Does Market Incompleteness Matter?

This paper argues that incompleteness of intertemporal financial markets has little effect (on welfare, prices, or consumption) in an economy with a single consumption good, provided that traders are long–lived and patient, a riskless bond is traded, shocks are transitory, and there is no aggregate risk. In an economy with aggregate risk, a similar conclusion holds, provided traders share the same CRRA utility function and the right assets are traded. Examples demonstrate that these conclusions need not hold if the wrong assets are traded or if the economy has multiple consumption goods.     

Do Irrelevant Commodities Matter?

We study how to evaluate allocations independently of individual preferences over unavailable commodities. We prove impossibility results that suggest that such evaluations encounter serious difficulties. This is related to the well known problem of performing international comparisons of standard of living across countries with different consumption goods. We show how possibility results can be retrieved with restrictions on the domain of preferences, on the application of the independence axiom, or on the set of allocations to be ranked. Such restrictions appear more plausible when the objects of evaluation are allocations of composite commodities, characteristics, or human functionings rather than ordinary commodities.     

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Non-Standard Employment in Irish Manufacturing: Do Firm Characteristics Matter?

Non-standard or atypical employment in Irish manufacturing more than doubled between 1987 and 1995. This paper attempts to analyse empirically the nature of non-standard employment in Ireland using plant-level data for 1995. We focus on firm characteristics as explanatory factors. Our econometric results indicate that there are significant differences in the use of atypical employment between small and large firms, and between indigenous and foreign-owned firms.     

Do Interactions between Finance and Labour Market Institutions Affect the Income Distribution?

This article analyses the linkages between financial development, labour market institutions and market income inequality for 18 Organisation for Economic Co‐operation and Development countries over the 1980 to 2012 period. With the help of a dynamic panel data model with an interacted term, one crucial contribution of this article is to analyse the interacted impact of labour market institutions (i.e. union density and employment protection legislation) on the one hand and financial development on the other hand on the income distribution. Our results indicate that changes in the financial/credit and labour market regulation affect the income distribution. Estimates of the marginal effects show that by increasing labour market regulation one also weakens the impact of the flexibilization in the financial/credit market on the increase in income inequality.     

Portfolio Flows to Emerging Capital Markets: Do Corporate Transparency and Public Governance Matter?

This paper focuses on flows to emerging capital markets (ECMs) and examines the importance of corporate transparency and public governance in attracting portfolio flows to ECMs. This paper's empirical investigation centers on the hypothesis that ceteris paribus, ECMs with better quality accounting standards and good governance attract higher levels of portfolio equity and bond flows. To assess the incremental impact of each of these factors, a pooled time series, cross‐sectional model was econometrically tested for 17 ECMS over the 1998–2002 time period. Our empirical analysis demonstrates a positive association between public governance, corporate transparency, and portfolio flows after controlling for other macroeconomic factors. The results suggest that good public governance and high accounting quality are important determinants of portfolio flows to ECMs. Finally, the paper establishes that while portfolio equity flows are significantly attracted to ECMs with strong democratic institutions, there is no significant association between portfolio bond flows and the presence of democratic institutions.     

The Management Skills of Russians: Do Work,Management, and Government Experiences Matter?

This study examines the impacts of different types of experience on management skills of working adults in Russia. The study is based on a sample of 527 MBA students, line and middle managers covering 32 regions in 13 different industries in Russia. This study proves that work experience, management experience, and government experience are significant factors in their technical, human, and conceptual skills. Human skills scores are significantly higher for all groups than group with no management experience. Score for human skills increased with years of government experience only, but not with working or management years of experience.     

How Do SMEs Decide on International Market Entry? An Empirical Examination in the Middle East

This study contributes to the scant literature that scrutinises the decision-making process preceding foreign entries, particularly in the Middle Eastern context. While considerable research has examined the content and antecedents of the internationalisation decision of firms, far less attention has been paid to how SMEs decide on international market entry. The answer to this question is important to advance our understanding of internationalisation processes and offer essential insights for first and successive market entries, particularly post political crises. Through an embedded approach to case study, the analysis of four SMEs based in Egypt and Qatar suggests that SMEs' decision-making evolves into a rational mode as SMEs progress through successive international market entries. The study also captures the co-existence of reactive and bounded rationality modes during SMEs' unplanned internationalisation and suggests that SMEs are likely to adopt a bounded rationality mode as a response to the occurrence of a political crisis in the home country.     

How Do Policies Affect the Exit Rate out of Unemployment? Disentangling Job Creation from Labour Market Frictions

This paper assesses the effects of labour market policies on the unemployment outflow rate while disentangling two channels, namely labour market tightness and employer–employee matching efficiency. Using a sample of 11 OECD countries over the period 1985–2007, we treat the endogeneity of market tightness with business cycle shocks and the tax wedge as instruments. We find that the replacement rate of unemployment benefits, Active Labour Market Policies as well as the tax wedge in countries with poorly representative unions, have a significant, robust, and large impact on market tightness. Employment protection has a negative but small impact on matching efficiency. Overall, policy effects appear to be mostly channeled through market tightness and job creation.     

State extraversion and emergent leadership: Do introverts emerge as leaders when they act like extraverts?

Extraverts are more likely than introverts to emerge as leaders, however little is known about the explicit behaviours that cause such an advantage and what introverts can do to overcome their relative disadvantage. Utilising an experiment (n = 601) in a group context, we assessed the effects of manipulating state extraversion on peer-rated emergent leadership, self-rated emergent leadership, and post-activity affect. Participants completed a big five personality measure and were randomly assigned to one of three conditions: a control condition, an ‘act extraverted’ treatment, or an ‘act introverted’ treatment. Results confirmed extraverts' emergent leadership advantage but demonstrated that state extraversion was the proximal cause of emergent leadership, with both extraverts and introverts emerging as leaders when instructed to act extraverted. Acting introverted i) had a particularly deleterious effect on self-rated emergent leadership regardless of trait extraversion, ii) caused a reduction in positive affect for ambiverts and extraverts but not for introverts, and iii) caused an increase in negative affect for ambiverts and extraverts but not for introverts.     

Agencification and Location: Does Agency Site Matter?

Two decades of New Public Management have placed agencifiction high on the agenda of administrative policy-makers. However, agencification (and de-agencification) has been one of the enduring themes of public administration. Agencies organized at arm’s length from ministerial departments have fairly often been located outside of the capital or political centre. Although practitioners tend to assign some weight to central versus peripheral location as regards political-administrative behavior, this relationship has been almost totally ignored by scholars in the field. In this paper, based on a large-N elite survey, we show that agency autonomy, agency influence and inter-institutional coordination seem to be relatively unaffected by agency site. This study also specifies some conditions under which this finding is valid.     

Do Immigrants Compete with Natives?

The paper analyses the impact of foreign workers on the Italian labour market. We address the issue of whether immigrants from less developed countries are complementary or substitutes to domestic workers. We construct a data set on immigrant workers from the Administrative Social Security Archive which starts in 1986, before the general amnesty of 1990–91, when a large share of illegal immigrants were granted working permits, and end in 1995. A two-stage procedure devised by Moulton is applied to yearly cross-sections of wages by industry and region. Our results show that the inflow of immigrants raises the wages of native manual workers (i.e. it has a complementary effect), and this effect is larger in small firms and in the north of the country. We postulate that the positive impact on native wages is due to the existence of labour constraints on the side of firms. Firms are unable to expand their output because they cannot find native workers who are willing to undertake certain (typically low-skilled) jobs. Immigrants help to fill this gap. This view is reinforced by the fact that over a ‘crucial threshold’ of the share of foreign work (7.7–12 percent) additional inflows in the labour market of foreign work have a negative effect on native wages (i.e. they compete with natives).     

Value Traits Reinforcement and Perceived Importance: Does Context Matter?

This study examines whether business students' perception of value trait reinforcement and importance differ by their university context. Student perceptions in coeducational religious, coeducational public and all-female religious schools were compared. The results of this study indicate areas of similarity and differences among students in regard to the context of school type and that reinforcement differences seemed to contribute to the differences. This revised version was published online in August 2006 with corrections to the Cover Date.     

Fixed or variable demand? Does it matter when locating a facility?

In most competitive location models available in the literature, it is assumed that the demand is fixed independently of market conditions. However, demand may vary depending on prices, distances to the facilities, etc., especially when the goods are not essential. Taking variable demand into consideration increases the complexity of the problem and, therefore, the computational effort needed to solve it, but it may make the model more realistic. In this paper, a new planar competitive location and design problem with variable demand is presented. By using it, it is shown numerically for the first time in the literature that the assumption of fixed demand influences the location decision very much, and therefore the selection of the type of demand (fixed or variable) must be made with care when modeling location problems. Finally, two methods are presented to cope with the new model, an exact interval branch-and-bound method and an evolutionary algorithm called UEGO (Universal Evolutionary Global Optimizer).     

The Wages of Sin? Illegal Drug Use and the Labour Market

We use data from the British Crime Survey (BCS) to analyse the relationship between illicit drug use and labour market outcomes for a sample of men and women aged 16–25. In using these data we highlight a serious design flaw in the BCS questionnaire structure that presents a serious barrier to statistical modelling of drug use at the individual level. We propose a simple way of overcoming this problem and proceed to estimate a model of occupational attainment jointly determined with unemployment and current drug use, conditional on past drug use. Separating the commonly abused drugs into a ‘hard’ and ‘soft’ category, we find that past hard drug use has a significant positive association with current unemployment, but find no significant association between past hard or soft drug use and occupational attainment. We also find no significant association between current drug use and attainment, although we observe that current drug use is associated with current unemployment.     

Is Imperfect Competition in the Product Market Relevant for Labour Markets?

Recent research in macroeconomics emphasises the importance of imperfect competition in the product market for labour market outcomes. We investigate one aspect of this issue by specifying a dynamic labour demand model where firms face different degrees of competition in the product market and test its predictions for 299 US manufacturing industries. We find that the long-run equilibrium level of industry employment as well as the speed of labour demand adjustment decreases with market power. Our results imply that imperfect competition in the product market explains part of the observed labour market rigidities and also sheds new light on two “stylized facts” in industrial organisation, the observation of procyclical movements in productivity and price–cost margins in concentrated industries.     

What kind of feedback are you soliciting?

How can you assess how well you're performing? From benchmarking to finding a mentor, here are some suggestions to help you solicit meaningful feedback to improve your performance. The feedback that's most beneficial isn't an opinion--even the CEO's, although it's important--because it's often the opposite of fact. You need standards against which to measure yourself that aren't tightly linked to your organization's culture, so you'll need to research what's going on with your competitor's employees and network with other professionals.