JEEA‐FBBVA Lecture 2012: USE AND ABUSE OF AUTHORITY: A BEHAVIORAL FOUNDATION OF THE EMPLOYMENT RELATION

Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However, there is a tradeoff, first pointed out by Simon (1951, Econometrica, 19, 293–302), between flexibility and employer moral hazard. An employment contract allows the principal to adjust the task quickly to the realization of the state of the world, but he may also abuse this flexibility to exploit the agent. We capture this tradeoff in an experimental design and show that principals exhibit a strong preference for the employment contract. However, selfish principals exploit agents in one‐shot interactions, inducing the latter to resist entering into employment contracts. This resistance to employment contracts vanishes if fairness preferences in combination with reputation opportunities keep principals from abusing their power, leading to the widespread, endogenous formation of efficient long‐run employment relations. Our results inform the theory of the firm by showing how behavioral forces shape an important transaction cost of integration—the abuse of authority—and by providing an empirical basis for assessing differences between the Marxian and the Coasian view of the firm, as well as Alchian and Demsetz's (1972, American Economic Review, 62, 777–795) critique of the Coasian approach.     

Gender Equality Revisited – Changes in Nordic Childcare Policies in the 2000s

The Nordic childcare policy model is often reviewed and even recommended internationally for its contribution to gender equality, high female labour force participation and, perhaps more indirectly, to a high fertility rate. Nordic childcare services and parental leave schemes have thus been portrayed in the literature as policies which have managed to facilitate a work–family model of dual earners and dual carers. However, the recent introduction of cash‐for‐care schemes seems to go against the Nordic dual earner/dual carer model and ideals of gender equality, in supporting parental (maternal) care of the child in the home. At the same time, new upcoming trends of political fatherhood and the perspective of lifelong learning for the child are also changing the Nordic childcare model. This article provides an analysis of how new childcare policy goals have been articulated into policies from the late 1990s to the late 2000s and how these may challenge the traditional goals of the Nordic welfare states.     

Using Predictive Risk for Process Control

When monitoring highly capable processes, it is often desirable to tolerate small instabilities in order to avoid tempering. One approach in this setting is to monitor the capability of the process dynamically and signal if the estimated capability reaches an unacceptably low level. We suggest that monitoring the probability of the next item not falling between the specification limits is a more natural scale to evaluate risk, and offers appreciable flexibility. We use a statistical model and a window of data to evaluate this probability and decide if the process should be halted immediately based on that estimate. The properties of this method are explored numerically and a case study is provided.     

The biology of the voleClethrionomys rufocanus: A review

The biology of the gray-sided voleClethrionomys rufocanus in Hokkaido, concerning taxonomy, morphology, phylogeny, distribution, and natural history, is reviewed. Applied issues in forest management (damage, control and census) are also mentioned. AlthoughClethrionomys rufocanus of Hokkaido was originally identified as a distinct species,Evotomys (=nowClethrionomys) bedfordiae Thomas, 1905, current literature generally refers to the gray-sided vole of Hokkaido asClethrionomys rufocanus or asC. rufocanus bedfordiae (vernacular name, the Bedford’s red-backed vole). The gray-sided vole is the most common small mammal in Hokkaido. It inhabits open areas as well as forests, and mainly feeds on green plants. The gray-sided vole has a high reproductive potential; litter size: 4–7; gestation period: 18–19 days; maturation age: 30–60 days old. Although spring-born individuals usually attain sexual maturity in their summer/fall of birth, their maturation is sometimes suppressed under high densities. The breeding season is generally from April to October, but with some regional variation.Clethrionomys rufocanus has a rather specialized diet (folivorous), particularly during winter when it feeds on bamboo grass. Many predators specialize on the grey-sided vole in Hokkaido; even the red fox, which is a typical generalist predator, selectively feeds on this vole. Damage by voles’ eating bark used to be sever on forest plantations in Hokkaido. Censuses of small rodents have been carried out for management purpose since 1954.     

Equality of opportunity and the distribution of long-run income in Sweden

Equality of opportunity is an ethical goal with almost universal appeal. The interpretation taken here is that a society has achieved equality of opportunity if it is the case that what individuals accomplish, with respect to some desirable objective, is determined wholly by their choices and personal effort, rather than by circumstances beyond their control. We use data for Swedish men born between 1955 and 1967 for whom we measure the distribution of long-run income, as well as several important background circumstances, such as parental education and income, family structure and own IQ before adulthood. We address the question: in Sweden, given its present constellation of social policies and institutions, to what extent is existing income inequality due to circumstances, as opposed to ‘effort’? Our results suggest that several circumstances, importantly both parental income and own IQ, are important for long-run income inequality, but that variations in individual effort account for the most part of that inequality.     

Discrepancies in pain presentation caused by adverse psychosocial conditions as compared to pain due to high physical workload?

Disorders in the musculoskeletal system have been associated with a high physical workload as well as psychosocial and individual factors. It is however not obvious which of these factors that is most important to prevent. Musculoskeletal disorders in neck and upper extremity was assessed by interview and clinical examination in 79 teachers and 93 assisting nurses, all females. Psychosocial work environment was assessed by questionnaire. The physical workload was recorded by technical measurements of postures, movements and muscular load, in 9 teachers and 12 nurses. The physical workload was lower among the teachers, but they had a more demanding psychosocial work environment. Among the nurses, but not in the teachers, the neck-shoulder disorders were associated with a high body mass index (BMI). The teachers reported neck-shoulder complaints to a higher extent than the nurses, but had much lower prevalence of diagnoses in the clinical examination (12% vs. 25%; POR 0.3 CI 0.1 - 1.2; adjusted for age and BMI). The results suggest that adverse psychosocial conditions among the teachers give rise to a different kind of pain in the neck-shoulder region than from physical overload, troublesome but not as severe as the one afflicting the nurses.     

Masculine domination and gender subtexts: The role of female professionals in the renewal of the Swedish video game industry

The video game industry is a showcase industry in the entrepreneurial, knowledge-intensive, and technology-based economy. Despite recent technological shifts rendering digital media portable in the form of smartphones, tablets, and laptops, attracting new categories of gamers, most notably women above the age of 35, the video game industry is struggling to handle its masculine domination, prescribing specific and gendered divisions of labor in terms of lowering thresholds for female video game developers. This article reports on empirical material based on interviews from the burgeoning Swedish video game industry and suggests that female professionals entering the industry encounter inherited gendered beliefs and ways of organizing work which locate women in specific, and not always desirable, roles within the industry. In this regime of masculine domination, the study concludes, female video game developers are understood as a particular group primarily knowledgeable about female gamers’ preferences and not as the possessors of general skills attractive to the video game companies. Ultimately, the masculine domination and the historical gendered divisions of labor are preventing the industry from creating more gender-equal workplaces and, as a consequence, fully exploiting market potentials.     

Older twins' experiences of the relationship with their co-twin over the life-course

Based on 35 life stories of aging twins, this study focuses on personal experiences and recollections of their relationships with the co-twin over the life-course. The participants are part of two longitudinal Swedish twin studies on aging, SATSA and Gender. In the narrative analysis, three relationship patterns, labeled ‘nurturing’, ‘draining’, and ‘superficial’, emerged, pointing to qualitative aspects in the co-twin relationship. The dominating aspect was emotional closeness, which differed in the three relationship patterns. In the nurturing twin relationship pattern, emotional closeness was experienced as intimacy and yet independence, while in the draining relationship pattern it was experienced as dependence. The superficial twin relationship was experienced as distant and lacking in emotional involvement. Most of the relationship patterns seemed to remain the same throughout life. However, seen from a life course perspective, this study pointed to complexity and diversity in lifelong twin relationships.     

Journal Prices Revisited: A Regression Analysis of Prices in the Scholarly Journal Market

Increasing prices of scholarly journals have been subject to fierce discussion for several decades. In this paper the authors integrate influence factors of journal prices analyzed in different previous studies in a unified regression model based on current data. Three different models are calculated. In the first model (overall market) the largest influence was found for the size of the journal. Additionally, the authors calculate separate regression models for STM (Scientific, Technical, Medical) vs. HSS (Humanities and Social Sciences) journals and for for-profit vs. not-for-profit journals. The first comparison found that the influence of the number of published articles is much lower for HSS journals. The comparison between for-profit and not-for-profit journals showed that the influence of the circulation of a journal on its price is higher in the for-profit segment.