Labour Market Regulation,Flexibility and Employment

ABSTRACT: Chronic unemployment and slow employment growth in some countries have led to calls for more labor-market “flexibility”. This paper defines the flexibility issue in terms of legally-mandated “severance”, a generalized employment cost linked to seniority. A mandated severance benefit can stand for a variety of programs including employer-provided employment guarantees, payments which must be made to laid-off workers, and compensation for wrongful discharge. Such a mandated cost can be seen as a payroll tax on the employer, raising the issue of tax incidence. Employers often take the view that labor costs are given and that mandated costs are simply add-ons to pre-existing cost levels. However, the literature on tax incidence suggests that a significant portion of “employer-paid” payroll taxes are shifted to labor in the form of lower wages. Such shifting should reduce the dis-employment effects attributed to severance. A model is provided of a firm upon which a severance mandate is imposed. Even at the micro level, the firm can shift some of the cost of severance to employees by lowering wages — although at the expense of higher turnover costs associated with increased quit rates. At the macro level, to the extent that firms reduce employment, there could be still further downward wage adjustments which would shift the severance burden to labor and mitigate the dis-employment effect. Ultimately, if the natural rate of unemployment is raised by severance mandates, the age-old question is raised of why wages do not fall in the face of labor surpluses. The true inflexibility to be explained, therefore, is in wage determination.     

Planning Forward by Looking Backward: Retrospective Thinking in Strategic Decision Making*

Retrospective thinking occurs whenever one remembers something from the past, but one can also think retrospectively about hypothetical future events, by imagining that the event has already transpired and then working backward in the mind from the future toward the present. Designers, artists, planners, and other creative individuals utilize retrospective thinking when they mentally envision the object they wish to create and then thinkabout how it might be constructed. Some theorists and some previous research have suggested that forward and backward thinking are different cognitive processes, but there has been little investigation on the nature of these differences. This article examines the literature and describes a laboratory study designed to investigate retrospective thinking as a technique for increased idea generation. Subjects (n=64) were professional planners and managers with an average business experience of over 20 years. In a planning task, significantly more ideas were generated in the retrospective thinking mode than in the prospective mode, but the ideas were not found to be of greater quality. Evidence emerged that a subset of subjects were better able to make use of the retrospective technique, suggesting that selection along with training may be appropriate for the technique's mosteffective use.     

Linking video chatting,phone calling,text messaging,and social media with peers to adolescent connectedness

For 14 days three times per day (6072 observations), adolescents (N = 207, M_age = 15.45 years) reported their digital (i.e., video chatting, texting, social media, and phone calling) communication with peers and their social connectedness. Controlling for in-person interactions, adolescents felt more connected in hours when they had communicated with peers by video chatting, texting, or social media, but not phone calling. Girls communicated with peers via text and social media more than boys, and boys talked on the phone more than girls. Boys who talked, texted, or video chatted more on average reported higher connectedness on average, whereas girls did not. As the links with connectedness were only found at the hourly- and not the daily level, results highlight that a sense of connectedness from digital media may be fleeting in nature.     

The effect of artificial light on bat richness and nocturnal soundscapes along an urbanization gradient in an arid landscape of central Peru

Urbanization usually reduces bat richness; however, the presence of green areas within cities and peripheral rural areas in arid ecosystems may provide microhabitats for some species. Light pollution is a major feature of urbanization, but its impact on bat behavior appears to be species-specific and previous studies have documented contrasting responses. Moreover, the effect of urbanization on bat species has been poorly studied in arid regions. We assessed the effect of artificial night light intensity (as a proxy of urbanization) on both bat occupancy and the acoustic space used (ASU) in an urbanization gradient in Peruvian central coast, based on passive acoustic recorders. We collected 26,169 recordings from 19 sites which resulted in 579 independent detections of 15 bat species. Variation in both ASU and species richness was best explained by artificial night light intensity. Species-specific effects of the artificial night light intensity based on a multi-species occupancy modeling showed that this covariate had a negative effect on occupancy for most of the bat species (12 species). ASU and both observed and posterior bat species richness were positively correlated, suggesting that ASU can be used as a proxy of bat richness. This study provides evidence that both bat richness and occupancy decrease with artificial light intensity; nevertheless, eight species used urban areas, similar to results found in other cities around the world.

     

Peer effects and intentional entrepreneurial behaviour: A systematic literature review and research agenda

What role peers play in individuals’ decisions to become entrepreneurs and to what extent peer effects play a role in influencing behaviours at the various stages of business venturing are important questions for scholars and policymakers. This systematic review takes stock of the recent additions to the literature around the phenomenon of peer influence in entrepreneurship. The review identified 2894 documents which were then narrowed down through three consecutive filtering stages. We thematically analysed the final sample of 27 empirical studies that shed light on how individual peers influence the process and outcomes of these individuals’ entrepreneurial intentions and behaviour, allowing for critical analysis. We propose a conceptual schema of social influence that occurs in interactions among entrepreneurial individuals within business venturing and across the three stages of pre-formation, formation and growth. Our framework reconciles the conceptual classification around discovering, evaluating and exploiting entrepreneurial opportunities with the mechanisms of social influence affecting entrepreneurial behaviours. Grounded in the findings of the literature review, this framework synthesizes peer influence in entrepreneurship with the tripartite distinction of the behavioural motives recognized in contemporary theories of social influence. We suggest promising directions for further research on how interactions with peers might affect individuals’ entrepreneurial behaviours.