nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2023‒10‒16
five papers chosen by
Patrick Kampkötter, Eberhard Karls Universität Tübingen

  1. Women in management and the gender pay gap By Virginia Sondergeld; Katharina Wrohlich
  2. Defying Gravity: What Drives Productivity in Remote Teams? By Thomas Fackler; Michael Hofmann; Nadzeya Laurentsyeva
  3. Preferences for collective working-time reduction policies:a factorial survey experiment By Damaris Castro; Brent Bleys
  4. Low-Wage Jobs, Foreign-Born Workers, and Firm Performance By Amuedo-Dorantes, Catalina; Arenas-Arroyo, Esther; Mahajan, Parag; Schmidpeter, Bernhard
  5. The Evolution of Work from Home By Barrero, José María; Bloom, Nicholas; Davis, Steven J.

  1. By: Virginia Sondergeld (DIW Berlin, FU Berlin); Katharina Wrohlich (DIW Berlin, University of Potsdam, IZA)
    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: 2023–09
  2. By: Thomas Fackler (ifo Institute, LMU Munich, CESifo, Laboratory for Innovation Science at Harvard); Michael Hofmann (LMU Munich); Nadzeya Laurentsyeva (LMU Munich, CESifo)
    Abstract: How can teams organize for productive online collaboration? The coronavirus pandemic has led to a large and persistent shift toward remote work. Using fine-grained data from the world's largest platform for open-source software development, we find that the pandemic reduced the productivity of previously co-located teams substantially, whereas similar teams with remote work experience remained resilient. While access to remote talent and experience are important for overall team success, our results highlight the crucial role of communication for productive online collaboration. We find suggestive evidence that, with their peers shifting to online work, remote workers become better integrated into their teams' communication. We conclude that while teams' performance may suffer from the shift to remote work, setting up systems for effective online communication can help mitigate productivity loss.
    Keywords: gravity model; open source; knowledge workers; knowledge flows; remote work; online labor markets; COVID-19;
    JEL: J01 M54 O30 F14
    Date: 2023–09–19
  3. By: Damaris Castro; Brent Bleys (-)
    Abstract: Collective working-time reduction (WTR) policies, organized by companies, organizations, sectors or governments, can yield benefits across diverse domains including productivity and well-being. Despite an increasing number of WTR trials, the attractiveness of such policies remains relatively underexplored in literature. In this study, a factorial survey experiment investigates employees' preferences for collective WTR policies with pay reduction that vary along five dimensions. Findings reveal that employees favour policies that minimize pay reduction, that reduce working time moderately rather than extensively, and that establish a high degree of flexibility for taking up the additional leisure time. Moreover, the uptake amongst significant others matters: participation of colleagues as well as of close friends and family positively influences WTR attractiveness, although the latter primarily matter in WTR-supportive company cultures. Our findings provide valuable guidance for companies, organizations and policymakers when devising collective WTR policies and underline the importance of societal participation to enhance WTR attractiveness.
    Keywords: working-time reduction, working-time preferences, factorial survey experiment
    JEL: C83 C91 J22 J88
    Date: 2023–10
  4. By: Amuedo-Dorantes, Catalina (University of California, Merced); Arenas-Arroyo, Esther (Vienna University of Economics and Business); Mahajan, Parag (University of Delaware); Schmidpeter, Bernhard (University of Linz)
    Abstract: We examine how migrant workers impact firm performance using administrative data from the United States. Exploiting an unexpected change in firms' likelihood of securing low-wage workers through the H-2B visa program, we find limited crowd-out of other forms of employment and no impact on average pay at the firm. Yet, access to H-2B workers raises firms' annual revenues and survival likelihood. Our results are consistent with the notion that guest worker programs can help address labor shortages without inflicting large losses on incumbent workers.
    Keywords: guest workers, migrants, employment, firm dynamics, H-2B visa
    JEL: J23 F22 J61
    Date: 2023–09
  5. By: Barrero, José María (Instituto Tecnológico Autónomo de México Business School); Bloom, Nicholas (Stanford University); Davis, Steven J. (Hoover Institution)
    Abstract: Full days worked at home account for 28 percent of paid workdays among Americans 20-64 years old, as of mid 2023, according to the Survey of Working Arrangements and Attitudes. That's about four times the 2019 rate and ten times the rate in the mid-1990s that we estimate in time-use data. We first explain why the big shift to work from home has endured rather than reverting to pre-pandemic levels. We then consider how work-from-home rates vary by worker age, sex, education, parental status, industry and local population density, and why it is higher in the United States than other countries. We also discuss some implications of the big shift for pay, productivity, and the pace of innovation. Over the next five years, U.S. business executives anticipate modest increases in the share of fully remote jobs at their own companies and in the share of jobs with hybrid arrangements, whereby the employee splits the workweek between home and employer premises. Other factors that portend an enduring shift to work from home include the ongoing adaptation of managerial practices and further advances in technologies, products, and tools that support remote work.
    Keywords: work from home, productivity, labor costs, job amenities, COVID-19
    JEL: D13 D23 E24 J22 J31 M54 R3
    Date: 2023–09

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