nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2015‒09‒18
nineteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Economie solidaire et théories féministes : pistes pour une convergence nécessaire By Isabelle Hillenkamp; Isabelle Guérin; Christine Verschuur
  2. The Theory of Capital as a Theory of Capitalism – Hidden Austrian Contributions to a Historically Specific Approach to Capital By Eduard Braun
  3. Sraffa and ecological economics By Yoann Verger
  4. Keeping an eye on IRIS: Risk and income solidarity in OECD healthcare systems By Schmid, Achim; Siemsen, Pascal; Götze, Ralf
  5. The increase of gender wage gap in Italy during the 2008-2012 economic crisis By Daniela Piazzalunga; Maria Laura Di Tommaso
  6. London: A Multi-Century Struggle for Sustainable Development in an Urban Environment By Clark, William C.
  7. Spoleczny system produkcji w Niemczech – model na przysz³osc? By Michal Moszynski
  8. Profitability and Investment: Evidence from India's Organized Manufacturing Sector By Basu, Deepankar; Das, Debarshi
  9. La coopération Nord-Sud : don ou partenariat ? By Gwenaëlle Ogandaga
  10. The Guardians of Capitalism: International Consensus and Fascist Technocratic Implementation of Austerity By Clara Elisabetta Mattei
  11. Gender Gap in Patenting Activities: Evidence from Iran By Mojgan Samandar Ali Eshtehardi; Seyed Kamran Bagheri
  12. Sraffa and the environment By Yoann Verger
  14. Social Entrepreneurship - Social Impact Measurement for Social Enterprises By Antonella Noya
  15. Gender bias and credit access By Ongena, Steven; Popov, Alexander
  16. Quotas et mesures contre la discrimination inhérente au système des castes : des instruments de protection sociale pour l’Inde ? By Pedro Lara de Arruda
  17. Social Protection, Entrepreneurship and Labour Market Activation By Fábio Veras Soares; Carolina Robino
  18. Monetary Economics Simulation: Stock-Flow Consistent Invariance, Monadic Style By Pierre Boudes; Antoine Kaszczyc; Luc Pellissier
  19. Work-Life Balance Practices, Performance-Related Pay, and Gender Equality in the Workplace: Evidence from Japan By KATO Takao; KODAMA Naomi

  1. By: Isabelle Hillenkamp (Institut de Recherche pour le Développement - IRD); Isabelle Guérin (Institut de Recherche pour le Développement - IRD); Christine Verschuur (IHEID - Institut de hautes études internationales et du développement - University of Geneva)
    Abstract: The solidarity economy and feminist theories: possible paths to a necessary convergence Abstract: This paper argues that the solidarity economy and feminist theories (mostly on economics, sociology and anthropology), have developed within distinct frameworks that have limited the opportunities for exchange and cross-fertilization. These frameworks are by no means in opposition to one another, and the approaches they espouse sometimes overlap when the same objects are under study. They have generally not, however, merged to produce reflection based on shared categories. This article aims to contribute to the emergence of such a debate by identifying the main categories and scales used in the analysis of the solidarity economy and in feminist literature on women's organizations and their economic, social and political practices. It reflects as to the necessary convergence between these two fields: for understanding the spheres of 'production' and 'reproduction' and their mutual connections; the multiplicity of pathways to emancipation; and the multiplicity of forms taken by political action. 1 Chargée de recherche IRD, France ; directrice de recherche IRD, France ; directrice Pôle genre et développement, senior lecturer, IHEID, Genève, Suisse.
    Date: 2014
  2. By: Eduard Braun (Abteilung für Volkswirtschaftslehre, Technische Universität Clausthal (Department of Economics, Technical University Clausthal))
    Abstract: Before economists and sociologists came up with their own definitions of the term “capital,” it was commonly understood as money invested in businesses by their owners or shareholders, and it continues to be understood this way in everyday business practice. In a recent article, Geoffrey Hodgson (2014) advises economists to return to this pre-Smithian usage of the term. The present paper takes up Hodgson’s demand and develops a theory of capital that is based upon this business notion of capital. It also argues that the Austrian theory of capital, if interpreted correctly, can serve as a starting point. Despite the conviction of its adherents to the contrary, the Austrian theory of capital is not universal or ahistorical, but dovetails with Hodgson’s vision of an approach to capital which analyses historically specific features of capitalism.
    Keywords: Capital Theory; Capitalism; Austrian Economics; Institutional Economics
    JEL: B25 B26 D24
    Date: 2015
  3. By: Yoann Verger (REEDS - REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université Versailles Saint-Quentin-en-Yvelines)
    Abstract: References to Sraffa and to the neo-Ricardian school is something quite customary in ecological economics. By looking at contributions in this area since the beginning of ecological economics and at contributions on environmental problem from the neo-Ricardian school, we see that a connection between both school still has to be made. This connection should be articulated around the initial aim of Sraffa: to develop a new paradigm, competing against the neoclassical one. Only then it will be possible to develop a real eco-Sraffian approach able to pursue the analysis of the sustainability of the economic system.
    Keywords: Sraffa,neo-Ricardian,ecological economics,value,natural resources,political economy
    Date: 2015–09–04
  4. By: Schmid, Achim; Siemsen, Pascal; Götze, Ralf
    Abstract: In most wealthy democracies as represented by long-term OECD-members, healthcare systems have been established which guarantee access to a broad package of health services. However, healthcare financing involves varying distributive effects and builds on different concepts of solidarity. Healthcare researchers have examined these equity issues in healthcare financing measuring the progressivity of healthcare financing using micro-level data. Most notably, the ECuity-project published progressivity indices in some European countries and the US for the late 1980s and early 1990s. Not least due to the rather complex procedure involved with the evaluation of income and expenditure surveys, such indices have been rarely calculated since. From these studies on redistributive effects, we know that the main modes of financing quite consistently correspond to different levels of progressivity. Moreover, financing modes reflect different concepts of solidarity. Therefore, we suggest an alternative indicator to explore equity issues in healthcare financing using aggregate spending and revenue data. The Index of Risk and Income Solidarity (IRIS) is based on the respective share of distinct modes of financing. We distinguish modes of financing which involve ex-ante redistribution of health risks from those which entail only ex-post redistribution or none at all. Further, we differentiate financing modes which are related to personal or household income from those which involve no income redistribution. We assume an increase of risk solidarity as well as a decline of income solidarity in the OECD-world. First of all, new and costly medical technologies drive the demand for ex-ante redistribution of health risks. At the same time, hopes to increase efficiency of healthcare provision through forms of co-payments have been disappointed. The decline of income solidarity is expected as a result of global competition. In order to reduce labour costs, OECD countries substitute social security contributions by flat-rate premiums or general taxes. In the light of global competition, governments also tend to strengthen indirect taxes since it is far more difficult to shift consumption abroad. Finally, we assume that it is easier to legitimize rising tobacco or alcohol taxes if they are ear-marked for healthcare financing. We examine these assumptions presenting time series of risk and income solidarity based on OECD health data, OECD revenue statistics and national aggregate data on healthcare financing. We cover eleven OECD countries: Australia, Belgium, Canada, Denmark, France, Germany, Japan, the Netherlands, Switzerland, the UK and the US. These countries reflect a broad spectrum of healthcare system types in the OECD-world. The observation period starts at the eve of the first oil crisis in the 1970s and ends at the onset of the Great Recession in 2009.
    Abstract: In den meisten OECD-Ländern haben sich Gesundheitssysteme etabliert, die den allgemeinen Zugang zu umfassender medizinischer Versorgung sicherstellen. Die Finanzierung dieser Gesundheitssysteme hat unterschiedliche distributive Effekte zur Folge. Damit verbundene Gerechtigkeitsfragen wurden über die Messung des Progressivitätsgrades der Finanzierungs-instrumente erforscht. Insbesondere das ECuity-Project hat Progressivitätsindizes von einigen europäischen Staaten und den USA für die späten 1980er und die frühen 1990er Jahre veröffentlicht. Aufgrund der aufwändigen Berechnungsweise mit verschiedenen Individualdatensätzen wurden solche Indizes seither selten veröffentlicht. Auf Grundlage dieser Studien ist dokumentiert, dass die Finanzierungsquellen der Gesundheitssysteme mit unterschiedlichen redistributiven Effekten verbunden sind. Wir nutzen diese Informationen, um aus Aggregatdaten einen Indikator zu bilden, der Umverteilungswirkungen in der Finanzierungsdimension des Gesundheitssystems abbildet. Dabei unterscheiden wir auf der einen Seite Finanzierungsformen, die eine Umverteilung des Krankheitsrisikos bedeuten und auf der anderen Seite Finanzierungsformen, die eine Einkommensumverteilung einschließen, indem sie höhere Einkommen zumindest proportional stärker belasten. Aus dem Anteil der so charakterisierten Finanzierungsformen entwickeln wir einen Index der Risiko- und Einkommenssolidarität (IRIS). Ausgehend von einer starken Nachfrage nach Risikoumverteilung, um den Zugang zum Gesundheitssystem bei steigenden Kosten und Bedarfen zu gewährleisten, vermuten wir einen langfristigen Anstieg der Risikosolidarität. Dahingegen könnte die Einkommenssolidarität aufgrund von internationalem Wettbewerb um Investitionskapital schwächer werden. Diese Annahmen werden für 11 OECD-Länder (Australien, Belgien, Dänemark, Deutschland, Frankreich, Japan, die Niederlande, Kanada, die Schweiz, das UK und die USA) und einen Beobachtungszeitraum von 1970 bis 2009 untersucht.
    Date: 2015
  5. By: Daniela Piazzalunga; Maria Laura Di Tommaso
    Abstract: The paper examines the gender wage gap in Italy during the 2008-2012 economic crisis, using cross-sectional EU-SILC data. The gender wage gap has increased from 4% (2008) to 8% (2012), but after 2010 the growth (and its unexplained component) was particularly pronounced in the upper part of the wage distribution, suggesting that two different patterns have been underway, depending on the period. In fact, in 2010-2011 a wage freeze in the public sector was introduced as an austerity measure, and the average public sector premium had a significant drop of 4%, even more pronounced for women. Using counterfactual analysis, we show that such wage freeze has been one of the major causes of the growth of the gender wage gap, disproportionately affecting women, who are more likely to be employed in the public sector. The `policy effect' accounts for more than 100% of the increase between 2009 and 2011, while other changes, if anything, would have reduced the gender gap.
    Keywords: Gender wage gap, Great recession, Public sector premium, Decompositions, Counterfactual analysis
    JEL: J31 J71 J16 J45
    Date: 2015
  6. By: Clark, William C.
    Abstract: In this paper I sketch key episodes in the two thousand year history of interactions between society and environment that have shaped the City of London and its hinterlands. My purpose in writing it has been to provide an empirical puzzle for use in teaching and theorizing about the long term coevolution of social-environmental systems and the potential role of policy interventions in guiding that coevolution toward sustainability. I undertook it because while a lively body of theory has begun to emerge seeking to explain such coevolution, rich descriptive characterizations of how specific social-environmental systems have in fact changed over the long time periods (multi-decade to multi-century) relevant to sustainable development remain relatively rare. One result is that the field of sustainability science lacks a sufficient number of the rich empirical puzzles that any field of science needs to challenge its theorizing, modeling and predictions. This paper reflects the beginning of an effort to provide one such characterization on a topic central to sustainability: the long term development of cities and their hinterlands.
    Date: 2015
  7. By: Michal Moszynski (Nicolaus Copernicus University, Poland)
    Abstract: The concept of social system of production is one of the research perspectives by which the institutional arrangements of modern market economies are being analyzed. On this basis considerations can be made on distinctive arrangements in given countries, in line with the thesis of Variety of Capitalism approach, as well as explorations can be undertaken of issues of sustainability of institutional configurations and of the complementarity of their components. The study raises these issues in theory and carries out their preliminary verification on the example of Germany's social system of production, with special regard to the labor market. Based on the critical literature review a set of specific features of the German model was selected, as proposed by the concept of the social system of production, divided in four main categories: institutions, organizations, social values and economic policy. Then, using a secondary statistical data and qualitative analysis, the trends affecting these elements are identified, in order to verify the thesis of complementarity and the stability of the German social production system.
    Keywords: Germany, labour market, institutions, social production system
    JEL: J40 J52 L16 L23 P17
    Date: 2015–09
  8. By: Basu, Deepankar (Department of Economics, University of Massachusetts, Amherst); Das, Debarshi (Department of Humanities and Social Sciences, Indian Institute of technology, Guwahati)
    Abstract: Using a state-industry panel data set at the 3 digit national industrial classification (NIC) level of disaggregation for 19 major Indian states over the period 1983-84 to 2007-08, we analyze the contemporaneous and long run impacts of the rate of profit and its components - profit share, capacity utilization rate, and capacity-capital ration - on investment. Our results show that: (a) the rate of profit has both short and long run positive impacts on investment; (b) the profit share and capacity-capital ration have only long run positive impacts, and the capacity utilization rate has only a contemporaneous positive impact on investment.
    Keywords: profitability, investment, manufacturing, India
    JEL: B51 E12 E22
    Date: 2015
  9. By: Gwenaëlle Ogandaga (Chercheur Indépendant)
    Abstract: La coopération internationale menée par les collectivités territoriales implique l'établissement d'une relation et d'un échange entre celles-ci. Comme toute forme de coopération inter-organisationnelle, elle est structurée par différentes règles de l'échange social (notamment, la réciprocité). Dans cette analyse, la coopération est abordée à partir de la théorie du don. Des partenariats entre des organisations publiques locales du Nord et du Sud sont examinés. Les déclinaisons du don et de la réciprocité, dans des coopérations inter-organisationnelles parfois pas déséquilibrées, permettent de questionner la nature de la coopération Nord-Sud. S'agit-il d'un don ou d'un partenariat ? Un examen de l'articulation du registre du calcul et de celui du don, pour parvenir à coopérer de manière efficace et durable, est ainsi proposé.
    Keywords: coopération,partenariat,don,réciprocité,collectivités territoriales
    Date: 2015–06–30
  10. By: Clara Elisabetta Mattei
    Abstract: Current debates on austerity often forget that these policies are almost 100 years old .This paper explores how the combination of austerity and technocracy acted as a powerful tool to secure the compliance of European countries to socio-economic stabilization after WWI. Austerity emerged as an economic, moral and technocratic message as economic experts sought to educate the restless post-war civil society. This paper analyses primary austerity documents from the international economic conferences of Brussels (1920) and Genoa (1922). In addition I use a case study of Italy (1922-1925) to show how austerity succeeded under the first years of Fascism, when the government authorized prominent economics professors to implement the international financial codes devised at Brussels and Genoa. This essay considers the scientific writings of De Stefani, Ricci and Pantaleoni to examine the theoretical roots of the technocratic nature of austerity.
    Keywords: Austerity, Technocracy, Post-WWI Financial Conferences, Economists as Consultants, Fascism
    Date: 2015–05–09
  11. By: Mojgan Samandar Ali Eshtehardi; Seyed Kamran Bagheri
    Abstract: This study investigated gender differences in innovative behaviour and technological change in Iran by using data on patents granted to Iranians in Iran and their demographic characteristics. Descriptive analysis was used to compare gender involvement and cooperation in patent activities. In addition, an econometric analysis was employed to investigate the statistical significance of the gender differences. The results showed that although females have participated much less than males, the percentage of female inventors has an upward trend over the study period; that might be mainly due to higher womenùs propensity to engage in team-collaboration that has increased over time. Moreover, the results demonstrated that the probability of female involvement in innovative activities was significantly higher when a state-run company or university was involved while it was lower in the case of private institutions involvement. Compared to other technological sectors, in IPC section D (TEXTILES; PAPER) there was a higher male inter-gender collaboration in favour of significantly higher female participation and contribution. Moreover, after section D, in IPC section A (HUMAN NECESSITIES) the probability of female presence as patentees was higher compared to other sectors. Moreover, unequal geographical distribution among provinces was detected. Potential factors contributing to this disparity remain an open question for further studies.
    Keywords: Gender gap, Patent, Iran, Technological change
    Date: 2015–05–09
  12. By: Yoann Verger (REEDS - REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université Versailles Saint-Quentin-en-Yvelines)
    Abstract: In one draft note, Sraffa states that: “The difference between the ‘Physical real costs’ and the Ricardo–Marxian theory of ‘labour costs’ is that the first does, and the latter does not, include in them the natural resources that are used up in the course of production (such as coal, iron, exhaustion of land) [Air, water, etc. are not used up: as there is an unlimited supply, no subtraction can be made from [infinity ]. This is fundamental because it does away with ‘human energy’ and such metaphysical things. ... But how are we going to replace these natural things? There are three cases: a) they can be reproduced by labour (land properties, with manures etc.); b) they can be substituted by labour (coal by hydroelectric plant: or by spending in research and discovery of new sources and new methods of economising); c) they cannot be either reproduced nor substituted - and in this case they cannot find a place in a theory of continuous production and consumption: they are dynamical facts, i.e. a stock that is being gradually exhausted and cannot be renewed, and must ultimately lead to destruction of the society. But this case does not satisfy our conditions of a society that just manages to keep continuously alive” (Sraffa’s Unpublished Papers and Correspondence, Trinity College Library, Cambridge, UK, as catalogued by Jonathan Smith, D3:12:42: 33, dated 25 March 1946; Sraffa’s emphasis, quoted in Kurz et al., 2000). Thus Sraffa states that his theory, the “Physical real costs” theory, is taking into account the natural resources. I argue that this is not true: my position is that Sraffa is not dealing with natural resources, but with commodities produced by industries and exchanged in the market. Thus all resources which are not produced by industries or which are not exchanged in the market (for instance, wastes) are not encompassed by its model, and can not receive a price. And we have a confirmation of this when, in chapter Ⅺ of his book, Sraffa explicitly introduces natural resources: “natural resources which are used in production, such as land and mineral deposits, and which being in short supply enable their owners to obtain a rent, can be said to occupy among means of production a position equivalent to that of 'non-basics' among products. Being employed in production, but not themselves produced, they are the converse of commodities which, although produced, are not used in production” (Sraffa, 1960, § 85). In this chapter, we will see how Sraffa deals with natural resources in his book, through the problematic of the rent, in section [1] (after a short introduction about the introduction of the rent in Quesnay and Ricardo's theories). Then we will see how the neo-Ricardians manage to introduce these resources in their models and how they deals with general environmental problems. First we will see the case of exhaustible resources in section [2] and then we will study the introduction of waste, the management of pollution control and the exploitation of renewable resources in section [3].
    Keywords: Sraffa,Rent,Hotelling,Exhaustible resources,Renewable Resources,Waste,Pollution,Environment
    Date: 2015–08–21
  13. By: Sarah Maire (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - Université Nancy II - Université de Metz)
    Abstract: Completing current research on hybrid organization in neo-institutional theory, this paper explores the coexistence, without competition, of two institutional logics and their practices, framed with different rationality in a same organization. More precisely, we focused on the two logics present in a non-profit and religious organization of scouting. Through annuals reports collected from 1983 to 2013, participant observation, discussions and audit reports, we observed the coevolution of accountability logic based on instrumental rationality and religion logic based on a belief-oriented rationality. Our results suggest the coexistence of logics and their practices, even if they have different rationality.
    Abstract: Dans le cadre de la théorie néo-institutionnelle et pour approfondir la recherche sur les organisations hybrides, ce papier développe la coexistence de deux logiques institutionnelles et de leurs pratiques, fondées sur différentes rationalités et ce au sein d'une même organisation. Nous nous sommes concentrés sur les deux logiques présentes dans une organisation religieuse à but non-lucratif, une association de scoutisme français. A travers des rapports annuels collectés de 1983 à 2013, de l'observation participante, des discussions avec les membres et les rapports de commissariat aux comptes, nous avons pu observer la coexistence de la logique d'accountability, basée sur une rationalité en finalité et une logique religieuse, basée sur une rationalité en valeur. Nous résultats tendent à montrer que les logiques arrivent à coexister et que les pratiques coexistent également, malgré des rationalités différentes.
    Date: 2015–05–19
  14. By: Antonella Noya
    Abstract: This policy paper on social impact measurement for social enterprises was produced by the OECD and the European Commission. It presents the issues and ongoing debates surrounding social impact measurement and provides concrete examples of measurement methods. It highlights the concept of proportional measurement, in other words balancing up the costs and benefits of the measuring process. The policy brief also looks at guidance and resources for use by social enterprises and how to create a more widespread culture of measurement among stakeholders despite their often limited human and financial resources.
    Date: 2015–07
  15. By: Ongena, Steven; Popov, Alexander
    Abstract: This paper studies the causal effect of gender bias on access to bank credit. We extract an exogenous measure of gender bias from survey responses by descendants of US immigrants on questions about the role of women in society. We then use data on 6,000 small business firms from 17 countries and find that in countries with higher gender bias, female-owned firms are more frequently discouraged from applying for bank credit and more likely to rely on informal finance. At the same time, loan rejection rates and terms on granted loans do not vary between male and female firm owners. These results are not driven by credit risk differences between female- and male-owned firms or by any idiosyncrasies in the set of countries in our sample. Overall, the evidence suggests that in high-gender bias countries, female entrepreneurs are more likely to opt out of the loan application process, even though banks do not appear to discriminate against females that apply for credit. JEL Classification: G21, J16, N32, Z13
    Keywords: Bank credit, Cultural bias, Female-owned firms, Gender-based discrimination
    Date: 2015–07
  16. By: Pedro Lara de Arruda (IPC-IG)
    Abstract: "A. De Haan (2013) a ouvert un important débat autour du concept de nation qui prévaut en Chine et en Inde. Celui-ci se fonde sur linclusion économique de populations marginalisées au moyen dinstruments équitables. En Chine, lexclusion sociale touche avant tout les minorités ethniques (les non-Han) ; en Inde, elle est inhérente à lexistence historique de castes qui maintiennent la population dans le cercle vicieux de la pauvreté et en détermine lidentité. La majorité de la population indienne est dailleurs concernée par lexclusion, elle-même alimentée par des pratiques consolidées à tous les niveaux de linteraction sociale, du niveau macroinstitutionnel à un niveau de pratiques inter-personnelles non-institutionnalisées."(...)
    Keywords: Quotas, mesures contre discrimination, système des castes, protection sociale, Inde
    Date: 2015–08
  17. By: Fábio Veras Soares (IPC-IG); Carolina Robino (IPC-IG)
    Abstract: "Despite significant development gains in recent decades, developing countries still face considerable challenges in regards to the fight against poverty and hunger. Redistributive cash transfer programmes have emerged as vital for the pursuit of poverty reduction and eradication; however, critics have expressed concerns that such social grants could lead to dependency among beneficiaries, dissuade them from seeking work, or reinforce traditional gender roles." (…)
    Keywords: Social Protection, Entrepreneurship, Labour Market Activation
    Date: 2015–09
  18. By: Pierre Boudes (LIPN - Laboratoire d'Informatique de Paris-Nord - CNRS - Université Paris 13 - Université Sorbonne Paris Cité (USPC) - Institut Galilée); Antoine Kaszczyc (LIPN - Laboratoire d'Informatique de Paris-Nord - CNRS - Université Paris 13 - Université Sorbonne Paris Cité (USPC) - Institut Galilée); Luc Pellissier (LIPN - Laboratoire d'Informatique de Paris-Nord - CNRS - Université Paris 13 - Université Sorbonne Paris Cité (USPC) - Institut Galilée)
    Abstract: An agent-based simulation of a monetary economy as a whole should be stock-flow consistent [7]. We aim at providing a compile-time verification of the preservation of this invariant by the computation. We guarantee this invariant by wrapping the accounting operations in a monad. Our objective is to increase the confidence in the SFCness of an existing complex simulation with a minimal refactoring of code.
    Keywords: Stock-Flow Consistency,Agent-based simulation,Functional Programming,Monads,Static Typing,Strong Type Discipline
    Date: 2015–09–03
  19. By: KATO Takao; KODAMA Naomi
    Abstract: This paper uses unique firm-level panel data from Japan and provides new evidence on the possible impact on gender equality in the workplace of work-life balance (WLB) practices that are developed in part to enhance gender equality as well as performance-related pay (PRP) that is one of the most often discussed changes in the Japanese human resources management (HRM) system in recent years. Our fixed effect estimates indicate that daycare service assistance (onsite daycare services and daycare service allowances) has a gradual yet significant positive effect on gender equality in general as well as at the higher (management) levels. However, transition period part-time work is found to result in a decrease in the proportion of female directors (or exacerbating gender inequality in management). Turning to PRP, the fixed effect estimates suggest that a switch from the traditional wage system that rewards workers for their long-term skill development through on-the-job training within the firm to PRP that makes pay more sensitive to shorter-term performance will result in a fall in the proportion of female directors (amplifying gender inequality in management). We also find that the adverse effect on gender equality of PRP is fully mediated by having a more objective performance evaluation system; a more transparent decision making process; and a more systematic, explicit and formal training program. This finding can be interpreted as evidence pointing to gender discrimination in the workplace. In designing, developing and revising public policy instruments to achieve Prime Minister Shinzo Abe's ambitious policy goal of "increasing the share of women in leadership positions to at least 30% by 2020 in all fields in society," policy makers may need to pay particular attention to heterogeneous efficacy of specific WLB practices and the adverse effect of PRP as well as the mediating role played by management by objectives (MBO), information sharing, and systematic training program.
    Date: 2015–09

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