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on Human Capital and Human Resource Management |
| By: | Alexander S. Kritikos (DIW Berlin, University of Potsdam, GLO Essen, IAB Nuremberg, CEPA); Mika Maliranta (University of Jyväskylä); Veera Nippala (University of Jyväskylä); Satu Nurmi (Statistics Finland) |
| Abstract: | We examine how the gender of business-owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is – starting from a gender pay gap of 11 to 12 percent - two to three percentage-points lower for hourly wages in female-owned firms than in male-owned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role for the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses in male ownership maintain a gender pay gap of around 10 percent also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others – firm managers – determine wages and no differences in the pay gap are observed between male- and female-owned firms. |
| Keywords: | entrepreneurship, gender pay gap, discrimination, linked employer-employee data |
| JEL: | J16 J24 J31 J71 L26 M13 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:76&r= |
| By: | Breuer, Matthias; Cai, Wei; Le, Anthony; Vetter, Felix |
| Abstract: | Recent proposals for a more inclusive capitalism call for labor and minority representation in corporate governance. We examine the joint promise of labor and minority representation in the context of German works councils. The councils are a powerful form of labor representation that grants elected delegates of shop-floor workers codetermination rights (e.g., over work conditions). Since 2001, a quota ensures that elected delegates include delegates of the minority gender in the workforce. Using detailed survey and administrative data, we find that required minority representation helps the representation of the minority gender on works councils, elevates the effort of works councils, and boosts job satisfaction and well-being of workers, irrespective of their gender. At the establishment level, we find that required minority representation reduces worker turnover and increases investment and productivity. Our findings suggest that laws ensuring labor and minority representation in corporate governance can work (i.e., benefit workers without necessarily hurting employers). The seemingly beneficial impact of the laws suggests that frictions hamper the representation of minorities and cooperation among workers and employers. |
| Keywords: | Corporate Governance, Labor Representation, Gender Quota, Job Satisfaction |
| JEL: | J15 J16 J28 J53 J54 J63 J71 J81 J82 J83 K22 K31 M12 M14 M50 M54 P16 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cbscwp:294850&r= |
| By: | Jeronimo Carballo; Richard Mansfield; Charles Adam Pfander |
| Abstract: | Multi-establishment firms account for around 60% of U.S. workers’ primary employers, providing ample opportunity for workers to change their work location without changing their employer. Using U.S. matched employer-employee data, this paper analyzes workers’ access to and use of such between-establishment job transitions, and estimates the effect on workers’ earnings growth of greater access, as measured by proximity of employment at other within-firm establishments. While establishment transitions are not perfectly observed, we estimate that within-firm establishment transitions account for 7.8% percent of all job transitions and 18.2% of transitions originating from the largest firms. Using variation in worker’s establishment locations within their firms’ establishment network, we show that having a greater share of the firm’s jobs in nearby establishments generates meaningful increases in workers’ earnings: a worker at the 90th percentile of earnings gains from more proximate within-firm job opportunities can expect to enjoy 2% higher average earnings over the following five years than a worker at the 10th percentile with the same baseline earnings. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:24-24&r= |
| By: | Bryce McLaughlin; Jann Spiess |
| Abstract: | Algorithms frequently assist, rather than replace, human decision-makers. However, the design and analysis of algorithms often focus on predicting outcomes and do not explicitly model their effect on human decisions. This discrepancy between the design and role of algorithmic assistants becomes of particular concern in light of empirical evidence that suggests that algorithmic assistants again and again fail to improve human decisions. In this article, we formalize the design of recommendation algorithms that assist human decision-makers without making restrictive ex-ante assumptions about how recommendations affect decisions. We formulate an algorithmic-design problem that leverages the potential-outcomes framework from causal inference to model the effect of recommendations on a human decision-maker's binary treatment choice. Within this model, we introduce a monotonicity assumption that leads to an intuitive classification of human responses to the algorithm. Under this monotonicity assumption, we can express the human's response to algorithmic recommendations in terms of their compliance with the algorithm and the decision they would take if the algorithm sends no recommendation. We showcase the utility of our framework using an online experiment that simulates a hiring task. We argue that our approach explains the relative performance of different recommendation algorithms in the experiment, and can help design solutions that realize human-AI complementarity. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.01484&r= |
| By: | Homrighausen, Pia (Federal Office for Migration and Refugees (BAMF)); Oberfichtner, Michael (Institute for Employment Research (IAB), Nuremberg) |
| Abstract: | Caseworker meetings have been shown to accelerate exit from unemployment. We explore whether they are also effectual before entering unemployment. In a natural field experiment, we offer caseworker meetings to workers at risk of losing their jobs while they are still employed. We find that the offer induces additional meetings and substantially shifts the first meeting forward but has no effect on entry into unemployment or on labour market outcomes within one year. The intervention does not alter jobseekers' search behaviour, which likely explains its inefficacy. |
| Keywords: | job search assistance, caseworker meetings, job search, field experiment |
| JEL: | J68 J63 J62 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16923&r= |