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on Human Capital and Human Resource Management |
| By: | Böhm, Michael Johannes (University of Bonn); Metzger, Daniel (Erasmus University Rotterdam); Strömberg, Per (CEPR) |
| Abstract: | Financial sector wages have increased extraordinarily over the last decades. We address two potential explanations for this increase: (1) rising demand for talent and (2) firms sharing rents with their employees. Matching administrative data of Swedish workers, which include unique measures of individual talent, with financial information on their employers, we find no evidence that talent in finance improved, neither on average nor at the top. The increase in relative finance wages is present across talent and education levels, which together can explain at most 20% of it. In contrast, rising financial sector profits that are shared with employees account for up to half of the relative wage increase. The limited labor supply response may partly be explained by the importance of early-career entry and social connections in finance. Our findings alleviate concerns about "brain drain" into finance but suggest that finance workers have captured rising rents over time. |
| Keywords: | industry wage premia, talent allocation, rent sharing, earnings inequality, compensation in financial sector |
| JEL: | J24 J31 G20 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15337&r= |
| By: | Aysit Tansel (Department of Economics Middle East Technical University, IZA, ERF Cario); Saziye Gazioglu (Department of Economics and Instituted of Applied Mathematics (IAM) Middle East Technical University, Department of Economics University of Aberdeen) |
| Abstract: | Employees’ wellbeing is important to the firms. Analysis of job satisfaction may give insight into various aspect of labor market behavior, such as worker productivity, absenteeism and job turn over. Little empirical work has been done on the relationship between structure of working environment and job satisfaction. This paper investigates the relationship between working environment, firm size and worker job satisfaction. We use a unique data of 28,240 British employees, Workplace Employee Relations Survey. In this data set the employee questionnaire is matched with the employer questionnaire. Four measures of job satisfaction considered are satisfaction with influence over job, satisfaction with amount of pay, satisfaction with sense of achievement and satisfaction with respect from supervisors. They are all negatively related to the firm size implying lower levels of job satisfaction in larger firms. The firm size in return is negatively related to the degree of flexibility in the working environment. The small firms have more flexible work environments. We further find that, contrary to the previous results lower levels of job satisfaction in larger firms can not necessarily be attributed to the inflexibility in their structure of working environment. |
| Keywords: | Job Satisfactions, Firm Size, Working Environment, Linked Employer-Employee data, Britain. |
| JEL: | J21 J28 J29 J81 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:koc:wpaper:2205&r= |
| By: | Allan, Corey; Maré, David C. (Motu Economic and Public Policy Research Trust) |
| Abstract: | We examine heterogeneous rent-sharing in New Zealand using LEED data. Using a refined measures of quasi-rents per worker, we find that 20% to 30% of workers are in zero-excess-rent firms - disproportionately women, Māori or Pacific peoples, low-qualified workers, and those in hospitality, admin services, and retail industries,. The overall rent-sharing elasticity of 0.03 is equivalent to $38 higher earnings per $1,000 of excess rents per worker. Sharing varies by qualification, tenure, and ethnicity, but not by firm size or age. In most industries, workers receive $1,500-$2,000 of rents per year. Sharing is highest in auxiliary finance and professional services sectors and lowest in grocery retailing, food and beverage manufacturing and utilities. There is some evidence of insurance-type behaviour by firms. Differences in bargaining power are also likely to affect rent sharing variation. |
| Keywords: | wage determination, rent-sharing, imperfect competition |
| JEL: | J31 J71 J10 D22 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15264&r= |
| By: | Gwen-Jiro Clochard; Guillaume Hollard; Julia Wirtz |
| Abstract: | Relative performance feedback (RPF) allows agents to compare their performance to that of others. Current theory assumes that RPF affects performance by changing the optimal level of effort. We introduce a technology channel in which agents use RPF to improve their technologies. We compare the effort and technology channels by combining three elements: an extensive review, an original model and two field experiments. Under the technology channel, we highlight that RPF increases performance even at the bottom of the distribution and has a cumulative effect across periods. We draw implications for education and social norms. |
| Date: | 2022–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:bri:uobdis:22/767&r= |
| By: | Jose Maria Barrero; Nicholas Bloom; Steven J. Davis |
| Abstract: | COVID-19 drove a mass social experiment in working from home (WFH). We survey more than 30,000 Americans over multiple waves to investigate whether WFH will stick, and why. Our data say that 20 percent of full workdays will be supplied from home after the pandemic ends, compared with just 5 percent before. We develop evidence on five reasons for this large shift: better-than-expected WFH experiences, new investments in physical and human capital that enable WFH, greatly diminished stigma associated with WFH, lingering concerns about crowds and contagion risks, and a pandemic-driven surge in technological innovations that support WFH. We also use our survey data to project three consequences: First, employees will enjoy large benefits from greater remote work, especially those with higher earnings. Second, the shift to WFH will directly reduce spending in major city centers by at least 5-10 percent relative to the pre-pandemic situation. Third, our data on employer plans and the relative productivity of WFH imply a 5 percent productivity boost in the post-pandemic economy due to re-optimized working arrangements. Only one-fifth of this productivity gain will show up in conventional productivity measures, because they do not capture the time savings from less commuting. |
| Keywords: | Covid-19, USA, productivity, technological innovations |
| Date: | 2021–08–13 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1790&r= |
| By: | De Chiara, Alessandro; Engl, Florian (Universität Regensburg); Herz, Holger; Manna, Ester (Universitat de Barcelona) |
| Abstract: | Companies typically control various aspects of their workers' behaviors. In this paper, we investigate whether the hierarchical distance of the superior who imposes such control measures matters for the workers' ensuing reaction. In particular, we test, in a laboratory experiment, whether potential negative behavioral reactions to imposed control are larger when they are implemented by a direct superior rather than a hierarchically more distant superior. We find that hierarchical proximity indeed magni es such control aversion and discuss several potential channels for this result. |
| Keywords: | Control Aversion; Hierarchies; Delegation; Principal-Agent-Problem |
| JEL: | C92 D23 M12 |
| Date: | 2022–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:fri:fribow:fribow00527&r= |
| By: | Christine L. Exley (Harvard Business School, Harvard University); Oliver P. Hauser (Department of Economics, University of Exeter); Molly Moore (Harward Kennedy School, Harvard University); John-Henry Pezzuto (Harvard Business School, Harvard University) |
| Abstract: | While there is a vast (and mixed) literature on gender differences in social preferences, little is known about believed gender differences in social preferences. This paper documents robust evidence for believed gender differences in social preferences. Across a wide range of contexts that vary in terms of strategic considerations, selfish motives, fairness concepts and applications, we find that individuals robustly expect that women are more generous and more equality-oriented. Despite the robustness of these beliefs, the believed gender gap in social preferences - in the range of contexts we consider - is largely inaccurate. |
| Keywords: | experiments, gender, altruism |
| JEL: | C91 D64 D91 |
| Date: | 2022–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2204&r= |