Noncontractible Heterogeneity in Directed Search

This paper provides a directed search model designed to explain the residual part of wage variation left over after the impact of education and other observable worker characteristics have been removed. Workers have private information about their characteristics at the time they apply for jobs. Firms value these characteristics differently and can observe them once workers apply. They hire the worker they most prefer. However, the characteristics are not contractible, so firms cannot condition their wages on them. This paper shows how to extend arguments from directed search to handle this, allowing for arbitrary distributions of worker and firm types. The model is used to provide a functional relationship that ties together the wage distribution and the wage–duration function. This relationship provides a testable implication of the model. This relationship suggests a common property of wage distributions that guarantees that workers who leave unemployment at the highest wages also have the shortest unemployment duration. This is in strict contrast to the usual (and somewhat implausible) directed search story in which high wages are always accompanied by higher probability of unemployment.     

THE USE OF MODERATED REGRESSION IN JOB REDESIGN DECISIONS*

This paper describes the use of moderated regression in job redesign decisions. The procedures outlined are intended to augment the job redesign strategy described by Hackman and his colleagues. Different regression models based on a theory of job design are shown to lead to different job redesign decisions. Comparisons are also made between the moderated regression procedures and the more commonly used subgroups analysis.     

Using visual vignettes to explore sensitive topics: a research note on exploring attitudes towards people with albinism in Tanzania

ABSTRACT

This study is one of the first to explore the use of (drawn) visual vignettes in qualitative research in Africa. The vignette method was used to discuss the sensitive topic of people’s attitudes towards people with albinism in Tanzania among high school students. Focus was on two key questions: (i) To what extent was the vignette method implemented as intended?; (ii) Has the vignette method achieved its goal?. This research note discusses the effectivity of the visual vignette method as a tool to gain a better insight into people’s attitudes towards people with albinism, but also describes the possibilities of visual vignettes as a tool for research on other sensitive topics.     

At Home on the Range? Lay Interpretations of Numerical Uncertainty Ranges

Numerical uncertainty ranges are often used to convey the precision of a forecast. In three studies, we examined how users perceive the distribution underlying numerical ranges and test specific hypotheses about the display characteristics that affect these perceptions. We discuss five primary conclusions from these studies: (1) substantial variation exists in how people perceive the distribution underlying numerical ranges; (2) distributional perceptions appear similar whether the uncertain variable is a probability or an outcome; (3) the variation in distributional perceptions is due in part to individual differences in numeracy, with more numerate individuals more likely to perceive the distribution as roughly normal; (4) the variation is also due in part to the presence versus absence of common cues used to convey the correct interpretation (e.g., including a best estimate increases perceptions that the distribution is roughly normal); and (5) simple graphical representations can decrease the variance in distributional perceptions. These results point toward significant opportunities to improve uncertainty communication in climate change and other domains.     

Exercise behavior in older adults: a test of the transtheoretical model

The transtheoretical model (TTM) was developed as a guide for understanding behavior change. Little attention has been given, however, to the appropriateness of the TTM for explaining the adoption of exercise behavior in older adults. The purposes of this study were to determine the reliability of the TTM instruments and validate TTM predictions in 86 community-dwelling older adults (mean age 75.1 +/- 7.0 years, 87% women) who were participants in a 16-week walking program. TTM construct scales--self-efficacy, decisional balance (pros and cons), and processes of change (behavioral and cognitive)--were generally reliable (all>.78). Behavioral processes of change increased from baseline to follow-up, but pros, cons, and cognitive processes did not change among participants who became regular exercisers. Stage of change did not predict exercise adoption, but baseline self-efficacy predicted walking behavior. These results lend partial support to the TTM in predicting exercise behavior.     

On Loss Aversion in Bimatrix Games

In this article three different types of loss aversion equilibria in bimatrix games are studied. Loss aversion equilibria are Nash equilibria of games where players are loss averse and where the reference points—points below which they consider payoffs to be losses—are endogenous to the equilibrium calculation. The first type is the fixed point loss aversion equilibrium, introduced in Shalev (2000; Int. J. Game Theory 29(2):269) under the name of ‘myopic loss aversion equilibrium.’ There, the players’ reference points depend on the beliefs about their opponents’ strategies. The second type, the maximin loss aversion equilibrium, differs from the fixed point loss aversion equilibrium in that the reference points are only based on the carriers of the strategies, not on the exact probabilities. In the third type, the safety level loss aversion equilibrium, the reference points depend on the values of the own payoff matrices. Finally, a comparative statics analysis is carried out of all three equilibrium concepts in 2 × 2 bimatrix games. It is established when a player benefits from his opponent falsely believing that he is loss averse.     

American income inequality across economic and geographic space, 1970–2010

This analysis examines the spatial clustering of income inequality and its socioeconomic correlates at the meso-scale over the past four decades. Cluster analysis is used to group N = 3078 counties into five inequality clusters; and multinomial logistic regression is used to assess the effects of socioeconomic correlates. High and extreme inequality places are concentrated in large metropolitan centers, high amenity rural areas, and parts of the Great Plains and Mountain West. They tend to have better socioeconomic outcomes, with fewer at-risk populations, higher incomes, lower poverty, and greater economic participation. Unequal places are more specialized in high-skill finance and professional services, and in energy-based mining. By contrast, equality places are associated with low-skill services, education and health services, manufacturing, and stable farm economies.     

Building an organizational capability for radical innovation: The direct managerial role

Our research examines practices for managing project leaders as a component of an organization's capability for radical innovation. Our qualitative analysis of 246 interviews in twelve industry-leading corporations suggests that managers use performance-based assessment to select project leaders with demonstrated experience and skills for innovation, as well as passion that extends beyond a single project toward an awareness of its broader contribution to the organization's growth objectives. The managerial role includes concurrent hands-off/hands-on involvement, which balances autonomy and accountability with guidance. Additionally, downside/upside management involves removing the negative consequences associated with failure while providing recognition for the project leader's efforts.     

The impact of child support on cognitive outcomes of young children

We use the National Longitudinal Survey of Youth-Child data to address three questions. First, does the receipt of child support have beneficial effects for children with absent fathers apart from increasing income? Second, do the effects of child support differ when child-support awards and payments are made cooperatively as opposed to being court ordered? Third, are any positive effects of child support solely a product of unmeasured differences among fathers and families? Controlling for the socioeconomic characteristics of the child and family, we find some evidence that receipt of child support has a positive impact on children’s cognitive test scores over and above its contribution to total income. However, the effects vary by test, by race, and by reason for Father’s absence. Our results also indicate that the distinction between cooperative and noncooperative awards is important. Finally, our instrumental variables estimates show that the effects of child support persist after we control for unobserved characteristics of fathers and families.