nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2021‒02‒01
eleven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Returns to Teamwork and Professional Networks: Evidence from Economic Research By Kevin Devereux
  2. The Gender Gap Among Top Business Executives By Wolfgang Keller; Teresa Molina; William W. Olney
  3. Tournament Incentives and Acquisition Performance By Iftekhar Hasan; Marco Navone; Thomas To; Eliza Wu
  4. Work process-related lead userness as an antecedent of innovative behavior and user innovation in organizations By Wu, Chia-huei; de Jong, Jeroen P.J.; Raasch, Christina; Poldervaart, Sabrine
  5. Accommodating Employees with Disabilities: The Role of Flexible Employment Schemes in Europe By Giovanis, Eleftherios; Ozdamar, Oznur
  6. The Career Evolution of the Sex Gap in Wages: Discrimination vs. Human Capital Investment By David Neumark; Giannina Vaccaro
  7. Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019) By Carlo Bellavite Pellegrini; Raul Caruso; Marco Di Domizio
  8. When Bonuses Backfire: Evidence from the Workplace By Jakob Alfitian; Dirk Sliwka; Timo Vogelsang
  9. Personnel Management and School Productivity: Evidence from India By Renata Lemos; Karthik Muralidharan; Daniela Scur
  10. Designing the Market for Job Vacancies: A Trust Experiment with Employment Centers Staff By Guglielmo Briscese; Andreas Leibbrandt
  11. Securing Forest Tenure Rights for Rural Development By World Bank

  1. By: Kevin Devereux
    Abstract: Teamwork is growing in developed economies, and workers in teams are increasingly compensated according to team output. Because parsing individual contributions to teamwork is difficult, I focus on scholarly economics research, which lists contributing authors. I use turnover to identify team value-added: an author's average output quality conditional on the value-added of coauthors. Linking the universe of scholarly economic research output to publicly available payroll records, I study the effect of value-added on salaries. Strikingly, coauthors' value-added has a greater effect on salaries than does own value-added, suggesting the value of professional networks dominates the effect of discounting contributions based on coauthor quality. Moreover, authors are compensated for the solo-authored output of their coauthors - which can not be reasonably attributed to them - demonstrating the value of professional networks.
    Keywords: Human capital; Teamwork; Productivity; Performance pay; Non-partite networks
    JEL: J16 J24 J33 J44
    Date: 2021–01
  2. By: Wolfgang Keller; Teresa Molina; William W. Olney
    Abstract: This paper examines gender differences among top business executives using a large executive-employer matched data set spanning the last quarter century. Female executives make up 6.2% of the sample and we find they exhibit more labor market churning – both higher entry and higher exit rates. Unconditionally, women earn 26% less than men, which decreases to 7.9% once executive characteristics, firm characteristics, and in particular job title are accounted for. The paper explores the extent to which firm-level temporal flexibility and corporate culture can explain these gender differences. Although we find that women tend to select into firms with temporal flexibility and a female-friendly corporate culture, there is no evidence that this sorting drives the gender pay gap. However, we do find evidence that corporate culture affects pay gaps within firms: the within-firm gender pay gap disappears entirely at female-friendly firms. Overall, while both corporate culture and flexibility affect the female share of employment, only corporate culture influences the gender pay gap.
    JEL: G30 J33 M14 M52
    Date: 2020–12
  3. By: Iftekhar Hasan (Fordham University); Marco Navone (University of Technology Sydney); Thomas To (University of Sydney); Eliza Wu (University of Sydney)
    Abstract: This paper examines the impact of promotion-based tournament incentives on corporate acquisition performance. Measuring tournament incentives as the compensation ratio between the CEO and other senior executives, we show that acquirers with greater tournament incentives experience lower announcement returns. Further analysis shows that the negative effect is driven by the risk-seeking behavior of senior executives induced by tournament incentives. Our results are robust to alternative identification strategies. Our evidence highlights that senior executives, in addition to the CEO, play an influential role in acquisition decisions.
    JEL: G30 G34 G41 J31 J33 J62
    Date: 2020–01–01
  4. By: Wu, Chia-huei; de Jong, Jeroen P.J.; Raasch, Christina; Poldervaart, Sabrine
    Abstract: Recent studies have identified that employees can be lead users of their employing firm's products, and valuable sources of product innovation, residing within organizational boundaries. We extend this line of thought by recognizing that employees can be lead users with regard to internal work processes. We define work process-related lead userness (WPLU) as the extent to which employees experience unsatisfied process-related needs ahead of others, and expect high benefits from solutions to these needs. We hypothesize a positive association with user innovation in the workplace, evidenced by the development of tools, equipment, materials and methods. We test a moderated mediation model delineating how and when WPLU is related to user innovation within organizational boundaries. Drawing on survey data from 104 employees and 13 supervisors in a forensic services organization, we find that WPLU contributes to user innovation via engagement in innovative work behavior, especially when employees have higher self-efficacy (perceived capability to overcome obstacles) and lower job autonomy (situational constraints on the job).
    Keywords: Work process-related lead userness,Self-efficacy,Job autonomy,Innovative work behavior,User innovation
    Date: 2020
  5. By: Giovanis, Eleftherios; Ozdamar, Oznur
    Abstract: Over the past 30 years, the workplace has witnessed significant changes. The fast growth in the use of information technology, changes in working hours and agreements radically changed the nature of job. One such change is the flexible employment schemes, which can provide alternatives for employees with disabilities, giving incentives to increase their productivity and their job satisfaction. The aim of this study is to examine the impact of those schemes on job satisfaction, job quality and absenteeism in this group of people. Furthermore, the objective is to explore the role of flexible employment to carers of disabled people. The empirical analysis relies on the European Working Conditions Survey over the period 2000-2015. The results show a positive impact on both disabled workers and carers’ job satisfaction and lower incidence of absenteeism at work. The policy recommendations and implications are further discussed.
    Keywords: Disability; European Working Conditions Survey; Flexible Employment Schemes; Flexi-Time; Health Conditions; Homework; Job Quality; Job Satisfaction; Teleworking; Wage Gap
    JEL: I14 I18 J22 J24 J28
    Date: 2019–08
  6. By: David Neumark; Giannina Vaccaro
    Abstract: Several studies find that there is little sex gap in wages at labor market entry, and that the sex gap in wages emerges (and grows) with time in the labor market. This evidence is consistent with (i) there is little or no sex discrimination in wages at labor market entry, and (ii) the emergence of the sex gap in wages with time in the labor market reflects differences between men and women in human capital investment (and other decisions), with women investing less early in their careers. Indeed, some economists explicitly interpret the evidence this way. We show that this interpretation ignores two fundamental implications of the human capital model, and that differences in investment can complicate the interpretation of both the starting sex gap in wages (or absence of a gap), and the differences in “returns” to experience. We then estimate stylized structural models of human capital investment and wage growth to identify the effects of discrimination and differences in human capital investment, and find evidence more consistent with discrimination reducing women’s wages at labor market entry.
    JEL: J16 J24 J71
    Date: 2020–12
  7. By: Carlo Bellavite Pellegrini (Dipartimento di Politica Economica, DISCE, & Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore); Raul Caruso (Dipartimento di Politica Economica, DISCE, & Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore - Catholic University ‘Our Lady of Good Counsel’, Tirana, European Center of Peace Science, Integration and Cooperation (CESPIC)); Marco Di Domizio (Dipartimento di Scienze Politiche, Università di Teramo - Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore)
    Abstract: This paper investigates the role of payroll and its distribution in determining the seasonal performances of Italian football teams playing in Serie A. The novelty of our investigation lies in the introduction of a new extent upon which to compute traditional measures of dispersion of payroll. We calculate the coefficient of variation on real wages, on corrected wages and on weighted wages, using players’ characteristics, so that the players’ own perceived differences are considered. This aids us in testing for the role of envy in determining the teams’ performances. We exploit a data set on Serie A from 2007 to 2019, exploring the wages of 1,509 players in different seasons, to produce 4,633 total observations. Since Serie A is an open league with seasonal relegations and promotions, we have unbalanced panel data derived from 220 observations of 35 teams over 11 seasons. We use the percentage of points achieved by teams and a measure associated to the position of the team (rank) at the end of the first round of each season as dependent variables, and then we employ panel data techniques to estimate fixed effect models. We find a statistically significant association of team performance with relative wages and with previous results, while the salary dispersion seems to have no effect on performances. Moreover, by restricting our sample to teams that have never been relegated, and so balancing the panel, our empirical investigation validates the cohesion theory, since more equally weighted wages are associated with better on-field performances.
    Keywords: relative wage, payroll distribution, sport performance, Italian Serie A
    JEL: Z20 Z22 Z21 L83 J49
    Date: 2021–01
  8. By: Jakob Alfitian; Dirk Sliwka; Timo Vogelsang
    Abstract: Monetary incentives are widely used to align employees' actions with the objectives of employers. We conduct a field experiment in a retail chain to evaluate whether an attendance bonus reduces employee absenteeism. The RCT assigned 346 apprentices for one year to either a monetary attendance bonus, a time-off bonus or a control group. We find that neither form of the bonus reduced absenteeism, but the monetary bonus increased absence by around 45%. This backfiring effect is persistent and driven by the most recently hired apprentices. Survey results reveal that the bonus shifted the perception of absenteeism as acceptable behavior.
    Date: 2021
  9. By: Renata Lemos; Karthik Muralidharan; Daniela Scur
    Abstract: This paper uses new data to study school management and productivity in India. We report four main results. First, management quality in public schools is low, and ~2σ below high-income countries with comparable data. Second, private schools have higher management quality, driven by much stronger people management. Third, people management quality is correlated with both independent measures of teaching practice, as well as school productivity measured by student value added. Fourth, private school teacher pay is positively correlated with teacher effectiveness, and better-managed private schools are more likely to retain more effective teachers. Neither pattern is seen in public schools.
    JEL: I25 M5 O1
    Date: 2021–01
  10. By: Guglielmo Briscese; Andreas Leibbrandt
    Abstract: Trust is a key factor for the well-functioning of labor markets. We experimentally study the behavior of staff at competing employment agencies who serve as matchmakers between labor supply and demand. Employment agents can collaborate by sharing vacancies and job seekers at the risk of the other agent approaching the employer to place their own job seekers. In a framed field experiment with actual employment agents we test mechanisms to increase collaboration. We find that financial incentives to collaborate increase vacancy sharing but also increase the likelihood of the other provider approaching the employer to place their own job seekers. We also find that social incentives can backfire and decrease vacancy sharing unless employment agents have a perfect reputation. However, social incentives have a positive effect in increasing cooperative behavior. We discuss the implications for the design of incentives to increase trust in competitive markets like that of employment agencies.
    Keywords: trust game, labor market, framed field experiment
    JEL: D90 C92 J48
    Date: 2020
  11. By: World Bank
    Keywords: Communities and Human Settlements - Indigenous Communities Communities and Human Settlements - Land Use and Policies Environment - Forests and Forestry Environment - Sustainable Land Management Social Development - Community Development and Empowerment
    Date: 2019–03

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