nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2015‒05‒16
ten papers chosen by
Tommaso Reggiani
Universität zu Köln

  1. The Pros and Cons of Sick Pay Schemes: A Method to Test for Contagious Presenteeism and Shirking Behavior By Pichler, S,;; Ziebarth, N.R,;
  2. Generation Y at work: insight from experiences in the hotel sector By Robert Lewis
  3. USING CREATIVE PROBLEM SOLVING (CPS) TO IMPROVE EFFICIENCY IN A NON-PROFIT ORGANIZATION By Sousa, Fernando; Castelão, Paula; Monteiro, Ileana; Pellissier, René
  4. Click'n'Roll: No Evidence of Illusion of Control By Filippin, Antonio; Crosetto, Paolo
  5. Conspicuous work : peer working time, labour supply, and happiness for male workers By Collewet M.M.F.; Grip A. de; Koning J. de
  6. A middle-manager model of wage and salary distribution within firms By Kemp-Benedict, Eric
  7. The making of a manager: evidence from military officer training By Grönqvist, Erik; Lindqvist, Erik
  8. Does Education Raise Productivity and Wages Equally? The Moderating Roles of Age, Gender and Industry By François Rycx; Yves Saks; Ilan Tojerow
  9. A Note on Gender Differences in Recognition for Group Work By Heather Sarsons
  10. Working in Groups or Alone? By Mine Dikdere

  1. By: Pichler, S,;; Ziebarth, N.R,;
    Abstract: This paper proposes a test for the existence and the degree of contagious presenteeism and negative externalities in sickness insurance schemes. First, we theoretically decompose moral hazard into shirking and contagious presenteeism behavior. Then we derive testable conditions for reduced shirking, increased presenteeism, and the level of overall moral hazard when benefits are cut. We implement the test empirically exploiting German sick pay reforms and administrative industry-level data on certified sick leave by diagnoses. The labor supply adjustment for contagious diseases is significantly smaller than for non-contagious diseases, providing evidence for contagious presenteeism and negative externalities which arise in form of infections.
    Keywords: Sickness Insurance; Sick Pay; Presenteeism; Contagious Diseases; Infections; Negative Externalities; Shirking
    JEL: I12 I13 I18 J22 J28 J32
    Date: 2015–02
  2. By: Robert Lewis (Les Roches Gruyère University of Applied Sciences)
    Abstract: ‘Generation Y,’ according to recent literature, refers to people born between 1980 and 1990. Participants in the study used for this paper (aged between 23 and 33) fit into this category at the time of data collection (in 2013). The literature suggests that generation Y is reliant on feedback at work, a need for immediate results and a desire for personal satisfaction from work. From a managerial standpoint, the literature indicates that generation Y seeks high levels of communication at work and perceives lower hierarchical barriers. This study explores the perceptions of generation Y working in the hotel industry within these dimensions. 80 generation Y university students volunteered to answer open-ended questions in questionnaires. Participants had at least six months’ work experience in hotels as part of their curriculum. Open-coding was used to extract key quotes from raw data. Findings reveal that the group studied emphasised the importance of self-achievement, congruence of work with personal values and open communication. The conceptualisation of generation Y’s perceptions of work in the hotel sector reveals a more fragmented understanding of time and unconventional views of careers.
    Keywords: Generation Y, Hotels
    JEL: J24
  3. By: Sousa, Fernando (APGICO); Castelão, Paula (University of Cartagena); Monteiro, Ileana (University of Algarve); Pellissier, René (University of South Africa)
    Abstract: The purpose of this study was to improve the internal efficiency of a non-profit organization, using Creative Problem Solving (CPS) method. The research was designed around an intervention and structured in three stages (pre-consult, intervention and follow-up), with a team designated by management, in order to bring leadership cohesion to both departments of the organization and also between the board and executive management. The results, expressed in the tasks performed and in the interviews to team members, allowed us to conclude on the effectiveness of the CPS method to improve organizational innovation and change, by driving more and more teams in the organization to adopt it, and by establishing a stronger relationship between departments, as well as between the board and executive management. These results highlight possible solutions to improve the management, and to develop organizational innovation in non-profit organizations.
    Keywords: Creative Problem Solving; Team Facilitation; Organizational Innovation; Management in Non-Profit Organizations
    JEL: L30
    Date: 2015–05–08
  4. By: Filippin, Antonio (University of Milan); Crosetto, Paolo (Université de Grenoble)
    Abstract: Evidence of Illusion of Control – the fact that people believe to have control over pure chance events – is a recurrent finding in experimental psychology. Results in economics find instead little to no support. In this paper we test whether this dissonant result across disciplines is due to the fact that economists have implemented only one form of illusory control. We identify and separately tests in an incentive-compatible design two types of control: a) over the resolution of uncertainty, as usually done in the economics literature, and b) over the choice of the lottery, as sometimes done in the psychology literature but without monetary payoffs. Results show no evidence of illusion of control, neither on choices nor on beliefs about the likelihood of winning, thus supporting the hypotheses that incentives crowd out illusion of control.
    Keywords: Illusion of Control, experiment, risk elicitation, hypothetical bias
    JEL: B49 C91 D81
    Date: 2015–04
  5. By: Collewet M.M.F.; Grip A. de; Koning J. de (GSBE)
    Abstract: This paper uncovers conspicuous work as a new form of status seeking that can explain social interactions in labour supply. We analyse how peer working time relates to both labour supply and happiness for Dutch male workers. Using a unique measure of peer weekly working time, we find that mens working time increases with that of their peers and that peer working time is negatively related to mens happiness. These findings are consistent with a conspicuous work model, in which individuals derive status from working time.
    Keywords: Externalities; General Welfare; Time Allocation and Labor Supply;
    JEL: J22 I31 D62
    Date: 2015
  6. By: Kemp-Benedict, Eric
    Abstract: Management structure affects income distribution within the firm. We construct a model in which the managerial wage bill is determined by the number of direct reports to each manager (the “span of control”) and the increase in pay between levels in the managerial hierarchy. The model explains, in a natural way, one of the best-documented observations in firm compensation: that CEO pay increases with the size of the firm. It also shows that rising span of control will normally lead to a decline in the ratio of the managerial wage bill to that of production workers. As span of control has been rising in recent decades, this appears to be inconsistent with the widely-documented rise in income inequality. The discrepancy is explained by the rapid expansion of equity-based compensation.
    Keywords: span of control; delayering; downsizing; functional income distribution; financialization
    JEL: D33 L22
    Date: 2015–05–12
  7. By: Grönqvist, Erik (IFAU - Institute for Evaluation of Labour Market and Education Policy); Lindqvist, Erik (Department of Economics, Stockholm School of Economics)
    Abstract: We show that officer training during the Swedish military service has a strong positive effect on the probability to attain a managerial position later in life. The most intense type of officer training increases the probability of becoming a civilian manager by about 5 percentage points, or 75 percent. Officer training also increases educational attainment post-military service. We argue that the effect on civilian leadership could be due to acquisition of leadership specific skills during the military service, and present suggestive evidence related to alternative mechanisms, such as signalling, networks, and training unrelated to leadership.
    Keywords: Leadership; management; CEOs; non-cognitive skills; regression-discontinuity; program evaluation; conscription; military service; military officers; military leadership
    JEL: I20 J24 J31 M51
    Date: 2015–04–22
  8. By: François Rycx (Université libre de Bruxelles, SBS-EM (CEB and DULBEA), and IZA); Yves Saks (National Bank of Belgium, Research Department); Ilan Tojerow (Université libre de Bruxelles, SBS-EM (CEB and DULBEA), and IZA)
    Abstract: The labour market situation of low-educated people is particularly critical in most advanced economies, especially among youngsters and women. Policies aiming to increase their employability either try to foster their productivity and/or to decrease their wage cost. Yet, the evidence on the misalignment between education-induced productivity gains and corresponding wage cost differentials is surprisingly thin, inconclusive and subject to various econometric biases. We investigate this issue using rich Belgian linked employer-employee panel data for the period 1999-2010. Moreover, we provide first evidence on the moderating roles of age, gender and industry in the relationship between education, productivity and wage costs. Controlling for simultaneity issues, time-invariant workplace characteristics and dynamics in the adjustment process of dependent variables, findings support the existence of a ‘wage-compression effect’, i.e. a situation in which the distribution of wage costs is more compressed than the education-productivity profile. This effect, robust across industries, is found to disappear among older cohorts of workers and to be more pronounced among women than men. Overall, findings suggest that particular attention should be devoted to the productivity to wage cost ratio of low-educated workers, especially when they are young and female, but also to policies favouring gender equality in terms of remuneration and career advancement.
    Keywords: Education, labour costs, productivity, linked panel data
    JEL: C33 I21 J24 J31
    Date: 2015–04
  9. By: Heather Sarsons
    Abstract: Within academia, men are tenured at higher rates than women are in most quantitative fields, including economics. Researchers have attempted to identify the source of this disparity but find that nearly 30% of the gap remains unexplained even after controlling for family commitments and differences in productivity. Using data from academic economists' CVs, I test whether coauthored and solo-authored publications matter differently for tenure for men and women. While solo-authored papers send a clear signal about one's ability, coauthored papers are noisy in that they do not provide specific information about each contributor's skills. I find that men are tenured at roughly the same rate regardless of whether they coauthor or solo-author. Women, however, suffer a significant penalty when they coauthor. The results hold after controlling for the total number of papers published, quality of papers, field of study, tenure institution, tenure year, and the number of years it took an individual to go up for tenure. The result is most pronounced for women coauthoring with only men and is less pronounced the more women there are on a paper, suggesting that some gender bias is at play. 
    Date: 2015–05
  10. By: Mine Dikdere (Anadolu University)
    Abstract: The aim of this study is to project into pre-service ELT students perceptions about group work. The study is carried out by the researcher to find out prospective teachers beliefs’ about group work and to design more effective group work tasks and projects, and to help students work in groups more efficiently. The study has been conducted at the University of Anadolu, Education Faculty, English Language Teaching Department in Turkey. Thirty pre- service ELT teachers were asked to complete a five Likert scale questionnaire and also they were requested to answer open ended questions regarding their opinions towards participating in group work tasks and mini projects. By asking students to complete the questionnaire, quantitative date gathered. By asking them to answer open ended questions has led them provide written comments on group work, by this manner qualitative data gathered. Both quantitative and qualitative data has been analyzed. The results of the findings and implications will be discussed in the conference.
    Keywords: Perceptions, Pre-Service ELT Students, Group Work,

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