Search results

The world needs to pave a path towards sustainable development to solve global poverty and inequality, thereby ensuring that no one is left behind. The transformative changes brought about by the fourth industrial revolution (4IR), encompassed by the new world of work (NWOW), pose a significant threat to the displacement of jobs, especially in developing contexts, where many jobs are susceptible to automation. This results in a tension between the stakeholder and shareholder perspectives, which results in the phenomenon referred to in this study as the People Versus Profit Paradox. The purpose of this study is to determine business leaders’ perceptions of this paradox by generating an in-depth understanding of its nature and potential consequences. This study generated insights through a generic qualitative research design based on 10 semi-structured interviews with business leaders from multiple industries in developing countries. This study’s major contribution is the development of an up-to-date understanding of business leaders’ perceptions of sustainable development with respect to the 4IR and the People Versus Profit Paradox in developing countries. The two main findings of the study reveal that organisational purpose has changed towards a more inclusive stakeholder perspective, and that business leaders’ perceptions reveal a relative state of bias regarding the current impact of the 4IR in developing contexts. This study aims to inspire business leaders in developing contexts to embrace sustainable development and the disruptive changes brought about by the 4IR, to usher in a sustainable future where no one is left behind.

There is a close relationship between labour markets and technology. Technological development enhances labour productivity and creates new jobs in some industries requiring to be different skills while it destroys jobs in ones requiring to be low-skilled. Today, it is experiencing a deep digital transformation. It may be evaluated for Industry 4.0 to cause technological unemployment due to changes in the structure of employment and to bring about new structural problems in labour market. In addition, it is expected for technological progress such as automation and robotic in the production process to negatively influence employment of low-skilled workers. Industry 4.0 has generated a new production model, in which robotic technologies are effectively used in the production process. So-called new technology-based production process has started to change production, working relationship and daily life. Discussions about the effects of the developments in technology on the labour market and unemployment are separated two groups. While there exist optimist views indicating that such development in technology will result in more productivity, pessimists believe that the use of robots, artificial intelligence, smart systems and algorithms in business life will eventually bring problems such as mass unemployment, mass poverty and social disruption. In this study, the authors aim to analyse the potential effects of Industry 4.0 on labour market in Turkey and European countries. From the findings of the study, the authors concluded that Turkey have a higher risk at automation than European countries.

Institutional rules and economies of scale can create incentives for firms to make inframarginal decisions when offering fringe benefits. We examine how such incentives might affect a firm's offer of health insurance.

We develop and estimate an empirical model of the firm's offer of health insurance that includes incentives created by rules and economies of scale. We quantify the behavioral manifestations from rules and costs as recruiting difficulty in areas outside those in which compensation is set and the percentage of high-skilled jobs in the firm and use the California Health and Employment Surveys (CHES) to estimate the model.

We show a 10–13 percentage point increase in the probability of a firm offering workers health insurance in jobs outside of those in which compensation is being set, if the recruiting difficulty lies in mid- or high-skilled positions. This increase is about twice the size of the increase associated with recruiting difficulty in the position in which compensation is negotiated.

A failure to control for the influence of inframarginal decision making when estimating the wage-insurance tradeoff helps produce wrong-signed estimates.

By bringing institutional rules and economies of scale into the framework of a firm's offer of fringe benefits, we help move the focus of the fringe benefit-wage tradeoff away from the individual level.

The polarisation of employment is a specific structural change in the labour market when the share of high and low-skilled workers increases and, simultaneously, the share of middle-skilled workers decreases. The chapter analyses the effect of polarisation in Czechia and other Central European countries and describes how employment has changed from the perspective of skills regarding gender. The analysis is based on observing the changes in the share of high, middle and low-skilled workers evaluated on the basis of occupational classification over time. Results imply (with a few exceptions) polarisation of employment across all countries during the period between 1998 and 2021, even if we consider the distinction between males and females. Results confirm that employment polarisation has also become a prevalent phenomenon in Central European countries during the last two decades. Finally, this chapter also summarises the economic motivation for studying polarisation phenomenon.

Organizational scholars studying compensation often place an emphasis on certain employee groups (e.g., executives). Missing from this discussion is research on the compensation systems for low-wage jobs. In this review, the authors argue that workers in low-wage jobs represent a unique employment group in their understanding of rent allocation in organizations. The authors address the design of compensation strategies in organizations that lead to different outcomes for workers in low-wage jobs versus other workers. Drawing on and integrating human resource management (HRM), inequality, and worker literatures with compensation literature, the authors describe and explain compensation systems for low-wage work. The authors start by examining workers in low-wage work to identify aspects of these workers’ jobs and lives that can influence their health, performance, and other organizationally relevant outcomes. Next, the authors explore the compensation systems common for this type of work, building on the compensation literature, by identifying the low-wage work compensation designs, proposing the likely explanations for why organizations craft these designs, and describing the worker and organizational outcomes of these designs. The authors conclude with suggestions for future research in this growing field and explore how organizations may benefit by rethinking their approach to compensation for low-wage work. In sum, the authors hope that this review will be a foundational work for those interested in investigating organizational compensation issues at the intersection of inequality and worker and organizational outcomes.

We use simulations from a detailed dynamic computable general equilibrium (CGE) model to study three broad policies toward illegal workers in U.S. employment: supply restriction (tighter border security), demand restriction (prosecution of employers), and legalization through a guest-worker program with a visa tax. From the point of view of the welfare of legal residents, the results strongly favor the third option. In our welfare analysis, we use a six-part decomposition. This identifies effects on the occupational mix of legal employment as a major factor. Throughout the chapter, model results are explained through arguments and diagrams that will be familiar to economists, particularly those working in trade. No familiarity with the underlying CGE model is assumed. Technical details on our labor market assumptions are given in the Appendix.

This paper uses data from the Cedefop European Skills and Jobs survey (ESJS) (Cedefop, 2014, ESJS microdata are Cedefop copyright and are reproduced with the permission of Cedefop. Further information is available at Cedefop, 2015), a new international dataset on skill mismatch of adult workers in 28 EU countries, to decompose the wage penalty of overeducated workers. The ESJ survey allows for integration of a rich set of variables in the estimation of the effect of overeducation on earnings, such as individuals’ job search motives and the skill needs of their jobs. Oaxaca decomposition techniques are employed to uncover the extent to which the earnings penalties of overeducated workers can be attributed to either (i) individual human capital attributes, (ii) job characteristics, (iii) information asymmetries, (iv) compensating job attributes, or (iv) assignment to jobs with different skill needs. Differences in human capital and job-skill requirements are important factors in explaining the wage premium. It is found that asymmetry of information accounts for a significant part of the overeducation wage penalty of tertiary education graduates, whereas job characteristics and the low skill content of their jobs can explain most of the wage gap for medium-qualified employees. Little evidence is found in favor of equilibrium theories of compensating wage differentials and career mobility. Accepting that much remains to be learned with regards to the drivers of overeducation, this paper provides evidence in support of the need for customized policy responses to tackle overeducation.

Barriers to employment are a significant issue in the United States and abroad. As civil rights legislation continues to be enforced and as employers seek to diversify their workplaces, it is incumbent upon the management field to offer insights that address obstacles to work. Although barriers to employment have been addressed in various fields such as psychology and economics, management scholars have addressed this issue in a piecemeal fashion. As such, our review will offer a comprehensive, integrative model of barriers to employment that addresses both individual and organizational perspectives. We will also address societal-level concerns involving these barriers. An integrative perspective is necessary for research to progress in this area because many individuals with barriers to employment face multiple challenges that prevent them from obtaining and maintaining full employment. While the additive, or possibly multiplicative, effect of employment barriers have been acknowledged in related fields like rehabilitation counseling and vocational psychology, the Human Resource Management (HRM) literature has virtually ignored this issue. We discuss suggestions for the reduction or elimination of barriers to employment. We also provide an integrative model of employment barriers that addresses the mutable (amenable to change) nature of some barriers, while acknowledging the less mutable nature of others.

Japan has long occupied a unique place in East Asia and continues to do so in an era of increased global interconnectivity. Beginning with the Meiji Restoration (1868), it became the first in the region to make a decisive, sustained, and highly successful attempt to “modernize” its political, economic, and social structures, thereby largely avoiding Western domination. This particular historical trajectory built directly on social foundations laid during the prolonged closure of the Tokugawa period and largely allowed Japan free reign to craft its own version of modernity, educational and otherwise. One result of this conscious, directed process of “catch-up” was an impressive “compression” of the transition to modernity – a phenomenon that had stretched out over hundreds of years in most Western countries – to little more than a half century (Kariya, 2010); a feat unmatched by any country in the first half of the twentieth century. Following the devastation of the Second World War, Japan redoubled its efforts to “catch-up” and through a combination of high birth rates following the war, export-driven economic growth leading to an explosion of manufacturing jobs, a commitment to egalitarian growth and full employment, and the creation of an educational meritocracy that meticulously selected the country's best and brightest, the country quickly moved up the value-added chain until, by the early 1980s, the Japanese economy was globally dominant (Katz, 1998; Okita, 1992). As such, by the 1980s, Japan became unique, first, in being the only country in the region whose social conditions facilitated genuine comparison with the “advanced” countries of the West and, second, a model for “modernization” that other countries in the region could emulate, first the four Asian Tigers and then (although rarely explicitly) China in the post-Mao “Reform and Opening” period (Rappleye, 2007; Kojima, 2000).