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on Human Capital and Human Resource Management |
| By: | Dumav, Martin; Khan, Urmee; Rigotti, Luca |
| Abstract: | In a moral hazard model with heterogeneous beliefs, we show that the efficient risksharing contract does not result in a constant wage and the optimal first-best contract may not be increasing in output. When actions are unobservable, heterogeneity in beliefs implies that the monotone likelihood ratio ranking does not ensure that the wage scheme in the optimal contract is non-decreasing in output. This is because differences in beliefs may affect the incentive provision in a non-monotone way. The standard monotonicity result with common beliefs extends to belief heterogeneity when the agent is more optimistic than the principal. Yet, in the reverse case, the optimal contract can be non-monotone. |
| Keywords: | Contracting; Heterogeneous Beliefs; Monotone Likelihood Ratio; Moral Hazard |
| JEL: | D82 D86 M52 |
| Date: | 2023–10–03 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:38519&r=hrm |
| By: | Arnaud Dupuy (Department of Economics and Business Economics, University of Luxembourg); John Kennes (Department of Economics and Business Economics, Aarhus University); Ran Sun Lyng (Tampere University) |
| Abstract: | We use a two-sided multidimensional matching model with imperfect transferable utility to estimate how CEOs/firms trade off preferred firm/CEO qualities against salary. These preferences are identifiable with data on CEO pecuniary compensation and assignment. We estimate the model with high-quality Danish data through maximum likelihood, accounting for CEO and firm fixed effects. The estimates reveal that CEOs have strong preferences for non-monetary job amenities that account for several puzzling features of the market for CEOs. The central role of CEO job preferences is also illustrated by several counterfactual experiments. |
| Keywords: | Job amenities, CEO compensation, Assignment Models, CEO-firm matching, Multidimensional matching |
| JEL: | G30 M12 G34 J32 C78 C35 |
| Date: | 2023–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2023-08&r=hrm |
| By: | Rodrigo Ceni (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Estefanía Galván (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Cecilia Parada (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | While a large body of literature has focused on identifying the causes of female under-representation at hierarchical positions, we still know little about the effects of having more women with decision-making power at top positions. Using matched employer-employee administrative data for Uruguay, this paper investigates how the gender composition at hierarchical positions of the firms affects the wage gaps among male and female employees. Our results show that having a higher proportion of female bosses at the firms leads to lower pay gaps. Including workers’ and bosses’ fixed effects to account for unobserved heterogeneity, we find that working in a firm with increasing participation of female bosses reduces the gender pay gap by between 1.15 and 4.27 log points. The gender pay gaps are substantially lower among civil servants compared to those of private workers, but even in these large public firms having female bosses reduces the gender wage gaps. We present suggestive evidence that gender differences in the entrance wage offered to males compared to that offered to female workers partially explain these results. Moreover, women working in public firms are between 2.9% and 4.3% more likely to be promoted when working for female bosses. |
| Keywords: | gender gaps, promotions, firms, bosses |
| JEL: | D10 J16 J22 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-06-23&r=hrm |
| By: | Catalina Amuedo-Dorantes; Esther Arenas-Arroyo; Parag Mahajan; Bernhard Schmidpeter (Economics, Johannes Kepler University 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 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2023-10&r=hrm |
| By: | Cristina Bernini; Alessandro Tampieri |
| Abstract: | We investigate how specific components of job satisfaction influence overall work happiness. We use the British Household Panel Survey (BHPS), which includes measures of satisfaction with total pay, job security, the nature of work, and hours worked. Our analysis employs a multi-level model to assess the variations in job satisfaction among different types of occupations. This approach allows for a clear comparison of both monetary and non-monetary aspects of job satisfaction. Our findings indicate that the importance of satisfaction with salary in explaining overall satisfaction is lower compared to other non-monetary aspects. This result holds true even when we narrow down the sample by considering factors such as gender (males or females), employment type (full-time or part-time), further job satisfaction components (available for fewer years), and examining income as a second-level factor rather than job occupation. |
| Keywords: | subjective well-being, happiness function, job satisfaction. |
| JEL: | I31 R10 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2023_06.rdf&r=hrm |
| By: | Jose Maria Barrero; Nicholas Bloom; Steven J. Davis |
| 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. |
| JEL: | D13 D23 E24 J22 J31 M54 R3 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31686&r=hrm |
| By: | Soo Keong Young; Ulrich J. Wagner; Peiyao Shen; Laure de Preux; Mirabelle Muȗls; Ralf Martin; Jing Cao |
| Abstract: | We investigate how management quality moderates the impact of carbon pricing on Chinese firms. Based on interviews with managers and lead engineers at manufacturing firms in Hubei and Beijing, we construct a novel index on climate-change related management practices and link it to firm data from various sources. We document higher average productivity and more green innovation among firms that are well managed according to this index. In an event study of the introduction of regional cap-and-trade schemes for CO2, we analyze how these management practices interact with treatment. While treated firms reduced coal consumption more than control firms, this effect is statistically significant only for well-managed firms. The reduction could have been 25% greater if badly managed firms had been well managed. Our study highlights that good management practices, in particular energy monitoring, enhance the effectiveness of market-based climate policies by enabling firm to rationally comply with them. |
| Keywords: | climate policy; firm behavior; management practices; emissions trading scheme; policy evaluation |
| JEL: | D22 O31 Q48 Q54 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_466&r=hrm |
| By: | Gary Charness; Brian Jabarian; John A. List |
| Abstract: | We investigate the potential for Large Language Models (LLMs) to enhance scientific practice within experimentation by identifying key areas, directions, and implications. First, we discuss how these models can improve experimental design, including improving the elicitation wording, coding experiments, and producing documentation. Second, we discuss the implementation of experiments using LLMs, focusing on enhancing causal inference by creating consistent experiences, improving comprehension of instructions, and monitoring participant engagement in real time. Third, we highlight how LLMs can help analyze experimental data, including pre-processing, data cleaning, and other analytical tasks while helping reviewers and replicators investigate studies. Each of these tasks improves the probability of reporting accurate findings. |
| JEL: | C0 C1 C80 C82 C87 C9 C90 C92 C99 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31679&r=hrm |
| By: | Hernández, Hugo; Quiroz, Gabriel; Zambrano, Omar; Zanoni, Wladimir |
| Abstract: | This paper presents the findings of an artifactual field experiment conducted in urban Ecuador to investigate discrimination against LGBTQ (here restricted to individuals self-identified as gay or lesbian) job seekers in the labor market. Focusing on occupations and sectors where LGBTQ and non-LGBTQ individuals commonly apply, the study employed fictitious job applications evaluated by 394 human resource analysts. The results indicate that, on average, LGBTQ candidates did not face discrimination in terms of hiring recommendations, job fit assessments, or wage offers. However, a closer analysis reveals a gender-based differential treatment. Female LGBTQ candidates received positive discrimination, were more likely to be selected and offered higher wages compared to their heterosexual counterparts. In contrast, male LGBTQ candidates experienced negative discrimination and no wage differences with a lower likelihood of selection. The study found an influential role of female recruiters in driving these discriminatory behaviors. These findings contribute to our understanding of the complex dynamics of discrimination towards LGBTQ workers in the labor market and its interaction with gender. |
| Keywords: | discrimination;LGBTQ+;Employment;field experiments |
| JEL: | C9 J15 J16 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:12977&r=hrm |