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on Human Capital and Human Resource Management |
| By: | Baktash, Mehrzad B.; Heywood, John S.; Jirjahn, Uwe |
| Abstract: | While performance pay can benefit firms and workers by increasing productivity and wages, it has also been associated with a deterioration of worker health. The transmission mechanisms for this deterioration remain in doubt. We examine the hypothesis that increased stress is one transmission mechanism. Using unique survey data from the German Socio-Economic Panel, we find performance pay consistently and importantly associates with greater stress even controlling for a long list of economic, social and personality characteristics. It also holds in instrumental variable estimations accounting for the potential endogeneity of performance pay. Moreover, we show that risk tolerance moderates the relationship between performance pay and stress. The risk tolerant receiving performance pay suffer less stress than the risk averse. |
| Keywords: | Performance Pay,Worker Health,Stress,Risk Tolerance |
| JEL: | J33 I31 J32 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1000&r= |
| By: | Engbom, Niklas (New York University); Moser, Christian (Columbia University); Sauermann, Jan (IFAU - Institute for Evaluation of Labour Market and Education Policy) |
| Abstract: | We study the nature of firm pay dynamics. To this end, we propose a statistical model that extends the seminal framework by Abowd, Kramarz, and Margolis (1999a) to allow for idiosyncratically time-varying firm pay policies. We estimate the model using linked employer-employee data for Sweden from 1985 to 2015. By drawing on detailed firm financials data, we show that firms that become more productive and accumulate capital raise pay, whereas firms lower pay as they add workers. A secular increase in firm-year pay dispersion in Sweden since 1985 is accounted for by greater persistence of firm pay among incumbent firms as well as greater dispersion in firm pay among entrant firms, as opposed to more volatile firm pay. |
| Keywords: | Earnings Inequality; Worker and Firm Heterogeneity; Linked Employer-Employee Data; AKM; Two-Way Fixed Effects Model; Firm Dynamics |
| JEL: | D22 D31 E24 J31 M13 |
| Date: | 2021–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2021_021&r= |
| By: | Hoch, Felix; Seyberth, Lilo |
| Abstract: | Research investigating the relationship between firm performance and gender diversity has so far reported conflicting evidence: Some studies find firm performance to benefit from gender diversity, others find negative results or no effect at all. Taking this inconclusive evidence as a sign for moderators influencing the effect of gender diversity on firm performance, we investigate the moderating influence of institutions on this relationship. Using data on 7,661 firms in 71 countries, we employ a multilevel linear regression with fixed effects to examine the moderating effect of formal as well as informal institutional characteristics. We find that institutions indeed moderate the relationship between gender diversity and firm performance. In particular, informal institutions seem to moderate the effect of diversity on market valuation (Tobin's Q), while formal institutions moderate the effect of gender diversity on firm financial performance (ROA). These results have important theoretical implications for the academic debate on gender diversity and firm performance as well as practical implications for both businesses and lawmakers. |
| JEL: | J16 J71 L25 M12 M14 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:umiodp:112021&r= |
| By: | Deniz Dutz; Ingrid Huitfeldt; Santiago Lacouture; Magne Mogstad; Alexander Torgovitsky; Winnie van Dijk |
| Abstract: | We evaluate how nonresponse affects conclusions drawn from survey data and consider how researchers can reliably test and correct for nonresponse bias. To do so, we examine a survey on labor market conditions during the COVID-19 pandemic that used randomly assigned financial incentives to encourage participation. We link the survey data to administrative data sources, allowing us to observe a ground truth for participants and nonparticipants. We find evidence of large nonresponse bias, even after correcting for observable differences between participants and nonparticipants. We apply a range of existing methods that account for nonresponse bias due to unobserved differences, including worst-case bounds, bounds that incorporate monotonicity assumptions, and approaches based on parametric and nonparametric selection models. These methods produce bounds (or point estimates) that are either too wide to be useful or far from the ground truth. We show how these shortcomings can be addressed by modeling how nonparticipation can be both active (declining to participate) and passive (not seeing the survey invitation). The model makes use of variation from the randomly assigned financial incentives, as well as the timing of reminder emails. Applying the model to our data produces bounds (or point estimates) that are narrower and closer to the ground truth than the other methods. |
| JEL: | C0 C01 C1 C36 C42 C83 H0 J0 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29549&r= |
| By: | Lacava, Chiara |
| Abstract: | I measure the effects of workers' mobility across regions of different productivity through the lens of a search and matching model with heterogeneous workers and firms estimated with administrative data. In an application to Italy, I find that reallocation of workers to the most productive region boosts productivity at the country level but amplifies differentials across regions. Employment rates decline as migrants foster job competition, and inequality between workers doubles in less productive areas since displacement is particularly severe for low-skill workers. Migration does affect mismatch: mobility favors co-location of agents with similar productivity but within-region rank correlation declines in the most productive region. I show that worker-firm complementarities in production account for 33% of the productivity gains. Place-based programs directed to firms, like incentives for hiring unemployed or creating high productivity jobs, raise employment rates and reduce the gaps in productivity across regions. In contrast, subsidies to attract high-skill workers in the South have limited effects. |
| Keywords: | cross-regional mobility,mismatch,search-matching,sorting,productivity differentials |
| JEL: | J61 J64 R13 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:icirwp:4421&r= |
| By: | Fuad Hasanov; Reda Cherif; Jyrki Ali-Yrkkö; Natalia Kuosmanen; Mika Pajarinen |
| Abstract: | Do workers hired from superstar tech-firms contribute to better firm performance? To address this question, we analyze the effects of tacit knowledge spillovers from Nokia in the context of a quasi-natural experiment in Finland, the closure of Nokia’s mobile device division in 2014 and the massive labor movement it implied. We apply a two-stage difference-in-differences approach with heterogeneous treatment to estimate the causal effects of hiring former Nokia employees. Our results provide new evidence supporting the positive causal role of former Nokia workers on firm performance. The evidence of the positive spillovers on firms is particularly strong in terms of employment and value added. |
| Keywords: | human capital, employment, value added, Nokia, difference-in-differences, heterogeneous treatment, knowledge spillovers, superstar firms.; superstar tech-firm; spillover effect; Nokia employee; superstar firm; effects from Nokia; Spillovers; Employment; Labor productivity; Positive spillovers; Human capital; Global |
| Date: | 2021–10–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/258&r= |