nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2023‒01‒16
eleven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Managers and the Management of Organizations By John Roberts; Kathryn L. Shaw
  2. Workplace Presenteeism, Job Substitutability and Gender Inequality By Ghazala Azmat; Lena Hensvik; Olof Rosenqvist
  3. The proof is in the pudding: Company image and work experiences are affected by diversity progress and not by diversity talk By Valérie De Cock; Pinar Celik; Claudia Toma
  4. Firing Costs and Productivity: Evidence from a Natural Experiment By Andrea Caggese; Ozan Guler; Mike Mariathasan; Klaas Mulier
  5. Rank versus Inequality—Does Gender Composition Matter? By Duk Gyoo Kim; Max Riegel
  6. Job Ladder, Human Capital, and the Cost of Job Loss By Richard Audoly; Federica De Pace; Giulio Fella
  7. Technological and Organizational Change and the Careers of Workers By Battisti, Michele; Dustmann, Christian; Schönberg, Uta
  8. Approaches to Learn about Employer Learning By Ablay, Mahmut; Lange, Fabian
  9. The Direct and Indirect Effects of Online Job Search Advice By Altmann, Steffen; Glenny, Anita Marie; Mahlstedt, Robert; Sebald, Alexander
  10. Worker Satisfaction and Worker Representation: The Jury Is Still Out By Addison, John T.; Teixeira, Paulino
  11. Why Do the Earnings of Male and Female Graduates Diverge? The Role of Motherhood and Job Dynamics By Doris, Aedin; O'Neill, Donal; Sweetman, Olive

  1. By: John Roberts; Kathryn L. Shaw
    Abstract: We critically review the emerging literature in Organizational and Personnel Economics concerning the role of managers and management practices. Our focus is on the middle managers who populate the hierarchies between top executives and front-line employees. We are especially concerned with research that brings together theoretical modeling and empirical investigation.
    JEL: J3 L2 M5 M50
    Date: 2022–12
  2. By: Ghazala Azmat (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEP - LSE - Centre for Economic Performance - LSE - London School of Economics and Political Science); Lena Hensvik (Uppsala Universitet [Uppsala]); Olof Rosenqvist (IFAU)
    Abstract: This paper explores how the parenthood wage penalty is partially explained by an increased within-couple gap in job uniqueness (i.e., the within-establishment substitutability of workers). Uniqueness is rewarded with higher wages, but it requires worker presenteeism (i.e., the lack of unpredictable work absences), which entails a higher cost of childbearing. Using a within-couple event study approach, we show that after the arrival of the first child, women take more days of absence than men and their likelihood of holding jobs with low substitutability decreases. We find that 15 years after childbearing, the male-female gender gap in holding a (higher-paying) unique jobs increases by 6 percentage points. The results suggest that structural changes towards greater work flexibility, making it less costly for workers in unique jobs not to be present, can help to reduce the parenthood wage penalty.
    Keywords: Work absence,Job substitutability,Gender wage inequality
    Date: 2022–09
  3. By: Valérie De Cock; Pinar Celik; Claudia Toma
    Abstract: While many organizations communicate publicly about their commitment to diversity and inclusion (D&I), progress in the domain remains slow. In two studies we investigated how workers are impacted by situations in which their organization talks about D&I without making any significant progress in the domain. Study 1 (N=437) used a 2 (diversity talk: present, absent) X 2 (diversity progress: present, absent) experimental design in which participants reacted to a hypothetical situation, while Study 2 (N=240) was a correlational study in which respondents were reporting about their own organization. The results show that diversity progress, and not diversity talk, consistently affects workers’ company image (perceived corporate hypocrisy) and their work experiences (sense of inclusion, organizational commitment, person-organization fit, negative affect). Moreover, further analyses showed that the impact of diversity progress on the experiences of workers is explained by their levels of perceived corporate hypocrisy. Interestingly, these findings suggest that in a context in which information about diversity talk and diversity progress is present workers disregard diversity talk and primarily care about diversity progress in their organization. Our findings are discussed considering existing theoretical frameworks and potential practical implications are debated.
    Keywords: diversity talk; diversity progress; worker perceptions; perceived corporate hypocrisy; work experiences
    Date: 2022–12–06
  4. By: Andrea Caggese; Ozan Guler; Mike Mariathasan; Klaas Mulier
    Abstract: This paper investigates the effect of firing costs on total factor productivity (TFP) and resource allocation. Exploiting heterogeneous changes in firing costs across employee types in Belgium, we find that increasing firing costs reduce firm-level TFP. Firms facing a net increase in firing costs reduce hiring and firing, increase hours worked per employee, adjust the composition of their workforce away from employee types whose firing costs have increased, and rely more on outsourced employees. Instead, we find no evidence of capital-intensive technology adoption. The decline in TFP is smaller for firms with better access to credit.
    Keywords: firing costs, employment protection, productivity, misallocation
    JEL: E22 E23 E24
    Date: 2022–11
  5. By: Duk Gyoo Kim; Max Riegel
    Abstract: This study investigates the influence of gender composition on allocation decisions involving a rank–inequality tradeoff. In a laboratory experiment, participants chose to either alleviate inequality by relinquishing their current relative rank or exacerbate inequality by maintaining their current rank. Two essential features of the experiment are: 1) participants’ relative rank is the outcome of their real-effort performance and luck; 2) participants’ genders are naturally revealed by gender-specific nicknames. We found that female participants are more reluctant to relinquish their current relative rank when the persons ranked below and above them are of the opposite gender. This tendency was less pronounced in the male participants.
    Keywords: gender composition, positional concerns, preferences for redistribution, last-place aversion, perception of luck
    JEL: C91 D63
    Date: 2022
  6. By: Richard Audoly; Federica De Pace; Giulio Fella
    Abstract: High-tenure workers losing their job experience a large and prolonged fall in wages and earnings. The aim of this paper is to understand and quantify the forces behind this empirical regularity. We propose a structural model of the labor market with (i) on-the-job search, (ii) general human capital, and (iii) firmspecific human capital. Jobs are destroyed at an endogenous rate due to idiosyncratic productivity shocks and the skills of workers depreciate during periods of non-employment. The model is estimated on German Social Security data. By jointly matching moments related to workers’ mobility and wages, the model can replicate the size and persistence of the losses in earnings and wages observed in the data. We find that the loss of a job with a more productive employer is the primary driver of the cumulative wage losses following displacement (about 50 percent), followed by the loss of firm-specific human capital (about 30 percent).
    Keywords: job loss; on-the-job search; human capital
    JEL: J0 J3 J6
    Date: 2022–12–01
  7. By: Battisti, Michele (University of Glasgow); Dustmann, Christian (University College London); Schönberg, Uta (University College London)
    Abstract: This paper investigates the effects of technological and organizational change (T&O) on jobs and workers. We show that although T&O reduces firm demand for routine relative to abstract task-based jobs, affected workers do not face higher probability of non-employment or lower earnings growth than unaffected workers. Rather, firms that adopt T&O offer routine workers re-training opportunities to upgrade to more abstract jobs. Older workers form an important exception: T&O increases the risk that they permanently withdraw from the labor market and reduces their earnings, regardless of the tasks they performed in the firm prior to T&O.
    Keywords: careers of workers, technological change
    JEL: J23 J24 O33
    Date: 2022–11
  8. By: Ablay, Mahmut (McGill University); Lange, Fabian (McGill University)
    Abstract: The empirical literature on employer learning assumes that employers learn about unobserved ability differences across workers as they spend time in the labor market. This article describes testable implications that arise from this basic hypothesis and how they have been used to quantify the contribution of Job Market Signaling and human capital in measured returns to education. While the empirical basis is still thin, the results suggest that Signaling contributes at most about 25% to the observed returns to education.
    Keywords: Job Market Signaling, human capital, returns to education, employer learning
    JEL: E24 J31
    Date: 2022–12
  9. By: Altmann, Steffen (IZA and University of Copenhagen); Glenny, Anita Marie (Aarhus University); Mahlstedt, Robert (University of Copenhagen); Sebald, Alexander (Copenhagen Business School)
    Abstract: We study how online job search advice affects the job search strategies and labor market outcomes of unemployed workers. In a large-scale field experiment, we provide job seekers with vacancy information and occupational recommendations through an online dashboard. A clustered randomization procedure with regionally varying treatment intensities allows us to account for treatment spillovers. Our results show that online advice is highly effective when the share of treated workers is relatively low: in regions where less than 50% of job seekers are exposed to the treatment, working hours and earnings of treated job seekers increase by 8.5–9.5% in the year after the intervention. At the same time, we find substantial negative spillovers on other treated job seekers for higher treatment intensities, resulting from increased competition between treated job seekers who apply for similar vacancies.
    Keywords: unemployment, job search, job search assistance, public policy, field experiments, information frictions, occupational recommendations, online advice
    JEL: J62 J23 J68 D83 C93
    Date: 2022–12
  10. By: Addison, John T. (University of South Carolina); Teixeira, Paulino (University of Coimbra)
    Abstract: This paper investigates the relationship between worker job satisfaction and workplace representation, to include works councils as well as local union agencies. The paper marks a clear shift away from the traditional focus on union membership per se because its sample of EU nations have industrial relations systems that diverge markedly from those of Anglophone countries. Our dataset comprises two waves of the European Working Conditions Survey (EWCS). Pooled cross-section data indicate that workers in establishments with workplace representation have less job satisfaction than their counterparts in plants without formal representation. We proceed to upgrade these findings of conditional correlation by constructing a pseudo-panel with cohort fixed effects to take account of unobserved worker heterogeneity. Causality issues are directly tackled using an endogenous treatment effects model to address the possible endogeneity of worker representation. A persistence of our central finding leads us to conclude that, despite the recent evidence of a turnaround in the association between job satisfaction and unionism, it would be premature to conclude that this result can be generalized to continental European nations.
    Keywords: job satisfaction, workplace representation, European Working Conditions Survey, sorting, exit-voice
    JEL: I31 J28 J52 J53
    Date: 2022–12
  11. By: Doris, Aedin (National University of Ireland, Maynooth); O'Neill, Donal (National University of Ireland, Maynooth); Sweetman, Olive (National University of Ireland, Maynooth)
    Abstract: This paper explores gender wage dynamics using an administrative dataset covering Irish graduate earnings from 2010-2020. Our data allows us to look at a broad range of degrees and compare workers who are identical in important observable characteristics. We find that although male and female graduates have similar returns to study field immediately after graduation, a substantial gap soon emerges. This is particularly true when considering women with children and is driven by a 27 percent fall in earnings immediately after childbirth. We find no striking differences between fields of study; there is a substantial and persistent motherhood effect for all field groupings. We examine and dismiss the possibility that the gender difference in earnings dynamics is driven by job mobility; in fact, almost all of the difference is accounted for by changes within a job. Although there is a large and persistent reduction in hours of work after childbirth, this does not seem to explain all of the reduction in earnings.
    Keywords: motehrhood penalty, gender pay gap, field of study
    JEL: J01
    Date: 2022–12

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