Marginal Workers and Their Decisions to Work or to Quit

Abstract . What motivates the marginal worker to decide to work or to quit and collect unemployment insurance or welfare payments? A study of poultry processing plant workers in Georgia indicates that few quit to obtain more leisure. Dissatisfaction with compensation is only a secondary factor. Primary ones are cumulative dissatisfaction with work and the total work environment. Changes in supervision and in the Job structure are suggested.     

Organizational Issues in Worker Ownership

Abstract . In the United States the issue of worker control is currently receiving increased attention. Nevertheless, before this view of work and the workplace can be successfully implemented, the standard (hierarchical) image of organizational order must be rethought. Communicative competence, as discussed by Jürgen Habermas, is offered as a theoretical alternative to social ontological realism for developing a workplace that is compatible with worker control. This theoretical shift is necessary to avoid organizational domination of the worker and to develop a workplace that embodies, instead of restricts, human action. For if human action does not orient the workplace, worker control does not exist.     

Can a minimum wage increase employment and reduce prices in a neoclassical perfect information economy?

This paper investigates the possibility that the imposition of a minimum wage increases employment in the affected sector, measured in terms of hours of work, and lowers product prices. Unlike related prior theoretical research, I consider a neoclassical perfect information economy. Both labor and product markets are assumed to be perfectly competitive. Workers choose the number of hours of work and their effort level. Workers can potentially, but not necessarily, differ in their preferences over income, leisure, and effort. Effort is perfectly observable by the employers. The general framework that highlights the channels through which a minimum wage can increase employment and reduce prices is introduced and necessary and sufficient conditions derived. The paper also develops a number of comparative statics and some illustrative examples. The results provide a simple theoretical foundation that explains some recent findings of the empirical literature on minimum wages. Auxiliary results help explain the effects of minimum wage on the entire wage distribution in a way that is consistent with empirical findings. Finally, welfare analysis shows that worker welfare and employment tend to go in opposite directions; in particular, if employment increases after the imposition of the minimum wage, worker welfare will be reduced, though not necessarily vice versa (the opposite is true for consumer welfare). Strikingly, if a minimum wage increases worker welfare, the chief beneficiaries are not the affected workers but those with incomes that exceed the minimum wage.     

On Work and Authority: Issues in Job Enlargement, Job Enrichment, Worker Participation and Shared Authority

Abstract . Continued debate over the nature of work is adding to an existing vast literature in labor economics, business and personnel administration, industrial sociology and social psychology. Both theory and experience indicate that the authoritarian workplace results in social costs through reduced labor productivity and increased worker dissatisfaction. But progress toward shared authority and worker participation in the administration of the production process promises to be slow. Management generally preserves a legitimized authority, defending it with the misplaced rationale of elitism, i.e., the presumed functional superiority of managers. Unions will not press for shared authority, for to do so would undermine their basic and formal function of organizational restraint of managerial authority. Thus, while management and union logically protect their traditional roles, the worker and society are denied the potential benefits of basic changes in work and authority.     

Employee perceptions of corporate partnership: An affective-moral quid pro quo

An affective-moral quid pro quo model provided the framework to test the relationship between worker satisfaction, perceptions of employees' citizenship behavior, and corporate commitment to moral-ethical ideals. A total of 198 full-time employees from a wide variety of work settings anonymously completed questionnaires. More than half of the respondents held management or supervisory positions; the number of males and females was nearly equal. Participants who indicated high satisfaction with work, promotions, and co-workers, and who viewed employees in their work setting as altruistic, perceived their organization as committed to employee welfare, employee rights, product quality, and as good corporate citizens.     

What Was Driving the 1982–88 Boom In Temporary Employment?

Abstract . The level of temporary help employment rose two-and-a-half fold between 1982 and 1988, was quite variable and had a disproportionately larger effect on employment flows. One conventional explanation suggests that changing demographic composition of the labor force in favor of groups preferring nontraditional employment arrangements fueled the temporary help boom. Demand-side views emphasize the volatility in labor demand, intensified price competition and the absence of employee benefit contributions. Empirical estimation confirms that demand-side forces predominate. Yet no labor supply variable is found to be positively associated with the extent of temporary employment. Cyclical fluctuation in output, intensified foreign competition and the magnitude of nonwage labor costs are all positively associated with temporary employment levels. The diminishing bargaining power of labor unions allows employers to exploit the labor cost savings of temporary hires, and the extent of paid time-off and the lack of flexibility in weekly hours of work play a weak role. The findings suggest why temporary job growth accelerated in the 1980s, as more firms employed a “core-periphery” human resource strategy. Public policy should adopt measures that attempt to limit the creation of temporary jobs to a level that accommodates the worker need for flexible annual work schedules.     

Henry George and the Classical Scientific Research Program: The Economics of Republican Millennialism

Abstract . Henry George's classicism was evident in his acceptance of “hard core” assumptions inherent in classical economic analysis, notably that rational self-interested behavior exercise in competitive markets maximized economic welfare. However, George's “stage theory,” the “Law of Human Progress,” led him to reject the classical nexus between social and economic welfare. The emergence of an exchange economy improved efficiency and economic welfare, but institutional changes lagged behind, particularly the redefinition of property rights. Consequently, economic growth based on land as a private rather than public good widened the gap between economic efficiency and social welfare. Hence George's paradox of poverty amidst progress. George resolved the equity efficiency conflict by treating land as a public good. Then, the sale of monopoly rights to land through the “single tax” on land rents captured the difference between the private and social costs of land use.     

Child Welfare Allocations: State-level Estimates of Effective Guarantees

Welfare grants in the United States very from year to year and from state to state. Actual grants are very different from stated nominal levels of support for two reasons. First, grants are reduced for income. Second, not all qualified families receive welfare. Some do not apply. Others are discouraged, wrongly denied, or poorly counselled. The actual level of welfare support per child is estimated herein at the state level for single female household heads for each year from 1979 to 1990. A tobit estimation technique is employed to account for the probability of not receiving welfare when otherwise qualified.     

Beyond bureaucracy? Work organization in call centres

Call centres are a rapidly growing, IT-based channel for service and sales delivery, particularly in the financial services and telecom industries. Although little research has been undertaken on the human resource aspects of call centres, two contrasting images are emerging. The first emphasizes the bureaucratic, constraining nature of these work settings, while the second image points towards worker empowerment characteristic of knowledge-intensive settings. Which of these two images more faithfully portrays the nature of work organization in call centres is the subject of our paper. Drawing on qualitative research undertaken in six call centres and a survey of front-line workers, we show that elements of both models coexist and that a hybrid model predominates. The theoretical basis for this contention, and its institutionalization as mass customized bureaucracy, lies in management's on-going attempts to reconcile two conflicting principles: standardization of processes and customization of products. The paper also explores, as key consequences of mass customized bureaucracy, front-line workers' satisfaction with various facets of their job and their overall job satisfaction, in addition to discretionary work effort. Only in relation to job security and co-worker relations could front-line workers be considered satisfied. Overall, these employees were ambivalent in their responses. They were however more likely to give more discretionary work effort than indicated by their extent of satisfaction. We conclude that, although the existing pattern of work organization may be superior to more bureaucratic forms, it is by no means ideal from the standpoint of either front-line workers or management.     

Measuring Socioeconomic Effects When Using Income as Quality of Life Indicator

Abstract . By generalizing Stigler and Becker's idea of maintaining the “capital stock intact,” and incorporating it with other contributions to welfare economic analysis, this paper presents a modified conceptual framework for measuring and adjusting impacts of socioeconomic and environmental factors when income or consumption expenditure is used solely as a quality of life indicator. Such measurements and adjustments are made for differences in public needs and in the process of satisfying these needs. Application of this conceptual framework is illustrated, using statistics on police protection and crime rates.     

Price Discrimination in Input Markets: Downstream Entry and Efficiency

The extant theory on price discrimination in input markets takes the structure of the downstream industry as exogenously given. This paper endogenizes the structure of the downstream industry and examines the effects of permitting third‐degree price discrimination on market structure and welfare. We identify situations where permitting price discrimination leads to either higher or lower wholesale prices for all downstream firms. These findings are driven by upstream profits being discontinuous due to costly entry. Moreover, permitting price discrimination fosters entry which often improves welfare. Nevertheless, entry can also reduce welfare because it may lead to a severe inefficiency in production.     

Knowledge Content and Worker Participation in Environmental Management at NUMMI

ABSTRACT This paper looks at, within the context of lean production, how and in what ways employees participate in environmental improvements. The paper uses data from an automobile plant well known for its participative work structures, New United Motor Manufacturing (NUMMI), to look more closely at the dynamics of worker participation in environmental management (i.e. management of pollution and waste). Findings show that while workers possess important contextual knowledge, the importance of process, intra‐organizational and external knowledge make the role of specialist staff (both internal and external to the environmental function) critically important for environmental improvements. Additionally, environmental improvements often required a combination of more than one knowledge type. The paper discusses how the culture and management structure at NUMMI and other lean plants encourage this combination. Implications for environmental management, lean production, and future research on worker participation are discussed.     

The Financing of Investment in Utility Assets

This article concerns appropriate ways to finance investment in quasi‐public assets, such as those of utilities. Pursuing the principle of charging the user, analogies are drawn with not‐for‐profit investment, dedicated to the service of users. Focusing on intergenerational equity, an arguably typical pattern of intergenerational investment transactions is identified and proposed as a financing norm. It is shown that, while an investing generation will always experience a real resource cost, the burden can be alleviated in welfare terms if all new investment is financed by borrowing. Charges or taxes levied for maintenance and replacement of assets offer scope for improving the intergenerational welfare balance.     

Foreign workers in Saudi Arabia: a field study of role ambiguity,identification, information-seeking,organizational support and performance

A total of 154 foreign workers in Saudi Arabia responded to a web survey that inquired about role characteristics, work attitudes and behaviors. Surveys were matched with 138 supervisor surveys asking about the focal worker's job performance. Results indicated a significant relationship between role ambiguity and job performance, a relationship mediated by organizational identification, which was moderated by both information-seeking and perceived organizational support. This research is one of only a few studies of professional workers in Saudi Arabia (both male and female). Furthermore, this study is one of a handful of studies to explore the attitudes and performance of foreign workers, a worker population often confounded in studies that focus on domestic, expatriate or inpatriate workers.     

Mixed oligopoly, foreign firms, and location choice

We investigate a mixed market in which a state-owned, welfare-maximizing public firm competes against n domestic private firms and m foreign private firms which are all profit-maximizing. A circular city model with quantity-setting competition is employed. We find that the equilibrium location pattern depends on m. All private firms agglomerate in the unique equilibrium if m is zero or one. Two foreign firms induce differentiation between domestic and foreign private firms. More than two foreign firms yield differentiation among the foreign firms. Regardless of n and m, agglomeration of all domestic private firms appears in equilibrium. We provide several conditions in which eliminating the public firm from the market enhances social welfare. We extend the basic model and investigate three issues concerning multiple public firms, inefficiency of the public firm, and entries by private firms. We obtain some additional implications of welfare and equilibrium locations.     

The Promise and Perils of Worker Participation in Management

A bstract . Movement from authoritarian to participatory work organization promises gains in both worker satisfaction and productivity. In spite of the potential gain in social welfare, change in the United States has been relatively slow. Part of the explanation lies in problems of implementation, in the practical problems of transition Part also lies in management fears concerning the ability to circumscribe the scope of worker participation in order to preserve historic prerogatives. To limit participation may be to compromise participation. There is the additional possibility that change may be transitory, waxing and waning with changes in business conditions.     

Determinants of work organization in the modern firm: change and continuity in the Spanish labour relations

The host of statistical data on labour organization from the 2004 Encuesta de Calidad de Vida en el Trabajo (2005) will be used as a basis for using factorial analysis to identify the factors that determine how ‘modern’ companies organize their work according to business management literature. Workers' identification with their company seems to be the essence of a good part of business managers' objectives. The results of the research point to a continuity in a worker profile that largely corresponds to the Fordist model, with a few significant changes: the domain of some non-conflictive industrial relations which is settled on the value that is given to the good relationships with mates and managers and the flexible work-class positive assessment that allows to harmonize other life aspects.     

Labor Market Effects from Involuntary Job Losses in Layoffs, Plant Closings: The Role of Human Capital in Facilitating Reemployment and Reduced Wage Losses

Abstract . Wage loss and reemployment following involuntary Job loss are examined, using a nationally representative sample of young men and women in their late twenties. Workers with increased human capital are less likely to suffer wage loss and unemployment after job termination. Workers characterized as having little commitment to the labor market—low skill levels, clerical and sales workers, females, and low contributors to family income—are more likely to suffer unemployment and wage loss after job loss. This suggests that human capital characteristics serve as a signal of desirable, or undesirable, worker traits to a new firm.     

The Self-concept of Black and White Women: The Influences Upon Its Formation of Welfare Dependency, Work Effort, Family Networks, and Illnesses

Abstract . The concept of “self-efficacy” is used to test the hypothesis that the negative self-concept of welfare recipients coniributes to long term psychological and material dependency on such assistance. Self-efficacy focuses on the extent to which people are able to produce and regulate events in their lives and is associated with self-imposed performance expectations. The extent to which the minority status which Blacks occupy in this society decreases self efficacy relative to Whites is examined, using information generated from structured interviews with 290 low income Black and White women. Operationalizing the concept of self-efficacy with appropriate controls for socioeconomic status, family composition and other factors results in finding no racial differences in sense of self-efficacy between Black and White women. Observed differences in patterns of receipt of public assistance are found to be more directly related to the persistence of structural barriers to upward mobility that have differential impacts on Blacks and Whites. Long term receipt of public assistance is found to adversely affect both self-worth and work orientation/perceived efficacy for all women.     

Optimal Social Design: Estimating a Social Welfare Function from Questionnaire Data

A social design x evokes a response y from a set of individuals. The value of the design is expressed in terms of a social welfare function which is derived from Arrow’s formulation of social choice. Making certain simplifying assumptions the social welfare function can be expressed in terms of individuals’ ideal designs. A method for estimating the social welfare function from quite limited empirical evidence is developed. The method is applied to an educational case study. There was considerable variation in individuals’ ideal designs. The components of the social welfare were estimated: the welfare ideal, the population sensitivity, the population variation, the deviation from the ideal and the welfare ceiling. Methodological problems are discussed.