Losers of CEO Tournaments: Incentives, Turnover, and Career Outcomes

2022 ◽  
Author(s):  
Eric W. Chan ◽  
John Harry Evans III ◽  
Duanping Hong
Keyword(s):  
Labor Market ◽  
Career Outcomes ◽  
High Quality ◽  
Ex Ante

We investigate the consequences for non-promoted executives (NPEs) in CEO tournaments. We find that NPEs’ total incentives decrease following the end of a tournament based on evidence of their reduced future promotion prospects and limited adjustments to their compensation. Consistent with the theory that NPEs leave in response to this loss in incentives, results indicate that turnover is higher for NPEs who: 1) are ex ante more competitive for promotion, 2) compete in open tournaments without an heir apparent versus closed tournaments with an heir apparent winner, and 3) compete in tournaments with an outsider versus insider winner. Departed NPEs’ subsequent career outcomes suggest that the labor market assesses NPEs who leave after open tournaments more favorably than those who leave after closed tournaments and tournaments with an outsider winner. Overall, evidence suggests that promotion tournaments can weed out low-quality managers but also cause the unintended turnover of high-quality managers.

Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia

2021 ◽  
Author(s):  
Banawe Plambou Anissa ◽  
Gashaw Abate ◽  
Tanguy Bernard ◽  
Erwin Bulte
Keyword(s):  
Asymmetric Information ◽  
Willingness To Pay ◽  
Wheat Quality ◽  
High Quality ◽  
Auction Design ◽  
Market For Lemons ◽  
Wheat Market ◽  
Ex Ante

Abstract Bulking and mixing of smallholder supply dilutes incentives to supply high quality. We introduce wheat ‘grading and certification shops’ in Ethiopia and use an auction design to gauge willingness-to-pay (WTP) for certification. Bids correlate positively with wheat quality, and ex ante notification of the opportunity of certification improves wheat quality. These findings suggest that local wheat markets resemble a ‘market for lemons’, crippled by asymmetric information. However, aggregate WTP for grading and certification services does not re-coup the sum of fixed, flow and variable costs associated with running a single certification shop.

scholarly journals Statistical Reporting in Vocational Education: Review and Ways of Improving

2017 ◽  
pp. 58-69
Author(s):  
М. V. Lesnikova
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Statistical Data ◽  
Technical Education ◽  
Statistical Information ◽  
The Body ◽  
National Accounts ◽  
High Quality ◽  
Wide Range ◽  
Statistical Indicators

Labor potential for the Ukrainian economy cannot be formed without professional training of staff. The system for professional technical education (PTE) consists of professional technical institutions in an industry, other enterprises, institutions, organizations, and education or supervisory offices charged with the administration of the former. The studies demonstrate that the existing PTE network in Ukraine is ineffective and distanced from the needs of regional economies in terms of their demography problems and needs of their labor markets. The abovementioned raises the importance of the issues of access to high quality and complete statistical information, incorporating a wide range of statistical indicators, first and foremost the ones on labor market performance, enabling for effective decision-making. The author’s review of the respective statistical reports shows that the existing statistical indicators form three linked modules (labor market, formation of PTE system, national accounts of education), containing quantitative data on network, enrolment, teaching personnel, material-technical and methodological provision of professional technical education institutions, PTE financing. Sufficiency of the existing statistical information is assessed by use of multi-step typology by the technology based on the statistics of non-numeric data. The data obtained from users and makers of PTE system in time of Turin process in 2016 show that the existing statistical reports fails to meet information needs of labor markets in high quality statistical data. According to the respondents, the main barrier is unstable economic situation; more than one quarter of the respondents (27%) mention irrelevance of the body supervising the collection of statistical data, and lack of advanced methodologies and methods for recording of jobs. A pressing problem is related with overlooking the scopes of shadow jobs and reluctance of a major part of employers to inform the development plans of their enterprises. Measures to improve the existing statistical reporting on PTE are as follows: introduce the questionnaire-based interviews of employers, to calculate the number of graduates kept on jobs, by specialty; considering large number of small enterprises and private enterprises, improve the existing method for collection and processing of bid data; construct a standard method for calculating the rate of graduates’ job placement using the shadow economy ratio; create an integrated information and analytical system for PTE; calculate the rate of apprenticeship passed, by specialty, ours of apprenticeship, and location of apprenticeship; introduce the monitoring-based assessment of PTE quality; develop the method for balancing the scopes of professional technical staff trained in education institutions and labor market needs.

scholarly journals Bridging the gap between geographic concept and the data we have: The case of labor markets in the USA

2020 ◽  
Vol 52 (7) ◽  
pp. 1395-1414
Author(s):  
Christopher S Fowler ◽  
Leif Jensen
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Research Question ◽  
High Quality ◽  
Regional Bias ◽  
Regional Variations ◽  
Research Outcomes ◽  
The Usa ◽  
Over Time

A broad literature has made it clear that geographic units must be selected with care or they are likely to introduce error and uncertainty into results. Nevertheless, researchers often use data “off the shelf” with the implicit assumptions that their observations are consistent with the geographical concept relevant for their research question, and that they are of uniformly high quality in capturing this geographic identity. In this paper, we consider the geographical concept of “labor market” and offer a template for both clarifying its meaning for research and testing the suitability of extant labor-market delineations. We establish a set of metrics for comparing the quality of existing labor-market delineations with respect to the diverse meanings that researchers apply to the concept. Using the fit metrics established here, researchers can explore how delineations vary geographically, how they vary over time, and how this variation may shape research outcomes. Our assessment is that the quality of the extant delineations is relatively high overall. However, we find that different delineations vary significantly in the types of labor markets they represent, and that regional variations in fit within any given delineation may introduce noise or regional bias that merits consideration in any analysis conducted with these units. More broadly, the kinds of metrics we propose here have applicability for many other geographic entities where boundaries and scale can be only imperfectly defined.

Ex-Ante Evaluation of Sub-National Labor Market Impacts of Trade Reforms

2020 ◽  
Author(s):  
Maryla Maliszewska ◽  
Israel Osorio-Rodarte ◽  
Rakesh Gupta
Keyword(s):  
Labor Market ◽  
Trade Reforms ◽  
Market Impacts ◽  
Ex Ante ◽  
National Labor Market

Class Discrimination? Evidence from Jamaica: A Racially Homogeneous Labor Market

2019 ◽  
Vol 52 (1) ◽  
pp. 77-95
Author(s):  
Nekeisha Spencer ◽  
Mikhail-Ann Urquhart ◽  
Patrice Whitely
Keyword(s):  
Socioeconomic Status ◽  
Labor Market ◽  
Jel Classification ◽  
Middle Income Country ◽  
High Quality ◽  
Predominantly Black ◽  
Middle Income ◽  
Race Discrimination ◽  
Class Discrimination ◽  
Correspondence Study

A common concern in audit studies of racial discrimination is that names assigned to a particular race may also proxy for socioeconomic status. We conduct a correspondence study in Jamaica, a predominantly black middle-income country, and find that these concerns may be valid. The evidence from sending out over 1,000 résumés suggests employers prefer applicants perceived to be from high-income backgrounds. While qualifications are not independently important, those with names preferred by employers have a lower chance of being selected if they have high-quality résumés. The results suggest that class discrimination may matter as much as race discrimination. JEL Classification: I31, J71, J64

scholarly journals Sharing Demographic Risk—Who Is Afraid of the Baby Bust?

2010 ◽  
Vol 2 (4) ◽  
pp. 83-118 ◽  
Author(s):  
Alexander Ludwig ◽  
Michael Reiter
Keyword(s):  
Labor Market ◽  
Pension System ◽  
Baby Boom ◽  
German Economy ◽  
Second Best ◽  
Welfare Losses ◽  
Ex Ante ◽  
German System ◽  
Demographic Risk

We model the reaction of a PAYG pension system to demographic shocks. We compare the ex ante first best and second best solution of a Ramsey planner with full commitment to the outcome under simple third best rules. The model is calibrated to the German economy. We find that the German system comes relatively close to the second-best solution, and that the recent baby-boom/baby-bust cycle leads to welfare losses of about 5 percent of lifetime consumption for some cohorts. We argue that it is crucial for all our results to correctly model the labor market distortions arising from the pension system. (JEL D91, E62, H55, J11)

scholarly journals LABOR MARKET UNDER THE CONDITIONS OF THE GLOBAL PANDEMIA

THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 117-122
Author(s):  
A.E. Agumbayeva ◽  
R.S. Gabdualieva ◽  
A.U. Tulegenova ◽  
B.K. Kurmantaeva ◽  
J.A. Tlesova ◽  
...  
Keyword(s):  
Critical Thinking ◽  
Labor Market ◽  
Job Creation ◽  
Information Support ◽  
High Quality ◽  
The Public ◽  
Self Development ◽  
The World ◽  
Almost All ◽  
Quantitative Indicators

The labor market in Kazakhstan, as it is changing around the world and is probably transforming beyond recognition in a year. A pandemic dictates its own rules to the labor market: many companies have begun to cut staff costs, parting even with valuable employees. In conditions of forced self-isolation during the coronavirus epidemic, for many people, the problem of employment came first. People working in quarantined sectors are left without means of subsistence and are forced to look for a place in other areas. The decline in quantitative indicators since the beginning of March is observed in almost all sectors. Previously, it was possible to work for decades by the same standards, but now approaches to work change several times a year. In conditions when many competencies quickly become obsolete, “flexible skills” come to the fore - logical and critical thinking, creativity, adaptability to changes, the ability to build relationships with people and solve complex problems. The pandemic will bring significant changes to the labor market. According to the authors, self-development and the acquisition of new skills will be the only trend in the modern labor market. In order to successfully overcome the crisis, it is necessary to provide affordable financing for business and the public. In the conditions of this kind of crisis, it is necessary to increase the responsibility and coordination of all state bodies and their orientation towards job creation and employment. To this end, it is proposed to strengthen the functions of state bodies in facilitating information support to business in times of crisis. It is also necessary to ensure the complete digitalization of public services and the provision of high-quality and relevant data on the labor market to the population.

scholarly journals On-the-Job Search in a Labor Market Model: Ex Ante Choices and Ex Post Outcomes

2018 ◽  
pp. 99-118 ◽  
Author(s):  
Gary S. Fields
Keyword(s):  
Labor Market ◽  
Labor Force ◽  
Job Search ◽  
Rational Expectations ◽  
Market Model ◽  
Modern Sector ◽  
Market Outcomes ◽  
Ex Post ◽  
Rural And Urban ◽  
Ex Ante

This chapter builds a multi-sector labor market model including wage dualism, open unemployment, underemployment, on-the-job search, and expected wage equalization. The innovative feature of this model is the distinction between the ex ante allocation of the labor force among search strategies and the ex post allocation of the labor force among labor market outcomes. Among the findings are: more efficient on-the-job search lowers the equilibrium unemployment rate; in a rational expectations equilibrium, the average rural and urban wages will not be equal; modern sector enlargement may leave labor market conditions in one of the sectors unchanged, even when wages and employment in that sector are fully flexible.

OPENNESS AND STRUCTURAL LABOR MARKET REFORMS: EX ANTE COUNTERFACTUALS

2018 ◽  
Vol 36 (4) ◽  
pp. 723-757 ◽  
Author(s):  
Povilas Lastauskas ◽  
Julius Stakenas
Keyword(s):  
Labor Market ◽  
Market Reforms ◽  
Labor Market Reforms ◽  
Ex Ante
Sign in / Sign up

Export Citation Format

Share Document