Incentive effects and the income tax treatment of employer-provided workplace benefits

Employers often provide their employees with different kinds of benefits in the workplace to create comfortable working conditions. In order to avoid distortions of the wage-benefit ratio in employee compensation, economic theory suggests that fringe benefits should be subject to income taxation at a value placed on them by employees. This article shows that this approach does not apply to workplace benefits. Since the goal of these benefits is to reduce the employees’ disutility from work, treating them simply as wage substitutes disregards their incentive effects. Therefore, the rules for taxing workplace benefits are derived from an agency model. It is shown that in contrast to the standard economic approach, cost can be a more efficient tax base than willingness to pay, even though this results in higher tax payments. Moreover, with non-distortionary tax rates it is always better to tax the employer rather than the employee.     

Nutrient intake in day workers and shift workers

Abstract

The 24-h dietary intake, nutritional status parameters and psychosomatic factors of two-shift, three-shift and day workers were compared. Estimations of the dietary intake (across a work cycle) were made by use of a nutrient database. No significant differences were found between the groups for a large number of nutritional variables: intake of energy; intake and percentage of energy from protein, fat, total carbohydrates and sucrose; intake of coffee; and intake and density of vitamins and minerals. Only minor differences were found between the groups with regard to the quantitative intake of alcohol and calcium, and with regard to the quality of the diet (percentage of energy from alcohol, density of calcium). The groups differed significantly with respect to attitude towards work hours (three-shift workers being most negative in their attitude) and sleep disturbances (shift workers being most negative). The three-shift workers were more evening-oriented and they had higher concentrations of glucose in their blood. It was concluded that work hours not related to nutritional intake—at least not when total amounts across time are considered. It was also concluded that work hours were not related to Body Mass Index or blood lipids: triglycerides, total cholesterol, LDL (low-density lipoprotein) cholesterol and HDL (high-density lipoprotein) cholesterol.     

Evaluation of the green supply chain management practices: a fuzzy ANP approach

Environmentally responsible manufacturing, green supply chain management (GSCM), and related principles have become important strategies for companies to achieve profit and gain market share by lowering their environmental impacts and increasing their efficiency. As environment has become a key strategic consideration in supply chains, this study examines the components and elements of GSCM and suggests a novel GSCM evaluation framework. It also provides a real-case study of Ford Otosan, one of the pioneering companies about environmental subjects in Turkey, to illustrate the industrial application of our theoretical assessment model. The identified components are integrated into a strategic assessment and evaluation tool using analytical network process (ANP). The dynamic characteristics and complexity of the GSCM analysis environment make the ANP technique a suitable tool for this study. Moreover, to cope with ambiguity and vagueness of the decision maker's evaluations, the fuzzy extension of the ANP method is preferred.     

Verlustnutzung von Kapitalgesellschaften bei Umwandlungen – Eine ökonomische Vorteilhaftigkeitsanalyse

This paper investigates the potential utilization of tax loss carry-forwards in case of reorganizations of corporations from an economic point of view. Thereby, we analyze the tax impacts of indirect utilizations of tax loss carry-forwards by means of increasing assets’ book values as well as the tax impacts of the minimum taxation. The paper illustrates that the implementation of minimum taxation on transfer gains – which is reasonable at first glance – results in the following effects: Contrary to assumptions made in literature, the consequence of the regulation is that no reorganization can be utilized in order to avoid minimum taxation of current earnings in a profitable way. Surprisingly, for reorganizations due to other intentions it may be economically reasonable to let tax loss carry-forwards lapse at least partially. From an economic viewpoint this is in breach of the objective net principle.     

An ant colony optimization approach for the proportionate multiprocessor open shop

Multiprocessor open shop makes a generalization to classical open shop by allowing parallel machines for the same task. Scheduling of this shop environment to minimize the makespan is a strongly NP-Hard problem. Despite its wide application areas in industry, the research in the field is still limited. In this paper, the proportionate case is considered where a task requires a fixed processing time independent of the job identity. A novel highly efficient solution representation is developed for the problem. An ant colony optimization model based on this representation is proposed with makespan minimization objective. It carries out a random exploration of the solution space and allows to search for good solution characteristics in a less time-consuming way. The algorithm performs full exploitation of search knowledge, and it successfully incorporates problem knowledge. To increase solution quality, a local exploration approach analogous to a local search, is further employed on the solution constructed. The proposed algorithm is tested over 100 benchmark instances from the literature. It outperforms the current state-of-the-art algorithm both in terms of solution quality and computational time.

     

Emotions and the optimality of uneven tournaments

Standard results from tournament theory show that an employer should avoid organizing uneven tournaments in which workers are characterized by different cost functions. In this paper, we introduce a concept of emotions that workers have when comparing their own performance with the performances of their co-workers. We can show that under emotional workers the employer may prefer uneven tournaments to even ones. In that case, the employer benefits from both positive and negative emotions. Moreover, the behavior of emotional workers fits well with experimental findings on uneven tournaments where players choose excessive effort levels.     

A new approach for disclosure control in the IAB establishment panel—multiple imputation for a better data access

For micro-datasets considered for release as scientific or public use files, statistical agencies have to face the dilemma of guaranteeing the confidentiality of survey respondents on the one hand and offering sufficiently detailed data on the other hand. For that reason, a variety of methods to guarantee disclosure control is discussed in the literature. In this paper, we present an application of Rubin’s (J. Off. Stat. 9, 462–468, 1993) idea to generate synthetic datasets from existing confidential survey data for public release.We use a set of variables from the 1997 wave of the German IAB Establishment Panel and evaluate the quality of the approach by comparing results from an analysis by Zwick (Ger. Econ. Rev. 6(2), 155–184, 2005) with the original data with the results we achieve for the same analysis run on the dataset after the imputation procedure. The comparison shows that valid inferences can be obtained using the synthetic datasets in this context, while confidentiality is guaranteed for the survey participants.     

Globalisierung und die Veränderung sozialer Ungleichheiten in modernen Gesellschaften

This article deals with the effects of globalization on individual life courses and employment careers and the resulting changes in patterns of social inequality in modern societies. Empirically, we draw back to results from the international research project GLOBALIFE which studied the effects of globalization on modern life courses for the first time. The results show that the effects of globalization on individual life courses show marked differentiation with regards to specific life course phases: while especially the employment of mid-career men remained considerably stable under globalization, the careers of young adults, mid-career women as well as late-career workers underwent significant alterations. At the same time, results from the GLOABLIFE study indicate that the changes induced by globalization have not yet led to identical results at the national level. Globalization appears to be differentially filtered by deeply embedded and path-dependent national institutions. These “institutional packages” entail variable forms of labour market “flexibilisation” which themselves differentially shape patterns of social inequality in modern societies: While Scandinavian countries have largely succeeded in limiting an increase in social inequality under globalization through active public welfare engagement, globalization has led to a significant amplification of social inequalities in other regime types, either between labour market insiders and outsiders (in conservative and Southern European countries) or between individuals with different human capital resources (in liberal countries).     

The satisfaction of Finnish adoptive parents with statutory pre-adoption counselling in inter-country adoptions

We examined how satisfied Finnish adoptive parents were with statutory pre-adoption counselling in inter-country adoptions. The data were collected through the Finnish Adoption Study using a retrospective survey measuring satisfaction with received pre-adoption counselling. All adoptive parents with a child under the age of 18, adopted from abroad between the years 1990 and 2007, were included. The sample of the study comprised parents of 1451 children and a total response rate of 55.7% was achieved. The data consisted of self-scored reports of satisfaction as well as open answer questions. Parent satisfaction and associated variables were analysed using chi-square and multiple logistic regression. Of the respondents, 81.7% reported satisfaction with the pre-adoption counselling they had received. The level of satisfaction was stable over time and did not differ according to service provider, whereas family type and sending country were associated with satisfaction. However the explanations for satisfaction were different for those services provided in units specialized in adoption and for those provided by municipal child protection services. The components found to explain satisfaction and dissatisfaction were experience, adoption knowledge, and attitude of the social worker, service accessibility and availability issues, as well as the content of the pre-adoption counselling offered.