This paper analyzes labor market responses to productivity shocks when firms set employment criteria on the basis of the likelihood of hiring high or low productivity…
This paper analyzes labor market responses to productivity shocks when firms set employment criteria on the basis of the likelihood of hiring high or low productivity workers. In response to a positive productivity shock, firms do not raise the criterion as much as the shock, increasing the proportion of low productivity workers among the employed. The observed average productivity may respond negligibly even if employment changes substantially. Interest rate fluctuations can yield an opposite relation between productivity and employment, explaining the weak empirical relationship.
This chapter studies the consequences of firm delayering on wages and the wage distribution inside firms. I consider a market-based tournament model with asymmetric information to endogenize firms’ delayering decisions. My model predicts that when the CEO becomes more productive, firms grow in size. When the CEO becomes sufficiently productive, firms delayer. After delayering, wages at all levels rise and the wage gap between the CEO and the laborers widens. These predictions capture the dynamic process of firms’ structure and size changes and match a set of empirical findings in recent studies that are not well explained by existing theories.
The purpose of this paper is to examine the education-job match of political science graduates from Slovenia, as well as from selected EU countries, in the context of…
The purpose of this paper is to examine the education-job match of political science graduates from Slovenia, as well as from selected EU countries, in the context of other disciplines. In the frame of contested theoretical approaches, the implications of matching the knowledge that is acquired during education to the skills that are needed on the job are also examined.
Using the REFlex HEGESCO database, as well as other secondary data, the wider disciplinary and contextual environments are presented. Disciplinary and contextual mapping is followed by binary logistic regression of primary data collected from Slovene political science graduates. Based on the results, the authors determined the validity of certain theoretical premises of human capital, credentialist, and assignment approaches, specifically regarding education-job matching.
In terms of graduate education-job match, the results indicate that the relevance of the sector of employment relates to educational as well as skill match. The results also indicate that matched candidates utilize the skills acquired during the education process to a greater degree, which adds weight to the assignment theory's presumption. The effect of formal credentials is relevant, because graduates with Bologna degrees, despite having attended programs with virtually identical curricula at the same institution, are significantly less matched when compared to non-Bologna graduates. Accordingly, the effect of the change to the structure of the system of higher education (HE), which is amplified by the period effect of the economic crisis, implies a serious change to graduates’ opportunity structure.
The study should motivate a re-examination of the teleological purpose of the study by professional associations in the state. It should also motivate the adjustment of the study programs to the new conditions graduates face and strengthen the educator-employer relationship to make the latter cognizant about the study programs and the skills of graduates. In addition, the study should provide grounds for a critical discussion about the implications of governmental austerity measures on the public sector.
The paper provides new insights into the early careers of political scientists and social scientists at large. It also offers early evidence on the effect of the Bologna's HE reform and indications about the early career achievements in a crisis-struck post-communist country.
We formulate static and dynamic empirical models of promotion where the current promotion probability depends on the hierarchical level in the firm, individual human capital, unobserved individual specific attributes, time-varying firm-specific variables, as well as endogenous past promotion histories (in the dynamic version). Within the static versions, we investigate the relative influence of the key determinants of promotions and how these influences vary by hierarchical levels. In the dynamic version of the model, we examine the causal effect of past speed of promotion on promotion outcomes. The model is fit on an eight-year panel of 30,000 American executives employed in more than 300 different firms. The stochastic process generating promotions may be viewed as a series of promotion probabilities which become smaller as an individual moves up in the hierarchy and which are primarily explained by unobserved heterogeneity and promotion opportunities. Firm variables and observed human capital variables (age, tenure, and education) play a surprisingly small role. We also find that, conditional on unobservables, the promotion probability is only enhanced by the speed of promotion achieved in the past (a structural fast track effect) for a subset of the population and is negative for the majority. In general, the magnitude of the individual-specific effect of past speed of promotion is inversely related to schooling, tenure, and hierarchical level.