nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2023‒09‒04
seven papers chosen by
Patrick Kampkötter, Eberhard Karls Universität Tübingen

  1. Management, Performance And Pay By Natália P. Monteiro; Odd Rune Straume
  2. Women in Management and the Gender Pay Gap By Sondergeld, Virginia; Wrohlich, Katharina
  3. Female Leadership and Workplace Climate By Sule Alan; Corekcioglu; Mustafa Kaba; Matthias Sutter
  4. How much do firms need to satisfy employees? - Evidence from credit spreads and online employee reviews By Koji Takahashi; Sumiko Takaoka
  5. Non-monetary interventions, workforce retention and hospital quality: evidence from the English NHS By Moscelli, G.;; Sayli, M.;; Blanden, J.;; Mello, M.;; Castro-Pires, H.;; Bojke, C.;
  6. The gender gap in STEM: (Female) teenagers' ICT skills and subsequent career paths By Hertweck, Friederike; Lehner, Judith
  7. Intrinsic Motivation vs. Corruption? Experimental Evidence on the Performance of Officials By Lambsdorff, Johann Graf; Grubiak, Kevin; Werner, Katharina

  1. By: Natália P. Monteiro (NIPE/Center for Research in Economics and Management, University of Minho, Portugal); Odd Rune Straume (NIPE/Center for Research in Economics and Management, University of Minho, Portugal; and Department of Economics, University of Bergen, Norway)
    Abstract: We use rich Portuguese data to analyse the relationship between the use of structured management practices and worker pay in a large representative sample of firms. We find that management practices are significantly associated with both higher average wages and higher within-firm wage dispersion.The positive relationship between management practices and average pay is present throughout the wage distribution and for all occupational skill groups, but is stronger for workers higher up in the wage distribution and in higher-skilled occupations. These results are driven by management practices related to incentives, and are also mainly driven by small and medium-sized firms.
    Keywords: Management practices, wages, labour productivity
    JEL: D22 J31 M11 M54
    Date: 2023
  2. By: Sondergeld, Virginia (DIW Berlin); Wrohlich, Katharina (DIW Berlin)
    Abstract: We analyze the impact of women's managerial representation on the gender pay gap among employees on the establishment level using German Linked-Employer-Employee- Data from the years 2004 to 2018. For identification of a causal effect we employ a panel model with establishment fixed effects and industry-specific time dummies. Our results show that a higher share of women in management significantly reduces the gender pay gap within the firm. An increase in the share of women in first-level management e.g. from zero to above 33 percent decreases the adjusted gender pay gap from a baseline of 15 percent by 1.2 percentage points, i.e. to roughly 14 percent. The effect is stronger for women in second-level than first-level management, indicating that women managers with closer interactions with their subordinates have a higher impact on the gender pay gap than women on higher management levels. The results are similar for East and West Germany, despite the lower gender pay gap and more gender egalitarian social norms in East Germany. From a policy perspective, we conclude that increasing the number of women in management positions has the potential to reduce the gender pay gap to a limited extent. However, further policy measures will be needed in order to fully close the gender gap in pay.
    Keywords: gender pay gap, women in management, board diversity, two-way fixed effects, linked employer-employee data
    JEL: J16 J31 J71
    Date: 2023–07
  3. By: Sule Alan (European University Institute); Corekcioglu (Kadir Has University); Mustafa Kaba (Max Planck Institute for Research on Collective Goods, Bonn); Matthias Sutter (Max Planck Institute for Research on Collective Goods, Bonn)
    Abstract: Using data from over 2, 000 professionals in 24 large corporations, we show that female leaders shape the relational culture in the workplace differently than male leaders. Males form homophilic professional ties under male leadership, but female leadership disrupts this pattern, creating a less segregated workplace. Female leaders are more likely to establish professional support links with their subordinates. Under female leadership, female employees are less likely to quit their jobs but no more likely to get promoted. Our results suggest that increasing female presence in leadership positions may be an effective way to mitigate toxic relational culture in the workplace.
    Keywords: female leadership; workplace climate; social networks
    JEL: C93 J16 M14
    Date: 2023–08
  4. By: Koji Takahashi; Sumiko Takaoka
    Abstract: Using employee reviews accumulated in online platform service and ESG scores, this paper studies the relationship between firms' workforce benefits and their credit risk. We provide evidence that the sign of the effect of employee treatment on credit spreads depends on the sectoral intensity of human capital. In a sector with high intensity of human capital, especially in the manufacturing sector, more generous benefits for workers lead to lower credit spreads. In contrast, in a sector with low intensity, they are associated with larger credit spreads. We also find evidence that the lowering effect on credit spreads in sectors with high human capital intensity is mainly due to increased labor productivity.
    Keywords: employee satisfaction, online employee review, credit risk, labor risk
    JEL: G12 J28 J32
    Date: 2023–07
  5. By: Moscelli, G.;; Sayli, M.;; Blanden, J.;; Mello, M.;; Castro-Pires, H.;; Bojke, C.;
    Abstract: Excessive turnover can significantly impair an organization’s performance. Using high-quality administrative data and staggered difference-in-differences strategies, we evaluate the impact of a programme that encouraged public hospitals to increase staff retention by providing data and guidelines on how to improve the non-pecuniary aspects of nursing jobs. We find that the programme has decreased the nurse turnover rate by 4.49%, decreased exits from the public hospital sector by 5.38%, and reduced mortality within 30 days from hospital admission by 3.45%, preventing 11, 400 deaths. Our results are consistent with a theoretical model in which information is provided to managers of multi-unit organizations, who trade off coordinating decisions across units and adapting them to local conditions.
    Keywords: labor supply; workforce retention; non-monetary incentives; hospital care; staggered difference-in-differences;
    JEL: J32 J38 J45 J63 I11 C22
    Date: 2023–08
  6. By: Hertweck, Friederike; Lehner, Judith
    Abstract: Skills shortage in the fields of Sciences, Technology, Engineering, and Mathematics (STEM) poses a significant challenge for industries globally. This study examines the interrelationship between high school students' gender, their proficiency in Information and Communication Technology (ICT), and their career preferences in the STEM domain. Based on representative data for German teenagers, our study shows that female adolescents are less likely to choose a career in STEM unless they have strong ICT skills in secondary school. The relationship does not hold for male students. Our findings can be explained with evidence that teenagers sort into occupations they believe to be good at and that female teenagers rather underestimate their true potential. Using different empirical approaches, we also show that ICT skills act as a moderator and not as a mediator in the gender-specific choice of training upon graduating from secondary school.
    Keywords: Career choice, ICT skills, digital literacy, gender gap, STEM
    JEL: I20 J24 J08
    Date: 2023
  7. By: Lambsdorff, Johann Graf; Grubiak, Kevin; Werner, Katharina
    Abstract: There are conflicting views as to whether corruption or intrinsic motivation plays a greater role in determining the performance of public officials. We run an experiment that incorporates both viewpoints and assess the relative strength and interplay of these respective factors. The design introduces some realism into an everyday exchange between an Estimator (businessperson) and an Auditor (public official) and induces a gray area between intrinsic motivation, extortion and bribery. The Estimator can make a large transfer in the hope of avoiding unfair treatment (extortion) or obtaining an undeserved benefit (bribery). The Auditor may be intrinsically motivated to fulfill her duty or may be corrupted by transfers. We find that intrinsic motivation has a much higher impact on the performance of Auditors than corruption. In a treatment with punishment, Auditors are significantly less likely to accept a large transfer. But punishment fails to bring about favorable welfare effects due to two forces offsetting each other on the individual level. Intrinsic motivation increases for some subjects, supporting the “expressive law” literature, while it decreases for others, supporting the “crowding-out” literature. We infer that punishing officials is an unproblematic tool for fighting corruption, but its effectiveness is called into question. Policies should focus more on preserving officials’ intrinsic motivation and worry less about their corruptibility.
    Keywords: Bribery; crowding-out; expressive law; extortion; intrinsic motivation
    JEL: C92 D73 K42
    Date: 2023–05–24

This nep-hrm issue is ©2023 by Patrick Kampkötter. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.