines the reasons for the decline of construction unionism, analyzes the proposed legislation, discusses its probable impact, and concludes that it is lacking in justification for the common good.     

Vertical spillovers,market concentration,union coverage,and wages

This paper outlines a model that tests for the presence of spillover effects of union coverage across industry boundaries on wages and union coverage in vertically related industries. There is some evidence of spillover effects from buying industries to the wages of nonunion workers and of such effects on the degree of union coverage from both buying and supplying industries. We are grateful to Dan Hamermesh and an anonymous referee for useful comments. Responsibility for errors is our own.     

Shareholder Value and the Transformation of the U.S. Economy, 1984–20001

Using data from 62 U.S. industries for 1984–2000, this article explores the connections between shareholder value strategies, such as mergers and layoffs, and related industry‐level changes, such as de‐unionization, computer technology, and profitability. In line with shareholder value arguments, mergers occurred in industries with low profits, and industries where mergers were active subsequently saw an increase in layoffs. Industries with a high level of mergers increased investment in computer technology. This technology displaced workers through layoffs and was focused on reducing unionized workforces. Contrary to shareholder value arguments, there is no evidence that mergers or layoffs returned industries to profitability.     

The North American Free Trade Agreement and Women

This article discusses some of the effects of NAFTA on women workers in Canada and Mexico. The main purpose is to show that NAFTA represents a continuation of the capitalist dynamic, which is characterized by the enormous mobility of capital across countries and regions, and which privileges the search for profit. Through an analysis of the labour conditions in Canadian and Mexican manufacturing, the article reveals how this new capitalist period has produced de-industrialization in developed countries while depressing labour conditions in both developed and developing countries. The study indicates that women workers most affected in this process are those working in industries (especially the clothing industry) that seek to reduce their costs of production in order to remain competitive in national and international markets. In addition, those working in regions important to transnational industries, such as the Mexican Free Zones where maquiladoras abound are also seriously affected.     

新型贸易业态的现状、问题与对策

新型贸易业态如电子商务贸易商、贸易中间商、供应链管理商等的发展与上海建设国际贸易中心、发展服务经济的战略目标高度契合,能够提高上海参与经济全球化的层次与能级。当前,新型贸易业态发展还存在不少瓶颈,如制度建设相对滞后,不适应刚性的政府行业管理体制,与其他相关行业（如物流、金融等）的对接还不够顺畅等。上海发展新型贸易业态,要完善制度环境,推进与贸易便利化相关的税收、市场准入、监管、法律法规等制度建设;健全管理体制,按照新型贸易业态发展的趋势,打破部门分割的局面,形成适应时代要求的管理框架;抓好与金融、物流等产业的对接,促进产业融合发展。     

Gender and industry differences in employment cyclicality: evidence over the postwar period

This paper explains how cyclical patterns of employment vary between genders and across industries and how these two factors are related by gender differences in the industry distribution of workers. Evidence shows that men's employment is more procyclical than women's and that men's overrepresentation in highly volatile industries more than accounts for the gender gap in employment cyclicality.     

Hochtechnologische Unternehmen im Spiegel des „Varieties-of-Capitalism“-Ansatzes

What role do national institutions of labor regulation as well as work and employment systems at the company level play for the development of “new economy” industries? The article is based on eleven company case studies in the Swedish, Polish and German video game industry as well as on an analysis of industry-related expert interviews and data. Power relations between hardware, publishing and development companies play a significant role in the industry. Independent development firms are the weakest link in the value chain; they have to carry the greatest risks. The results show that the lack of a financial system for the high risky software development is a decisive factor for the low international competitiveness of the industry in all three countries. They demonstrate as well that, especially in the field of labor regulation, the “Varieties of Capitalism”-approach underestimates the divergence of industries in national economies and a leeway for flexibility in institutional systems. For instance, employment flexibility of video game development firms is very high. The comparison of the “coordinated market economies” of Germany and Sweden reveals differences regarding the integration of the industry into nation-specific institutional systems, such as the establishment of adequate vocational education and interest representation by unions.     

La restructuration des PMI à Saint-Étienne après la crise : traces du passé et limites de l'intégration horizontale

On the basis of a survey conducted in Saint-Étienne, France, as part of a comparative European project on “modes of governance” in local economies (which, thus, takes into account the level of small and medium-sized industry and the middle level of the territory), questions are raised about the goods and services that enable these industries to be competitive with big firms or holdings. For these industries, solutions developed two decades ago for the machine tool industry, mechanics and metal-working are still significant resources. The momentum detected in a small number of fields can lead to an increasing specialization and horizontal integration that favor a more competitive growth. How to know whether this momentum results from still (temporarily) active remnants of the past or whether it is evidence of a collective impetus that can stimulate new economic growth?     

Business Collaboration within the Nazi War Machine: Corporations and the State in the Austrian Semiperiphery

The military strength of German National Socialism was based on the collaboration of large corporations with the Nazi state. Business provided capital, loans, taxes, managerial expertise and production for war industries. I elaborate four ideal‐typical modes of business collaboration. Each mode is illustrated by a case study of a German corporation that acquires an Austrian firm: Krupp (traditional mode); the Reichswerke state conglomerate (coercive); Deutsche Bank (managerial nationalist); and IG Farben (competitive investment mode). The first and the last modes occurred when the state was highly dependent on large businesses for the economic requisites of war. The acquired firms in the Austrian semiperiphery contributed to Nazi war mobilization, as they exploited labor and resources from the peripheral regions of southeastern Europe. Patterns of the state's resource dependency on business led to bargaining interactions between state and business, over time shaping the mix between state and private ownership of war industry.