The Link between Relative Pay and Job Satisfaction Revisited

The Impact of ICT Investment on Establishment Productivity

National Institute Economic Review ◽

10.1177/0027950103184001009 ◽

2003 ◽

Vol 184 ◽

pp. 99-110 ◽

Cited By ~ 10

Author(s):

Thomas Zwick

Keyword(s):

Panel Data ◽

Unobserved Heterogeneity ◽

Data Set ◽

Omitted Variable Bias ◽

Lagged Effects ◽

Variable Bias ◽

Employee Characteristics ◽

The Impact ◽

Establishment Panel Data

This paper finds substantial effects of ICT investments on productivity for a large and representative German establishment panel data set. In contrast to the bulk of the literature also establishments without ICT capital are included and lagged effects of ICT investments are analysed. In addition, a broad range of establishment and employee characteristics are taken account of in order to avoid omitted variable bias. It is shown that taking into account unobserved heterogeneity of the establishments and endogeneity of ICT investments increases the estimated lagged productivity impact of ICT investments.

Relative supervisor education and worker well-being

International Journal of Manpower ◽

10.1108/ijm-01-2017-0022 ◽

2018 ◽

Vol 39 (5) ◽

pp. 731-745

Author(s):

Benjamin Artz

Keyword(s):

Fixed Effects ◽

Design Methodology ◽

Well Being ◽

Longitudinal Survey ◽

Content Type ◽

Omitted Variable Bias ◽

Worker Education ◽

Education Levels ◽

Variable Bias ◽

The Relationship

Purpose Less educated supervisors create worker status incongruence, a violation of social norms that signals advancement uncertainty and job ambiguity for workers, and leads to negative behavioral and well-being outcomes. The purpose of this paper is to compare education levels of supervisors with their workers and measure the correlation between relative supervisor education and worker job satisfaction. Design/methodology/approach Using the only wave of the 1979 National Longitudinal Survey of Youth that identifies education levels of both supervisor and worker, a series of ordered probit estimates describe the relationship between supervisor education levels and subordinate worker well-being. Extensive controls, sub-sample estimates and a control for sorting confirm the estimates. Findings Worker well-being is negatively correlated with having a less educated supervisor and positively correlated with having a more educated supervisor. This result is robust to a number of alternative specifications. In sub-sample estimates, workers highly placed in an organization’s hierarchy do not exhibit reduced well-being with less educated supervisors. Research limitations/implications A limitation is the inability to control for worker fixed effects, which may introduce omitted variable bias into the estimates. Originality/value The paper is the first to introduce relative supervisor–worker education level as a determinant of worker well-being.

The Impact of Lagging-Region Status on District Poverty in Indonesia

Economics and Finance in Indonesia ◽

10.7454/efi.v62i1.521 ◽

2016 ◽

Vol 62 (1) ◽

pp. 30

Author(s):

Rus’an Nasrudin

Keyword(s):

Panel Data ◽

Propensity Score ◽

Propensity Score Matching ◽

Selection Bias ◽

Unobserved Heterogeneity ◽

Poverty Rate ◽

Fixed Effect ◽

Omitted Variable Bias ◽

Variable Bias ◽

The Impact

Reducing subnational imbalances of development progress is unquestionable policy for heterogeneous Indonesia. This paper examines the impact of policy that assigns a lagging-region status namely status daerah tertinggal (DT) on poverty rate and poverty gap among districts in Indonesia in the two period of SBY presidency. The panel data fixed effect combined with propensity score matching is used to tackle the selection bias due to the nature of the policy, unobserved heterogeneity and omitted variable bias. The results show that the lagging-region status that was aimed to mainstream central and district’s budget toward lagging regions statistically significant reduces poverty rate and poverty gap in the period. The DT status, on average is associated with 0.75 percentage point of reduction in the poverty rate and 7% reduction in the poverty gap index. AbstrakMenurunkan ketimpangan antar-daerah adalah sebuah agenda kebijakan yang niscaya untuk Indonesia yang majemuk dalam kemajuan ekonomi. Artikel ini berusaha mengukur dampak dari sebuah kebijakan penetapan daerah tertinggal terhadap dua ukuran kemiskinan, yaitu tingkat kemiskinan dan kedalaman kemiskinan pada dua periode masa jabatan Presiden SBY. Metode yang dipergunakan adalah panel data fixed-effect dikombinasikan dengan propensity score matching untuk mengatasi permasalah endogen pada variabel utama yaitu bias dalam seleksi terhadap kebijakan, keragaman daerah yang tidak dapat diukur, dan potensi bias karena ketiadaan variabel-variabel yang berpengaruh terhadap dua ukuran kemiskinan. Hasil pendugaan regresi tersebut menunjukkan bahwa penetapan daerah tertinggal yang ditujukan untuk mengarusutamakan dana pembangunan secara statistik signifikan dan menyebabkan penurunan tingkat kemiskinan dan kedalaman kemiskinan di masa tersebut. Daerah tertinggal secara rata-rata memiliki tingkat kemiskinan lebih rendah sebesar 0.75 (persentase) dan memiliki indeks kedalaman kemiskinan 7% lebih rendah.Kata kunci: Daerah Tertinggal; Kemiskinan; IndonesiaJEL classifications: I32, P48

Female on boards and the risk-taking of microfinance institutions: The moderating role of outreach

Corporate Board role duties and composition ◽

10.22495/cbv16i2art2 ◽

2020 ◽

Vol 16 (2) ◽

pp. 19-34

Author(s):

Michael Adusei

Keyword(s):

Risk Taking ◽

Fixed Effects ◽

Positive Impact ◽

Microfinance Institutions ◽

Female Representation ◽

Return On Assets ◽

Omitted Variable Bias ◽

Variable Bias ◽

Moderating Role

This study examines the effect of female on boards on risk-taking with data from 401 microfinance institutions (MFIs) drawn from 64 countries. The study also investigates whether the effect is sensitive to the outreach performance of MFIs. The MFIs sampled for this study are spread across the six MFI regions. The study measures MFI risk by its risk-taking Z-score and risk-adjusted return on assets. The fixed effects estimation technique, known to overcome the omitted variable bias, is deployed to analyze the data. The results show that female representation in the boardroom increases the risk-taking of MFIs. However, when female on boards interacts with the depth of outreach performance of an MFI, its positive impact on MFI risk is observed. It suggests that female directors are more likely to be beneficial to risk management in MFIs that lend more to indigent clients. Several tests, including an instrumental variable test for endogeneity, have been conducted to confirm the robustness of these results.

Understanding the relationship between health and internal migration in the United Kingdom

International Journal of Migration Health and Social Care ◽

10.1108/ijmhsc-05-2016-0021 ◽

2017 ◽

Vol 13 (4) ◽

pp. 432-448

Author(s):

Rabi’u Isah Moh’d ◽

Joseph Boniface Ajefu

Keyword(s):

Mental Health ◽

Health Status ◽

Physical Health ◽

Internal Migration ◽

Unobserved Heterogeneity ◽

Estimation Methods ◽

Content Type ◽

Omitted Variable Bias ◽

Variable Bias ◽

The Relationship

Purpose Studies on the relationship between migration and health status of individuals most often concentrate on international migrants. In contrast, the purpose of this paper is to examine the relationship between health and internal migration using the first 18 waves of the British Household Survey. Design/methodology/approach The authors use the 12-version of General Health Questionnaire (GHQ), an indicator of mental health, and physical health indicators as the health variables. This study uses different econometrics estimation methods in modelling the relationship in order to address omitted variable bias as well as unobserved heterogeneity. The econometric estimation methods include Pooled OLS, random effects (RE), fixed effects (FE) and then probit RE. The authors explore the relationship by comparing the health status of movers and non-movers and different types of internal migration such as between local authority districts and between regions. Findings The results of this research suggest that there is healthy migrant effect on migration within UK on some indicators of physical health like arm/leg, heart and migraine/headache problems, but not on mental health indicator. And the effects are similar for both males and females. It is advised therefore that the department of health should improve the health of those affected by these ailments so that they can have a chance to move perhaps to better their lots. Originality/value This study uses different econometrics estimation methods in modelling the relationship in order to address omitted variable bias as well as unobserved heterogeneity. The econometric estimation methods include Pooled OLS, RE, FE and then probit RE.

The fixed effects approach as an alternative to multilevel analysis for cross-national analyses

10.31235/osf.io/3xw7v ◽

2021 ◽

Author(s):

Katja Moehring

Keyword(s):

Multilevel Modeling ◽

Fixed Effects ◽

Regression Models ◽

Macro Level ◽

Multilevel Regression ◽

Country Level ◽

Omitted Variable Bias ◽

Fixed Effects Models ◽

Variable Bias ◽

Cross National

Multilevel models that combine individual and contextual factors are increasingly popular in comparative social science research; however, their application in country-comparative studies is often associated with several problems. First of all, most data-sets utilized for multilevel modeling include only a small number (N<30) of macro-level units, and therefore, the estimated models have a small number of degrees of freedom on the country level. If models are correctly specified paying regard to the small, level-2 N, only a few macro-level indicators can be controlled for. Furthermore, the introduction of random slopes and cross-level interaction effects is then hardly possible. Consequently, (1) these models are likely to suffer from omitted variable bias regarding the country-level estimators, and (2) the advantages of multilevel modeling cannot be fully exploited.The fixed effects approach is a valuable alternative to the application of conventional multilevel methods in country-comparative analyses. This method is also applicable with a small number of countries and avoids the country-level omitted variable bias through controlling for country-level heterogeneity. Following common practice in panel regression analyses, the moderator effect of macro-level characteristics can be estimated also in fixed effects models by means of cross-level interaction effects. Despite the advantages of the fixed effects approach, it is rarely used for the analysis of cross-national data.In this paper, I compare the fixed effects approach with conventional multilevel regression models and give practical examples using data of the International Social Survey Programme (ISSP) from 2006. As it turns out, the results of both approaches regarding the effect of cross-level interactions are similar. Thus, fixed effects models can be used either as an alternative to multilevel regression models or to assess the robustness of multilevel results.

Taking Innovation to the Streets: Microgeography, Physical Structure, and Innovation

Review of Economics and Statistics ◽

10.1162/rest_a_00866 ◽

2020 ◽

Vol 102 (5) ◽

pp. 912-928 ◽

Cited By ~ 2

Author(s):

Maria P. Roche

Keyword(s):

Fixed Effects ◽

City Planning ◽

Knowledge Exchange ◽

Physical Structure ◽

Set Covering ◽

Regional Innovation ◽

Data Set ◽

Omitted Variable Bias ◽

Variable Bias ◽

Block Groups

In this paper, we analyze how the physical layout of cities affects innovation by influencing the organization of knowledge exchange. We exploit a novel data set covering all census block groups in the contiguous United States with information on innovation outcomes, street infrastructure, as well as population and workforce characteristics. To deal with concerns of omitted variable bias, we apply commuting zone fixed effects and construct instruments based on historic city planning. The results suggest that variation in street network density may explain regional innovation differentials beyond the traditional location externalities found in the literature.

Continuous training, job satisfaction and gender

Evidence-based HRM a Global Forum for Empirical Scholarship ◽

10.1108/ebhrm-11-2012-0016 ◽

2014 ◽

Vol 2 (2) ◽

pp. 126-144 ◽

Cited By ~ 7

Author(s):

Claudia Burgard ◽

Katja Görlitz

Keyword(s):

Job Satisfaction ◽

Gender Differences ◽

Financial Support ◽

Fixed Effects ◽

Unobserved Heterogeneity ◽

Career Orientation ◽

Continuous Training ◽

Content Type ◽

Training Courses ◽

And Gender

Purpose – The purpose of this paper is to analyze the relationship between participation in further training courses and job satisfaction, focussing in particular on gender differences. Design/methodology/approach – Using data from the German Socio-Economic Panel (SOEP), a Probit-adapted OLS (POLS) model is employed which allows to account for individual fixed effects. The analysis controls for a variety of socio-demographic, job and firm characteristics. Findings – The authors find a difference between males and females in the correlation between training and job satisfaction which is positive for males but insignificant for females. This difference becomes even more pronounced when applying individual fixed effects. To gain insights into the reasons for this difference, the authors further investigate training characteristics by gender. The authors find that financial support and career-orientation of courses only seems to matter for the job satisfaction of men but not for the satisfaction of women. Practical implications – In Germany, financial support and career-orientation of training courses only seem to matter for the job satisfaction of men but not for the satisfaction of women. This has important implications for the investment in and outcomes of these training endeavors from both, a participant and an employer perspective. Originality/value – This paper extends the existing literature in several ways. The authors use job satisfaction as an outcome of training which comprises non-pecuniary returns in addition to monetary returns. In addition, the authors point out gender differences and examine the heterogeneity of training courses by gender. This seems important since job satisfaction processes differ to a large extent by gender and since it is well-known that training participation also differs by gender. The panel structure of the data enables a methodological advancement in terms of accounting for time-invariant unobserved heterogeneity which is likely to matter for the results.

Energy – Growth Nexus- A Case of South Asian Countries

Asian Journal of Economics and Empirical Research ◽

10.20448/journal.501.2021.82.58.66 ◽

2021 ◽

Vol 8 (2) ◽

pp. 58-66

Author(s):

Saddam Hussain ◽

Chunjiao Yu ◽

Liu Wan

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

South Asian ◽

Fixed Effects ◽

Asian Countries ◽

Economic Determinants ◽

Omitted Variable Bias ◽

Variable Bias ◽

Macroeconomic Determinants ◽

The Relationship

The relationship between energy consumption and economic growth is a hot issue in today's society. This paper aims to empirically verify the relationship between energy consumption and economic growth. This article analyzes the relation of energy consumption with the economic growth taking the case of South Asian countries (Afghanistan, Bangladesh, Bhutan, India, Pakistan, Sri Lanka, and Nepal) along with the macroeconomic determinants that affect the total economic growth – FDI growth, CPI rate and population growth in order to avoid omitted variable bias and misleading results. The time span of this study covers the period of 1980–2019. To examine the significant relation of these determinants and impact of energy consumption on economic growth, In-pooled regression, Fixed-effects, Bidirectional fixed effect, Random-effects, and GLS estimation regression model are used. The estimated results show a positive correlation of energy consumption and all other economic determinants with economic growth except CPI, where there is a negative correlation founded.

Essays in bank lending

10.12681/eadd/50333 ◽

2019 ◽

Author(s):

Παναγιώτης Παπαδόπουλος

Keyword(s):

Fixed Effects ◽

Deposit Insurance ◽

Bank Lending ◽

Syndicated Loans ◽

Insurance Scheme ◽

Creditor Rights ◽

Omitted Variable Bias ◽

Home Mortgage Disclosure Act ◽

Variable Bias ◽

Home Mortgage

Ο τραπεζικός κλάδος διαδραματίζει κρίσιμο ρόλο στον σύγχρονο οικονομικό κόσμο, καθώς ο δανεισμός είναι μια από τις σημαντικότερες υπηρεσίες που παρέχουν οι τράπεζες και έχει ζωτικές επιπτώσεις στην κοινωνική και οικονομική ευημερία. Συγκεκριμένα, ο στεγαστικός δανεισμός είναι ζωτικής σημασίας για τη διαμόρφωση του βιοτικού επιπέδου των νοικοκυριών, ενώ ο εταιρικός δανεισμός έχει αποφασιστικό ρόλο στην ενίσχυση της πραγματικής οικονομικής δραστηριότητας και στην προώθηση της οικονομικής ανάπτυξης μιας χώρας. Η παρούσα διατριβή αποτελείται από τρία κεφάλαια τα οποία μελετούν τρία ξεχωριστά θέματα στον τομέα του τραπεζικού δανεισμού (στεγαστικά δάνεια και εταιρικά δάνεια).Στο Κεφάλαιο 1, με τίτλο «Διακρίσεις δανεισμού στις ΗΠΑ: Μια νέα μεθοδολογία και ο ρόλος της κρίσης των ενυπόθηκων δανείων», εξετάζουμε εάν υπάρχουν διακρίσεις στην παροχή και την τιμολόγηση στεγαστικών δανείων και εάν ναι, εάν το επίπεδο των διακρίσεων διαφέρει πριν και μετά την κρίση των subprime στεγαστικών δανείων. Χρησιμοποιώντας δεδομένα από 6,5 εκατομμύρια αιτήσεις δανεισμού από το 2004 έως το 2013, προτείνουμε μια νέα οικονομετρική προσέγγιση που στοχεύει να μειώσει σημαντικά την μεταβλητή μεροληψία (omitted-variable bias) της βάσης δεδομένων Home Mortgage Disclosure Act (HMDA) και να εντοπίσει το επίπεδο των φυλετικών και εθνοτικών διακρίσεων στην παροχή στεγαστικών δανείων στις Ηνωμένες Πολιτείες της Αμερικής. Σε αντίθεση με προηγούμενες μελέτες, διαπιστώνουμε, κατά μέσο όρο, πολύ μικρές διακρίσεις ως προς την παροχή δανείων. Αν και οι διακρίσεις αυξάνονται κάπως μετά το 2007, η πιθανότητα τους παραμένει πολύ κάτω από το 1%. Αντίθετα, διαπιστώνουμε ότι οι λευκοί (μη Ισπανόφωνοι) αιτούντες πληρώνουν χαμηλότερο spread για τα παρεχόμενα δάνεια κατά 0,37 (0,11) μονάδες βάσης, αποτέλεσμα που προέρχεται σχεδόν εξ ολοκλήρου από την περίοδο πριν από την κρίση.Μια βασική πολιτική για τον περιορισμό της πιθανότητας ξαφνικής και μαζικής απόσυρσης τραπεζικών καταθέσεων (bank runs) είναι η θεσμοθέτηση ενός συστήματος ασφάλισης καταθέσεων (Deposit Insurance Scheme), το οποίο μπορεί να χρηματοδοτηθεί είτε με ιδιωτικά-τραπεζικά κεφάλαια είτε από το κράτος. Στο Κεφάλαιο 2, με τίτλο «Ευλογία ή κατάρα; Η κρατική χρηματοδότηση της ασφάλισης καταθέσεων και του εταιρικού δανεισμού», μελετάμε την επίδραση της κρατικής συμμετοχής στη χρηματοδότηση του συστήματος ασφάλισης καταθέσεων στα χαρακτηριστικά των δανείων. Χρησιμοποιώντας κοινοπρακτικά δάνεια (syndicated loans) από 63 χώρες κατά την περίοδο 1985-2016, δείχνουμε ότι οι αλλαγές στο σύστημα ασφάλισης καταθέσεων από αμιγώς ιδιωτικής χρηματοδότησης σε κρατικά χρηματοδοτούμενα ή συγχρηματοδοτούμενα αυξάνουν τα spreads κατά περίπου 4,6%, αυξάνουν περαιτέρω την προμήθεια του δανείου, μειώνουν το χρόνο ωρίμανσης του δανείου και αυξάνουν τη χρήση των προμηθειών απόδοσης. Τα ευρήματά μας συνάδουν με το πρόβλημα ηθικού κινδύνου (moral hazard) που ενέχουν τα συστήματα ασφάλισης καταθέσεων που χρηματοδοτούνται αποκλειστικά από κρατικούς πόρους.Στο Κεφάλαιο 3, με τίτλο «Δικαιώματα πιστωτών και εταιρικός δανεισμός», ελέγχουμε τη συμβατική διαπίστωση ότι η ισχυρότερη νομική προστασία των πιστωτών βελτιώνει τους όρους των συμφωνιών εταιρικών δανείων. Χρησιμοποιώντας δεδομένα παγκόσμιων κοινοπρακτικών δανείων (syndicated loans) από το 1986 έως το 2005, επανεξετάζουμε την επίδραση των δικαιωμάτων των πιστωτών στους όρους των εταιρικών δανείων. Αντί να εστιάζουμε μόνο στις διαφορές μεταξύ των χωρών, διερευνούμε επίσης τη διακύμανση εντός της χώρας στον δείκτη δικαιωμάτων πιστωτών (Creditor Rights Index) χρησιμοποιώντας country fixed effects και μεθοδολογίες μελέτης γεγονότων (event-study methodologies). Σε πλήρη αντίθεση με προηγούμενα ευρήματα, διαπιστώνουμε ότι το επίπεδο προστασίας των πιστωτών δεν επηρεάζει σημαντικά τις αποφάσεις των τραπεζών σχετικά με τους όρους εταιρικού δανείου. Τα ευρήματά μας υπογραμμίζουν ότι η ενίσχυση της προστασίας των πιστωτών δεν είναι απαραίτητα ο κατάλληλος μηχανισμός για την προώθηση πιο ανταγωνιστικών όρων δανεισμού.