nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2021‒09‒20
eight papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Less information, more comparison, and better performance: evidence from a field experiment By Eyring, Henry; Ferguson, Patrick J.; Koppers, Sebastian
  2. The Role of the Workplace in Ethnic Wage Differentials By Forth, John; Theodoropoulos, Nikolaos; Bryson, Alex
  3. Developing Content for the Management and Organizational Practices Survey-Hospitals (MOPS-HP) By Alice Zawacki; Scott Ohlmacher; Struther Van Horn
  4. The Role Of CEO Characteristics In Firm Innovative Performance: A Comparative Analysis Of EU Countries And Russia By Fernanda Ricotta; Victoria Golikova; Boris Kuznetsov
  5. Footsie, Yeah! Share Prices and Worker Wellbeing By Alex Bryson; Andrew E. Clark; Colin P. Green
  6. Complementarity in Employee Participation Systems: International Evidence By Burdin, Gabriel; Kato, Takao
  7. Sorting with Team Formation By Job Boerma; Aleh Tsyvinski; Alexander P. Zimin
  8. Robots and Labor Regulation: A Cross-Country/Cross-Industry Analysis By Traverso, Silvio; Vatiero, Massimiliano; Zaninotto, Enrico

  1. By: Eyring, Henry; Ferguson, Patrick J.; Koppers, Sebastian
    Abstract: We use a field experiment in professional sports to compare effects of providing absolute, relative, or both absolute and relative measures in performance reports for employees. Although studies have documented that the provision of these types of measures can benefit performance, theory from economic and accounting literature suggests that it may be optimal for firms to direct employees’ attention to some types of measures by omitting others. In line with this theory, we find that relative performance information alone yields the best performance effects in our setting—that is, that a subset of information (relative performance information) dominates the full information set (absolute and relative performance information together) in boosting performance. In cross-sectional and survey-data analyses, we do not find that restricting the number of measures shown per se benefits performance. Rather, we find that restricting the type of measures shown to convey only relative information increases involvement in peer-performance comparison, benefitting performance. Our findings extend research on weighting of and responses to measures in performance reports.
    Keywords: Wiley deal
    JEL: M40
    Date: 2021–05–01
  2. By: Forth, John (Cass Business School); Theodoropoulos, Nikolaos (University of Cyprus); Bryson, Alex (University College London)
    Abstract: Using matched employer-employee data for Britain, we examine ethnic wage differentials among full-time employees. We find substantial ethnic segregation across workplaces: around three-fifths of workplaces in Britain employ no ethnic minority workers. However, this workplace segregation does not contribute to the aggregate wage gap between ethnic minorities and white employees. Instead, most of the ethnic wage gap exists between observationally equivalent co-workers. Lower pay satisfaction and higher levels of skill mismatch among ethnic minority workers are consistent with discrimination in wage-setting on the part of employers. The use of job evaluation schemes within the workplace is shown to be associated with a smaller ethnic wage gap.
    Keywords: ethnic wage gap, workplace segregation, skill mismatch, pay satisfaction, job evaluation
    JEL: J16 J31 M52 M54
    Date: 2021–08
  3. By: Alice Zawacki; Scott Ohlmacher; Struther Van Horn
    Abstract: Nationally representative U.S. hospital data does not exist on management practices, which have been shown to be related to both clinical and financial performance using past data collected in the World Management Survey (WMS). This paper describes the U.S. Census Bureau’s development of content for the Management and Organizational Practices Survey Hospitals (MOPS-HP) that is similar to data collected in the MOPS conducted for the manufacturing sector in 2010 and 2015 and the 2009 WMS. Findings from cognitive testing interviews with 18 chief nursing officers and 13 chief financial officers at 30 different hospitals across 7 states and the District of Columbia led to using industry-tested terminology, to confirming chief nursing officers as MOPS-HP respondents and their ability to provide recall data, and to eliminating questions that tested poorly. Hospital data collected in the MOPS-HP would be the first nationally representative data on management practices with queries on clinical key performance indicators, financial and hospital-wide patient care goals, addressing patient care problems, clinical team interactions and staffing, standardized clinical protocols, and incentives for medical record documentation. The MOPS-HP’s purpose is not to collect COVID-19 pandemic information; however, data measuring hospital management practices prior to and during the COVID-19 pandemic are a byproduct of the survey’s one-year recall period (2019 and 2020).
    Keywords: Hospitals, Management Practices, Chief Nursing Officers, Staffing and Teams, Incentives, Protocols
    JEL: C81 I10 M5 M10
    Date: 2021–09
  4. By: Fernanda Ricotta (University of Calabria); Victoria Golikova (National Research University Higher School of Economics); Boris Kuznetsov (National Research University Higher School of Economics)
    Abstract: In this paper, we investigate whether CEO characteristics (owner-manager status, age and gender) influence firm innovative performance and test empirically if the effect differs for market and transition economies. We use cross-sectional data of manufacturing firms in six EU countries and in Russia. To address heterogeneity, we explore innovation performance by size among SMEs and large businesses and by Pavitt sector. In both institutional settings, the presence of a family CEO either has no effect or improves innovative performance. On the contrary, the role of CEO gender is different in Russia and in the EU. In the EU, female CEOs are associated with less innovation, especially in SMEs and in the traditional sector. In Russia, CEO gender is not associated with differences in innovative performance and when it is (for the traditional sector), it favors female-run firms. For CEO age, considering product innovations, the oldest group of CEOs are less active in European firms while mature CEOs are more innovative in Russia.
    Keywords: CEO age, gender, manager-owner status, innovation, manufacturing firms
    JEL: D21 L60 P50
    Date: 2021
  5. By: Alex Bryson (Univerity College London, NIESR, and IZA); Andrew E. Clark (Paris School of Economics, CNRS and IZA); Colin P. Green (Norwegian University of Science and Technology and IZA)
    Abstract: A small literature has shown that individual wellbeing varies with the price of company stock, but it is unclear whether this is due to wealth effects among those holding stock, or more general effects on sentiment, with individuals taking rising stock prices as an indicator of improvements in the economy. We contribute to this literature by using two data sets to establish the relationship between share prices on the one hand and worker wellbeing on the other. First, we use data on share price movements and employee stock holding in a single corporation and provide suggestive evidence that an increase in the firm’s stock price increases the wellbeing of those who belong to its employee share purchase plan (ESPP), and that these effects are greatest among those making the largest monthly contributions to the program who have the most to gain (or lose) from stock price fluctuations. There is also some tentative evidence that the wellbeing effects of a rise in the share price are greatest among those with the largest shareholdings. We then use almost 30 years of British panel data to show that employee job satisfaction moves with share prices among those whose pay is partly determined by company fortunes. Taken together these results suggest that the well-being effects of share prices work at least partly via changes in wealth.
    Keywords: Job Satisfaction; Wellbeing; Share Prices; Share Ownership; Profit-Sharing
    JEL: J28 J33 J54 J63 J81 M52
    Date: 2021–09–01
  6. By: Burdin, Gabriel (Leeds University Business School); Kato, Takao (Colgate University)
    Abstract: We describe the nature, scope and effects of various non-mandated participatory work practices in Japan, the U.S. and Europe through the lens of complementarity in organizations. Specifically, rather than treating each work practice in isolation, we consider it an element of HIWS (High Involvement Work System), an employment system comprised of clusters of complementary work practices. In so doing, we present a coherent and complete picture of non-mandatory participatory work practices. Furthermore, by applying the common framework of viewing participatory work practices as complementary elements of HIWS to seemingly disparate forms of work practices in different parts of the world, we shed light on how participatory work practices play out in diverse institutional, cultural and regulatory environments.
    Keywords: High Involvement Work System, High Performance Work System, employee participation
    JEL: M5 J5
    Date: 2021–08
  7. By: Job Boerma; Aleh Tsyvinski; Alexander P. Zimin
    Abstract: We fully solve an assignment problem with heterogeneous firms and multiple heterogeneous workers whose skills are imperfect substitutes, that is, when production is submodular. We show that sorting is neither positive nor negative and is characterized sufficiently by two regions. In the first region, mediocre firms sort with mediocre workers and coworkers such that output losses are equal across all these pairings (complete mixing). In the second region, high skill workers sort with a low skill coworker and a high productivity firm, while high productivity firms employ a low skill worker and a high skill coworker (pairwise countermonotonicity). The equilibrium assignment is also necessarily characterized by product countermonotonicity, meaning that sorting is negative for each dimension of heterogeneity with the product of heterogeneity in the other dimensions. The equilibrium assignment as well as wages and firm values are completely characterized in closed form. We illustrate our theory with an application to show that our model is consistent with the observed dispersion of earnings within and across U.S. firms. Our counterfactual analysis gives evidence that the change in the firm project distribution between 1981 and 2013 has a larger effect on the observed change in earnings dispersion than the change in the worker skill distribution.
    Date: 2021–09
  8. By: Traverso, Silvio; Vatiero, Massimiliano; Zaninotto, Enrico
    Abstract: This work discusses and empirically investigates the relationship between labor regulation and robotization. In particular, the empirical analysis focuses on the relationship between the discipline of workers' dismissal and the adoption of indus- trial robots in nineteen Western countries over the 2006{2016 period. We find that high levels of statutory employment protection have been negatively associated with robot adoption, suggesting that labor-friendly national legislations, by increasing adjustment costs (such as firing costs), and thus making investment riskier, provide less favorable environments for firms to invest in industrial robots. We also find, however, that the correlation is positively mediated by the sectoral levels of capital intensity, a hint that firms do resort to industrial robots as potential substitutes for workers to reduce employees' bargaining power and to limit their hold-up opportu- nities, which tend to be larger in sectors characterized by high levels of operating leverage.
    Keywords: Robot adoption,Labor regulation,Hold-up
    JEL: K31 O31
    Date: 2021

This nep-hrm issue is ©2021 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.