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Book part
Publication date: 11 December 2023

Nicolae Stef and Anthony Terriau

We investigate how firing notification procedures influence wage growth. Using a sample of 33 countries over the period 2006–2015, we show that administrative requirements in…

Abstract

We investigate how firing notification procedures influence wage growth. Using a sample of 33 countries over the period 2006–2015, we show that administrative requirements in cases of dismissal have a positive and significant effect on wage growth. The result is robust even after controlling for the endogeneity of the firing notification restrictions, the involvement of third parties in the wage bargaining process, the minimum wage, the firms' training policy, and the composition of employment. These findings suggest that firing notification procedures foster the growth of wages by increasing the bargaining power of incumbent workers.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Article
Publication date: 2 January 2024

Kenta Ikeuchi, Kyoji Fukao and Cristiano Perugini

The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the…

Abstract

Purpose

The authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the dynamics of overall wage and income inequality in the past decades. The authors focus on three employer-level features that can be associated with asymmetries in the employment relation orientation adopted for college and non-college-educated employees: (1) size, (2) the share of standard employment and (3) the pervasiveness of incentive pay schemes.

Design/methodology/approach

The authors' establishment-level analysis (data from the Basic Survey on Wage Structure (BSWS), 2005–2018) focusses on Japan, an economy characterised by many unique economic and institutional features relevant to the aims of the authors' analysis. The authors use an adjusted measure of firm-specific college wage premium, which is not biased by confounding individual and establishment-level factors and reflects unobservable characteristics of employees that determine the payment of a premium. The authors' empirical methods account for the complexity of the relationships they investigate, and the authors test their baseline outcomes with econometric approaches (propensity score methods) able to address crucial identification issues related to endogeneity and reverse causality.

Findings

The authors' findings indicate that larger establishment size, a larger share of regular workers and more pervasive implementation of IPSs for college workers tend to increase the college wage gap once all observable workers, job and establishment characteristics are controlled for. This evidence corroborates the authors' hypotheses that a larger establishment size, a higher share of regular workers and a more developed set-up of performance pay schemes for college workers are associated with a better capacity of employers to attract and keep highly educated employees with unobservable characteristics that justify a wage premium above average market levels. The authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

Originality/value

The authors' contribution to the existing knowledge is threefold. First, the authors combine the economics and management/organisation literature to develop new insights that underpin the authors' testable empirical hypotheses. This enables the authors to shed light on employer-level drivers of wage differentials (size, workforce composition, implementation of performance-pay schemes) related to many structural, institutional and strategic dimensions. The second contribution lies in the authors' measure of the “adjusted” college wage gap, which is calculated on the component of individual wages that differs between observationally identical workers in the same establishment. As such, the metric captures unobservable workers' characteristics that can generate a wage premium/penalty. Third, the authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 August 2022

Xiao-Feng Qi and Lihong Zhou

This paper aims to explore the impact of domestic market fragmentation on the innovation performance of enterprises and its mechanism from the perspective of market segmentation…

Abstract

Purpose

This paper aims to explore the impact of domestic market fragmentation on the innovation performance of enterprises and its mechanism from the perspective of market segmentation, a government behavior with Chinese characteristics.

Design/methodology/approach

In order to verify the theoretical hypothesis proposed in the previous article, that is, whether domestic market fragmentation can effectively improve the innovation performance of enterprises, this paper bases on the data of listed companies from 2010 to 2016, empirically testing the theoretical hypothesis by constructing a measurement model.

Findings

Domestic market fragmentation has a significant inhibitory effect on enterprise innovation performance. Domestic market fragmentation has heterogeneous effects on innovation performance of enterprises and regions. It is undeniable that domestic market fragmentation does have a certain support effect on state-owned enterprises but the support effect is achieved by distorting regional resource allocation and creating an unfair market environment.

Originality/value

Firstly, this paper explores the impact mechanism of domestic market fragmentation on corporate innovation performance from the perspective of market segmentation, a government behavior with Chinese characteristics, so as to expand and enrich the relevant research on enterprise innovation. Secondly, from the perspective of corporate innovation performance, this paper provides new evidence for the “curse effect” of domestic market fragmentation. Thirdly, this paper tries to shake the domestic market fragmentation support theory from the perspective of distortion effect brought by the “hand of support” of domestic market fragmentation.

Details

International Journal of Emerging Markets, vol. 19 no. 4
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 19 February 2024

Ambra Poggi

The aim of this paper is to empirically investigate whether social contacts can mediate the way in which current unemployment impacts future unemployment.

Abstract

Purpose

The aim of this paper is to empirically investigate whether social contacts can mediate the way in which current unemployment impacts future unemployment.

Design/methodology/approach

We use 2006–2017 data from the Household Income and Labour Dynamics in Australia (HILDA) survey and a dynamic random-effects model to describe the evolution of individual unemployment status over time.

Findings

Once controlled for the local context where individuals live and create friendships, we find that above-average social contacts reduce unemployment persistence. However, social contacts seem to be slightly less effective in deprived neighborhoods. These findings are consistent with the idea that individuals obtain information about job opportunities through a network of social contacts, and unemployment may lead to a decay of social capital, making it more difficult to find employment in future periods. Our results also show that neighborhood deprivation increases individual unemployment risk, while above-average neighborhood cohesion reduces the probability of unemployment in deprived neighborhoods.

Originality/value

Although many studies have been published on unemployment persistence, to the best of the author's knowledge, this is the first study quantifying the impact of social contacts on unemployment persistence. The study also offers fresh empirical evidence on the impact of neighborhood characteristics on unemployment risk.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 25 October 2023

Ekrem Yilmaz

This study aims to discuss the behavioral economics and Islamic economic joint criticisms against the conceptual and economic political view of the mainstream.

Abstract

Purpose

This study aims to discuss the behavioral economics and Islamic economic joint criticisms against the conceptual and economic political view of the mainstream.

Design/methodology/approach

The purpose of this study is to examine the effectiveness of mainstream economic policies in addressing unemployment. Furthermore, it critically assesses the mainstream perspective on unemployment within the contexts of Islamic economics and behavioral economics, separately. The commonalities and disparities between the approaches of Islamic economics and behavioral economics regarding unemployment are evaluated. Subsequently, the conventional viewpoint on unemployment is scrutinized from the combined standpoint of Islamic economics and behavioral economics. This article employs a theoretical approach to address these concerns.

Findings

Although there are some differences, the recommendations and values of Islamic Economics and behavioral economics in the context of unemployment are almost the same. And, more importantly, both approaches are similar in their emphasis on the ineffectiveness and distance from human values of mainstream economic policies.

Originality/value

This article is the first to examine unemployment from the joint perspectives of Islamic economics and behavioral economics. It is also the first article to criticize the mainstream view of unemployment from the common framework of these two approaches.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Open Access
Article
Publication date: 22 August 2023

Kausar Yasmeen

The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses…

1826

Abstract

Purpose

The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses the Islamic perspectives on minimum wage and examines contemporary challenges and intricacies in its application.

Design/methodology/approach

This study uses thematic analysis to create the conceptual framework, drawing upon a review of pertinent literature such as academic papers, books and articles published up to 2023.

Findings

The framework encompasses various categories, namely, employee characteristics, job characteristics, market factors, compensation practices and Islamic principles. Each category consists of multiple variables. The resulting framework offers a holistic and ethically grounded methodology for wage determination, aligning with both Islamic and conventional perspectives. This study notes the absence of a universally agreed-upon minimum wage. Islamic economics faces challenges due to the unclear application of principles, limited awareness, legal constraints and a lack of empirical evidence on wage systems, along with complexities in their implementation.

Research limitations/implications

The paper’s limited scope focuses solely on the Islamic perspective on wage determination, without comparing it to the conventional viewpoint. This may have implications for future research.

Practical implications

The insights on Islamic principles and wage determination guide scholars and policymakers interested in promoting just and equitable wages.

Originality/value

This study is distinct in its integration of various factors to propose an all-encompassing framework for wage determination, rooted in the Quran and principles, while also reinforcing the framework with conventional theories. Additionally, it adds to the growing body of literature by investigating the Quran’s stance and principles on minimum wage, as well as discusses the challenges involved in implementing an Islamic approach to wage determination, which has received limited attention in Islamic literature.

Details

Islamic Economic Studies, vol. 31 no. 1/2
Type: Research Article
ISSN: 1319-1616

Keywords

Open Access
Article
Publication date: 3 October 2023

Emilio Colombo and Alberto Marcato

The authors provide a novel interpretation of the relationship between skill demand and labour market concentration based on the training rationale.

Abstract

Purpose

The authors provide a novel interpretation of the relationship between skill demand and labour market concentration based on the training rationale.

Design/methodology/approach

The authors use a novel data set on Italian online job vacancies during 2013–2018 to analyse the relationship between labour market concentration and employers' skill demand. The authors construct measures of market concentration and skill intensity in the local labour market. The authors regress the measures of skill demand on market concentration, controlling for sector, occupations and other features of the labour market. The authors also use the Hausman–Nevo instrument for market concentration.

Findings

The authors show that employers in a highly concentrated labour market demand competencies associated with the ability of workers to learn faster (e.g. social skills) rather than actual knowledge. They also require less experience but higher education. These results are consistent with the hypothesis that employers in more concentrated labour markets are more prone to train their employees. Instead of looking for workers who already have job-specific skills, they look for workers who can acquire them faster and efficiently. The authors provide a theoretical framework within which to analyse these aspects as well as providing a test for the relevant hypotheses.

Practical implications

In addition to cross-countries differences in labour market regulations, the authors' findings suggest that policy authorities should consider the local labour market structure when studying workforce development programmes aimed at bridging the skill gap of displaced workers. Moreover, the authors show that market concentration can have relevant implications for human resource (HR) managers by affecting their recruitment behaviour through the demand for skills. In fact, concentrated markets tend to favour firms' collusion and anti-competitive behaviour that could strongly affect HR management practices.

Originality/value

The authors' paper innovates on the literature in a number of ways. First, the authors provide evidence of local labour market concentration in Italy. Second, the authors provide evidence of skill demand at the local level using a detailed skill taxonomy that goes beyond the classical distinction between high and low skills. Third, and most importantly, the authors provide evidence of the relationship between skill demand and labour market concentration. By analysing detailed skills and competencies, the authors take one step beyond understanding the features of labour demand in monopsonistic markets.

Details

International Journal of Manpower, vol. 44 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Open Access
Article
Publication date: 20 January 2023

Anas Fattouh, Koteshwar Chirumalla, Mats Ahlskog, Moris Behnam, Leo Hatvani and Jessica Bruch

The study examines the remote integration process of advanced manufacturing technology (AMT) into the production system and identifies key challenges and mitigating actions for a…

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Abstract

Purpose

The study examines the remote integration process of advanced manufacturing technology (AMT) into the production system and identifies key challenges and mitigating actions for a smoother introduction and integration process.

Design/methodology/approach

The study adopts a case study approach to a cyber-physical production system at an industrial technology center using a mobile robot as an AMT.

Findings

By applying the plug-and-produce concept, the study exemplifies an AMT's remote integration process into a cyber-physical production system in nine steps. Eleven key challenges and twelve mitigation actions for remote integration are described based on technology–organization–environment theory. Finally, a remote integration framework is proposed to facilitate AMT integration into production systems.

Practical implications

The study presents results purely from a practical perspective, which could reduce dilemmas in early decision-making related to smart production. The proposed framework can improve flexibility and decrease the time needed to configure new AMTs in existing production systems.

Originality/value

The area of remote integration for AMT has not been addressed in depth before. The consequences of lacking in-depth studies for remote integration imply that current implementation processes do not match the needs and the existing situation in the industry and often underestimate the complexity of considering both technological and organizational issues. The new integrated framework can already be deployed by industry professionals in their efforts to integrate new technologies with shorter time to volume and increased quality but also as a means for training employees in critical competencies required for remote integration.

Article
Publication date: 16 August 2022

Deepa Pillai and Shubhra Mishra Deshpande

Warehouse receipt-based financing (WRF), an innovative instrument with its structure embedded in the agricultural value chain can potentially address farmers' concerns about…

Abstract

Purpose

Warehouse receipt-based financing (WRF), an innovative instrument with its structure embedded in the agricultural value chain can potentially address farmers' concerns about timely credit access and accessible remunerative markets. However, studies indicate farmers' exclusion from currently practiced WRF mechanisms across developing countries. Transaction cost and lack of assured remunerative markets post storage are the challenges thwarting farmers' participation. The study explores how these challenges can be addressed by analyzing a case study. The finding will help in coming up with a farmer-inclusive WRF mechanism.

Design/methodology/approach

The study uses a case study as an analysis tool. Primary data is gathered through farmers. Descriptive statistics and partial least squares (PLS) approach to structural equation modeling methodology has been adopted for empirical testing of the hypothesis of the study. The study uses SMART PLS 3.0 for analysis of data.

Findings

Single window offering of multiple value chain operations and technological intervention in physical handling substantially reduces transaction costs for farmers. Sustained farmers' participation in the case supports this finding. The presence of an assured market (PAM) is found to have a positive and significant relationship with WRF in the case of beneficiary farmers. The PAM is found to have a negative yet significant relationship with WRF in the case of nonbeneficiary farmers. Critical success factors of the entity KisanMitra stated in the case substantiates a farmer-inclusive WRF mechanism.

Research limitations/implications

The study analyzes a case study of specific geography. However, similarities enlisted across developing countries in the introduction section provide a scope of generalization of findings across developing countries. The identified factors for a farmer-inclusive WRF mechanism will enable the governments, policymakers and development institutions to ascertain and align their WRF implementation measures to inculcate and upgrade these factors to the prospective WRF agents. Future studies can explore the replication of farmer-inclusive WRF mechanisms across other geographies. The studies also explores the role of technological interventions in further reducing the transaction cost and suitable policy modifications to encourage replication of the study in other geopgraphical context.

Originality/value

The study on WRF and the methodology adopted is first of its kind to identify factors for a farmer-inclusive WRF mechanism.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Book part
Publication date: 5 October 2023

Louise B. Kringelum, Lucia Mortensen and Jens Holmgren

This chapter explores how industrial PhD students are engaged in authentic leadership processes while coping with challenges through self-leadership. The authors illustrate how…

Abstract

This chapter explores how industrial PhD students are engaged in authentic leadership processes while coping with challenges through self-leadership. The authors illustrate how self-leadership can be a helpful approach to managing the leading-and-being-led dilemma. They argue that self-leadership is a process of goal achievement in collaboration with key stakeholders and, therefore, an important aspect of authentic leadership. The authors identify four aspects of self-leadership that influence authenticity: roles, resources, relations and results. Kringelum, Mortensen and Holmgren call for research into the emergence of self-leadership and authentic leadership, the leadership capabilities required and the double-sidedness and dilemmas inherent in such emergences across different contexts.

Details

The Emerald Handbook of Authentic Leadership
Type: Book
ISBN: 978-1-80262-014-6

Keywords

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