Alternative work arrangements, defined both by working conditions and by workers’ relationship to their employers, are heterogeneous and common in the United States. This article reviews the literature on workers’ preferences over these arrangements, inputs to firms’ decisions to offer them, and the impact of regulation. It also highlights several descriptive facts: The typical worker is in a job where almost none of the tasks can be performed from home, work arrangements have been relatively stable over the past 20 years, work conditions vary substantially with education, and jobs with schedule or location flexibility are less family friendly on average. This last fact explains why women are not more likely to have schedule or location flexibility and seem to largely reduce their working hours to get more family-friendly arrangements.
{"title":"Alternative Work Arrangements","authors":"Alexandre Mas, Amanda Pallais","doi":"10.3386/w26605","DOIUrl":"https://doi.org/10.3386/w26605","url":null,"abstract":"Alternative work arrangements, defined both by working conditions and by workers’ relationship to their employers, are heterogeneous and common in the United States. This article reviews the literature on workers’ preferences over these arrangements, inputs to firms’ decisions to offer them, and the impact of regulation. It also highlights several descriptive facts: The typical worker is in a job where almost none of the tasks can be performed from home, work arrangements have been relatively stable over the past 20 years, work conditions vary substantially with education, and jobs with schedule or location flexibility are less family friendly on average. This last fact explains why women are not more likely to have schedule or location flexibility and seem to largely reduce their working hours to get more family-friendly arrangements.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116818530","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the effect of hearing cases alongside female judicial colleagues on the probability that a federal judge hires a female law clerk. Federal judges are assigned to cases and to judicial panels at random and have few limitations on their choices of law clerks: these two features make the federal court system a unique environment in which to study the effect of professional interactions and beliefs in organizations. We constructed a unique dataset by aggregating federal case records from 2007-2017 to collect information on federal judicial panels, and by merging this data with judicial hiring information from the Judicial Yellow Book, a directory of federal judges and clerks. We find that a one standard deviation increase in the fraction of co-panelists who are female increases a judge's likelihood of hiring a female clerk by 4 percentage points. This finding suggests that increases in the diversity of the upper rungs of a profession can shift attitudes in a way that creates opportunities at the entry level of a profession.
{"title":"Professional Interactions and Hiring Decisions: Evidence from the Federal Judiciary","authors":"M. Battaglini, Jorgen Harris, Eleonora Patacchini","doi":"10.3386/w26726","DOIUrl":"https://doi.org/10.3386/w26726","url":null,"abstract":"We examine the effect of hearing cases alongside female judicial colleagues on the probability that a federal judge hires a female law clerk. Federal judges are assigned to cases and to judicial panels at random and have few limitations on their choices of law clerks: these two features make the federal court system a unique environment in which to study the effect of professional interactions and beliefs in organizations. We constructed a unique dataset by aggregating federal case records from 2007-2017 to collect information on federal judicial panels, and by merging this data with judicial hiring information from the Judicial Yellow Book, a directory of federal judges and clerks. We find that a one standard deviation increase in the fraction of co-panelists who are female increases a judge's likelihood of hiring a female clerk by 4 percentage points. This finding suggests that increases in the diversity of the upper rungs of a profession can shift attitudes in a way that creates opportunities at the entry level of a profession.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121466042","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Brenøe, Serena Canaan, Nikolaj A. Harmon, Heather Royer
Most existing evidence on the effectiveness of family leave policies comes from studies focusing on their impacts on affected families - mothers, fathers, and their children - without a clear understanding of the costs and effects on firms and coworkers. We estimate the effect of a female employee giving birth and taking parental leave on small firms and coworkers in Denmark. Using a dynamic difference-in-differences design, we compare small firms in which a female employee is about to give birth to an observationally equivalent sample of small firms with female employees who are not close to giving birth. Identification rests on a parallel trends assumption, which we substantiate through a set of natural validity checks. We find little evidence that parental leave take-up has negative effects on firms and coworkers overall. Specifically, after accounting for wage reimbursements received by firms offering paid leave, there are no measurable effects on firm output, labor costs, profitability or survival. Coworkers of the woman going on leave see temporary increases in their hours, earnings, and likelihood of being employed but experience no significant changes in well-being at work as proxied by sick days. These limited effects of parental leave reflect that most firms are very effective in compensating for the worker on leave by hiring temporary workers and by increasing other employees' hours. In contrast, we do find evidence that parental leave has negative effects on a small subsample of firms that are less able to use their existing employees to compensate for an absent worker.
{"title":"Is Parental Leave Costly for Firms and Coworkers?","authors":"A. Brenøe, Serena Canaan, Nikolaj A. Harmon, Heather Royer","doi":"10.3386/w26622","DOIUrl":"https://doi.org/10.3386/w26622","url":null,"abstract":"Most existing evidence on the effectiveness of family leave policies comes from studies focusing on their impacts on affected families - mothers, fathers, and their children - without a clear understanding of the costs and effects on firms and coworkers. We estimate the effect of a female employee giving birth and taking parental leave on small firms and coworkers in Denmark. Using a dynamic difference-in-differences design, we compare small firms in which a female employee is about to give birth to an observationally equivalent sample of small firms with female employees who are not close to giving birth. Identification rests on a parallel trends assumption, which we substantiate through a set of natural validity checks. We find little evidence that parental leave take-up has negative effects on firms and coworkers overall. Specifically, after accounting for wage reimbursements received by firms offering paid leave, there are no measurable effects on firm output, labor costs, profitability or survival. Coworkers of the woman going on leave see temporary increases in their hours, earnings, and likelihood of being employed but experience no significant changes in well-being at work as proxied by sick days. These limited effects of parental leave reflect that most firms are very effective in compensating for the worker on leave by hiring temporary workers and by increasing other employees' hours. In contrast, we do find evidence that parental leave has negative effects on a small subsample of firms that are less able to use their existing employees to compensate for an absent worker.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125932239","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-31DOI: 10.3126/qjmss.v1i2.27418
P. Gautam
Background: Employee motivation and employee turnover are central issues in the modern organizations as human capital is the most important intangible asset for organizational productivity. Attitude, skills and knowledge of employees create the competitive advantage of the organization. It is the growing challenge for retaining competent and professional employees in the organization within the increasing global opportunities. Employee motivation, satisfaction, job burnout, turnover are being common challenges to the management. To cope with such challenges, organizations should have strategic focus on comprehensive reward system.
Objectives: This study aims at exploring the factors of comprehensive reward system. More specifically, relationships between the components of comprehensive reward system and employee motivation are examined. Finally, the impact of employee motivation derived from reward system was tested with employee turnover intention.
Methods: This study was conducted with descriptive-correlational research design that follows quantitative approach. Primary data for each variable was collected from 200 employees holding different positions in different banks. A 5-Point Likert Scale was used to collect major responses on the variables. Descriptive statistics, Pearson correlation, and regression analysis were used to test the hypothesis. Inferences were made on five per cent and one per cent level of significance.
Result: Results of the study revealed that compensation, benefits, work-life balance, performance recognition and empowerment and career opportunity were the major factors as the components of comprehensive reward system. It was found that these factors had significant positive relationship with employee motivation. Results also revealed the negative significant relationship between employee motivation and their turnover intention.
Conclusion: Employees of Nepali banking industry strongly believe in comprehensive reward system ranging from economic benefits to the personal growth. It is also concluded, with supporting the theory that employee motivation helps to solve the employee turnover intention.
Implications: To solve the high corporate movement of employees in Nepali banks, this study provides a key insight for focusing on comprehensive reward system.
{"title":"Comprehensive Reward System, Employee Motivation and Turnover Intention: Evidence from Nepali Banking Industry","authors":"P. Gautam","doi":"10.3126/qjmss.v1i2.27418","DOIUrl":"https://doi.org/10.3126/qjmss.v1i2.27418","url":null,"abstract":"Background: Employee motivation and employee turnover are central issues in the modern organizations as human capital is the most important intangible asset for organizational productivity. Attitude, skills and knowledge of employees create the competitive advantage of the organization. It is the growing challenge for retaining competent and professional employees in the organization within the increasing global opportunities. Employee motivation, satisfaction, job burnout, turnover are being common challenges to the management. To cope with such challenges, organizations should have strategic focus on comprehensive reward system.<br><br>Objectives: This study aims at exploring the factors of comprehensive reward system. More specifically, relationships between the components of comprehensive reward system and employee motivation are examined. Finally, the impact of employee motivation derived from reward system was tested with employee turnover intention.<br><br>Methods: This study was conducted with descriptive-correlational research design that follows quantitative approach. Primary data for each variable was collected from 200 employees holding different positions in different banks. A 5-Point Likert Scale was used to collect major responses on the variables. Descriptive statistics, Pearson correlation, and regression analysis were used to test the hypothesis. Inferences were made on five per cent and one per cent level of significance.<br><br>Result: Results of the study revealed that compensation, benefits, work-life balance, performance recognition and empowerment and career opportunity were the major factors as the components of comprehensive reward system. It was found that these factors had significant positive relationship with employee motivation. Results also revealed the negative significant relationship between employee motivation and their turnover intention.<br><br>Conclusion: Employees of Nepali banking industry strongly believe in comprehensive reward system ranging from economic benefits to the personal growth. It is also concluded, with supporting the theory that employee motivation helps to solve the employee turnover intention.<br><br>Implications: To solve the high corporate movement of employees in Nepali banks, this study provides a key insight for focusing on comprehensive reward system.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129419605","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper is an inquiry on theoretical framework and its conceptual implications on employee work habits particularly among call center agents.
本文探讨了员工工作习惯的理论框架及其概念含义，特别是呼叫中心座席。
{"title":"Employee Work Habits in the Workplace: A Theoretical Framework","authors":"Rabel B. Catayoc","doi":"10.2139/ssrn.3508621","DOIUrl":"https://doi.org/10.2139/ssrn.3508621","url":null,"abstract":"This paper is an inquiry on theoretical framework and its conceptual implications on employee work habits particularly among call center agents.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117067348","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Clara Xiaoling Chen, Yongjing Gao, Yue Wang, Shuang Xue
This study examines the determinants of performance measurement tailoring between top management and middle managers in compensation contracts. Theoretically, while tailoring potentially enhances t...
{"title":"Tailoring the Weights on Objective versus Subjective Performance Measures between Top Management and Middle Managers: Evidence from Performance-Based Equity Incentive Plans","authors":"Clara Xiaoling Chen, Yongjing Gao, Yue Wang, Shuang Xue","doi":"10.2308/jmar-18-042","DOIUrl":"https://doi.org/10.2308/jmar-18-042","url":null,"abstract":"This study examines the determinants of performance measurement tailoring between top management and middle managers in compensation contracts. Theoretically, while tailoring potentially enhances t...","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126039812","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
It is a common observation that in every growing organization, irrespective of its size and nature, the existence of differences with respect to employee relations is unavoidable at one or the other level. If not handled properly, such differences will lead to severe outcomes. Many organizations have played a role model by overcoming such disturbance by means of equipping their conflict management system with certain innovative practices. Though the proportionate mixture of such techniques varies from firm to firm, but they share the same base and purpose. Over a period of time such organizations have proved to be pioneers in the respective fields. The study is an effort to bring out the lime light over the critical issues like privitization that has led to the conflicts among the various employee groups at Bharat Aluminum Co. Ltd. (BALCO) It highlights the reasons behind the resistance for privatization, ewhile relating them over the impact with respect to the conflict management. It also focuses over the lessons needed to be learnt with the current scenarios like the one at BALCO. The objective of this paper is to analyze such situations that have led to such friction at BALCO, and to create an outline towards the possible measures which could prove as remedies to avoid such instants.
{"title":"A Study on Conflict Management in the Light of Privatization with Reference to Bharat Aluminum Co. Ltd. (BALCO)","authors":"K. Mohan","doi":"10.2139/ssrn.3496474","DOIUrl":"https://doi.org/10.2139/ssrn.3496474","url":null,"abstract":"It is a common observation that in every growing organization, irrespective of its size and nature, the existence of differences with respect to employee relations is unavoidable at one or the other level. If not handled properly, such differences will lead to severe outcomes. Many organizations have played a role model by overcoming such disturbance by means of equipping their conflict management system with certain innovative practices. Though the proportionate mixture of such techniques varies from firm to firm, but they share the same base and purpose. Over a period of time such organizations have proved to be pioneers in the respective fields. The study is an effort to bring out the lime light over the critical issues like privitization that has led to the conflicts among the various employee groups at Bharat Aluminum Co. Ltd. (BALCO) It highlights the reasons behind the resistance for privatization, ewhile relating them over the impact with respect to the conflict management. It also focuses over the lessons needed to be learnt with the current scenarios like the one at BALCO. The objective of this paper is to analyze such situations that have led to such friction at BALCO, and to create an outline towards the possible measures which could prove as remedies to avoid such instants.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123448536","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Friday Ogbu Edeh (PhD), Joy Nonyelum Ugwu, Isaac Monday Ikpor, Chimeziem Gabriela Udeze, Victoria Onya Ogwu
This study investigates the relationship between workplace democracy and employee resilience in Nigerian hospitality industry using cross-sectional survey. Accessible population of one hundred (100) managers,supervisors and employees were sampled from twenty selected hospitality firms operating in Abakaliki, Ebonyi State, Nigeria. Simple random sampling technique was used in selecting the twenty hospitality firms. Sample size of eighty (80) was ascertained from the accessible population with Krejcie and Morgan sample size determination table. Closed ended structured questionnaire was used to collect data from the respondents. Eighty (80) copies of questionnaire were administered to respondents but sixty three (63) copies were correctly filled and found useful for analysis. Face validity was used to ascertain the validity of the instrument, while Cronbach α was used to ascertain the reliability of the instrument. Respondents’ demographic characteristics were analysed with descriptive statistics (frequencies). Kendall Coefficient of Concordance was used to analyse the hypotheses with IBM SPSS Statistics (20.0). The study found that workplace democracy dimensions are positively associated with measures of employee resilience in Nigerian hospitality industry. This study concludes that workplace democracy that is measured in terms of organisational justice and individuation predicts employee resilience in Nigerian hospitality industry.
本研究采用横断面调查的方法调查了尼日利亚酒店业工作场所民主与员工弹性之间的关系。从尼日利亚埃邦伊州阿巴卡利基选定的20家酒店公司中抽取了100名管理人员、主管和雇员作为无障碍人口样本。采用简单随机抽样技术选择20家酒店企业。用Krejcie和Morgan样本量确定表从可及人群中确定80(80)个样本量。采用封闭式结构化问卷收集调查对象的数据。八十(80)份调查问卷被分配给受访者，但六十三(63)份正确填写并发现对分析有用。采用面孔效度法确定量表的效度，采用Cronbach α法确定量表的信度。用描述性统计(频率)分析受访者的人口统计学特征。采用IBM SPSS(20.0)统计软件Kendall Coefficient of Concordance对假设进行分析。研究发现，在尼日利亚酒店业，工作场所民主维度与员工应变能力呈正相关。本研究得出结论，以组织公正和个性化为衡量标准的工作场所民主可以预测尼日利亚酒店业员工的弹性。
{"title":"Workplace Democracy and Employee Resilience in Nigerian Hospitality Industry","authors":"Friday Ogbu Edeh (PhD), Joy Nonyelum Ugwu, Isaac Monday Ikpor, Chimeziem Gabriela Udeze, Victoria Onya Ogwu","doi":"10.2139/ssrn.3513036","DOIUrl":"https://doi.org/10.2139/ssrn.3513036","url":null,"abstract":"This study investigates the relationship between workplace democracy and employee resilience in Nigerian hospitality industry using cross-sectional survey. Accessible population of one hundred (100) managers,supervisors and employees were sampled from twenty selected hospitality firms operating in Abakaliki, Ebonyi State, Nigeria. Simple random sampling technique was used in selecting the twenty hospitality firms. Sample size of eighty (80) was ascertained from the accessible population with Krejcie and Morgan sample size determination table. Closed ended structured questionnaire was used to collect data from the respondents. Eighty (80) copies of questionnaire were administered to respondents but sixty three (63) copies were correctly filled and found useful for analysis. Face validity was used to ascertain the validity of the instrument, while Cronbach α was used to ascertain the reliability of the instrument. Respondents’ demographic characteristics were analysed with descriptive statistics (frequencies). Kendall Coefficient of Concordance was used to analyse the hypotheses with IBM SPSS Statistics (20.0). The study found that workplace democracy dimensions are positively associated with measures of employee resilience in Nigerian hospitality industry. This study concludes that workplace democracy that is measured in terms of organisational justice and individuation predicts employee resilience in Nigerian hospitality industry.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123812610","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study the determinants of lifetime earnings (LE) inequality in the United States, for which differences in lifetime earnings growth are key. Using administrative data and focusing on the roles of job ladder dynamics and on-the-job learning, we document that:
1) lower LE workers change jobs more often, mainly driven by higher non-employment;
2) earnings growth for job stayers is similar at around 2 percent in the bottom two-thirds of the LE distribution, whereas for job switchers it rises with LE; and
3) top LE workers enjoy high earnings growth regardless of job switching.
We estimate a job ladder model with on-the-job learning featuring ex ante heterogeneity in learning ability and job ladder risk—job loss, job finding, and contact rates. We find that learning ability differences explain almost all earnings growth heterogeneity above the median, whereas ex ante heterogeneity in job ladder risk accounts for 80 percent of LE growth differences below the median.
{"title":"Anatomy of Lifetime Earnings Inequality: Heterogeneity in Job Ladder Risk vs. Human Capital","authors":"Fatih Karahan, Serdar Ozkan, Jae Song","doi":"10.2139/ssrn.3511647","DOIUrl":"https://doi.org/10.2139/ssrn.3511647","url":null,"abstract":"We study the determinants of lifetime earnings (LE) inequality in the United States, for which differences in lifetime earnings growth are key. Using administrative data and focusing on the roles of job ladder dynamics and on-the-job learning, we document that:<br><br>1) lower LE workers change jobs more often, mainly driven by higher non-employment; <br><br>2) earnings growth for job stayers is similar at around 2 percent in the bottom two-thirds of the LE distribution, whereas for job switchers it rises with LE; and <br><br>3) top LE workers enjoy high earnings growth regardless of job switching. <br><br>We estimate a job ladder model with on-the-job learning featuring ex ante heterogeneity in learning ability and job ladder risk—job loss, job finding, and contact rates. We find that learning ability differences explain almost all earnings growth heterogeneity above the median, whereas ex ante heterogeneity in job ladder risk accounts for 80 percent of LE growth differences below the median.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131561034","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-12-01DOI: 10.5089/9781513521510.001
S. Feliz, Chiara Maggi
This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.
{"title":"What is the Impact of Increased Business Competition?","authors":"S. Feliz, Chiara Maggi","doi":"10.5089/9781513521510.001","DOIUrl":"https://doi.org/10.5089/9781513521510.001","url":null,"abstract":"This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.","PeriodicalId":198334,"journal":{"name":"Labor: Personnel Economics eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123010667","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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