Labour Supply: Which Theory? A Critical Empirical Assessment

ABSTRACT The aim of this paper is to test econometrically a number of models of labour supply which fall within the neoclassical and Keynesian theories, in an attempt to obtain indications of validation of the theories themselves. The econometric assessment, carried out with a cohort approach to labour supply, shows that Italian female participation rates react well to the variables belonging to both the neoclassical versions of models — with the exception of the version regarding intertemporal choices — and the Keynesian ones. Both in terms of testing for the selection of alternative regression models, such as those for non-nested hypotheses and for selection of regressors, and of “internal” investigation within the estimated models, the results obtained are not without ambiguity. They therefore leave open the question as to which theory can explain labour supply in the most significant and appropriate way.     

Does Private Higher Education Improve Employment Outcomes? Comparative Analysis from Egypt

Private players are often perceived as powerful drivers of innovation and efficiency. This argument remains untested in the field of higher education. This paper examines whether there are differences in the labour market outcomes for graduates of public and private higher education institutions in Egypt. Relying on a unique data set tracing graduates, the analysis shows that the type of higher education institution has no statistically significant effect on graduates’ job security and earnings. Ascribed characteristics of gender and parental socio-economic background, along with the sector of employment, were the key predictors of these labour market outcomes.     

Would Allowing Privately Funded Health Care Reduce Public Waiting Time? Theory and Empirical Evidence from Canadian Joint Replacement Surgery Data

This study develops a theoretical model and then, using Canadian joint replacement surgery data, empirically tests the relationship between government policies that promote privately funded health care and patients’ waiting time in the public health care system. Two policies are tested: one policy allows opt‐out physicians to extra‐bill private patients, and the other provides public subsidies to private patients. We find that both policies are associated with shorter public waiting time, and that the subsidy policy appears to be more effective in waiting time reduction than the extra‐billing policy. Our findings are consistent with a dominant demand‐side effect in that these policies would provide patients an option, and some incentive, to opt out of the public health system, shifting the demand from the public health system to the private care market.     

Shareholders and managers: Who care more about corporate diversity and employee benefits?

We test two competing theories that explain a firm’s engagement in corporate diversity and employee benefits: socially responsible investment theory and management overinvestment theory. We find that publicly-traded companies with strong shareholder rights are more likely to promote women and/or minorities to the positions of CEO and board of directors in their organizations, conduct business with women- and/or minority-owned operations, and provide better family benefits to their employees than firms with strong management power. These findings indicate that the companies with strong shareholder rights engage more actively in internal aspects of CSR activities, which supports the socially responsible investment theory rather than the management overinvestment theory. Shareholders (i.e. institutional investors) tend to integrate their social goals (i.e. internal CSR issues) and financial goals into their investments. In response to these changes, managers should engage in the internal aspects of corporate social issues more aggressively as the agents of shareholders.     

Is it the Brazilian Way? Extending the Comparison of Public and Private Organizations

This study investigates the differences in select organizational characteristics, managerial practices and work attitudes among 670 public and private sector workers in Brazil. The results indicate that in some aspects there is a moderation effect by type of organization. For example,when public employees score high on autonomy and task significance, perceive organizational practices as favourable, and keep membership in the same organization, they tend to be more satisfied than private sector workers. Overall, the findings highlight the need for more international comparisons to gain a better understanding of the public-private distinction.     

Which Fox in What Henhouse and When? Conjectures on Regulatory Capture

This article takes an interdisciplinary lens to the treatment of regulatory capture (RC). RC ensues when government bureaucrats, regulators, and public sector agencies receive adverse publicity for ceasing to serve the wider collective public interest. The work is divided into four sections. The first takes the point of view of each of the participants in the capture situation and provides an overview of the three variations on the RC story. Each subsequent section focuses on a version of the story. RC 1, the libertarian free market version celebrates capture as inevitable and desirable. RC 2, the regulators' communitarian take on capture places it in the context of a cycle story with regulators dutifully doing the public's shifting will. In the RC 3 version, the public finds it difficult to piece together a coherent version of the morally charged narrative. The article concludes with a discussion of the relevance of each of these three versions of RC in order to understand dominant–submissive relationships between business and government.     

Organization and Work Situations: Which sources for the learning process?

ABSTRACT: The observation of economic activity grants an equally important place to learning as some recent theoretical problems. However, what is meant by learning, and what in the productive activity enables the application of the learning process? This paper examines the notion of learning, as far as the firm is concerned, putting the emphasis on two main directions. On one hand, learning is not only a dynamic but also a process: it is not only a matter of going from one point to another, but also a process of construction of knowledge and rules. On the other hand, this process must be understood as an articulation between individual and organizational learning.     

Who mentors? Contextual prosocial motivation and willingness to be a mentor

This study provides insights for theory and practice into employee willingness to mentor. This is especially important in passing knowledge from one generation of employees to another at a time when ageing populations are seen in many parts of the world. The study examines the relationship of contextual prosocial motivation with willingness to be a mentor while simultaneously considering various individual level influences on contextual prosocial motivation. Hypotheses were evaluated through a structural equation model. Results showed a positive relationship between contextual prosocial motivation and willingness to be a mentor. Additionally, organization-based self-esteem was positively related to contextual prosocial motivation, while proximity to retirement was negatively related to contextual prosocial motivation. Implications of the findings for human resource development are discussed with suggestions offered to strengthen contextual prosocial motivation of employees.     

Public Versus Private Job Satisfaction. Is there a Trade-off between Wages and Stability?

Public Organization Review - This paper examines the differences in job satisfaction in the public and private sector using the Spanish Survey of Life Quality at Work throughout the period...     

Public or Private? Public Corporations,Companies and the Decline of the Middle Ground

In the era of New Public Management in the Anglo-Saxon countries, governments have become infatuated with things private and disparaging of things public. This dramatic attitudinal shift has been reflected in the importation of private sector business method into so much of what government does, and in the championing of privatization in its various forms as a way of reducing the size and importance of public sectors. The change represents a retreat from the more traditional acceptance that a valuable social purpose was served by middle ground structures and activities located in the outer parts of these public sectors, i.e., between the highly politicised cores of government systems and the highly commercialised institutions of private enterprise. In particular, this article argues that the form of the public (or government, statutory or crown) corporation epitomised such social value, and that the state-owned company which is now so often replacing it represents an abandoning of social value.     

Can organizational change be planned and controlled? Evidence from Russian companies

This study explores limits of applicability of a planned change approach in Russian companies. The data on change management programmes in 59 Russian companies of various industries, regions and sizes was gathered with the help of questionnaires filled by management consultants. The study found that resulted changes often did not coincide with initial plans of change agents. Two groups of organizational elements were identified: ‘uncontrollable’ (those elements that changed outside of the planned change) and ‘unmanageable’ (those elements that did not change despite forming part of the planned change). The findings also indicate that the efficiency of the change programme was unaffected by whether the change programme plans were executed or not. The results suggest that the applicability of a planned change approach is dependent upon the organizational elements at which change interventions are targeted and that change content has to be incorporated into contingency models of change.     

Are Economic Development and Education Improvement Associated with Participation in Transnational Terrorism?

Using transnational terrorism data from 1980 to 2000, this study empirically examines the relationships between frequency of participation in transnational terrorism acts and economic development and education improvement. We find an inverse U‐shaped association between the frequency of various nationals acting as perpetrators in transnational terrorism acts and per capita income in their respective home countries. As per capita incomes increase from relatively low levels, frequencies of participation in transnational terrorism increase. However, at sufficiently higher levels of per capita income, further increase in per capita income is negatively associated with the rate of participation in transnational terrorism. Education improvement from elementary to secondary is positively correlated with frequency of participation in transnational terrorism events, whereas further improvement from secondary to tertiary level is negatively correlated with participation in transnational terrorism. We also find that citizens of countries with greater openness to international trade, lower degree of income inequality, greater economic freedom, larger proportion of population with tertiary education, and less religious prevalence participate in transnational terrorism events less frequently.     

Does Outsourcing Really Improve Firm Performance? Empirical Evidence and Research Agenda

The phenomenon of outsourcing has spawned a rich body of scholarly work in the last two decades. Yet, the answer to one important question has remained elusive: Does outsourcing really improve firm performance? Addressing this question is important as firms across nations continue to embark on the practice of outsourcing to save operating costs and remain competitive. Scholars, practitioners and policy‐makers need to understand whether and how outsourcing benefits the firm. However, no comprehensive review of empirical evidence has been published so far that can address this question. This study reviews 57 empirical research articles that investigated the outsourcing–firm performance relationship in 47 peer‐reviewed scholarly journals over a 20‐year time‐span (1996–2015). The articles differ widely in research scope, context, level of analysis, data source, time‐span, industry sector, extent of outsourcing and measure of performance. The findings suggest that outsourcing can produce positive, negative, mixed, moderated or no significant impact on the firm. This study also provides useful directions for future research on outsourcing and firm performance.     

A Brief Review and Assessment of the Leegin Decision: Who Wins and Who Loses When Manufacturers Are Free to Set Retail Prices?

For decades, it has been a per se violation of U.S. antitrust law for manufacturers or distributors to specify retail selling prices. In the spirit of atomistic, unrestrained competition, retailers were free to set prices without undue interference from upstream channel participants. Attempts by manufacturers or other channel participants to restrict retail price setting initiatives were viewed by regulators as an unwarranted and illegal interference with the market mechanism. Restrictions on price setting initiatives would, it was argued, lessen competition and ultimately raise prices above competitive levels to the detriment of consumers. Recently, under the leadership of newly appointed Chief Justice Roberts, a more “business friendly” Supreme Court has reversed this policy; vertical price fixing is no longer a per se violation of U.S. antitrust law. By a five‐to‐four margin, the Court held in Leegin Creative Leather Products that manufacturers could, under certain circumstances, establish binding retail selling prices. Henceforth, retail price setting restrictions will be subject to a rule of reason evaluation whereby price restrictions will be assessed on a case‐by‐case basis. Proponents of the now‐legal restrictions argue that this will ensure that merchandise sold through retail outlets will receive needed support, free riding will be reduced or eliminated, and new brand introduction will be facilitated. Critics argue that the Court's decision marks a return to the days of fair trading; marginal firms will be protected, so‐called “inframarginal consumers” will be forced to pay for services they do not want or need, and prices for many branded products will rise, all to the detriment of consumer welfare.     

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.     

Still Searching for Excellence? International Accounting and the World's Most Outstanding Companies

This paper measures the effect of accounting policy choices in the context of Davis, Flanders and Star's (DFS) (1991) league table of the world's most outstanding companies. Our study is an investigation of the robustness of the research underlying Kay (1993). The sensitivity of the rankings to the three major conventions that are used in calculating added value are examined: depreciation policy, the estimation of the cost of capital inputs and consistency of international generally accepted accounting principles. The key finding is that the degree of disruption caused by international accounting differences is likely to be the most material. It is equivalent, in this study, to a 60% increase in the cost of capital or an 80% change in the depreciation lives of fixed assets. After adjusting towards consistent international accounting, we now find that four Japanese companies appear in the top ten. Before adjustment there were none.     

International work experience and compensation: Is more always better for CFOs?

The CFO is increasingly considered the second most important executive in the firm after the CEO. Still, little is known about the factors that determine CFOs' compensation. Recently, it has often been claimed that, in MNCs, CFOs should have international work experience. But is a CFO's international work experience also reflected in his or her compensation? We combine human capital and social capital perspectives to account for both the upside and the downside of international work experience. We suggest that working abroad provides CFOs with valuable knowledge and skills which increase compensation; however, staying abroad for too long has an adverse effect due to losses in social network ties. We thus propose an inverted U-shaped relationship between CFOs' international work experience and their compensation. Furthermore, we suggest that this relationship is contingent on the characteristics of the CEO. In testing our hypotheses on a sample of the largest MNCs in Europe, we find support for the proposed relationships. Our study contributes to the literature on top management characteristics and executive compensation, specifically by providing a comprehensive understanding of how and when international work experience pays off for CFOs.     

Does Industrial Composition Matter for Wages? A Test of Search and Bargaining Theory

Does switching the composition of jobs between low‐paying and high‐paying industries have important effects on wages in other sectors? In this paper, we build on search and bargaining theory to clarify a key general equilibrium channel through which changes in industrial composition could have substantial effects on wages in all sectors. In this class of models, wage determination takes the form of a social interaction problem and we illustrate how the implied sectoral linkages can be empirically explored using U.S. Census data. We find that sector‐level wages interact as implied by the model and that the predicted general equilibrium effects are present and substantial. We interpret our results as highlighting the relevance of search and bargaining theory for understanding the determination of wages, and we argue that the results provide support for the view that industrial composition is important for understanding wage outcomes.