nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2021‒11‒08
seven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Subsidizing Inequality: Performance Pay and Risk Selection in Medicare By Michele Fioretti; Hongming Wang
  2. Improving Workplace Climate in Large Corporations: A Clustered Randomized Intervention By Sule Alan; Gozde Corekcioglu; Matthias Sutter
  4. Complementarity in Employee Participation Systems By Burdin, Gabriel; Kato, Takao
  5. Do workers share in firm success? Pass-through estimates for New Zealand By Corey Allan; David C Maré
  6. Gender Promotion Gaps: Career Aspirations and Workplace Discrimination By Ghazala Azmat; Vicente Cunãt; Emeric Henry
  7. How Do Acquisitions Affect the Mental Health of Employees? By Baghai, Ramin; Bos, Marieke; Bach, Laurent; Silva, Rui

  1. By: Michele Fioretti (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Hongming Wang (Hitotsubashi University)
    Abstract: Pay-for-performance is commonly employed to improve the quality of social services contracted out to firms. We show that insurer responses to pay-for-performance can widen the inequality in accessing social services. Focusing on the U.S. Medicare Advantage market, we find that high-quality insurance contracts responded to quality-linked payments by selecting healthier enrollees with premium differences across counties. The selection is profitable because the quality rating fails to adjust for pre-existing health differences of enrollees. As a result, quality improved mostly due to selection, and the supply of high-quality insurance shifted to the healthiest counties. Revising the quality rating could prevent these unintended consequences.
    Keywords: Pay-for-Performance,Quality Bonus Payment Demonstration,Medicare Advantage,Risk Selection,Supply-Side Selection,Quality Ratings,Health Inequality
    Date: 2019–11–01
  2. By: Sule Alan (European University Institute); Gozde Corekcioglu (Kadir Has University, Istanbul); Matthias Sutter (Max Planck Institute for Research on Collective Goods, University of Cologne, University of Innsbruck, IZA, and CESifo)
    Abstract: We evaluate the impact of a program aiming at improving the workplace climate in corporations. The program is implemented via a clustered randomized design and evaluated with respect to the prevalence of support networks, antisocial behavior, perceived relational atmosphere, and turnover rate. We find that professionals in treated corporations are less inclined to engage in toxic competition, exhibit higher reciprocity toward each other, report higher workplace satisfaction and a more collegial atmosphere. Treated firms have fewer socially isolated individuals and a lower employee turnover. The program's success in improving leader-subordinate relationships emerges as a likely mechanism to explain these results.
    Keywords: Workplace climate, relational dynamics, leadership quality, RCT
    JEL: C93 M14 M53
    Date: 2021–09–14
  3. By: Leonardo Becchetti (Dipartimento di Economia e Finanza, Università di Roma Tor Vergata); Sara Mancini (Dipartimento di Economia e Finanza, Università di Roma Tor Vergata); Nazaria Solferino (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria)
    Abstract: Based on results of the different fields of the game theoretic literature on strategic interactions and social dilemmas, gift exchange and procedural utility, we argue that corporate social responsibility and relational skills i) with other firms; ii) between employers and workers iii) among workers and iv) with stakeholders are associated to positive effects on productivity. We test our research hypothesis on a large representative sample of Italian firms including the universe of medium and large companies and accounting for 91.3 percent of domestic employees. We find that companies with higher relational skills report significantly higher value added per worker after controlling for relevant concurring factors. More specifically, the identified significant skill related components are: i) corporate policies considering strategic workers’ wellbeing; ii) team working attitudes considered as priority soft skills when hiring workers; iii) initiatives in favour of the productive network operating in the same local area and iv) involvement of stakeholders in CSR projects.
    Keywords: relational skills, corporate productivity, gift exchange, team working
    JEL: L22 L25 L14 J53
    Date: 2021–10
  4. By: Burdin, Gabriel; Kato, Takao
    Abstract: This chapter describes the nature, scope and effects of various non-mandated participatory work practices in Japan, the U.S. and Europe through the lens of organizational complementarity theory. Specifically, rather than being treated in isolation, each work practice is considered an element of HIWS (High Involvement Work System), an employment system comprised of clusters of complementary work practices. In so doing, the chapter provides a complete picture of nonmandatory 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, the chapter sheds light on how participatory work practices play out in diverse institutional, cultural and regulatory environments.
    Keywords: High Involvement Work System,High Performance Work System,Organizational Complementarities,Employee Participation
    JEL: M5 J5
    Date: 2021
  5. By: Corey Allan (Ministry of Business, Innovation & Employment); David C Maré (Motu Economic and Public Policy Research)
    Abstract: We study the extent to which firm financial performance is passed on to workers in the form of higher wages and the degree to which this pass-through has changed over the period 2002-2018. We use both value added per worker and a measure of quasi-rents as measures of financial performance. Value added per worker is the standard measure used internationally. Quasi-rents better approximate the resources available to be shared between workers and firms as it takes into account the rental cost of capital as well as the reservation wages of workers. We estimate the reservation wage bill for each firm using estimates from a two-way fixed-effect model. We estimate models similar to those typically used in the international literature and further decompose the estimated pass-through into the contribution from worker sorting and the contribution from rent-sharing. Our instrumental variables estimates of pass-through are in the range of 0.12 and 0.19 for value added and 0.11 and 0.07 for quasi-rents. Worker sorting explains between 35% and 50% of pass-through. While the extent of overall pass-through is relatively stable over time, the contribution of worker sorting declines dramatically to explain almost none of the estimated pass-through. We contribute to the literature by demonstrating a method to calculate quasi-rents, by testing for changes over time in pass-through, and examining the relative importance of worker sorting over time.
    Keywords: Wage determination, Rent sharing, Worker sorting
    JEL: J31 J71 E25 D22
    Date: 2021–11
  6. By: Ghazala Azmat (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR, CEP - LSE - Centre for Economic Performance - LSE - London School of Economics and Political Science); Vicente Cunãt (LSE - London School of Economics and Political Science); Emeric Henry (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR)
    Abstract: Using a nationally representative longitudinal survey of lawyers in the U.S., we document a sizeable gap between men and women in their early aspirations to become law firm partners, despite similar early investments and educational characteristics. This aspiration gap can explain a large part of the gender promotion gap that is observed later. We propose a model to understand the role of aspirations and then empirically test its predictions. We show that aspirations create incentives to exert effort and are correlated with expectations of success and the preference for becoming a partner. We further show that aspirations are affected by early work experiences—facing harassment or demeaning comments early in the career affects long-term promotion outcomes mediated via aspirations. Our research highlights the importance of accounting for, and managing, career aspirations as an early intervention to close gender career gaps.
    Date: 2020–01–01
  7. By: Baghai, Ramin (Mistra Center for Sustainable Markets (Misum)); Bos, Marieke (Mistra Center for Sustainable Markets (Misum)); Bach, Laurent (ESSEC Business School Paris); Silva, Rui (Nova School of Business and Economics)
    Abstract: Using employer-employee level data linked to individual health records, we document that the incidence of stress, anxiety, depression, psychiatric medication usage, and even suicide increase following acquisitions. These effects are prevalent among employees from both targets and acquirers, in weak as well as in growing, profitable firms. Employees who experience negative career developments within the merging firms, ’blue-collar’ workers, and employees with lower cognitive and non-cognitive skills are most affected. A variety of tests address endogeneity concerns, including an analysis exploiting failed mergers. Our findings point to mental illness as a significant non-pecuniary cost of acquisitions.
    Keywords: Mergers and Acquisitions; Corporate Restructuring; Mental Health; Mental Illness
    JEL: G34 J81 L23
    Date: 2021–10–26

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