nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2019‒12‒09
nine papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Learning from Praise: Evidence from a Field Experiment with Teachers By Maria Cotofan
  2. Job Satisfaction and Coworker Pay in Canadian Firms By Javdani, Mohsen; Krauth, Brian
  4. Time dimensions of job autonomy in R&D work By Ruubel, Raul
  5. Gender Differences in the Effect of Employee-Manager Friendships on Salary Dynamics in CPA Firms By Tobol, Yossef; Bar-El, Ronen; Arbel, Yuval; Azar, Ofer H.
  7. The Gender Gap in Wages over the Life Course: Evidence from a British Cohort Born in 1958 By Joshi, Heather; Bryson, Alex; Wilkinson, David; Ward, Kelly
  8. History Dependence, Cohort Attachment, and Job Referrals in Networks of Close Relationships By Ayal Chen-Zion; James E. Rauch
  9. Visible Minorities and Job Mobility: Evidence from a Workplace Panel Survey By Javdani, Mohsen

  1. By: Maria Cotofan (Erasmus University Rotterdam)
    Abstract: Non-monetary incentives such as praise are common-place, but their effects on workers performing cognitively-complex tasks remain largely unknown. I expand the teacher incentive literature through a field experiment measuring how repeated public praise for the best teachers impacts teacher performance. Testing different mechanisms, I argue that public praise sends a comparative message, with teachers being motivated when praised and becoming discouraged when not praised. In treated schools, teachers who are unexpectedly praised perform better and teachers who are not perform worse. The positive effect of unexpected praise is persistent and reflects real student learning. The negative effect disappears over time.
    Keywords: public praise, teacher incentives, field experiment
    JEL: M52 C93 I21 J3 J45 J53
    Date: 2019–12–01
  2. By: Javdani, Mohsen (University of British Columbia, Okanagan); Krauth, Brian (Simon Fraser University)
    Abstract: One reason to be concerned about income inequality is the idea that people not only care about their own absolute income, but also their income relative to various reference groups (e.g. co-workers, friends, neighbors, relatives, etc.). We use Canadian linked employer-employee data to estimate the casual effect of co-worker pay on a worker's reported job and pay satisfaction. Since worker satisfaction can affect the worker's productivity, organizational commitment, turnover, creativity and innovation, as well as the firm's productivity and profitability, this is an issue that requires more attention and careful examination. In models that control for a rich set of workplace characteristics, we find that coworker pay has a large positive and significant effect on both pay and job satisfaction. In our preferred models with establishment-level fixed effects, the effect of coworker pay on pay satisfaction is half as large, and the effect on job satisfaction completely disappears, suggesting that part (all) of what previous studies attribute to the effect of coworker pay on worker pay (job) satisfaction is driven by unobserved heterogeneity across firms or establishments. Our results also suggest that the effect of coworker pay on worker satisfaction is much stronger for workers who leave their job during the following year. Finally, we find that while coworker pay has a positive effect on pay satisfaction among Canadian-born whites, it has a negative effect among immigrants and Canadian-born visible minorities.
    Keywords: income comparison, job satisfaction, pay satisfaction, inequality, coworker pay
    JEL: D31 D63 I30 J28 J31
    Date: 2019–10
  3. By: , Ridwan; Gani, H. Mursalim Umar; Gani, H. Achmad; Hamid, H. Sunusi; Jamali, Hisnol
    Abstract: This research aims to examine and analyze the effect of human resource management practices (i.e. leadership styles, employee commitment, work motivation, and work climate) on employee job satisfaction and employee performance. This study used primary data obtained through a survey to 221 employees as a sample. The result of Structural Equation Modelling (SEM) analysis shows that empirically the leadership style, employee commitment, work motivation, and work climate have positive and significant impact on job satisfaction. Leadership style, employee commitment, work motivation, and work climate, either directly or indirectly have a positive and significant effect on employee performance through job satisfaction as variable intervening. Job satisfaction has a direct positive and significant effect on employee performance. The direct effect of leadership styles, employee commitment, motivation and work climate on employee performance is positive, which means that when the exogenous variables improved the job satisfaction and employee performance will increase. The indirect effect of exogenous variable on employee performance through job satisfaction is positive. The total effect which is the sum of the direct and indirect effects through job satisfaction obtained positive value, which means there is effect of direct effect and indirect effect of exogenous variable on employee performance through job satisfaction.
    Date: 2018–08–29
  4. By: Ruubel, Raul
    Abstract: This paper seeks to identify what type of employees are more likely to be satisfied with flexible working time and what type with fixed time, and what drives some other time related aspects of job autonomy, using multivariate ordered probit modelling on data from an original repeated survey of Estonian creative R&D employees. The results indicate that high creative intensity of work is a strong predictor of an R&D employee being satisfied with flexible rather than fixed working schedules. Women and employees with less creative and more administrative tasks perceive more constraints on the timing of their work due to jealousy of colleagues and they are more likely to feel that their creativity is adversely affected by their working time arrangements. Employees with flexibility in both the timing and place of doing their work are significantly less likely to perceive working time related constraints on their creativity or jealousy of their colleagues as a restraint on their working time choices than are those with a fixed working time and place. The higher the salary level of the employee, the more likely they are to feel that the nature of their work constrains their working time choices. The study helps in understanding and alleviating restrictions on time-wise job autonomy that may have considerable adverse effects on how efficiently the intellectual capital of R&D employees is used.
    Date: 2018–09–12
  5. By: Tobol, Yossef (Jerusalem College of Technology (JTC)); Bar-El, Ronen (Open University of Israel); Arbel, Yuval (School of Business, Carmel Academic Center); Azar, Ofer H. (Ben Gurion University)
    Abstract: We study the effect of employee-manager relations on salary increases. We use data obtained from a longitudinal survey, carried out among auditing team members in leading Israeli CPA firms (which are subsidiaries of American firms). Our main findings suggest that the degree of friendship with the team manager is positively correlated with the rate of the salary increase, particularly among female workers whose team manager is also a female. We also find that upon being hired to the job, male workers gain a higher return to experience compared with female workers.
    Keywords: CPA, friendship, gender salary gap, wage determination
    JEL: C33 D03 J31 J71
    Date: 2019–10
  6. By: Abdurrahman, Ahmad Yani; Basalamah, H. Salim; Mallongi, H. Syahrir; Serang, Serlin; Jamali, Hisnol
    Abstract: This study aims to examine and analyze the influence of discipline, motivation, local wisdom, and work environment on job satisfaction and employee performance. This study uses primary data through the obtained through a survey of 257 employees at the Organization of the Regional Revenue Management Area of Ternate. The result of Structural Equation Model analysis using AMOS 18 provides proof that Discipline, motivation, local wisdom, and work environment have positive and significant effect to job satisfaction. Other factors that are motivation, local wisdom, work environment and job satisfaction have positive and significant effect to employee performance, different condition for work discipline is not significant. In indirect effect test found Discipline, motivation, local wisdom, and work environment have positive and significant effect to employee performance through job satisfaction as variable intervening. The recommendation of this research is suggested that the motivation, local wisdom, and work environment that gives significant influence is maintained, while the discipline that has no significant affect on employee performance needs to be improved maximally in order to increase job satisfaction and employee performance in the future.
    Date: 2018–08–29
  7. By: Joshi, Heather (University College London); Bryson, Alex (University College London); Wilkinson, David (University College London); Ward, Kelly (University College London)
    Abstract: Using data tracking all those born in a single week in Great Britain in 1958 through to their mid-50s we observe an inverse U-shaped gender wage gap (GWG) over their life- course: an initial gap in early adulthood widened substantially during childrearing years, affecting earnings in full-time and part-time jobs. In our descriptive approach, education related differences are minor. Gender differences in work experience are the biggest contributor to that part of the gender wage gap we can explain in our models. Family formation primarily affects the GWG through its impact on work experience. Family composition is similar for male and female workers but attracts opposite wage premia. Not all of the GWG however is linked to family formation. There was a sizeable GWG on labour market entry and there are some otherwise unexplained gaps between the pay of men and women who do not become parents.
    Keywords: family formation, gender wage gap, work experience, life course, NCDS birth cohort
    JEL: J16 J31
    Date: 2019–10
  8. By: Ayal Chen-Zion; James E. Rauch
    Abstract: We model network formation in a firm. Agents learn about the quality of their working relationships with each other. Their good relationships become their networks. Accumulating relationships becomes increasingly costly, however. Over time agents become less open to forming relationships with others unknown to them, leading their networks to be front-loaded with agents they met near the beginning of their careers. The interaction of this dynamic with turnover yields predictions about the time pattern of history dependence in an agent’s network as a function of his tenure. Mutual openness of newly arrived agents in a firm also leads to the cross-section prediction of “cohort attachment,” a tendency for members of an agent’s hiring cohort to be disproportionately represented in his network. When members of a network formed within a firm are subsequently split across many firms, the desire to renew their successful working relationships can lead to job referrals. Former co-workers who provide referrals will be drawn disproportionately from the referred workers’ hiring cohorts at their previous employers.
    Keywords: networks, history dependence, job referrals
    JEL: D85 J63 J64
    Date: 2019
  9. By: Javdani, Mohsen (University of British Columbia, Okanagan)
    Abstract: In this study we use Canadian linked employer-employee data to examine whether visible minority Canadian-borns experience any differences in their inter-firm and intra-firm job mobility, as well as wage returns associated with them, compared to white Canadian-borns. We also examine the extent to which any differences in intra-firm mobility operates within firms versus between firms. Our results suggest that both male and female visible minority Canadian-borns experience substantial differences in probability of promotion, number of times promoted, and wage returns to promotions, compared to their white peers. For male visible minorities, these differences with their white peers mainly operate within firms. For female visible minorities however, almost half of the gap is driven by their crowding into firms with fewer promotion opportunities. In terms of inter-firm mobility, while male visible minorities are similarly likely to move between firms compared to their white peers, female visible minorities are less likely to change employer. Both groups however receive similar wage returns to their inter-firm mobility. This seems to suggest that differences in intra-firm mobility do not translate into visible minorities moving more frequently between firms, or receiving higher returns to their inter-firm mobility. We find no evidence that these differences could be driven by differences in hierarchical level, career path, or immigration background. Labour market discrimination however remains a potential contributor to these differences, which is also consistent with some of our findings. Our results also suggest that for female visible minorities, different family responsibilities driven potentially by different cultural norms or family dynamics could also contribute to these differences.
    Keywords: promotions, inter-firm mobility, job mobility, visible minority, ethnic minority, discrimination
    JEL: J15 J62 J71 M51
    Date: 2019–10

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