|
on Human Capital and Human Resource Management |
| By: | M'Hand Fares (AGIR - AGrosystèmes et développement terrItoRial - Institut national de la recherche agronomique (INRA)); Luis Orozco (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Institut d'Études Politiques [IEP] - Toulouse - UT1 - Université Toulouse 1 Capitole - UTM - Université Toulouse 2 Le Mirail - École Nationale de Formation Agronomique - ENFA) |
| Abstract: | This article analyzes the contractual relationship between a wine cooperative (winery) and its member (growers). This relationship is plagued by moral hazard and adverse selection problems in grape quality. Indeed, growers can be opportunistic since the cooperative is unable to observe: (i) their effort level due to imperfect monitoring technology; (ii) their productive abilities (types) due to adverse selection. Because the growers' vineyard practices and efforts are one of the main determinants of grape quality, the cooperative implements an incentive compensation system to induce growers to provide the maximum effort towards quality. This compensation scheme is similar to that in tournaments (Lazear and Rosen, 1981; Green and Stokey, 1983; Knoeber, 1989; Prendergast, 1999). In our case, the cooperative promotes competition between growers by offering a promotion, while, at the same time, organizing the contest by creating homogenous groups of growers using a menu of contracts and monitoring through regular visits to the vineyard. Using a database of 1219 contracts, we test the effect of: (i) the cooperative's tournament compensation scheme; (ii) the menu of contracts and monitoring mechanism. The results of our econometric estimations provide some confirmation of both effects. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01093245&r=all |
| By: | Dyballa, Katharina; Kraft, Kornelius |
| Abstract: | Contrary to previous literature we hypothesize that interests of labor may well - like that of shareholders - aim at securing the long-run survival of the firm. Consequently, employee representatives on the supervisory board could well have an interest in increasing incentive-based compensation to avoid excessive risk taking and short-run orientated decisions. We compile unique panel data on executive compensation over the periods 2006 to 2011 for 405 listed companies and use a Hausman-Taylor approach to estimate the effect of codetermination on the compensation design. Finally, codetermination has a significantly positive effect on performance-based components of compensation, which supports our hypothesis. |
| Keywords: | Executive Compensation,Codetermination,Principal-Agent Theory,Corporate Governance,Hausman-Taylor |
| JEL: | J52 L20 G32 M12 C33 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:15053&r=all |
| By: | Bakke, Tor-Erik (University of OK); Mahmudi, Hamed (University of OK); Fernando, Chitru S. (University of OK); Salas, Jesus M. (Lehigh University) |
| Abstract: | This study provides strong evidence of a causal effect of risk-taking incentives provided by option compensation on corporate risk management. We utilize the passage of FAS 123R, which required firms to expense options, to investigate how CEO option compensation affects the hedging behavior of oil and gas firms. Firms that did not expense options before FAS 123R significantly reduced option pay, which resulted in a large increase in their hedging intensity compared to firms that did not use options or expensed their options voluntarily prior to FAS 123R. |
| JEL: | G30 G32 G38 G39 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:upafin:15-08&r=all |
| By: | Lundborg, Petter (Lund University); Majlesi, Kaveh (Lund University) |
| Abstract: | Studies on the intergenerational transmission of human capital usually assume a one-way spillover from parents to children. But what if children also affect their parents' human capital? Using exogenous variation in education, arising from a Swedish compulsory schooling reform in the 1950s and 1960s, we address this question by studying the causal effect of children's schooling on their parents' longevity. We first replicate previous findings of a positive and significant cross-sectional relationship between children's education and their parents' longevity. Our causal estimates tell a different story; children's schooling has no significant effect on parents' survival. These results hold when we examine separate causes of death and when we restrict the sample to low-income and low-educated parents. |
| Keywords: | human capital, mortality, education |
| JEL: | I10 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9280&r=all |
| By: | Alex Bryson; John Forth; Lucy Stokes |
| Abstract: | Alex Bryson and colleagues find that UK employees' job satisfaction is positively associated with workplace financial performance. |
| Keywords: | Subjective well being, job satisfaction, job-related affect, workplace performance |
| JEL: | J28 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:445&r=all |
| By: | David J. Deming |
| Abstract: | The slow growth of high-paying jobs in the U.S. since 2000 and rapid advances in computer technology have sparked fears that human labor will eventually be rendered obsolete. Yet while computers perform cognitive tasks of rapidly increasing complexity, simple human interaction has proven difficult to automate. In this paper, I show that the labor market increasingly rewards social skills. Since 1980, jobs with high social skill requirements have experienced greater relative growth throughout the wage distribution. Moreover, employment and wage growth has been strongest in jobs that require high levels of both cognitive skill and social skill. To understand these patterns, I develop a model of team production where workers “trade tasks” to exploit their comparative advantage. In the model, social skills reduce coordination costs, allowing workers to specialize and trade more efficiently. The model generates predictions about sorting and the relative returns to skill across occupations, which I test and confirm using data from the NLSY79. The female advantage in social skills may have played some role in the narrowing of gender gaps in labor market outcomes since 1980. |
| JEL: | J24 J31 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21473&r=all |
| By: | Seymen, Ahmet Ferda |
| Abstract: | Qualitative research is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behavior (i.e., why people think or do certain things), we quite often talk of ‘Motivation Research’, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. Other techniques of such research are word association tests, sentence completion tests, story completion tests and similar other projective techniques. Attitude or opinion research i.e., research designed to find out how people feel or what they think about a particular subject or institution is also qualitative research. Qualitative research is especially important in the behavioral sciences where the aim is to discover the underlying motives of human behavior. Through such research we can analyze the various factors which motivate people to behave in a particular manner or which make people like or dislike a particular thing. In this study; main issues identified by employees were: That the functions of the human resources department was none existent within the company. Recruitment, Reward and Reprimand, Career Development, Performance Evaluation System, Lack of proper orientation, on the job trainings and self-improvement courses needed to be developed and implemented in order to raise the declined motivation of employees and the deteriorating relations between the two sides. |
| Keywords: | Employee Opinion, Business Hotel, Hotel Employee |
| JEL: | J01 J08 |
| Date: | 2015–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65909&r=all |
| By: | Phan, Diep (Beloit College); Coxhead, Ian (University of WI) |
| Abstract: | Education and economic growth are highly complementary, especially in middle-income economies. In this chapter we review the performance and prospects for education in developing Southeast Asian countries. The prior Northeast Asian experience underlines the importance of investing in human capital ahead of growth in demand. Other than in Singapore, Southeast Asia's record is much less bright in this regard. In most of the region, shortages of qualified skilled workers threaten to impede transitions through middle income. The one exception is the Philippines, a remittance-oriented economy where growth in the supply of skills has long exceeded expansion of domestic demand. We begin with a brief summary of basic data on educational achievement, public funding and access. We then present more detailed discussions on two contemporary issues: the influence of rapidly changing economic conditions on returns to educational investments, especially as the region's economy becomes more closely integrated in Asian and global production systems; and the potential impediments to human capital accumulation posed by limited demand for education. Demand is constrained by opportunity cost, and in some cases by distortions in the market for capital, a factor complementary with skills. We conclude with a brief assessment of the regional outlook for human capital growth and implications for economic development and policy. |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:wisagr:574&r=all |
| By: | Bublitz, Elisabeth; Nielsen, Kristian; Noseleit, Florian; Timmermans, Bram |
| Abstract: | Contrary to employees, there is no clear evidence that entrepreneurs' education positively effects income. In this study we propose that entrepreneurs can benefit from their education as a signal during the recruitment process of employees. This process is then assumed to follow a matching of equals among equals. Using rich data from Germany and Denmark we fully confirm a matching on qualification levels for high-skilled employees, partially for medium-skilled employees but not for low-skilled employees, suggesting that as skill levels of employees decrease it becomes equally probable that they work for different founders. Founder qualification is the most reliable predictor of recruitment choices over time. Our findings are robust to numerous control variables as well as across industries and firm age. |
| Keywords: | returns to education,labor demand of small firms,human capital,matching,signaling |
| JEL: | J23 J24 J21 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwwirp:166&r=all |
| By: | Klaffke, Martin |
| Abstract: | Germany is undergoing a dramatic demographic change that requires its organizations to make workforce talent of all ages a strategic priority. Practitioners in Germany focus largely on Generation Y employees, because this young employee cohort expresses new and different work-related values. However, diverse attitudes and behaviours of employees of different age groups can potenÂtially lead to conflict and have an overall negative impact on orgaÂnizational performance. Given US labour legislation and media pressure, managing workforce diversity has been on the agenda of U.S. organizations for many years. Consequently, it can be assumed that there are areas in which German organizations can learn best practices from the U.S. experience. Although data collected from Silicon Valley organizations suggest that taking specific action for managing the multi-generational workforce is currently not a pressing issue in the tech industry, setting up innovative workplaces is an action field in which Germany can learn from its U.S. counterparts. |
| Keywords: | Business, Social and Behavioral Sciences, Germany, Demographics, Diversity, Generation Management, Silicon Valley |
| Date: | 2015–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:bineur:qt1x9831v3&r=all |
| By: | Nikos Nikiforakis (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS - UCBL - Université Claude Bernard Lyon 1 - UL2 - Université Lumière - Lyon 2 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - ENS Lyon - École normale supérieure - Lyon); Jörg Oechssler (Faculty of Economics and Social Sciences, University of Heidelberg - Universität Heidelberg (GERMANY)); Anwar Shah (Quaid-i-Azam University Islamabad) |
| Abstract: | The power to coerce workers is important for the e¢ cient operation of hierarchically structured organizations. However, this power can also be used by managers to exploit their subordinates for their own benefit. We examine the relationship between the power to coerce and exploitation in a laboratory experiment where a senior and a junior player interact repeatedly for a finite number of periods. We find that senior players try repeatedly to use their power to exploit junior workers. These attempts are successful only when junior workers have incomplete information about how their e¤ort impacts on the earnings of senior players, but not when they have complete information. Evidence from an incentive-compatible questionnaire indicates that the social acceptability of exploitation depends on whether the junior worker can detect she is being exploited. We also show how a history of exploitation affects future interactions. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01098753&r=all |
| By: | Peter van der Zwan (Erasmus University Rotterdam, the Netherlands); Jolanda Hessels (Erasmus University Rotterdam, the Netherlands); Cornelius A. Rietveld (Erasmus University Rotterdam, the Netherlands) |
| Abstract: | We investigate how a transition from paid employment to self-employment in the labor market influences life satisfaction. Furthermore, we consider the dynamics of work and leisure satisfaction because the balance between work and leisure is an important element of life satisfaction. Fixed-effects regressions using German Socio-Economic Panel data (1984-2012) reveal that switching to self-employment benefits life and work satisfaction. The effects on life satisfaction are weak and temporary, but they are pronounced and relatively persistent for work satisfaction. However, the gain in work satisfaction is outweighed by a decrease in leisure satisfaction, thus placing work-life balance under severe pressure. |
| Keywords: | Self-employment; Entrepreneurship; Life satisfaction; Work satisfaction; Work-life balance |
| JEL: | I31 J24 J28 J31 L26 |
| Date: | 2015–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20150099&r=all |
| By: | Chernenko, Sergey (OH State University) |
| Abstract: | I study the incentives and performance of CDO collateral managers, asset management firms responsible for the selection of collateral in ABS CDOs that figured prominently in the 2007-2008 financial crisis. Specialized asset managers with few reputational concerns invest in riskier collateral and gain market share at the expense of more diversified investment managers. Controlling for observable deal characteristics, the IRR of specialized managers' CDOs is 5.8% lower. The results cannot be explained by greater optimism or lower expertise of specialized managers. Deals of specialized managers have smaller equity tranches and invest in higher yielding collateral securities from more recent vintages. This collateral suffers significantly larger losses, even controlling for at-issuance rating and spread. The results point to greater risk taking incentives as one downside of specialization in asset management. |
| JEL: | G01 G23 G32 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2015-12&r=all |
| By: | Leonardi, Marco; Pellizzari, Michele; Tabasso, Domenico |
| Abstract: | We study the distributional effect of a wage indexation mechanism - the \textit{Scala Mobile} (SM) - that heavily compressed the distribution of Italian wages during the 1970s and 1980s. The SM imposed large real wage increases at the bottom of the distribution and was essentially irrelevant for high-wage workers. We document that this mechanism triggered a strong redistribution within the firm. Skilled workers received lower wage adjustments when employed at firms with many unskilled workers and they tended to move towards more skill-intensive firms. We rationalize these findings with a simplified model of intra-firm bargaining with on-the-job search. |
| Keywords: | inequality; intra-firm bargaining; labor market institutions; wage indexation |
| JEL: | J01 J31 J50 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10770&r=all |
| By: | Mohamed Belhaj (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université); Frédéric Deroïan (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université) |
| Abstract: | A principal offers bilateral contracts to a set of agents organized in a network conveying synergies, in a context where agents' efforts are observable and where the principal's objective increases with the sum of efforts. We characterize optimal contracts as a function of agents' positions on the network. The analysis shows that contract enforceability is key to understand optimality. We also examine linear contracting and we analyze the situation where the principal is constrained to contract with a single agent on the network. Last, we extend this setting to network entry. |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01102403&r=all |
| By: | Matthew Gibson (Williams College); Jeffrey Shrader (University of California-San Diego) |
| Abstract: | We investigate the productivity effects of the single largest use of time - sleep. Using time use diaries from the United States, we demonstrate that later sunset time reduces worker sleep and wages. Sunset time one hour later decreases short-run wages by 0.5% and long-run wages by 4.5%. After investigating this relationship and ruling out alternative hypotheses, we implement an instrumental variables specification that provides the first causal estimates of the impact of sleep on wages. A one-hour increase in average weekly sleep increases wages by 1.5% in the short run and by 4.9% in the long run. |
| JEL: | J22 J24 J31 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2015-17&r=all |