nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2019‒04‒29
seven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Keep Calm and Carry on: Gender Differences in Endurance By Sophie Clot; Marina Della Giusta; Amalia Di Girolamo
  2. Effective Leadership Selection in Complementary Teams By Hattori, Keisuke; Yamada, Mai
  3. Cyclical labor costs within jobs By Daniel Schaefer; Carl Singleton
  4. Vermont Agency of Transportation Employee Retention and Knowledge Management Study By McRae, Glenn; Vallett, Carol; Jewiss, Jennifer
  5. Blood Donations and Incentives: Evidence from a Field Experiment By Götte, Lorenz; Stutzer, Alois
  6. Discrimination in Hiring Based on Potential and Realized Fertility: Evidence from a Large-Scale Field Experiment By Becker, Sascha O.; Fernandes, Ana; Weichselbaumer, Doris
  7. Do high wage footballers play for high wage teams? By Rachel Scarfe; Carl Singleton; Paul Telemo

  1. By: Sophie Clot (Department of Economics, University of reading); Marina Della Giusta (Department of Economics, University of Reading); Amalia Di Girolamo (Department of Economics, University of Birmingham)
    Abstract: We investigate endurance, the capacity to maintain levels of performance through internal rather than external motivation in non-rewarding tasks and over sequences of tasks, through a lab experiment. The significant driver of performance is payment scheme order for women and payment schemes for men. Both women and men respond to social cues, through increased intrinsic motivation (ambition) for women and through extrinsic motivation (competition) for men. We suggest implications for reward schemes in the workplace and for selection into executive positions.
    Keywords: gender, intrinsic motivation, endurance, monetary incentives, biased beliefs
    JEL: J16 J71 M12 M51
    Date: 2019–04–01
  2. By: Hattori, Keisuke; Yamada, Mai
    Abstract: This paper considers effective leadership selection in a simple two-person team production model with heterogeneous agents. We demonstrate leadership success through synergy by showing that the existence of synergy makes effort complementary, implying that the leader devote more effort than the follower and that a team with a leader yields greater production than a team without a leader. We also show that, to elicit greater team production, a principal should appoint the agent with higher (lower) opportunity cost as the leader (follower). Even if the agents' opportunity costs are unobservable to the principal, the principal can select a better leader by proposing a larger position allowance for the leader. The results may explain why many organizations indeed favor leadership styles and why real-world leaders receive higher compensation than followers.
    Keywords: Team production; Leadership selection; Synergy effect; Complementary team
    JEL: D21 H41 M54
    Date: 2019–04–21
  3. By: Daniel Schaefer (School of Economics, University of Edinburgh); Carl Singleton (Department of Economics, University of Reading)
    Abstract: Using UK employer-employee panel data, we present novel facts on how wages and working hours respond to the business cycle within jobs. Firms reacted to the Great Recession with substantial real wage cuts and by recruiting more part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages of 2.8 percent for new hires and 2.6 percent for job stayers. Hiring hours worked were substantially procyclical, while job-stayer hours were acyclical. These results show that real wages are not rigid and that the labor costs of new hires are especially flexible.
    Keywords: Wage rigidity, Great Recession, Hours worked, Job-level analysis
    JEL: E24 E32 J30
    Date: 2019–04–07
  4. By: McRae, Glenn; Vallett, Carol; Jewiss, Jennifer
    Abstract: Employee retention is a critical issue for organizations of all types. Public sector groups such as the Vermont Agency of Transportation (VTrans) are no exception. Not only can the costs of recruitment, training, and orientation approach 100% of the annual salary for the position being filled, but work disruption and loss of organizational memory can impact organization performance. Vermont is not alone in facing a transportation workforce challenge. A recent publication from the National Cooperative Highway Research Program for state departments of transportation stresses the importance of knowledge management (KM) in these organizations and provides guidelines for enhancing retention and talent management, two key issues to an effective workforce. As the report acknowledges, the constraints of retirements, departing mid-career employees, and the changing workplace expectations of the millennial generation all play into an organization that may face a steady decline in resilience, unless a clear plan is in place to address retention and implement KM practices. Recognizing these critical issues, VTrans leaders embraced an applied research project intended to assess the state of both retention and KM at the agency and develop pilot projects to address both areas. This policy brief summarizes the findings of that study. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Employees, Knowledge management, Labor force, Strategic planning
    Date: 2019–01–01
  5. By: Götte, Lorenz; Stutzer, Alois
    Abstract: There is a longstanding concern that material incentives might undermine pro-social motivation, leading to a decrease in blood donations rather than an increase. This paper provides an empirical test of how material incentives affect blood donations in a large-scale field experiment spanning three months and involving more than 10,000 previous donors. We examine two types of rewards: a lottery ticket and a free cholesterol test. Lottery tickets significantly increase donations during the experiment, in particular among less motivated donors. Moreover, no reduction in donations is observed after the experiment. The free cholesterol test leads to no discernable impact on blood donations during and after the experiment.
    Keywords: blood donations; field experiment; material incentives; motivation crowding effect; pro-social behavior
    JEL: C93 D64 H41 I18
    Date: 2019–04
  6. By: Becker, Sascha O.; Fernandes, Ana; Weichselbaumer, Doris
    Abstract: Due to conventional gender norms, women are more likely to be in charge of childcare than men. From an employer's perspective, in their fertile age they are also at "risk" of pregnancy. Both factors potentially affect hiring practices of firms. We conduct a large-scale correspondence test in Germany, Switzerland, and Austria, sending out approx. 9,000 job applications, varying job candidate's personal characteristics such as marital status and age of children. We find evidence that, for part-time jobs, married women with older kids, who likely finished their childbearing cycle and have more projectable childcare chores than women with very young kids, are at a significant advantage vis-aÌ?-vis other groups of women. At the same time, married, but childless applicants, who have a higher likelihood to become pregnant, are at a disadvantage compared to single, but childless applicants to part-time jobs. Such effects are not present for full-time jobs, presumably, because by applying to these in contrast to part-time jobs, women signal that they have arranged for external childcare.
    Keywords: discrimination; Experimental economics; Fertility
    JEL: C93 J16 J71
    Date: 2019–04
  7. By: Rachel Scarfe (School of Economics, University of Edinburgh); Carl Singleton (Department of Economics, University of Reading); Paul Telemo (School of Economics, University of Edinburgh)
    Abstract: Intuition and sports knowledge suggest the best professional footballers play for the best teams, i.e. positive assortative matching between employer and employee on productivity. We use wage data for all players and teams in Major League Soccer between 2007 and 2017 and find that estimated player and team fixed wage effects are negatively correlated. This is a puzzle, which could be explained if players match to teams according to some compensating wage differential, for example from a desire to play for successful teams. The estimated wage premiums of teams are highly and negatively correlated with their success in the league (productivity).
    Keywords: firm-specific wages, AKM wage equation, matching, superstar pay
    JEL: J31 J49
    Date: 2019–04–07

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