nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2023‒04‒17
ten papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Tournament Incentives Affect Perceived Stress and Hormonal Stress Responses By Thomas Dohmen; Ingrid Rohde; Tom Stolp
  2. Racial Diversity and Team Performance: Evidence from the American Offshore Whaling Industry By Michele Baggio; Metin M. Cosgel
  3. The impact of AI on the workplace: Main findings from the OECD AI surveys of employers and workers By Stijn Broecke; Marguerita Lane; Morgan Williams
  4. Board of Directors’ Networks, Gender, and Firm Performance in a Male-Dominated Industry: Evidence from U.S. Banking By Owen, Ann; Temesvary, Judit; Wei, Andrew
  5. Accumulating valuable work experience: the importance of large firms and big cities By Peters, Jan Cornelius; Niebuhr, Annekatrin
  6. Teacher Performance Pay, Coaching, and Long-Run Student Outcomes By Sarah Cohodes; Ozkan Eren; Orgul Ozturk
  7. A Search Model with Self-Employment and Heterogeneity in Managerial Ability By Eliane Badaoui; Olivier Bargain; Prudence Magejo; Eric Strobl; Frank Walsh
  8. Gender Segregation: Analysis across Sectoral-Dominance in the UK Labour Market By Riccardo Leoncini; Mariele Macaluso; Annalivia Polselli
  9. Welcome on board? Appointment dynamics of women as directors By Schoonjans, Eline; Hottenrott, Hanna; Buchwald, Achim
  10. The Characteristics and Geographic Distribution of Robot Hubs in U.S. Manufacturing Establishments By Erik Brynjolfsson; Cathy Buffington; Nathan Goldschlag; J. Frank Li; Javier Miranda; Robert Seamans

  1. By: Thomas Dohmen (IZA (Schaumburg-Lippe-Strasse 5-9, 53113 Bonn, Germany), University of Bonn (Institute for Applied Microeconomics, Adenauerallee 24-42, 53113 Bonn, Germany), Maastricht University (Tongersestraat 53, 6211 LM Maastricht, The Netherlands).); Ingrid Rohde (Open Universiteit (Valkenburgerweg 177, 6419 AT Heerlen, The Netherlands).); Tom Stolp (Maastricht University (Tongersestraat 53, 6211 LM Maastricht, The Netherlands) and Vrije Universiteit Amsterdam (Boelelaan 1105, 1081 HV Amsterdam, The Netherlands).)
    Abstract: We conduct a laboratory experiment among male participants to investigate whether rewarding schemes that depend on work performance – in particular, tournament incentives – induce more stress than schemes that are independent of performance - fixed payment scheme. Stress is measured over the entire course of the experiment at both the hormonal and psychological level. Hormonal stress responses are captured by measuring salivary cortisol levels. Psychological stress responses are measured by self-reported feelings of stress and primary appraisals. We find that tournament incentives induce a stress response whereas a fixed payment does not induce stress. This stress response does not differ significantly across situations in which winners and losers of the tournament are publically announced and situations in which this information remains private. Biological and psychological stress measures are positively correlated, i.e. increased levels of cortisol are associated with stronger feelings of stress. Nevertheless, neither perceived psychological stress nor elevated cortisol levels in a previous tournament predict a subsequent choice between tournaments and fixed payment schemes, indicating that stress induced by incentives schemes is not a relevant criterion for sorting decisions in our experiment. Finally, we find that cortisol levels are severely elevated at the beginning of the experiment, suggesting that participants experience stress in anticipation of the experiment per se, potentially due to uncertainties associated with the unknown lab situation. We call this the novelty effect.
    Keywords: Incentives, stress, cortisol, sorting, laboratory experiment
    JEL: D23 D87 D91 M52
    Date: 2023–03
  2. By: Michele Baggio (University of Connecticut); Metin M. Cosgel (University of Connecticut)
    Abstract: In this paper we contribute to the literature on diversity and team performance by exploiting unique data from the natural experiment of American offshore whaling industry during the period between 1807 and 1912. Teams are represented by the crew operating onboard of whaling vessels and performance is measured by the value of the output captured during voyage. Combining information from multiple data sources, we document the existence of a U-shaped relationship between racial diversity and team performance. The nonlinear effect was transmitted by conflicts and skill complementarity among the whalemen. Crews adapted to diversity over time, as the effect shifted from being negative to negligible and then positive between short, medium, and long term voyages.
    JEL: D24 J15 J24 L25 M14 N11 O47
    Date: 2023–03
  3. By: Stijn Broecke; Marguerita Lane; Morgan Williams
    Abstract: New OECD surveys of employers and workers in the manufacturing and finance sectors of seven countries shed new light on the impact that Artificial Intelligence has on the workplace —an under-researched area to date due to lack of data. The findings suggest that both workers and their employers are generally very positive about the impact of AI on performance and working conditions. However, there are also concerns, including about job loss—an issue that should be closely monitored. The surveys also indicate that, while many workers trust their employers when it comes to the implementation of AI in the workplace, more can be done to improve trust. In particular, the surveys show that both training and worker consultation are associated with better outcomes for workers.
    JEL: J2 J3 J5 J6
    Date: 2023–03–27
  4. By: Owen, Ann; Temesvary, Judit; Wei, Andrew
    Abstract: Leadership roles in banking remain dominated by men; only about one in six bank board members is female. Connections among board members can improve firm performance, but women on boards are much less connected than men. In this paper, we study how gender relates to the role of connections: how do connected female versus male board members affect banks’ performance? Using IV techniques to account for the endogeneity of connections, we find that (1) better connected female (but not male) board members improve bank profitability and reduce earnings management; (2) connections of women on important board committees also improve performance – especially when the share of women on the board is relatively high (above the median).
    Keywords: bank boards; professional networks; gender diversity; instrumental variables
    JEL: G21 G34 J16
    Date: 2023–03
  5. By: Peters, Jan Cornelius (Thünen Institute); Niebuhr, Annekatrin (Institute for Employment Research (IAB), Nuremberg, Germany ; Univ, Kiel)
    Abstract: "Using linked employer-employee data on labor market biographies of workers in Germany, this paper analyzes where valuable work experience is primarily acquired. It distinguishes between learning effects related to firm size and labor market size. We show that wages increase with the size of the cities and establishments in which experience was accumulated. Almost 40 percent of the dynamic benefits of working in large cities are in fact due to working in large firms. We provide evidence on two potential explanations for the role of size: formal training increases with firm size and the frequency of job changes with city size." (Author's abstract, IAB-Doku) ((en))
    Keywords: IAB-Open-Access-Publikation
    JEL: J31 R12 R23
    Date: 2023–03–30
  6. By: Sarah Cohodes; Ozkan Eren; Orgul Ozturk
    Abstract: This paper examines the effects of a comprehensive performance pay program for teachers implemented in high-need schools on students’ longer-run educational, criminal justice, and economic self-sufficiency outcomes. Using linked administrative data from a Southern state, we leverage the quasi-randomness of the timing of program adoption across schools to identify causal effects of the school reform. The program improved educational attainment and reduced both criminal activity and dependence on government assistance in early adulthood. We find little scope for student sorting or changes in the composition of teacher workforce, and that program benefits far exceeded its costs. We propose mechanisms for observed long-run effects and provide evidence consistent with these explanations. Several robustness checks and placebo tests support our findings.
    JEL: H75 I21 J32 J45
    Date: 2023–03
  7. By: Eliane Badaoui; Olivier Bargain; Prudence Magejo; Eric Strobl; Frank Walsh
    Abstract: The view of informal employment as a last resort in the labour market has recently been challenged by numerous studies documenting the existence of a high degree of heterogeneity within the formal and informal sectors - in particular the presence of high-tier informal work corresponding to voluntary self-employment. There is currently not much theoretical support for these observations. We develop a formal model to explain this growing empirical evidence about substantial heterogeneity within formal/informal labour markets. In our model, workers may enter self-employment or search for jobs as employees, while allowing for heterogeneity across workers’ managerial ability. While workers with higher managerial ability will manage larger firms, workers with lower managerial ability will manage smaller firms and be in self-employment only when they cannot find a salaried formal/informal job. For the latter, self-employment in the informal sector is the outside employment option.
    Keywords: Self-employment; Managerial ability; Informal sector.
    JEL: J31 O17
    Date: 2023
  8. By: Riccardo Leoncini; Mariele Macaluso; Annalivia Polselli
    Abstract: Although the degree of gender segregation in the UK has decreased over time, women's participation in traditionally "female-dominated" sectors is disproportionately high. This paper aims to evaluate how changing patterns of sectoral gender segregation affected women's employment contracts and wages in the UK between 2005 and 2020. We then study wage differentials in gender-specific dominated sectors. We found that the differences in wages and contractual opportunities result mainly from the propensity of women to be distributed differently across sectors. Hence, the disproportion of women in female-dominated sectors implies contractual features and lower wages typical of that sector, on average, for all workers. This difference is primarily explained by persistent discriminatory constraints, while human capital-related characteristics play a minor role. However, wage differentials would shrink if workers had the same potential wages as men in male-dominated sectors. Moreover, this does not happen at the top of the wage distribution, where wage differentials among women in female-dominated sectors are always more pronounced than men.
    Date: 2023–03
  9. By: Schoonjans, Eline; Hottenrott, Hanna; Buchwald, Achim
    Abstract: Increasing the participation of women in top-level corporate boards is high on the agenda of policymakers. Yet, we know little about director appointment dynamics and the drivers and impediments of women appointments. This study builds on organizational and group-level behavior theories and empirically investigates how ex-ante board structures and gender-specific board dynamics impact the representation of women on corporate boards. We study boards of listed firms in Europe between 2002 and 2019 and find a declining appointment probability for every additional woman, i.e. the share of women already on the board negatively predicts the likelihood of additional women appointments. Further, we find evidence of a replacement effect, i.e. the likelihood of a woman being appointed as director is significantly larger when a woman, compared to when a man, leaves the board. We do not find spillover effects from non-executive to executive boards. These results are robust to econometric model specifications that address potential endogeneity concerns using matching and instrumental variables. Our results confirm that board director appointments are gender specific and suggest that demand-side factors such as explicit and implicit norms drive women appointments up to a certain threshold.
    Keywords: Executive Directors, Non-Executive Directors, Appointments, Board Dynamics, Gender, Tokenism, Critical Mass, Corporate Governance
    JEL: G34 J08 J16 J71 L22
    Date: 2023
  10. By: Erik Brynjolfsson; Cathy Buffington; Nathan Goldschlag; J. Frank Li; Javier Miranda; Robert Seamans
    Abstract: We use data from the Annual Survey of Manufactures to study the characteristics and geography of investments in robots across U.S. manufacturing establishments. We find that robotics adoption and robot intensity (the number of robots per employee) is much more strongly related to establishment size than age. We find that establishments that report having robotics have higher capital expenditures, including higher information technology (IT) capital expenditures. Also, establishments are more likely to have robotics if other establishments in the same Core-Based Statistical Area (CBSA) and industry also report having robotics. The distribution of robots is highly skewed across establishments’ locations. Some locations, which we call Robot Hubs, have far more robots than one would expect even after accounting for industry and manufacturing employment. We characterize these Robot Hubs along several industry, demographic, and institutional dimensions. The presence of robot integrators and higher levels of union membership are positively correlated with being a Robot Hub.
    JEL: L64 O34 O36 O4
    Date: 2023–03

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