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on Human Capital and Human Resource Management |
| By: | Roos, Michael W. M.; Reale, Jessica; Banning, Frederik |
| Abstract: | This agent-based model contributes to a theory of corporate culture in which company performance and employees' behaviour result from the interaction between financial incentives, motivational factors and endogenous social norms. Employees' personal values are the main drivers of behaviour. They shape agents' decisions about how much of their working time to devote to individual tasks, cooperative, and shirking activities. The model incorporates two aspects of the management style, analysed both in isolation and combination: (i) monitoring efforts affecting intrinsic motivation, i.e. the firm is either trusting or controlling, and (ii) remuneration schemes affecting extrinsic motivation, i.e. individual or group rewards. The simulations show that financial incentives can (i) lead to inefficient levels of cooperation, and (ii) reinforce value-driven behaviours, amplified by emergent social norms. The company achieves the highest output with a flat wage and a trusting management. Employees that value self-direction highly are pivotal, since they are strongly (de-)motivated by the management style. |
| Keywords: | Values,social norms,remuneration systems,intrinsic motivation,monitoring,agent-based modelling |
| JEL: | D24 D91 J22 M52 M54 Z13 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:917&r= |
| By: | Wolfgang Keller (University of Colorado); Teresa Molina (University of Hawaii); William W. Olney (University of Hawaii) |
| Abstract: | This paper examines gender differences among top business executives using a large executive-employer matched data set spanning the last quarter century. Female executives make up 6.2% of the sample and we find they exhibit more labor market churning – both higher entry and higher exit rates. Unconditionally, women earn 26% less than men, which decreases to 7.9% once executive characteristics, firm characteristics, and in particular job title are accounted for. The paper explores the extent to which firm-level temporal flexibility and corporate culture can explain these gender differences. Although we find that women tend to select into firms with temporal flexibility and a female-friendly corporate culture, there is no evidence that this sorting drives the gender pay gap. However, we do find evidence that corporate culture affects pay gaps within firms: the within-firm gender pay gap disappears entirely at female-friendly firms. Overall, while both corporate culture and flexibility affect the female share of employment, only corporate culture influences the gender pay gap. |
| Keywords: | Women; Executive Compensation; Gender Pay Gap; Corporate Culture |
| JEL: | J16 J24 J33 J82 F16 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:202024&r= |
| By: | Krammer, Sorin |
| Abstract: | This paper examines the effects of human resource (HR) policies on firm innovation. Specifically, we argue that firms who implement policies to stimulate job autonomy and performance-based pay will be more likely to innovate, as proxied by investments in R&D. In addition, we contend that the institutional (i.e., labour regulations) and competitive (i.e., pressure from imports) contexts in which a firm operates will affect the relationship between HR policies and innovation, albeit in different ways. We test these hypotheses using a dataset of more than 900 firms across a heterogenous set of 12 countries, majority of which are emerging markets. We find strong empirical backing for the role of both job autonomy and performance-based pay policies in stimulating firm innovation, and partial support for the moderating effects of institutional and competitive contexts of this relationship. |
| Keywords: | Human Resource Management; Job autonomy; Performance-based pay; Firm innovation; Labour regulations; Import competition |
| JEL: | D4 J33 J8 O17 O3 O32 |
| Date: | 2021–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109486&r= |
| By: | Adams-Prassl, A.; Boneva, T.; Golin, M.; Rauh, C. |
| Abstract: | Not all countries provide universal access to publicly funded paid sick pay. Amongst countries that do, compensation rates can be low and coverage incomplete. This leaves a significant role for employer-provided paid sick pay in many countries. In this paper, we study who has access to employer-provided sick pay, how access to sick pay relates to labor supply when sick, and how much it is valued by workers for themselves and others. We find that workers in jobs with high contact to others are particularly unlikely to have employer provided sick pay, as are economically insecure workers who are least able to afford unpaid time off work. We find that workers without sick pay are more likely to work when experiencing cold-like symptoms and are less willing to expose themselves to health risks at work during the pandemic. Using vignettes, we reveal that large shares of workers have a very high, but even more have a very low willingness to sacrifice earnings for access to sick pay. Together our findings highlight the unequal distribution of access to sick pay and the potentially strong negative externalities of not providing it publicly. The pandemic may have made these issues more salient as perceived probabilities of having to self-isolate are positively related to support for publicly provided sick pay. Finally, we find that providing information on the health externality of paid sick leave increases support for the public provision of sick pay, suggesting that there might be a public under-provision because individuals do not factor in the externalities. |
| Keywords: | Inequality, sick pay, sick leave, externalities, public finance, Covid-19, pandemic, coronavirus, market failure, vignette, information treatment |
| JEL: | J22 J32 J81 |
| Date: | 2021–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2162&r= |
| By: | Lamprea-Barragan, T. C; García- Suaza, A. F. |
| Abstract: | This paper aims to quantify at which extent industry and occupation characteristics explain the gender pay gap in Colombia. To quantify the role of these factors we perform counterfactual decomposition methods that allow to split the total gap into the contribution of the gender share of employment at the industry level, the demographic composition and the characteristics pay premia. This is possible by adapting the classical Oaxaca-Blinder decomposition to a two-step procedure, which is illustrated through Monte Carlo simulations. Using Colombian data for 2019 and exploiting the heterogeneity at the industry and the occupation level, findings suggest that the three components shape the gender pay gap. While differences in returns are the main force driver of the existing gap, the gender employment share, and the composition of workers across industries and occupations provide mixed results. |
| Keywords: | Gender pay gap; decomposition methods, sorting. |
| JEL: | J16 J31 J24 |
| Date: | 2021–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:019437&r= |
| By: | Ari Bronsoler; Joseph J. Doyle Jr.; John Van Reenen |
| Abstract: | Adoption of health information and communication technologies (“HICT”) has surged over the past two decades. We survey the medical and economic literature on HICT adoption and its impact on clinical outcomes, productivity and labor. We find that HICT improves clinical outcomes and lowers healthcare costs, but (i) the effects are modest so far, (ii) it takes time for these effects to materialize, and (iii) there is much variation in the impact. More evidence on the causal effects of HICT on productivity is needed to guide further adoption. There is little econometric work directly investigating the impact of HICT on labor, but what there is suggests no substantial negative effects on employment and earnings. Overall, while healthcare is “exceptional” in many ways, we are struck by the similarities to the wider findings on ICT and productivity stressing the importance of complementary factors (e.g. management and skills) in determining HICT impacts. |
| JEL: | I12 I18 J21 J24 O14 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29218&r= |
| By: | Lüthi, Samuel (Swiss Co-ordination Center for Research in Education); Wolter, Stefan C. (University of Bern) |
| Abstract: | In this study, we examine the influence of competitiveness on the stability of labour relations using the example of premature employment and training contract termination in the apprenticeship education sector. The paper extends the small but growing evidence on the external relevance of competitiveness by analysing gender differences in the correlation between competitiveness and labour market success and whether these effects depend on how the students' propensity to compete is measured. By matching a large experimental dataset with administrative data identifying contract terminations, we find that both gender and test specification matter. While competitive men assigned to a difficult competitiveness task are less likely to drop out of the contract than non competitive men, there is no such effect observable for those assigned to the easier task. On the other hand, competitive women are more likely to drop out than non competitive women, irrespective of how competitiveness is measured. |
| Keywords: | competitiveness, non-cognitive skills, gender, apprenticeship |
| JEL: | C9 J16 J24 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14675&r= |