nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2023‒02‒06
ten papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Educational Job Mismatch, Job Satisfaction, On-the-Job Training, and Employee Quit Behavior: A Dynamic Analytical Approach By Wen, Le; Maani, Sholeh A.; Dong, Zhi
  2. Designing organizations for bottom-up task allocation: The role of incentives By Stephan Leitner
  3. Gender Diversity in Ownership and Firm Innovativeness in Emerging Markets. The Mediating Roles of R&D Investments and External Capital By Vartuhi Tonoyan; Christopher Boudreaux
  4. Too Many Managers: The Strategic Use of Titles to Avoid Overtime Payments By Lauren Cohen; Umit Gurun; N. Bugra Ozel
  5. Monopsony, Job Tasks, and Labor Market Concentration By Samuel Dodini; Michael F. Lovenheim; Kjell G. Salvanes; Alexander Willén
  6. Do Role Models Matter in Large Classes? New Evidence on Gender Match Effects in Higher Education By Maurer, Stephan; Schwerdt, Guido; Wiederhold, Simon
  7. Self-Efficacy and Entrepreneurial Performance of Start-Ups By Caliendo, Marco; Kritikos, Alexander S.; Rodriguez, Daniel; Stier, Claudia
  8. Job Ladders by Firm Wage and Productivity By Bertheau, Antoine; Vejlin, Rune Majlund
  9. Gender quotas, board diversity and spillover effects. Evidence from Italian banks By Silvia Del Prete; Giulio Papini; Marco Tonello
  10. Works Councils and Workers' Party Preferences in Germany By Uwe Jirjahn; Thi Xuan Thu Le

  1. By: Wen, Le (University of Auckland); Maani, Sholeh A. (University of Auckland); Dong, Zhi (University of Auckland)
    Abstract: This paper extends the literature on the consequences of over-education, in particular quit outcomes. It is the first study that explicitly tests the impact of job satisfaction and on-the-job training for workers in educational mismatched jobs and on quit behavior using a longitudinal data set. Accounting for unobserved heterogeneity and endogeneity, the dynamic analytical framework examines labor market outcomes for job-mismatched workers. We find that over-education alone, or accompanied by skill under-utilization in combination with lower job satisfaction, increases the incidences of job quitting. Opportunities for training facilitate the retention of initially job-mismatched workers. These results have implications for interpreting mismatch data, retention, and resource allocation.
    Keywords: on-the-job training, job satisfaction, over-skilling, over-education, turnover
    JEL: J24 J28 J31 J63
    Date: 2023–01
  2. By: Stephan Leitner
    Abstract: In recent years, various decentralized organizational forms have emerged, posing a challenge for organizational design. Some design elements, such as task allocation, become emergent properties that cannot be fully controlled from the top down. The central question that arises in this context is: How can bottom-up task allocation be guided towards an effective organizational structure? To address this question, this paper presents a novel agent-based model of an organization that features bottom-up task allocation that can be motivated by either long-term or short-term orientation on the agents' side. The model also includes an incentive mechanism to guide the bottom-up task allocation process and create incentives that range from altruistic to individualistic. Our analysis shows that when bottom-up task allocation is driven by short-term orientation and aligned with the incentive mechanisms, it leads to improved organizational performance that surpasses that of traditionally designed organizations. Additionally, we find that the presence of altruistic incentive mechanisms within the organization reduces the importance of mirroring in task allocation.
    Date: 2023–01
  3. By: Vartuhi Tonoyan; Christopher Boudreaux
    Abstract: Despite recent evidence linking gender diversity in the firm with firm innovativeness, we know little about the underlying mechanisms. Building on and extending the Upper Echelon and entrepreneurship literature, we address two lingering questions: why and how does gender diversity in firm ownership affect firm innovativeness? We use survey data collected from 7, 848 owner-managers of SMEs across 29 emerging markets to test our hypotheses. Our findings demonstrate that firms with higher gender diversity in ownership are more likely to invest in R&D and rely upon a breadth of external capital, with such differentials explaining sizeable proportions of the higher likelihood of overall firm innovativeness, product and process, as well as organizational and marketing innovations exhibited by their firms. Our findings are robust to corrections for alternative measurement of focal variables, sensitivity to outliers and subsamples, and endogenous self-selection concerns.
    Date: 2023–01
  4. By: Lauren Cohen; Umit Gurun; N. Bugra Ozel
    Abstract: We find widespread evidence of firms appearing to avoid paying overtime wages by exploiting a federal law that allows them to do so for employees termed as “managers” and paid a salary above a pre-defined dollar threshold. We show that listings for salaried positions with managerial titles exhibit an almost five-fold increase around the federal regulatory threshold, including the listing of managerial positions such as “Directors of First Impression, ” whose jobs are otherwise equivalent to non-managerial employees (in this case, a front desk assistant). Overtime avoidance is more pronounced when firms have stronger bargaining power and employees have weaker rights. Moreover, it is more pronounced for firms with financial constraints and when there are weaker labor outside options in the region. We find stronger results for occupations in low-wage industries that are penalized more often for overtime violations. Our results suggest broad usage of overtime avoidance using job titles across locations and over time, persisting through the present day. Moreover, the wages avoided are substantial - we estimate that firms avoid roughly 13.5% in overtime expenses for each strategic “manager” hired during our sample period.
    JEL: G30 G38 M51 M54
    Date: 2023–01
  5. By: Samuel Dodini; Michael F. Lovenheim; Kjell G. Salvanes; Alexander Willén
    Abstract: This paper extends the literature on monopsony and labor market concentration by taking a task-based approach and estimating the causal effect of concentration in the demand for skills on labor market outcomes. The prior literature has focused on industry and occupation concentration and likely overstates the degree of monopsony power, since worker skills are substitutable across different firms, occupations, and industries. Exploiting linked employer-employee data that cover the universe of Norwegian workers over time, we find that our job task-based measure shows lower degrees of concentration than the conventional industry-and occupation-based measures. We also find that the gender gap in concentration is substantially larger using this measure. Exploiting mass layoffs and establishment closures as exogenous shocks to local labor demand, we show that workers who experience a mass separation have substantially worse subsequent labor market outcomes when they are in more concentrated labor markets defined by skill clusters. Our results point to the existence of employer market power in the economy that is driven by the concentration of skill demand across firms.
    JEL: J23 J24 J42 J63
    Date: 2023–01
  6. By: Maurer, Stephan (University of Konstanz); Schwerdt, Guido (University of Konstanz); Wiederhold, Simon (Ifo Institute for Economic Research)
    Abstract: We study whether female students benefit from being taught by female professors, and whether such gender match effects differ by class size. We use administrative records of a German public university, covering all programs and courses between 2006 and 2018. We find that gender match effects on student performance are sizable in smaller classes, but do not exist in larger classes. This difference suggests that direct and frequent interactions between students and professors are important for the emergence of gender match effects. Instead, the mere fact that one's professor is female is not sufficient to increase performance of female students.
    Keywords: gender gap, role models, tertiary education, professors
    JEL: I21 I23 I24 J16
    Date: 2023–01
  7. By: Caliendo, Marco (University of Potsdam); Kritikos, Alexander S. (DIW Berlin); Rodriguez, Daniel (University of Potsdam); Stier, Claudia (University of Potsdam)
    Abstract: Self-efficacy reflects the self-belief that one can persistently perform difficult and novel tasks while coping with adversity. As such beliefs reflect how individuals behave, think, and act, they are key for successful entrepreneurial activities. While existing literature mainly analyzes the influence of the task-related construct of entrepreneurial self-efficacy, we take a different perspective and investigate, based on a representative sample of 1, 405 German business founders, how the personality characteristic of generalized self-efficacy influences start-up performance as measured by a broad set of business outcomes up to 19 months after business creation. Outcomes include start-up survival and entrepreneurial income, as well as growthoriented outcomes such as job creation and innovation. We find statistically significant and economically important positive effects of high scores of self-efficacy on start-up survival and entrepreneurial income, which become even stronger when focusing on the growth-oriented outcome of innovation. Furthermore, we observe that generalized self-efficacy is similarly distributed between female and male business founders, with effects being partly stronger for female entrepreneurs. Our findings are important for policy instruments that are meant to support firm growth by facilitating the design of more target-oriented offers for training, coaching, and entrepreneurial incubators.
    Keywords: entrepreneurship, firm performance, general self-efficacy, survival, job creation, innovation
    JEL: L26 M13 D91
    Date: 2023–01
  8. By: Bertheau, Antoine (University of Copenhagen); Vejlin, Rune Majlund (Aarhus University)
    Abstract: We investigate whether workers reallocate up firm productivity and wage job ladders, and the cyclicality of this process. We document that productivity is a better measure of the job ladder than the average wage, since high productivity firms relative to low poach more workers than high wage firms relative to low. Employment cyclicality over the business cycle differs between the firm wage and productivity ladders. In recessions, employment decreases more in low than in high productivity firms. Low productivity firms fire more workers in recessions and stop hiring unemployed workers. Thus, there is a cleansing effect of recessions from the point of view of productivity reallocation. Oppositely, employment decreases more in high than in low wage firms, and the poaching channel of employment growth explains the difference. In recessions separations to other firms slow down more in low wage firms relative high wage firms and thus reallocation up the wage job ladder breaks down - a sullying effect of recessions. Thus recessions speed up productivity-enhancing reallocation but impede progression on the wage ladder.
    Keywords: job creation rate, firm heterogeneity, employment fluctuations
    JEL: E24 E32
    Date: 2023–01
  9. By: Silvia Del Prete (Bank of Italy); Giulio Papini (Bank of Italy); Marco Tonello (Bank of Italy)
    Abstract: We study the impact of a 2011 law on the diversity of bank boards. The law required all listed companies in Italy (including banks) to increase the share of female representatives on their boards up to one third of total seats. We look at listed banks (the ones directly targeted by the law), but also test whether the law led to spillover effects on non-listed banks belonging to listed groups. Using administrative data on board composition between 2007 and 2019, we compare some measures of diversity of boards of listed and unlisted banks belonging to listed groups with those of institutions included in non-listed groups, before and after the introduction of the law. We find that female representation increased only for listed banks, with no spillover effects of the law on those belonging to listed groups, while the economic performance of listed banks remained broadly unchanged.
    Keywords: bank board composition, diversity, gender, corporate governance
    JEL: G21 G38 J48 J78
    Date: 2022–12
  10. By: Uwe Jirjahn; Thi Xuan Thu Le
    Abstract: Research on the consequences of works councils has been dominated by economic aspects. Our study provides evidence that works councils have nonfinancial consequences for civic society that go beyond the narrow boundaries of the workplace. Using panel data from a large sample of male workers, the study shows that works councils have an influence on workers' party preferences. The presence of a works council is negatively associated with preferences for extreme right-wing parties and positively associated with preferences for the Social Democratic Party and The Left. These results holds in panel data estimations including a large set of controls and accounting for unobserved individual-specific factors. Our findings fit the notion that workplace democracy increases workers' generalized solidarity and their awareness of social and political issues.
    Keywords: Workplace democracy, worker participation, political spillover, party identification
    JEL: D72 J51 J52 J58
    Date: 2023

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