British Journal of Industrial Relations, Jun 7, 2005
Any opinions expressed here are those of the author(s) and not those of the institute. Research d... more Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.
Dynamic Monopsony: Evidence from a French Establishment Panel * This paper uses a panel of about ... more Dynamic Monopsony: Evidence from a French Establishment Panel * This paper uses a panel of about 6000 French establishments to test some implications of the modern theory of dynamic monopsony or upward sloping labour supply curves for average firm wages. Panel estimates provide strong evidence of a much larger long run employer size-wage effect (ESWE) than found previously, while controlling for worker quality and compensating differentials with lagged wages, and for profitability (rent sharing). Employment expansion also has a positive effect on wages, providing further evidence for upward sloping labour supply (as distinct from the effect of shocks in a perfectly competitive labour market).
New survey data for a panel of Polish firms is used to estimate employment and wage adjustments u... more New survey data for a panel of Polish firms is used to estimate employment and wage adjustments under various forms of ownership (insider vs. outsider) and asymmetrie response to exogenous shocks. In contrast to earlier studies, dynamic panel data estimators (GMM) allow for endogeneity of observed variables and partial adjustment to shocks. Results differ from other findings in the transition literature: wages have little effect on dynamic labor demand and the firm-size wage effect is confirmed. Firms that expand employment have to pay significantly larger wage increases and rising sales add little to employment, suggesting labor hoarding. Dec1ining sales, however, significantly reduce employment and privatization (or anticipation thereof) has the expected benefits.
Problems involved in the organization of conflicting interests of owners, managers and workers in... more Problems involved in the organization of conflicting interests of owners, managers and workers in the firm had already been noted by ADAM SMITH, and modern informational economics has emphasized and developed these issues [STIGLITZ, 1985 a, b]. On the other hand, influential financial and institutional economists have been claiming recently that contemporary institutions of American capitalism represent essentially efficient, practical solutions to the pervasive problems raised by costly information [see e.g. FAMA and JENSEN, 1983, or WILLIAMSON, 19851. This is a remarkable claim, especially at a time when the competitive success of somewhat different institutions in Europe and particularly in Japan is causing much concern to business in the U.S. [Business Week, April 27, 19871, and it is not supported by any systematic attempts at comparative international analysis. Defenders of Western corporations have also neglected much empirical evidence which casts considerable doubt on their thesis. In this article, some evidence on the ability of capital markets to control the corporation will first be reviewed in Section I, and proposals for * Wissenschaftszentrum fur Sozialforschung, Berlin.-This work was started at
ABSTRACT Using 4 years of data from 37 American cities and 6 high technology groupings we present... more ABSTRACT Using 4 years of data from 37 American cities and 6 high technology groupings we present the first estimates of University R&D spillover effects on employment at this level of disaggregation, while controlling for prior innovations and state fixed effects. Wages and employments are strongly positively related, which can be explained in various ways. Consistent with studies showing R&D spillover effects on innovation at the state level, we find robust evidence that university R&D is a statistically significant determinant of city high technology employment and some evidence for employment effects of innovation.
Using 4 years of data from 36 American cities and 6 high technology groupings we present thc firs... more Using 4 years of data from 36 American cities and 6 high technology groupings we present thc first estimates of University R&D spillover effects on ctnployrnent at this level of disaggregation, while controlling for wages, prior innovations, state fixed efrccts, and saniple selectivity hias. We find robust evidence that lagged and disaggrcgated university R&D is a significant determinant of city high technology cinploymcnt and some evidence for employment effects of innovation.
This research addresses the role of sustainable demand and psychological and cultural factors in ... more This research addresses the role of sustainable demand and psychological and cultural factors in the spatial concentration of sustainable SMEs. We analyze the spatial concentration of sustainable SMEs in the restaurant sector in the Netherlands. We argue that traditional agglomeration theories can partially explain spatial concentration of sustainable SMEs, but are not sufficient in explaining the sub-sector concentration of sustainable entrepreneurs. Demand, psychological and cultural factors could explain sub-sector concentration of sustainable restaurants. We use sustainable entrepreneurship theory to explain this difference. We analyze spatial concentration of sustainable SMEs in three ways. First, we investigate spatial concentration based on all individual locations of sustainable restaurants with an average nearest neighbor analysis. Second, we analyze spatial autocorrelation with use of the Moran's I statistic. Finally, we map the clustering of sustainable restaurants with a Getis-Ord Gi* analysis. We use sustainable restaurants as a percentage of conventional restaurants in a region in the Netherlands. While controlling for conventional clustering, we find a single large cluster of sustainable restaurants. Arguably, this clustering is caused by a spatial variation of demand and individual psychological traits of sustainable entrepreneurs, which together represent a regional culture of sustainable entrepreneurship. JEL Classification E71 • L26 • R12 • Q01 Just as people cannot live without eating, so a business cannot live without profits. But most people don't live to eat, and neither must businesses live just to make profits. John Mackey (2015 p. 250).
Efficiency wage theories are generalized to include choice of effective working hours per worker,... more Efficiency wage theories are generalized to include choice of effective working hours per worker, so costs of eliciting effort depends on an employee's relative utilit): and aggregate unemployment. In Nash equilibrium, state-dependent hours, wages and employment imply unemployment in 'bad' states, Deferred compensation and worksharing represent alternatives with most relevance in Japan, but West German unemployment seems to depend mainly on excessive wages (and non-wage costs) for service sector and unskilled workers, as well as on other handicaps for the small (and new) firms which have created most new jobs in the U.S.
Scottish Journal of Political Economy, Nov 1, 2004
... may be required to arrest deforestation, with a large negative impact on the forest stock mea... more ... may be required to arrest deforestation, with a large negative impact on the forest stock meanwhile. ... it is again hard to identify their effects, particularly on the incidence of allergies ... True world income distribution, 1988 and 1993: first calculations based on household surveys alone ...
Whether small business can "help countries compete" as many American commentators believe, or whe... more Whether small business can "help countries compete" as many American commentators believe, or whether increasing firm-size is required for success in global markets, as much European policy assumes, is still a question under intense debate. While the terms of the debate have been persuasively challenged by Howard (1990) who argues that "The real issue isn't size; it's industrial organization" (p. 88), the popular American view of small business has been most comprehensively challenged by Brown, Hamilton and Medoff (1990). However, we find that both their analysis and evidence are flawed in a number of important respects to be developed next, and then we shall go back to the broader issues raised by Howard (1990), Best (1990), Loveman and Sengenberger (1991), and earlier by FitzRoy (1989 and 1990). Brown, Hamilton and Medoff (henceforth BHM) start by disputing the growing importance of small firm employment found by many writers. They find stable or declining small-business employment shares in the U.S. However, Sengenberger, Loveman and Piore (1990) find growing small-business shares in many countries in recent years, including a rise of 7.5% in manufacturing employment by U.S. firms with less than 100 employees from 1980-86, compared to a decline of 10.8% in firms with over 500 workers (Howard, p. 90). BHM devote much space to the evidence that large employers seem to pay substantially higher wages and fringe benefits, even after controlling for the higher levels of education, training and
... Karier, T., 1988, New evidence on the effect of unions and imports on monopoly power, Journal... more ... Karier, T., 1988, New evidence on the effect of unions and imports on monopoly power, Journal of ... Krueger, AB and LH Summers, 1988, Efficiency wages and the interindustry wage structure, Econometrica 56, March ... Tomer, JF, 1987, Organizational capital (Praeger, New York). ...
ABSTRACT This paper provides the first time series estimates of national rail demand equations fo... more ABSTRACT This paper provides the first time series estimates of national rail demand equations for 14 European countries over the period between 1968 and 1991. In addition to conventional price and income variables, the data set includes quality variables that proxy the generalized time costs of rail transport found to be important in micro studies. No long run equilibrium relationships can be detected between rail demand and its determinants, but first difference estimates of demand growth provide reasonable short run elasticities for price and quality variables for most countries.
In his wide ranging attempt to review the literature on economic development and welfare in relat... more In his wide ranging attempt to review the literature on economic development and welfare in relation to the environment, Lomborg claims balance and objectivity, but actually presents a thoroughly misleading picture of environmental prospects and research, global economic development, and the real determinants of human welfare. Statistician Lomborg blatantly distorts the evidence by systematically selecting statistics to support his claims that global welfare is generally improving and environmental policy is unnecessary, while denying catastrophic risks such as prolonged drought in major food growing areas (though such events cannot be ruled out by climate models). In spite of its numerous errors and biases, "the Lomborg scam" (as leading biologist E.O.Wilson aptly calls it) has been welcomed by gullible or like-minded journalists and politicians. JEL classification: Q0, I3
British Journal of Industrial Relations, Jun 7, 2005
Any opinions expressed here are those of the author(s) and not those of the institute. Research d... more Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.
Dynamic Monopsony: Evidence from a French Establishment Panel * This paper uses a panel of about ... more Dynamic Monopsony: Evidence from a French Establishment Panel * This paper uses a panel of about 6000 French establishments to test some implications of the modern theory of dynamic monopsony or upward sloping labour supply curves for average firm wages. Panel estimates provide strong evidence of a much larger long run employer size-wage effect (ESWE) than found previously, while controlling for worker quality and compensating differentials with lagged wages, and for profitability (rent sharing). Employment expansion also has a positive effect on wages, providing further evidence for upward sloping labour supply (as distinct from the effect of shocks in a perfectly competitive labour market).
New survey data for a panel of Polish firms is used to estimate employment and wage adjustments u... more New survey data for a panel of Polish firms is used to estimate employment and wage adjustments under various forms of ownership (insider vs. outsider) and asymmetrie response to exogenous shocks. In contrast to earlier studies, dynamic panel data estimators (GMM) allow for endogeneity of observed variables and partial adjustment to shocks. Results differ from other findings in the transition literature: wages have little effect on dynamic labor demand and the firm-size wage effect is confirmed. Firms that expand employment have to pay significantly larger wage increases and rising sales add little to employment, suggesting labor hoarding. Dec1ining sales, however, significantly reduce employment and privatization (or anticipation thereof) has the expected benefits.
Problems involved in the organization of conflicting interests of owners, managers and workers in... more Problems involved in the organization of conflicting interests of owners, managers and workers in the firm had already been noted by ADAM SMITH, and modern informational economics has emphasized and developed these issues [STIGLITZ, 1985 a, b]. On the other hand, influential financial and institutional economists have been claiming recently that contemporary institutions of American capitalism represent essentially efficient, practical solutions to the pervasive problems raised by costly information [see e.g. FAMA and JENSEN, 1983, or WILLIAMSON, 19851. This is a remarkable claim, especially at a time when the competitive success of somewhat different institutions in Europe and particularly in Japan is causing much concern to business in the U.S. [Business Week, April 27, 19871, and it is not supported by any systematic attempts at comparative international analysis. Defenders of Western corporations have also neglected much empirical evidence which casts considerable doubt on their thesis. In this article, some evidence on the ability of capital markets to control the corporation will first be reviewed in Section I, and proposals for * Wissenschaftszentrum fur Sozialforschung, Berlin.-This work was started at
ABSTRACT Using 4 years of data from 37 American cities and 6 high technology groupings we present... more ABSTRACT Using 4 years of data from 37 American cities and 6 high technology groupings we present the first estimates of University R&D spillover effects on employment at this level of disaggregation, while controlling for prior innovations and state fixed effects. Wages and employments are strongly positively related, which can be explained in various ways. Consistent with studies showing R&D spillover effects on innovation at the state level, we find robust evidence that university R&D is a statistically significant determinant of city high technology employment and some evidence for employment effects of innovation.
Using 4 years of data from 36 American cities and 6 high technology groupings we present thc firs... more Using 4 years of data from 36 American cities and 6 high technology groupings we present thc first estimates of University R&D spillover effects on ctnployrnent at this level of disaggregation, while controlling for wages, prior innovations, state fixed efrccts, and saniple selectivity hias. We find robust evidence that lagged and disaggrcgated university R&D is a significant determinant of city high technology cinploymcnt and some evidence for employment effects of innovation.
This research addresses the role of sustainable demand and psychological and cultural factors in ... more This research addresses the role of sustainable demand and psychological and cultural factors in the spatial concentration of sustainable SMEs. We analyze the spatial concentration of sustainable SMEs in the restaurant sector in the Netherlands. We argue that traditional agglomeration theories can partially explain spatial concentration of sustainable SMEs, but are not sufficient in explaining the sub-sector concentration of sustainable entrepreneurs. Demand, psychological and cultural factors could explain sub-sector concentration of sustainable restaurants. We use sustainable entrepreneurship theory to explain this difference. We analyze spatial concentration of sustainable SMEs in three ways. First, we investigate spatial concentration based on all individual locations of sustainable restaurants with an average nearest neighbor analysis. Second, we analyze spatial autocorrelation with use of the Moran's I statistic. Finally, we map the clustering of sustainable restaurants with a Getis-Ord Gi* analysis. We use sustainable restaurants as a percentage of conventional restaurants in a region in the Netherlands. While controlling for conventional clustering, we find a single large cluster of sustainable restaurants. Arguably, this clustering is caused by a spatial variation of demand and individual psychological traits of sustainable entrepreneurs, which together represent a regional culture of sustainable entrepreneurship. JEL Classification E71 • L26 • R12 • Q01 Just as people cannot live without eating, so a business cannot live without profits. But most people don't live to eat, and neither must businesses live just to make profits. John Mackey (2015 p. 250).
Efficiency wage theories are generalized to include choice of effective working hours per worker,... more Efficiency wage theories are generalized to include choice of effective working hours per worker, so costs of eliciting effort depends on an employee's relative utilit): and aggregate unemployment. In Nash equilibrium, state-dependent hours, wages and employment imply unemployment in 'bad' states, Deferred compensation and worksharing represent alternatives with most relevance in Japan, but West German unemployment seems to depend mainly on excessive wages (and non-wage costs) for service sector and unskilled workers, as well as on other handicaps for the small (and new) firms which have created most new jobs in the U.S.
Scottish Journal of Political Economy, Nov 1, 2004
... may be required to arrest deforestation, with a large negative impact on the forest stock mea... more ... may be required to arrest deforestation, with a large negative impact on the forest stock meanwhile. ... it is again hard to identify their effects, particularly on the incidence of allergies ... True world income distribution, 1988 and 1993: first calculations based on household surveys alone ...
Whether small business can "help countries compete" as many American commentators believe, or whe... more Whether small business can "help countries compete" as many American commentators believe, or whether increasing firm-size is required for success in global markets, as much European policy assumes, is still a question under intense debate. While the terms of the debate have been persuasively challenged by Howard (1990) who argues that "The real issue isn't size; it's industrial organization" (p. 88), the popular American view of small business has been most comprehensively challenged by Brown, Hamilton and Medoff (1990). However, we find that both their analysis and evidence are flawed in a number of important respects to be developed next, and then we shall go back to the broader issues raised by Howard (1990), Best (1990), Loveman and Sengenberger (1991), and earlier by FitzRoy (1989 and 1990). Brown, Hamilton and Medoff (henceforth BHM) start by disputing the growing importance of small firm employment found by many writers. They find stable or declining small-business employment shares in the U.S. However, Sengenberger, Loveman and Piore (1990) find growing small-business shares in many countries in recent years, including a rise of 7.5% in manufacturing employment by U.S. firms with less than 100 employees from 1980-86, compared to a decline of 10.8% in firms with over 500 workers (Howard, p. 90). BHM devote much space to the evidence that large employers seem to pay substantially higher wages and fringe benefits, even after controlling for the higher levels of education, training and
... Karier, T., 1988, New evidence on the effect of unions and imports on monopoly power, Journal... more ... Karier, T., 1988, New evidence on the effect of unions and imports on monopoly power, Journal of ... Krueger, AB and LH Summers, 1988, Efficiency wages and the interindustry wage structure, Econometrica 56, March ... Tomer, JF, 1987, Organizational capital (Praeger, New York). ...
ABSTRACT This paper provides the first time series estimates of national rail demand equations fo... more ABSTRACT This paper provides the first time series estimates of national rail demand equations for 14 European countries over the period between 1968 and 1991. In addition to conventional price and income variables, the data set includes quality variables that proxy the generalized time costs of rail transport found to be important in micro studies. No long run equilibrium relationships can be detected between rail demand and its determinants, but first difference estimates of demand growth provide reasonable short run elasticities for price and quality variables for most countries.
In his wide ranging attempt to review the literature on economic development and welfare in relat... more In his wide ranging attempt to review the literature on economic development and welfare in relation to the environment, Lomborg claims balance and objectivity, but actually presents a thoroughly misleading picture of environmental prospects and research, global economic development, and the real determinants of human welfare. Statistician Lomborg blatantly distorts the evidence by systematically selecting statistics to support his claims that global welfare is generally improving and environmental policy is unnecessary, while denying catastrophic risks such as prolonged drought in major food growing areas (though such events cannot be ruled out by climate models). In spite of its numerous errors and biases, "the Lomborg scam" (as leading biologist E.O.Wilson aptly calls it) has been welcomed by gullible or like-minded journalists and politicians. JEL classification: Q0, I3
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