Are workers less absent when wage dispersion is small?

2016 ◽  
Vol 37 (2) ◽  
pp. 197-209 ◽  
Author(s):  
Benoît Mahy ◽  
François Rycx ◽  
Mélanie Volral
Keyword(s):  
Pay For Performance ◽  
Point Of View ◽  
Theoretical Point ◽  
Wage Dispersion ◽  
Sickness Absenteeism ◽  
Content Type ◽  
Blue Collar Workers ◽  
Time Invariant ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to examine the impact of wage dispersion on sickness absenteeism observed in Belgian firms. Design/methodology/approach – The authors use detailed linked employer-employee panel data for the period 1999-2006 that allow the authors to compute a conditional wage dispersion indicator following the Winter-Ebmer and Zweimüller (1999) methodology and to estimate the relationship between sickness absenteeism and wage dispersion while controlling for time-invariant workplace characteristics. Findings – The authors find a positive and hump-shaped relationship between intra-firm wage dispersion and sickness absenteeism, the turning point of this relation being extremely high. In addition, the magnitude of the influence of wage dispersion on sickness absenteeism is found to be stronger in firms employing a larger share of blue-collar workers. Practical implications – The results could therefore suggest that wage dispersion, suggestive of larger pay-for-performance mechanisms, decreases worker satisfaction and the workplace climate in general. Only a minority of workers, who are less sensitive to equity and cohesion considerations, would be less absent as pay-for-performance increases. Originality/value – While numerous approaches analyse the link between wage dispersion and firm productivity, very few studies we are aware of are devoted to the relationship between wage dispersion and sickness absenteeism. Yet, the outcomes in terms of productivity and sickness absenteeism may be different. Furthermore, the influence of wage dispersion on sickness absenteeism does not seem unambiguous from a theoretical point of view. To the authors knowledge, it is the first time that this relation is analysed with Belgian data.

Exclusive corporate philanthropy: rethinking the nexus of CSR and corporate philanthropy

2016 ◽  
Vol 12 (2) ◽  
pp. 280-294 ◽  
Author(s):  
Georg von Schnurbein ◽  
Peter Seele ◽  
Irina Lock
Keyword(s):  
Corporate Philanthropy ◽  
Point Of View ◽  
Future Research ◽  
Special Role ◽  
Theoretical Point ◽  
Bottom Line ◽  
Content Type ◽  
Different Characteristics ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to add to a better understanding of relationship of corporate social responsibility (CSR) and corporate philanthropy. The authors argue that corporate philanthropy is exclusive to CSR because of their different characteristics. Design/methodology/approach This paper is based on a profound literature review and discusses the relationship of CSR and corporate philanthropy from a theoretical point of view. By conceptually combining the CSR pyramid and the triple bottom line approach, the authors show that corporate philanthropy has a special role outside of the classical CSR concept. Findings Four fundaments of corporate philanthropy – economic, motivational, creative and moral – are described that illustrate the importance and outstanding role of corporate philanthropy for today’s businesses. Based on these, the authors formulate three new forms of corporate giving, volunteering and foundations, which the authors subsume under the novel notion of “exclusive corporate philanthropy”. Research limitations/implications The main contribution of this paper for future research is to regard corporate philanthropy as exclusive to CSR. Future studies might, therefore, consider the different characteristics of corporate philanthropy and engage in an empirical investigation of this new type. Practical implications The model of exclusive corporate philanthropy presented in this paper provides practitioners with a better understanding of how corporate philanthropy can be rolled out today. Originality/value This paper offers a new perspective on the relationship of CSR and corporate philanthropy. Based on the economic, motivational, creative and moral characteristics of corporate philanthropy, the authors establish a clear distinction between the two concepts.

scholarly journals Does collective bargaining influence the way the size of the firm impacts wage dispersion? Spanish evidence

2020 ◽  
Vol 41 (4) ◽  
pp. 357-374
Author(s):  
Juan Francisco Canal Domínguez ◽  
César Rodríguez Gutiérrez
Keyword(s):  
Collective Bargaining ◽  
Firm Size ◽  
Decisive Role ◽  
Collective Agreement ◽  
Wage Dispersion ◽  
Content Type ◽  
Wage Negotiation ◽  
The Impact ◽  
The Relationship ◽  
Wage Compression

PurposeThis paper analyses the relationship between wage dispersion and firm size within a “two-tier” system of collective bargaining (firm bargaining and multi-employer bargaining levels). Collective bargaining has a decisive role in setting wages in Spain, and its regulation highly limits the possibility for smaller firms to negotiate their own collective agreement.Design/methodology/approachBased on the Spanish Structure of Earnings Survey 2006, 2010 and 2014, the authors use variance decomposition in order to deeply analyse the effect of bargaining level on wage dispersion and compare the value of each decile of the distribution of wages for the purposes of identifying the quantitative differences in wage compression.FindingsIn general, the outcomes positively linked firm size and firm bargaining to wage dispersion. However, if firm size is taken into account, the effect of firm bargaining is limited among small firm workers because this type of firm is not usually covered by firm bargaining. On the other hand, the time analysis allows observing a wage compression that follows different patterns depending on firm size, compressing the higher part of the distribution in case of small firms and the lower part in case of large firms. This should be explained by the fact that wage negotiation is dependent on firm size.Social implicationsFirm size has determined firm adjustment strategies to face the recent economic crisis and allows to evaluate the impact that changes in collective bargaining can have on wage distributionOriginality/valueThere is no research that has tried to analyse the relationship between wage dispersion and firm size in a context where collective bargaining is essential to understand the wage structure. Normally, firm size plays a decisive role in wage policy given that the capacity of a company to negotiate an agreement is closely linked to its size.

Educational mismatch and labor earnings in Brazil

2017 ◽  
Vol 38 (2) ◽  
pp. 180-197 ◽  
Author(s):  
Mauricio Cortez Reis
Keyword(s):  
Measurement Errors ◽  
Fixed Effects ◽  
Unobserved Heterogeneity ◽  
Developed Countries ◽  
Educational Mismatch ◽  
Content Type ◽  
Labor Earnings ◽  
Time Invariant ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between educational mismatch and labor earnings in Brazil, taking into account individual fixed effects. Design/methodology/approach The empirical analysis employs longitudinal data and information provided by job analysts about the schooling required for each occupation. The latter of which is used to classify workers as undereducated, overeducated, or adequately matched. Estimates include individual fixed effects to control for time-invariant unobserved heterogeneity. Findings Evidence indicates that one more year of overeducation increases labor earnings, but only half as strong as one more year of required schooling. The estimated effects on years of undereducation are negative, but undereducated workers earn more than adequately matched workers with the same level of education. Although, in particular, the incidence of undereducation in Brazil is much higher than reported for developed countries, the impact of over- and undereducation does not differ. Research limitations/implications The fixed effects approach only controls for unobservable factors that are time-invariant. Also, much lower impacts using fixed effects may be due in part to attenuation bias as a consequence of measurement errors. Originality/value This study contributes to the scarce literature on the consequences of overeducation and undereducation for labor earnings in developing countries, providing estimates that take into account individual fixed effects.

Quality versus volume of carbon disclosures and carbon reduction targets

2019 ◽  
Vol 31 (3) ◽  
pp. 413-437 ◽  
Author(s):  
Anup Kumar Saha ◽  
Bipasha Saha ◽  
Tonmoy Choudhury ◽  
Ferry Jie
Keyword(s):  
Positive Impact ◽  
Point Of View ◽  
Annual Reports ◽  
Higher Education Funding ◽  
Probit Regression ◽  
Content Type ◽  
Carbon Reduction ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to investigate the relationship between the quality and volume of carbon emission disclosures (CED) in UK higher educational institutions (HEIs), with an emphasis on the impact of the Higher Education Funding Council of England (HEFCE) carbon reduction target on such disclosures.Design/methodology/approachBased on stewardship theory, this study explores the decision usefulness of the CED by HEIs, i.e. whether a larger volume of CED means that it is more useful to readers and stakeholders. A framework was developed to measure the CED quality. The relationships between CED volume and quality were examined using the ordered probit regression model.FindingsCED volume in annual reports and HEFCE carbon reduction target were found to have a significant positive impact on CED quality. There exists a void in research with carbon disclosures by HEIs, an area which has been widely researched with regard to profit-seeking organisations. The study adds to the earlier related studies by its contribution about HEIs to the disclosure literature.Research limitations/implicationsThe study is distinct in investigating the relationship between volume and quality of CED by HEIs. However, the impact of CED would need to be clear to motivate the HEIs to engage in such disclosure. Thus, future studies should investigate the impact of both volume and quality of CED on reputation.Originality/valueThe study recognises that the characteristics of HEIs are distinct from profit-seeking organisations, which have been widely researched in literature. Generalising the research studies on profit-oriented companies for the most publicly funded UK HEIs may mislead any outcome. This study is distinct from the reader’s point of view in exploring whether more CED is more useful in better decision-making.

Banking services for SMEs' internationalization: evaluating customer satisfaction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vincenzo Formisano ◽  
Andrea Moretta Tartaglione ◽  
Maria Fedele ◽  
Ylenia Cavacece
Keyword(s):  
Customer Satisfaction ◽  
Point Of View ◽  
Kano Model ◽  
Banking Services ◽  
Content Type ◽  
Wide Range ◽  
International Activities ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to analyse the quality of banking services provided in support of small- and medium-sized enterprises' (SMEs) internationalization from the customers' perspective.Design/methodology/approachCustomer satisfaction of 50 Italian SMEs with the banking services provided for international activities has been evaluated by adopting the Kano model's continuous and discrete analyses.FindingsResults show which banking services provided for business internationalization are necessary to satisfy customers' expectations, which services customers like having and dislike not having and which services are unexpected by customers creating a high increase in satisfaction when provided.Research limitations/implicationsThis work shows the value of the Kano model in evaluating the non-linear relationship between customer satisfaction and quality of banking services for the international activities of companies. The main limitation of this work is the limited geographical context of the investigation.Practical implicationsThis research suggests banks to transform their role in the relationship with SMEs from mere financiers to active partners committed to their growth abroad by offering a wide range of services not just financial, but also counselling and care professional, thus achieving mutual benefits.Originality/valuePrevious works on banking services and business internationalization are focussed on the transaction costs, information asymmetries and the impact of online banking. This work advances available knowledge by analysing the customer's point of view, evaluating the satisfaction of SMEs which, although more dependent on banks for their expansion abroad than large listed companies, are mostly ignored by literature.

The impact of employees’ status on incivility, deviant behaviour and job insecurity

2016 ◽  
Vol 11 (2) ◽  
pp. 304-318 ◽  
Author(s):  
Yariv Itzkovich
Keyword(s):  
Employment Status ◽  
Positive Impact ◽  
Job Insecurity ◽  
Point Of View ◽  
Content Type ◽  
Employment Conditions ◽  
Employee Deviance ◽  
Questionnaire Method ◽  
The Impact ◽  
The Relationship

Purpose – Drawing on the exchange model and the multidimensional approach to job insecurity, the purpose of this paper is to assess the relationship between perceived incivility and two possible outcomes: job insecurity and employee deviance, while differentiating between two separate groups of targets, namely targets who possess high employment status and targets with low employment status. Design/methodology/approach – Data were collected in 2014 in Israel. An on-line questionnaire method was used, through which 648 valid responses were collected and analyzed using structural equational modeling. Findings – H1 and H2 maintained that incivility would have a positive impact on job insecurity and employee deviance. The other three hypotheses maintained that the perception of incivility, as well as the relationship between incivility and both job insecurity and employee deviance, would be stronger for employees working under less favorable employment conditions. The model’s fit indices indicated a good fit, suggesting that all five hypotheses were accepted. Originality/value – This study elaborates on previous studies by showing that incivility can predict job insecurity and employee deviance. Data related to the potential deviant outcomes of incivility are relatively rare. Additionally, the current research framed incivility, which is a micro-level behavior, in a wider context of employment relations. As precarious employment arrangements are on the rise, it is necessary to understand its hidden implications and threats to both employees and organizations. From a methodological point of view, this study introduced a shorter version of Robinson and Bennett’s (1995) workplace deviance scale, which pertains to the authors’ theoretical model.

scholarly journals The relationship between individualism and entrepreneurial intention – a Finnish perspective

2017 ◽  
Vol 11 (2) ◽  
pp. 289-306 ◽  
Author(s):  
Teemu Rantanen ◽  
Timo Toikko
Keyword(s):  
Cultural Values ◽  
Perceived Control ◽  
Collective Responsibility ◽  
Entrepreneurial Intention ◽  
Point Of View ◽  
Entrepreneurial Intentions ◽  
Content Type ◽  
National Differences ◽  
The Impact ◽  
The Relationship

Purpose This study aims to analyze the relationship between individualist values and entrepreneurial intentions. Previous surveys have shown that major national differences in entrepreneurial intentions can be observed within Europe and that part of this variation can be explained by cultural values, especially the individualism–collectivism dimension. However, previous findings about the relationship between individualism and entrepreneurship remain contradictory. Design/methodology/approach This study is a micro-level analysis of the influence of individualistic values. The theoretical framework of the study is based on the theory of planned behavior (Ajzen, 1991, 2001) and theories of individualism advanced by Hofstede (1980) and Triandis and Gelfand (1998). The research data were gathered from a survey of Finnish students (N = 725). Findings The results show that the relationship between cultural values and entrepreneurial intention is very complex. In contrast to Hofstede (1980), the study assumes individualism and collectivism to be two separate and independent dimensions of cultural values, both of which have a positive, indirect effect on entrepreneurial intention by way of subjective norms and perceived control. Practical implications Both individualist and collectivist values promote entrepreneurial intentions. From this point of view, general citizenship education, which supports the development of young people’s cultural values, can be seen as a significant element in entrepreneurship education. This suggests an instance of holistic education, the aim of which is for individuals’ autonomy and contestability to be combined with community and collective responsibility. Originality/value The analysis of Triandis and Gelfand (1998) has not been systematically utilized in the previous studies on entrepreneurial intentions. The findings of this study address not only the influence of psychological factors over entrepreneurial intentions but also the impact of individualist and collectivist values. The results complement the results of previous studies.

Demystifying financial literacy: a behavioral perspective analysis

2018 ◽  
Vol 41 (9) ◽  
pp. 1047-1068 ◽  
Author(s):  
Ani Caroline Grigion Potrich ◽  
Kelmara Mendes Vieira
Keyword(s):  
Financial Literacy ◽  
Compulsive Buying ◽  
Structural Equations ◽  
Point Of View ◽  
Financial Health ◽  
Behavioral Factors ◽  
Buying Behavior ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose Financial literacy has been recognized as a key competency. However, there are some gaps such as the relationship with other behavioral factors. Thus, this paper aims to develop a model that would be able to identify the integrate effect of financial literacy on the behavioral factors: materialism, compulsive buying and propensity to indebtedness. Design/methodology/approach The study investigated 2,487 individuals in Brazil. For an analysis, the authors used confirmatory factorial analysis and structural equations modeling and six research hypotheses. Findings The main findings showed that the impact of financial literacy on compulsive buying behavior was the greatest of the direct relationships proposed, as well as the total effects of financial literacy on behavioral aspects. Practical implications The outcomes of this study are important for the development of public policies and to other interested agents, as financial literacy goes beyond the fact that it impacts on the individuals’ financial health only and also helps those who suffer from other psychosocial behaviors. Originality/value This study is unique and innovative, to the extent that it measures the actual direct and indirect impact of financial literacy on other behavioral factors, which have been so far analyzed in separate. It concluded that financial literacy has much more significant impacts than other academic studies have shown, because under the academic point of view, the central focus up to now has been identifying only its impact on other behaviors.

The impact of acquisitions on inventory performance

2017 ◽  
Vol 14 (3) ◽  
pp. 288-312 ◽  
Author(s):  
Ari-Pekka Hameri ◽  
Lawrence A. Weiss
Keyword(s):  
Inventory Management ◽  
Past Research ◽  
Point Of View ◽  
Limited Attention ◽  
Inventory Level ◽  
Content Type ◽  
Acquisition Period ◽  
The Impact ◽  
The Relationship ◽  
Over Time

Purpose The purpose of this paper is to examine the relationship between acquisitions and inventory performance. Specifically, it analyzes the inventory performance (inventory level) of acquirers and their targets pre- and post-acquisition. Design/methodology/approach Using several business databases, a sample of 270 horizontal acquisitions by US firms between 1996 and 2004 is subject to multivariate analysis. Various robustness tests are applied to validate the results. Findings Three main results are found. First, the acquirer’s inventory performance is normally better than its target’s prior to the acquisition, consistent with acquirers taking over less efficient firms rather than cherry picking the more efficient ones. Second, inventory performance improves over time in the post-acquisition period in those cases where the acquirer is more efficient than the target. Third, inventory performance deteriorates over time in the post-acquisition period in those cases where the acquirer is less efficient than the target. The results are consistent with acquisitions being associated with both efficiency gains and efficiency losses due to (in)efficiency transfers from acquirers to targets. Practical implications From the management point of view, the study delivers the strongest message to companies that have substantial inventories and for whom efficient inventory management is vital to overall performance. Managers who are unaware of the potential consequences of acquisitions on inventory performance destroy value. Originality/value This research complements past research by showing that in spite of their synergetic potential, reducing inventory receives only limited attention in acquisitions.

The Labour Demand and the Innovation Behaviour of Firms / Die Arbeitsnachfrage und das Innovationsverhalten von Unternehmen

1998 ◽  
Vol 217 (6) ◽  
Author(s):  
Horst Rottmann ◽  
Monika Ruschinski
Keyword(s):  
Manufacturing Sector ◽  
Point Of View ◽  
Theoretical Point ◽  
Labour Demand ◽  
Firm Level ◽  
Process Innovations ◽  
User Costs ◽  
Product Innovations ◽  
The Impact ◽  
The Relationship

SummaryFrom a theoretical point of view the introduction of process and product innovations has contrary impacts on labour demand even at the level of the innovating firm. We present an empirical study of the relationship between labour demand and innovation behaviour using the Ifo Business Panel for the West German manufacturing sector in the years 1980-1992. A dynamic labour demand function is estimated by the method of instrumental variables. Our main findings can be summarized as follows: The labour demand at the firm level is mainly affected by wages, user costs of capital and the demand side. The impact of product innovations on employment is significantly positive. Finally, we find no empirical evidence for the often-quoted statement that the introduction of process innovations destroys jobs in the enterprise.

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