SOFT SKILLS,HARD SKILLS,AND THE BLACK/WHITE WAGE GAP

This study examines the relative importance of soft skills versus hard skills across occupations and its impact on the observed wage gap between Blacks and Whites in the United States. It posits that the Black/White pay gap may vary across occupations that require the use of different types of skills. We classify occupations into hard‐skill intensive versus soft‐skill intensive jobs using the skill content measures of different occupations from the Occupational Information Network (O*Net). We then use data from the National Longitudinal Survey of Youth (NLSY) and Current Population Survey (CPS) to investigate the impact of job skill type on the wage gap. Consistent with our theoretical predictions, we show that this wage gap in white‐collar jobs is smaller for hard‐skills jobs than it is for soft‐skills jobs. Moreover, we demonstrate that, in response to variations in the wage gap across different occupations, Blacks are more likely to self‐select themselves into hard‐skills jobs, ceteris paribus. This shows not only that discrimination against Blacks varies across occupations, but also that such discrimination induces the self‐selection of Blacks into certain occupations. Moreover, this finding highlights the role played by co‐worker/customer discrimination in explaining the racial wage gap in the U.S. labor market. (JEL J15, J31)     

Measuring operational excellence: an operational excellence profitability (OEP) approach

The pursuit of operational excellence in the manufacturing industry is at rise but its measurement still lacks of appropriate indicators to determine its financial benefits. The ambiguity is due to the impact arisen from manufacturing fluctuations such as price and cost, production mix and direct and indirect parameters variations. Manufacturing fluctuations distort the cost benefit of operational excellence. This paper, therefore, proposes the OEP (Operational Excellence Profitability) indicators to isolate the impact of manufacturing fluctuation and distinctly identify the payback of operational excellence strategies and initiatives through cost benefits of achieving higher efficiency and yield. The paper presents the conceptual and mathematical development of the proposed OEP indicators and the formulas used for their calculation. Hypothetical and industrial-based investigations and applications of the OEP indicators are conducted for their validation. The results obtained from the hypothetical exercise and industrial case suggest that OEP indicators can provide an effective cost-benefit analysis of operational excellence. This would contribute in providing manufacturing organizations with more complete information regarding the performance of their processes, which will allow their directors and managers to take better decisions related to the management and improvement of their processes.     

He who pays the piper calls the tune? Setting the stage for an informed discourse on third-party funding of academic business research

Review of Managerial Science - Third-party funding of academic research has grown rapidly in its scope and impact. However, several forces demand greater attention to potential opportunities,...     

Use of thermobalancing therapy in ageing male with benign prostatic hyperplasia with a focus on etiology and pathophysiology

Introduction: We investigated if “thermobalancing” therapy (TT), using Dr Allen’s therapeutic device (DATD) in men with benign prostatic hyperplasia (BPH), can aid in understanding the etiology and pathophysiology of BPH.

Methods: We compared urinary and other parameters of BPH patients who received TT over 6 months (treatment group) with those of healthy volunteers who had not received the treatment (control group). Dynamics of symptoms and indicators in each group were evaluated in comparison with their data at the beginning and end of the study. Parameters were the International Prostate Symptom Score (IPSS) for urinary symptoms and quality of life (QoL), ultrasound measurement of prostate volume (PV) and uroflowmetry (maximum flow rate, Q_max). TT effectiveness was examined in 124 men with BPH and PV?<60?mL. We also investigated the data of five patients with BPH and PV?>60?mL.

Results: TT decreased urinary symptoms and PV, increased Q_max and improved QoL in men with BPH, PV?<60?mL, and in men with BPH, PV?>60?mL.

Conclusions: The present study demonstrated that TT is effective for BPH, suggesting that blood circulation plays a crucial role in its cause. The continuous heat exposure that does not exceed the normal body temperature terminates the trigger of BPH development, “micro-focus” of hypothermia, and the following spontaneous expansion of capillaries. TT could be considered to be a useful tool in BPH treatment.     

MEASURING THE INTERDEPENDENCE OF MULTINATIONAL FIRMS' FOREIGN INVESTMENTS

Earlier work found evidence for geographic linkages of aggregate foreign direct investment across countries and country‐pairs. From a theoretical point of view, such linkages at the macroeconomic level may root in between‐firm as well as within‐firm linkages and originate from information spillovers across or within firms in exploring unknown markets, and vertical linkages between production plants across different locations within the firm. We use data on the universe of German multinational enterprises (MNEs) to empirically explore how marginal investments at one foreign affiliate depend on investments at other affiliates within the same MNE. The empirical approach employs two channels or modes of cross‐affiliate interdependence: mere geography (capturing horizontal linkages through correlated learning and horizontal competition within the firm) and input–output relationships within or across industries (which capture vertical linkages). Adding to earlier findings at the aggregate level, we find evidence of a significant interdependence of investments within the firm. In the firm‐level data at hand, vertical linkages appear to be more important than horizontal ones. Investments at one location tend to stimulate investments at other locations of the same MNE, particularly if input linkages are strong. The opposite seems to be true for output linkages. Beyond vertical linkages, mere geographic proximity matters only to a minor extent. This suggests that evidence of linkages through geographic closeness at aggregate data levels accrue mainly to reasons of vertical linkages within networks of affiliates. (JEL C31, D22, F21, F23, F68, G31, H32)     

Access to Water in the Slums of Sub‐Saharan Africa

This article reviews the changing perspectives for improving access to water in the slums of developing countries, especially in sub‐Saharan Africa. While much of the literature continues to maintain an aversion to state‐led urban development policies, there is now increasing emphasis on the importance of informal, small‐scale providers and communitarian initiatives, following the many failures of privatisation. The article argues that market‐oriented solutions are inappropriate for sub‐Saharan African countries where over two‐thirds of the urban population live in squatter settlements with multidimensional challenges.     

Internationalization and Performance of Firms in China: Moderating Effects of Governance Structure and the Degree of Centralized Control

This study proposes necessary modifications to the existing internationalization–performance relationship to meet the idiosyncrasies of China-specific contexts. We first hypothesize an S-shaped internationalization–performance relationship as the baseline and then investigate the moderating effects of a firm's governance structure and the degree of centralized government control on the relationship between its internationalization and performance. The results, based on a longitudinal sample of manufacturing firms in China for the 2001–2007 period, indicate that (1) the S-shaped internationalization–performance relationship holds for firms in China; (2) the governance structure moderates the internationalization–performance relationship such that increased profitability through internationalization is more likely for modernized firms than for their conventional local counterparts; and (3) the degree of centralized control moderates the internationalization–performance relationship such that increased profitability through internationalization is more likely for firms affiliated with higher level governments than for those affiliated with lower-level governments.     

Eminent Social Scientists’ Views on Immigration Issues: 1985 and 2006

Following up on a research note by Stephen Moore published in 1985, this article compares the results of the survey conducted in 1985 against one carried out in 2006 on the views of eminent social scientists (economists, political scientists, psychologists, sociologists, historians and anthropologists) on immigration issues. Specifically, the surveys report on whether the respondents are likely to favor an increase in the number of immigrants who are allowed into the United States and other issues such as whether immigrants improve the economy.

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