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on Human Capital and Human Resource Management |
| By: | Dominik Hanglberger (Leuphana University L\"{u}neburg, Department of Economics, Research Institute on Professions); Joachim Merz (Leuphana University L\"{u}neburg, Department of Economics, Research Institute on Professions) |
| Abstract: | Empirical analyses using cross-sectional and panel data found significantly higher levels of job satisfaction for the self-employed than for employees. We argue that by neglecting anticipation and adaptation effects estimates in previous studies might be misleading. To test this, we specify models accounting for anticipation and adaptation to self-employment and general job changes. In contrast to recent literature we find no specific long-term effect of self-employment on job satisfaction. Accounting for anticipation and adaptation to job changes in general, which includes changes between employee jobs, reduces the effect of self-employment on job satisfaction by two-thirds. When controlling for anticipation and adaptation to job changes, we find a positive anticipation effect of self-employment and a positive effect of self-employment on job satisfaction in the first years of self-employment. After three years, adaptation eliminates the higher satisfaction of being self-employed. According to our results, previous studies overestimate the positive long-term effects of self-employment on job satisfaction. |
| Keywords: | job satisfaction, self-employment, hedonic treadmill model, adaptation, anticipation, fixed effects panel estimation, German Socio-Economic Panel (SOEP). |
| JEL: | J23 J28 J81 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2015-385&r=hrm |
| By: | Dylan Minor (Harvard Business School, Strategy Unit) |
| Abstract: | We explore the relationship between managerial incentives and misconduct using the setting of environmental harm. We find that high powered executive compensation can increase the odds of environmental law-breaking by 40-60% and the magnitude of environmental harm by over 100%. We document similar results for the setting of executive compensation and illegal financial accounting. Finally, we outline some managerial and policy implications to blunt these adverse incentive effects. |
| Keywords: | executive compensation, corporate governance, misconduct, environmental performance, accounting scandal, sustainable finance |
| JEL: | G01 G31 J33 K32 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:16-076&r=hrm |
| By: | Elena Shvartsman; Michael Beckmann |
| Abstract: | Work-related stress can lead to substantial health problems and thereby result in immense costs for establishments. Therefore, the question as to what extent establishments contribute to their employees’ stress levels is of great importance for firm performance. We investigate the relationship between personnel policies and work-related stress by considering a series of personnel policies that refer to a worker’s job reward, job demand, or job control situation. Using data from the German Socio-Economic Panel (SOEP) we find statistically significant associations of several policies and work-related stress. Most importantly, bad promotion opportunities and low working time control turn out to be associated with higher stress levels, while the opposite is true for an adequate salary. |
| Keywords: | job stress, personnel policy, working conditions |
| JEL: | I10 J81 M54 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp814&r=hrm |
| By: | Bertay, Ata (Tilburg University, Center For Economic Research); Uras, Burak (Tilburg University, Center For Economic Research) |
| Abstract: | This paper investigates the empirical relationship between financial structure and employee compensation in the banking industry. Using an international panel of banks, we show that well-capitalized banks pay higher wages to their employees. Our results are robust to changes in measurement, model specification and estimation methods. In order to account for the positive association between bank capital and employee compensation, we illustrate a stylized 3-period model and show that well-capitalized banks have incentives to pay higher wages to induce monitoring. Such monitoring rents of employees at capitalized banks are expected to be higher in societies with weak institutions. Further empirical analysis shows that the weaker is institutional quality of a country the stronger is the positive relationship between bank capital and wages - supporting our theoretical conjectures. High compensations in the financial industry received increasing criticism over the course of years following the great recession, whereas capitalization of banks has been encouraged. Our paper is the first to highlight that there is an empirically visible trade-off between the two and that institutions strongly interact with this relationship. |
| Keywords: | bank financial structure; wage determination; human capital |
| JEL: | G3 G21 J24 J31 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:7a3a275f-818c-40c7-9658-4a2923b1f935&r=hrm |
| By: | Michael Coelli; Domenico Tabasso |
| Abstract: | We investigate the labour market determinants and outcomes of adult participation in formal education (lifelong learning) in Australia, a country with high levels of adult education. Employing longitudinal data and fixed effects methods allows identification of effects on outcomes free of ability bias. Different trends in outcomes across groups are also allowed for. The impacts of adult education differ by gender and level of study, with small or zero labour market returns in many cases. Wage rates only increase for males undertaking university studies. For men, vocational education and training (VET) lead to higher job satisfaction and fewer weekly hours. For women, VET is linked to higher levels of satisfaction with employment opportunities and higher employment probabilities. |
| Keywords: | Adult education, lifelong learning, vocational studies, returns to education |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:gen:geneem:15112&r=hrm |
| By: | BARGAIN Olivier; DOORLEY Karina; VAN KERM Philippe |
| Abstract: | Since women are disproportionately in low paid work, they should benefit the most from minimum wage policies. We exploit the introduction of a national minimum wage (MW) in Ireland (in 2000) and the UK (in 1999) to check this prediction. Using panel survey data, we implement difference-in-difference estimation of a distribution regression model. We separate out "price" effects from "composition" effects. A large reduction of the gap at low wages is found for Ireland, with small spill-over effects further up in the distribution. There is hardly any effect in Britain, largely because of apparent non-compliance with the minimum wage legislation. |
| Keywords: | gender wage gap; minimum wage; distribution regression; UK; Ireland |
| JEL: | C14 J16 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2016-02&r=hrm |
| By: | Diana Zigraiova (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic; Czech National Bank) |
| Abstract: | The paper investigates how management board composition of banking institutions impacts their risk-taking behavior in the Czech Republic. More specifically, we examine the effect of average director age, proportion of female directors, non-national directors and proportion of their attained education on four different bank risk proxies. We build a unique data set comprising selected biographical information on management board members of the Czech financial institutions holding a banking license over 2001-2012 period. For the Czech banking sector overall, we find that higher proportions of non-national directors increase bank risk measured by profit volatility and decrease bank stability captured by Z-score. Similarly, a larger proportion of directors holding an MBA raises bank riskiness measured by profit volatility. On the other hand, the presence of directors holding a PhD on boards of large Czech banks enhances bank stability captured by Z-score. Moreover, we detect risk-enhancing implications of board size for the segments of building savings societies and small and midsized banks. As for average board tenure, its effect on risk-taking varies depending on bank characteristics. We find mixed evidence on the effect of female directors and do not find any strong effect of directors' age on risk in the Czech banking sector. |
| Keywords: | Management board composition, banks, risk-taking, panel data |
| JEL: | C33 G21 G34 J16 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2016_02&r=hrm |