nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2019‒01‒28
ten papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Are Professors Worth It? The Value-added and Costs of Tutorial Instructors By Feld, Jan; Salamanca, Nicolas; Zölitz, Ulf
  2. Firm Organization with Multiple Establishments By Anna Gumpert; Henrike Steimer; Manfred Antoni
  3. Peers and productivity: Evidence from an experimental factory By Reyniers, Diane
  4. Effects of Timing and Reference Frame of Feedback: Evidence from a Field Experiment By Fischer, Mira; Wagner, Valentin
  5. Work Hard or Play Hard? Degree Class, Student Leadership and Employment Opportunities By Baert, Stijn; Verhaest, Dieter
  6. Do female managers help to lower within-firm gender pay gaps? Public institutions vs. private enterprises By Iga Magda; Ewa Cukrowska-Torzewska
  7. Knowledge-intensive sectors and the role of collective performance-related pay By Stefania, Cardinaleschi; Mirella, Damiani; Fabrizio, Pompei
  8. Employer-Employee Profit-Sharing and the Incentives to Innovate when the Dismissal Regulation Matters By Filippo Belloc
  9. The Role of Work Engagement in Moderating the Impact of Job Characteristics, Perceived Organizational Support, and Self-Efficacy on Job Satisfaction By Sulistyo, Adhe Rachman; Suhartini, Suhartini
  10. Why Is Executive Compensation So High? A Model of Executive Compensation By Harashima, Taiji

  1. By: Feld, Jan (Victoria University of Wellington); Salamanca, Nicolas (Melbourne Institute of Applied Economic and Social Research); Zölitz, Ulf (University of Zurich)
    Abstract: A substantial share of university instruction happens in tutorial sessions—small group instruction given parallel to lectures. In this paper, we study whether instructors with a higher academic rank teach tutorials more effectively in a setting where students are randomly assigned to tutorial groups. We find this to be largely not the case. Academic rank is unrelated to students' current and future performance and only weakly positively related to students' course evaluations. Building on these results, we discuss different staffing scenarios that show that universities can substantially reduce costs by increasingly relying on lower-ranked instructors for tutorial teaching.
    Keywords: teacher value-added, higher education, instructor rank
    JEL: I21 I24 J24
    Date: 2018–11
  2. By: Anna Gumpert; Henrike Steimer; Manfred Antoni
    Abstract: How do geographic frictions affect firm organization? We show theoretically and empirically that geographic frictions increase the use of middle managers in multi-establishment firms. In our model, we assume that the time of the CEO of a firm is a resource of limited supply that is shared among the headquarters and the establishments. Geographic frictions increase the costs of accessing the CEO. Hiring middle managers at an establishment substitutes for CEO time that is reallocated over all establishments. In consequence, geographic frictions between the headquarters and one establishment affect the organization of all establishments of a firm. Our model is consistent with novel facts about multi-establishment firm organization that we document using administrative data from Germany. We exploit the opening of high-speed train routes to show that not only the establishments directly affected by faster travel times but also the other establishments of the firm adjust their organization. Our findings imply that local conditions propagate across space through firm organization.
    Keywords: firm organization, multi-establishment firm, knowledge hierarchy, geography
    JEL: D21 D22 D24
    Date: 2018
  3. By: Reyniers, Diane
    Abstract: Workplace peer effects are well documented, but why they arise remains a puzzle. This paper investigates the issue experimentally. Subjects are brought together to perform a real-effort task in a simulated factory environment. Varying the returns to effort by altering free-riding incentives or piece rates does not affect productivity but psychological factors do matter. Even though there are no technological complementarities, co-workers’ productivity levels are highly correlated. Three psychological mechanisms which can generate these correlations are examined: (a) workers’ desire to conform to a work norm, (b) inequity aversion and (c) concern about relative performance. Subjects’ enjoyment of the task depends on their relative performance and not on how close their productivity is to the norm or on the inequity of outcomes. This finding suggests that peer effects arise because of intrinsic competitiveness. Subjects hate to do worse than their co-workers and love to do better.
    Keywords: Peer Effects, Job satisfaction, Relative Performance Concerns, Social Norms
    JEL: C9 C91 C92 D23 J24
    Date: 2018–11
  4. By: Fischer, Mira; Wagner, Valentin (University of Mainz)
    Abstract: Information about past performance has been found to sometimes improve and sometimes worsen subsequent performance. Two factors may help to explain this puzzle: which aspect of one's past performance the information refers to and when it is revealed. In a field experiment in secondary schools, students received information about their absolute rank in the last math exam (level feedback), their change in ranks between the second-last and the last math exam (change feedback), or no feedback. Feedback was given either 1-3 days (early) or immediately (late) before the final math exam of the semester. Both level feedback and change feedback significantly improve students' grades in the final exam when given early and tend to worsen them when given late. The largest effects are found for negative change feedback and are concentrated on male students, who adjust their ability beliefs downwards in response to feedback.
    Keywords: timing of feedback, change and level feedback, motivation, field experiment
    JEL: I21 M54 D91
    Date: 2018–11
  5. By: Baert, Stijn (Ghent University); Verhaest, Dieter (KU Leuven)
    Abstract: We investigated the impact on first hiring outcomes of two main curriculum vitae (CV) characteristics by which graduates with a tertiary education degree distinguish themselves from their peers: degree class and extra-curricular activities. These characteristics were randomly assigned to 2,800 fictitious job applications that were sent to real vacancies in Belgium. Academic performance and extra-curricular engagement both enhanced job interview rates by about 7%. The effect of a higher degree class was driven by female (versus male) candidates and candidates with a master's (versus a bachelor's) degree. We did not find evidence for these CV characteristics to be substitutes or to reinforce each other's effect.
    Keywords: degree class, extra-curricular activities, hiring, field experiment
    JEL: J23 J24 I23 C93
    Date: 2018–11
  6. By: Iga Magda (Institute for Structural Research (IBS), Warsaw School of Economics); Ewa Cukrowska-Torzewska (Institute for Structural Research (IBS); University of Warsaw, Faculty of Economic Sciences)
    Abstract: We analyze the link between the presence of female managers and the size of the firm-level gender pay gap, looking separately at the private and public sector. Using a large linked employer-employee dataset for Poland and a non-parametric and parametric decompositions, we find that higher presence of female managers is associated with more pay advantage towards women in selected types of public sector units: the ones in which remunerations of women and men are already equal, and a large share of the workforce is tertiary-educated. The effects are, however, relatively small in size. In private establishments, lower gender wage inequality is associated with higher shares of female workers, but not female managers.
    Keywords: gender wage gap, wage inequalities, public sector, female managers, Ñopo decomposition, Oaxaca- Blinder decomposition
    JEL: J16 J31 J45
    Date: 2019
  7. By: Stefania, Cardinaleschi; Mirella, Damiani; Fabrizio, Pompei
    Abstract: The main contribution of this study is showing that the efficiency effects of collective performance-related pay (CPRP) are more pronounced in knowledge-intensive service sectors (KISs) than in other sectors. The hypothesis is that human resource practices such as CPRP are particularly useful for enhancing firm performance when innovation-supporting knowledge is distributed among multiple skill sets and employee creativity, knowledge creation and knowledge sharing are key success factors for the firm. Cross-sectional estimates obtained for a national sample of approximately 3,800 Italian firms confirm this prediction. These results are validated by adopting a treatment effect approach to solve the self-selection problem.
    Keywords: Collective bargaining, performance-related pay, firm performance
    JEL: D23 J33
    Date: 2018–12–28
  8. By: Filippo Belloc
    Abstract: We develop a simple incomplete-contract model of the relationship between worker participation to revenue sharing and innovation performance of firms, under firing regimes with different stringency. Stronger worker participation to profits is shown to increase innovation probability when employer-side hold-up is prevented by stringent layoff regulation and the human capital matters signicantly. Vice-versa, under a strict layoff regulation, when the financial capital is relatively more important, the effects of worker participation devices may be reduced or inverted. Our results may help in understanding why there is no one-size-fits-all optimal strategy in the design of worker financial participation mechanisms for knowledge-intensive productions
    Keywords: prot-sharing, dismissal regulation, hold-up, innovation.
    JEL: J54 K31 O31
    Date: 2019–01
  9. By: Sulistyo, Adhe Rachman; Suhartini, Suhartini
    Abstract: This research is aimed at figuring out the extent to which job characteristics, perceived organizational support and self-efficacy affect job satisfaction with work engagement serving as an intervening variable. The respondents of this research were 101 employees of the Centre for the Development and Empowerment of Educators and Educational Personnel (P4TK) of Art and Culture of Yogyakarta. The data were collected using questionnaires. The data were analyzed quantitatively and qualitatively. The quantitative analysis techniques used in this research were t-test, F-test, multiple regression analysis and path analysis. The research yielded some results. Firstly, job characteristics and self-efficacy had a significant effect on work engagement and perceived organizational support did not have any significant effect on work engagement, but together it had a significant effect on work engagement. Secondly, job characteristics and perceived organizational support had a significant effect on job satisfaction, and self-efficacy did not have any significant effect on job satisfaction, but together it had a significant effect on job satisfaction. Thirdly, work engagement had a significant effect on job satisfaction. Fourthly, job characteristics and perceived organizational support had a greater effect on job satisfaction directly, and self-efficacy had a greater effect on job satisfaction indirectly through work engagement. The results of this research can be used as a reference for P4TK to improve employees' job satisfaction, and ultimately, support the achievement of organizational goals.
    Keywords: work engagement; job characteristics; perceived organizational support; self efficacy; job satisfaction
    JEL: J28 L3
    Date: 2019–01–05
  10. By: Harashima, Taiji
    Abstract: In this paper, I examine the mechanism of extremely high executive compensation based on the concept of ranking value and preference, and show that the origin of such extremely high compensation is economic rents. Ranking value and preference provide monopoly powers, profits, and rents to producers and generate “superstars” who are not only absolutely but, more importantly, are relatively superior to other executives. Furthermore, ranking value and preference enable a firm’s product to be differentiated and provide the firm monopoly rents (profits). Executives who contribute to differentiating the product can obtain economic rents and be compensated similar to superstars on professional sports teams. The monopoly rents owing to ranking values can be socially justified, but they may not be socially justifiable if they are solely distributed to executives.
    Keywords: Economic rent; Executive compensation; Monopoly profits; Product differentiation; Ranking preference; Ranking value; Superstar
    JEL: D11 D42 J30 M12 M52
    Date: 2019–01–08

This nep-hrm issue is ©2019 by Patrick Kampkötter. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.