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Article
Publication date: 17 March 2022

Yu-Cheng Lai and Santanu Sarkar

In this paper, the authors examined the changes in labour unrest and labour quality brought by high labour standards over a considerable period in Taiwan. Then, the authors…

Abstract

Purpose

In this paper, the authors examined the changes in labour unrest and labour quality brought by high labour standards over a considerable period in Taiwan. Then, the authors studied the role of these changes in predicting the inflow of foreign direct investment (IFDI) in the country. To test the role, the authors measured the differences in effects of the two changes on wages, working hours and employment opportunities of skilled female and skilled male workers in FDI-intensive and non-intensive industries.

Design/methodology/approach

Using a model built on pooled cross-sectional time-series data from 1999 to 2012, the authors measured the effect of changes in labour unrest and the presence of skilled workers on the net inflow of FDI. Using data from the Manpower Utilisation Survey (MUS), the authors applied differences–in–Differences-in--ddifferences- (DDD) and differences–in–Differences-in-ddifferences-in--differences- (DDDD) estimation methods to test the effect of changes in labour unrest and labour quality on three labour market outcomes, namely wages, working hours and job opportunities of skilled workforce.

Findings

Increasing labour unrest affected the employment opportunities of almost every unemployed person seeking skilled jobs in Taiwan. When the authors compared the adverse effect of high labour standards on employment opportunities and working hours, the authors found women looking for skilled jobs in foreign-owned firms to be the worst affected. Besides, foreign firms paid different wages to skilled educated men than what foreign firms' domestic counterparts paid to skilled educated men employed in Taiwanese firms.

Practical implications

An in-depth analysis of changes in labour unrest and presence of skilled workers because of high labour standards and the extent to which such changes helped the nation to attract FDI should be useful to policymakers interested in understanding the impact of legislative measures and policy reforms on labour market outcomes across industry types, which matter to foreign investors. If changes in labour unrest and labour quality influenced the inflow of FDI more to firms in one set of industries than the others, the same should have a bearing on revamping of future enactment and enforcement in Taiwan.

Originality/value

Current study findings would not only provide broad lessons to policymakers in Taiwan but findings of the authors' country case study should be able to guide growing economies that are equally careful whilst raising the labour standards as most fear that high labour standards can deter inflow of FDI because of increasing labour cost.

Details

International Journal of Manpower, vol. 43 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 1 December 2023

Yu-Cheng Lai and Santanu Sarkar

The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore…

Abstract

Purpose

The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore investment in technologically advanced countries (TAC), the authors examined if changes in these firms' R&D ratios and the growing presence of skilled workers in Taiwan's labour market during the trade war have affected their offshore investments in TAC.

Design/methodology/approach

Using a model built on pooled cross-sectional time-series data from 2012–2019, the authors examined whether a change in R&D ratios of domestic firms in Taiwan and the growing presence of skilled workers in Taiwan's labour market have affected the offshore investment by these firms during the trade war. Using data from the Manpower Utilisation Survey, the authors applied differences–in–differences–in–differences and differences–in–differences–in–differences–in–differences estimation methods and found that the trade war indeed gave a boost to Taiwan's job market, particularly for skilled workers.

Findings

From the estimation results, the authors noticed a rise in employment opportunities alongside a decline in the earnings of skilled workers in industries where more firms have spent on R&D as well as invested in offshore operations. However, firms in Taiwan that had not heavily spent on R&D from industries where investment in foreign operations was otherwise high have also attracted skilled workers during the trade war.

Practical implications

An in-depth analysis of the impact of the trade war on domestic firms' spending on R&D and their investment in offshore operations in TAC should be helpful to policymakers interested in understanding the effects of the trade war and subsequent changes in firms' spending on R&D on labour market outcomes. If changes in the R&D ratios and a steady supply of skilled workers influenced the outflow of Foreign Direct Investment (FDI) to TAC, this insight could be helpful for those devising policies and measures to curb the impact of the trade war on domestic spending on R&D.

Originality/value

The study findings not only provide broad lessons to policymakers in Taiwan, but the country case study can guide growing economies that are equally careful while perceiving trade war as a significant deterrent to domestic R&D spending and the outflow of FDI.

Details

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

Keywords

Article
Publication date: 8 October 2020

Santanu Sarkar and Ranabir Chakraborty

We were intrigued by the question of whether the convergence of businesses across nations in search of flexibility to survive economic crisis led to a convergence of the annual…

Abstract

Purpose

We were intrigued by the question of whether the convergence of businesses across nations in search of flexibility to survive economic crisis led to a convergence of the annual rate of change of union membership. The question emerged because the convergence theory was controverted, especially when the neo-capitalist idea failed to withstand the test of time during the economic crisis.

Design/methodology/approach

By adopting the model from Bain and Elsheik (1976) and using time-series data from 1990 to 2014 for Finland and India that survived economic crisis during this period, whereby union membership remained steady in Finland but declined in India, we assessed the empirical distinction between the changes in union membership.

Findings

We argued that when hit by an economic crisis, different nations had divergent responses and chose different means of economic recovery because of which the countries have not withstood the crisis in one specific way/direction that at all times, marginalises unions. Our main finding is that in both the countries, the annual rate of change of union membership during the years of economic recovery was determined by the policy response. And, policy responses were determined not only by the causes of economic crisis but also by the strength of unique national institutional configurations and history of the country.

Originality/value

The annual rate of change of union membership during the years of economic recovery was determined by the policy response. And, policy responses were determined not only by the causes of economic crisis but also by the strength of unique national institutional configurations and history of the country.

Details

Employee Relations: The International Journal, vol. 43 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 2 May 2017

Yu-Cheng Lai and Santanu Sarkar

The purpose of this paper is to examine the differences in the effects of gender equality legislation on employment outcomes among female and male workers in industries with…

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Abstract

Purpose

The purpose of this paper is to examine the differences in the effects of gender equality legislation on employment outcomes among female and male workers in industries with different intensity of foreign investment (namely, foreign direct investment (FDI)-intensive industries and non–FDI–intensive industries). The specific employment outcomes that were studied to compare the effects of the legislation are the working hours, employment opportunities, and wages of female and male workers in Taiwan.

Design/methodology/approach

Using data from the annual Manpower Utilization Survey, the authors applied a differences-in-differences-in-differences estimation method to test the effect of gender equality legislation on employment outcomes. By using multinomial logit, the authors measured the effect of the legislation on employment opportunities. To correct for simultaneity and selectivity problems/biases, the authors adopted Heckman two-stage selection procedures. Likewise, the authors used weighted least squares to solve heteroskedasticity in the wage and working hour equations. Further, the instrumental variable (IV) method was used to correct for simultaneity bias in the equation on working hour. The authors applied three stages estimation method following Killingsworth’s (1983) approach to measure the effect of the legislation on wages and working hours.

Findings

The authors found the restrictions enforced by the gender equality legislation (namely the Gender Equal Employment Act (GEEA), enacted in 2002) in Taiwan to have made certain impact on the workers’ working conditions in FDI-intensive industries. The major finding indicated that in a country like Taiwan, where the legislature tried tilling the perpetual gender gap in its labour market, by passing a law to counter inequality, could finally narrow the gender gap in wages among workers in the FDI-intensive industries. Although initially after the enactment of the GEEA (between 2002 and 2004), the gender gap in part-timers’ wages has widened, yet over a period of time the gap in their wages too has narrowed down, particularly during 2005-2006. The legislation, however, could not improve the job opportunities for full-time female workers’ in FDI-intensive industries. Besides, post 2002, the female workers were found to have worked for shorter hours than male workers, which according to us, could be largely attributed to the enforcement of the GEEA.

Practical implications

An in-depth analysis of the labour market effects of gender equality legislation should be useful to policymakers, especially those interested in understanding the impact of legislative measures and policy reforms on labour market and employment outcomes across industry types. If enforcement of a gender equality legislation has succeeded in reducing the gender gap more in one set of industries than the others (e.g. foreign owned instead of domestic industries), as the authors noticed in this study, then the same should have a bearing on revamping of future enactment and enforcement too.

Originality/value

Current study findings would not only provide the broad lessons to the policymakers in Taiwan, but the results that have emerged from a country case study could be referred by other growing economies who are enthusiastic about improving female workers’ working conditions through legislative reforms.

Details

International Journal of Manpower, vol. 38 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 7 August 2017

Girish Balasubramanian and Santanu Sarkar

The purpose of this paper is to delve into some of the key internal and external factors that led to the choice of specific strategies for union revitalization using the…

Abstract

Purpose

The purpose of this paper is to delve into some of the key internal and external factors that led to the choice of specific strategies for union revitalization using the theoretical framework built upon framing perspectives, the strategic action field (SAF), and the strategic choice theory.

Design/methodology/approach

The authors used a stringent definition and corresponding operationalization of trade union revitalization. The present research has been carried out on a registered industrial union within the context of Global South, specifically in India.

Findings

Evidence was found for the trade union adopting a mix of strategies for revitalization, namely, union organizing, social movement unionism, and union restructuring. A mix of both internal and external factors identified informed the choice of revitalization strategies.

Research limitations/implications

Specific limitations include the subjectivity of the inference in spite of taking due precautions, and lack of generalizability of the findings based on a single case study.

Practical implications

A strong identity, coupled with structural vitality and optimum use of resources enables trade unions to frame the need of a strategy for revival in order to counter the strategic action of employers resulting in union revitalization.

Originality/value

The theoretical novelty of this research stems from the amalgamation of collective action frames, SAF, and strategic choice framework to understand the union revitalization in the context of Global South.

Details

Employee Relations, vol. 39 no. 5
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 16 May 2019

Santanu Sarkar and Meichun Liu

The purpose of this paper is to find how the changing relationship between labour and political parties influenced the growth of reasonably independent labour unions in Taiwan.

Abstract

Purpose

The purpose of this paper is to find how the changing relationship between labour and political parties influenced the growth of reasonably independent labour unions in Taiwan.

Design/methodology/approach

The authors have drawn on data collected through in-depth interviews of union officials, labour activists and members of legislature from two major political parties in Taiwan.

Findings

The authors found that the breach between labour and political parties was affected by the eventualities contemplated in democratisation. Though the DPP (Minchin-tang/Democratic Progressive Party) provided the initial “shot in arm”, autonomous unions have not necessarily grown underneath DPP’s dominion. Political liberalisation of Taiwan’s industrial relations systems has gained more momentum when the DPP was in opposition than in power. Anti-incumbency pushed independent unions to sway the opposition’s backing when Kuomintang (KMT/the Chinese Nationalists) was in power and not to that extent when the KMT stepped down. The autonomous labour movement in Taiwan was initially influenced by the changing relationship between labour and ruling parties. However, the movement was subsequently shaped by the ethnic and political characteristics based on the historical divide between the mainlanders and Taiwanese and Taiwan’s changing economic landscape.

Research limitations/implications

Specific limitations include the subjectivity of the inference and lack of generalisability of the findings that are based on interviews with two out of three players of industrial relations system.

Practical implications

Because of globalisation and global financial crisis that brought together a new generation of workforce who hold individualistic values, have lesser faith in collectivism and perform new forms of work where unionisation is no more relevant, the autonomous labour movement in Taiwan was hugely impacted.

Originality/value

Growth of independent unions is not being shaped by democratisation alone. If we refocus the debate about democracy’s implied relationship with the rhetoric of national identity, one can see the crucial role played by the changing economic landscape and ethnic divisions ingrained in political origins.

Details

Employee Relations: The International Journal, vol. 41 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 17 March 2020

Girish Balasubramanian and Santanu Sarkar

This paper uses the Social Identity Model of Collective Action (SIMCA) framework of Zomeren et al. (2008) to explain the organising experiences of the informal sector workers…

Abstract

Purpose

This paper uses the Social Identity Model of Collective Action (SIMCA) framework of Zomeren et al. (2008) to explain the organising experiences of the informal sector workers engaged in large number in the world's largest shipbreaking industry located in the western Indian town of Alang.

Design/methodology/approach

A single case study approach was adopted to understand the participation of shipbreaking workers in their trade union and factors that influence their participation.

Findings

Sense of cohesive collective identity and injustice alongside efficacy considerations have shaped the organising experiences and affected the participation of informal sector workers in their union. The trade union was able to overcome the scourge of invisibility that has been one of the dominant features of informal sector employment.

Research limitations/implications

This paper treated union participation as unidimensional. Besides, the subjective conceptualization of strengths of perceptions of injustice, identities and efficacy considerations could be a limitation. The paper does acknowledge the gendered nature of shipbreaking but have not actively pursued it as a part of our research.

Practical implications

The findings of our study are an exemplar for those who intend to organise informal sector workers, especially precarious workers. The empirical findings allude to the role of trade unions in combating the invisibility, which is one of the defining features of informal sector workers through a distinctive, cohesive identity inculcated in those workers.

Originality/value

This paper has borrowed the SIMCA framework to explore union participation. Organising experiences of precarious workers from the developing world provides a contextual and an empirical novelty to our study.

Details

Employee Relations: The International Journal, vol. 42 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 6 September 2013

Yu‐Cheng Lai and Santanu Sarkar

To measure the effects of work‐sharing arrangements on participants’ subsequent labor market outcomes in Taiwan such as full‐time employment rates, working hours of women and men…

Abstract

Purpose

To measure the effects of work‐sharing arrangements on participants’ subsequent labor market outcomes in Taiwan such as full‐time employment rates, working hours of women and men and the difference in scale effect and effect of substitution between hours and employment for women and men.

Design/methodology/approach

Using the data from Manpower Utilization Survey, we applied the differences‐in‐differences estimation method to test the effects of work‐sharing arrangements on working hours, wage and employment. Multinomial logit was used to measure the effects of work sharing on full‐time employment. In order to correct the simultaneity and selectivity problems, we followed the Heckman two‐stage selection procedures to solve the selection bias, and used weighted least squares to solve heteroskedasticity in the wage and hour equations. The instrumental variable (IV) method was used to avoid simultaneity bias in the hour equation.

Findings

This paper found the restrictions enforced by law on working hours have negative effects on employees’ working conditions in certain industries in Taiwan. After controlling the working hours, we found the wages paid to women and men have increased subsequent to the enforcement of law. However, compared to men the net wage earned by women has increased to a lesser extent. It was further observed that with enactment of work‐sharing law, the employment rate of women has considerably declined since 2001. Main findings assimilating the results for hour, wage and full‐time employment suggest that a country like Taiwan (with work‐sharing arrangements implemented by law) has witnessed a smaller gap between women's and men's working time and wages during 2001‐2002. However, for the period of 2003‐2006 the amendment that introduced compressed work week brought a larger gender gap in working hours as well as wages. In other words, the implementation of work‐sharing law has reduced the gender gap in hours and wages during 2001‐2002, but the prevailing gender gap in hours as well as wages has worsened after the introduction of compressed work week during 2003‐2006.

Practical implications

An in‐depth analysis of labor market effects of work‐sharing law will be useful for the policymakers, especially those interested in understanding the impact of their policies on labor market outcomes like wage, hour and employment, and finding out whether policies were effective at reducing the gender gap in given outcomes.

Originality/value

Findings of the present study should not only provide the broad lessons for policymakers in Taiwan, but the results that have emerged from the country case study may be referred by other Asian countries who want to bring a change in working and employment conditions for their labor by implementing work‐sharing law.

Details

International Journal of Manpower, vol. 34 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 10 January 2024

Farhat Haque

This paper aims to focus on the issue of high employee turnover in the Indian tech industry. An integrative review is conducted to analyse the past and current state of…

Abstract

Purpose

This paper aims to focus on the issue of high employee turnover in the Indian tech industry. An integrative review is conducted to analyse the past and current state of literature, as well as prepare a research agenda for future studies.

Design/methodology/approach

A pool of 72 articles published between 2010 and 2022 is reviewed with a special focus on Indian tech employees. This study elucidates the extent and impact of employee retention strategies through content analysis.

Findings

Two broad perspectives have been established in the literature: the reasons for quitting and the explanations for staying. By means of a comprehensive review, this paper combines these two aspects of literature and suggests factors under organization’s control to retain competent tech employees.

Originality/value

The study is designed to integrate the two theoretical viewpoints of employee turnover literature by consolidating the reasons behind quitting behaviour and staying intention. Codes combining the two aspects are presented as a valuable resource to retain tech talent.

Details

The Learning Organization, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-6474

Keywords

Article
Publication date: 17 October 2016

Payel Das and Santanu Mandal

The purpose of this paper is to reveal the influence of social media in the development of brand sacralization in young consumers in emerging Asian market. Brand sacralization is…

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Abstract

Purpose

The purpose of this paper is to reveal the influence of social media in the development of brand sacralization in young consumers in emerging Asian market. Brand sacralization is the phenomenon where consumers (especially young) become an adherent of brands and consider brands as sacred entities. The paper specifically explores the influence of social media interaction and social media usability on brand sacralization and consequently its influence on online purchase intention (PI) and brand loyalty.

Design/methodology/approach

Perceptual responses were gathered from 232 undergraduate and postgraduate students (age: 17-27 years) studying in an Indian private university and is subsequently analyzed using structural equation modeling. The young population is chosen as the target sample as they possess majority stake in final product purchase decision nowadays and also contribute as a dominant consumer category in online market places.

Findings

The researcher found a strong positive influence of social media interaction and social media usability on brand sacralization. Further, brand sacralization is found to have a positive and significant influence on online PI and brand loyalty of young consumers. However, social media interaction does not contribute significantly to usability of social media. The researcher has also found a significant influence of brand loyalty on online PI for these young shoppers.

Originality/value

The study is the foremost to investigate the influence of social media in developing brand sacralization and its influence on online PI and brand loyalty. Further the study is the first to develop a measurement instrument for brand sacralization. The study is the foremost in developing measures for social media interaction and social media usability.

Details

South Asian Journal of Global Business Research, vol. 5 no. 3
Type: Research Article
ISSN: 2045-4457

Keywords

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