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Research has long shown that employees working for non-profit organisations report a higher level of job satisfaction than workers in other sectors. This chapter investigates trends in job satisfaction using longitudinal data from the British Household Panel Survey (1992–2008/2009), through models which contain detailed information on individual, job and organisational characteristics. We use fixed-effects ordered-logit models to investigate job satisfaction taking account of our panel structure and the nature of the job satisfaction dependent variable. The results suggest an important, non-profit premium in job satisfaction which, contradicting the apparent bivariate evidence, is not changing over time (in appropriate models) – the warm glow of higher job satisfaction remains.

Higher replacement rates often imply higher levels of absenteeism, yet even in generous welfare economies, employers provide sick pay in addition to the public sick pay. Using comparative population-representative workplace data for Britain and Norway, we show that close to 50% of private sector employers in both countries provide sick pay in excess of statutory sick pay. However, the level of statutory sick pay is also much higher in Norway than in Britain. In both countries, private sick pay as well as other benefits provided by employers are chosen by employers in a way that maximizes profits having accounted for different dimensions of labor costs. Several health-related privately provided benefits are often bundled. In both countries easy-to-train workers, high turnover and risky work are linked to less extensive employer provision of extended sick leave and sick pay in excess of statutory sick pay. In contrast, the presence of a trade union agreement is strongly correlated with both the provision of private sick pay and extended sick leave in Britain but not in Norway. We show that the sickness absence rate is much higher in Norway than in Britain. However, the higher level of absenteeism in Norway compared to Britain relates to the threshold for statutory sick pay in the Norwegian public sick pay legislation. When we take this difference into account, no significant difference remains.

The popular press often touts workforce demographic diversity as profit enhancing because it may reduce the firm's communication costs with particular segments of customers or yield greater team problem-solving abilities. On the other hand, diversity also may raise communication costs within teams, thereby retarding problem solving and lowering productivity. Unfortunately, there is little empirical research that disentangles the above countervailing effects. Diversity in ability enhances the team productivity if there is significant mutual learning and collaboration within the team, while demographic diversity may harm productivity by making learning and peer pressure less effective and increasing team-member turnover. We evaluate these propositions using a novel panel data from a garment plant that shifted from individual piece rate to group piece rate production over three years. Because we observe individual productivity data, we are able to econometrically distinguish between the impacts of diversity in worker abilities and demographic diversity. Teams with more heterogeneous worker abilities are more productive at the plant. Holding the distribution of team ability constant, teams composed of only one ethnicity (Hispanic workers in our case) are more productive, but this finding does not hold for marginal changes in team composition. We find little evidence that workers prefer to be segregated; demographically diverse teams are no more likely to dissolve, holding team productivity (and hence pay) constant, than homogeneous teams.

This chapter contributes to the discourse on the impact of employee participation in organisations. Using worker co-operatives as special cases of participatory firms, we discuss the role of values in organisations and their importance in a business context. We devise and apply the CoopIndex diagnostic tool as a method of assessment of the ‘health’ of an organisation whose members aspire to align co-operative management with the application of the co-operative principles and values.

Empirical evidence suggests that labour-managed firms (LMFs) are relatively rare in market economies not because they are unable to survive as long as their capitalist firm (CF) counterparts, but rather because they are created much less frequently. In this chapter we use event count models applied to panel data on UK manufacturing to provide a direct comparison of the entry process of CFs and LMFs. Our main finding is that risk and capital requirements constitute greater entry barriers for LMFs than for CFs.

Using a unique longitudinal survey of employers in the United States during the 1990s, this chapter examines the trends and factors associated with how businesses have invested in high performance workplace practices. The specific workplace practices examined include shared rewards, job rotation, workforce training, employee involvement in problem solving, and self-managed employee teams. The incidence and diffusion of innovative workplace practices such as these varies over time but not in a unidirectional way. Employers with a more external focus and broader networks to learn about best practices are more likely to have extensively invested in these types of workplace practices. The educational quality of the workforce and investments in physical capital, especially information technology, appear to be complementary with a range of workplace practices. However, the association between unionization and workplace practices is mixed. Unionized establishments are more likely to train their employees but nonunionized establishments are more likely to have engaged a higher fraction of their nonmanagerial workers in problem solving. Finally, for employers in the manufacturing sector, past profits tend to be positively associated with more extensive investments in high performance workplace practices.

Why do employers pay seniority wages? The principal-agent theory stresses that employers might want to retain and motivate their employees by paying them a low entry wage and higher wage increases with longer tenure rather than productivity development. This contribution tests the empirical relevance of this seniority wage interpretation on the basis of German linked employer–employee panel data. It focuses on the role of works councils and unions. The theoretical hypotheses that predict a positive impact of both forms of employee participation (and their interaction) are confirmed. The chapter also gives an outlook on management options when seniority wages are no longer sustainable in the face of ageing workforces.

The global financial meltdown brought to light a number of weaknesses in the U.S. financial system. Not all financial institution types will be taking large sums of taxpayer money to address their crippling decisions. Credit unions in the United States represent a type of financial cooperative that will probably not take any taxpayer money directly due to their structure and prudential oversight. Commercial banks, especially the megabanks, are likely to see even more bailouts in the future unless structural weaknesses are addressed in the clarifications as part of the enforcement of the Dodd-Frank Act. Using a unique panel data set on U.S. commercial banks, thrifts and credit unions from 1994 through 2010 performance metrics on a number of dimensions (over 300,000 observations) point to strengths and weaknesses of the various financial institutional forms. Credit unions also have had far fewer adjustable rate mortgages and mortgage-backed securities as a percentage of their portfolio. Robust estimators to correct for potential endogeneity are used to analyze the return on assets differentials between different institutional forms and portfolios. When controlling for size, region and portfolios credit unions are often estimated to have a better return on assets. Institutions with assets under 50 million dollars, about 50 percent of the total sample, show credit unions having higher efficiency in that they control more assets per dollar spent on salaries than commercial and savings banks.

Understanding the determinants of the demand for goods, which have been produced according to ethical considerations and marketed accordingly, has become an important research area in business economics. Less clear is the role that the social environment plays in shaping the preferences for ethically produced goods. Our main objective is to fill this gap in the literature by quantifying the extent to which the social capital generated by the presence of co-operatives in an area can have an impact on the consumers’ motivations to buy ethically produced goods by using a sample of 889 individuals who have visited one of the retailers specialized in the distribution of ethically produced goods in four Italian regions. Our results show that the presence of co-operatives in an area has a positive influence on the consumers’ preferences for fair trade goods.