Shrinking cities: urban challenges of globalization

Urban shrinkage is not a new phenomenon. It has been documented in a large literature analyzing the social and economic issues that have led to population flight, resulting, in the worse cases, in the eventual abandonment of blocks of housing and neighbourhoods. Analysis of urban shrinkage should take into account the new realization that this phenomenon is now global and multidimensional — but also little understood in all its manifestations. Thus, as the world's population increasingly becomes urban, orthodox views of urban decline need redefinition. The symposium includes articles from 10 urban analysts working on 30 cities around the globe. These analysts belong to the Shrinking Cities International Research Network (SCIRN), whose collaborative work aims to understand different types of city shrinkage and the role that different approaches, policies and strategies have played in the regeneration of these cities. In this way the symposium will inform both a rich diversity of analytical perspectives and country-based studies of the challenges faced by shrinking cities. It will also disseminate SCIRN's research results from the last 3 years.     

The shrinking mining city: urban dynamics and contested territory

Shrinking mining cities — once prosperous settlements servicing a mining site or a system of mining sites — are characterized by long-term population and/or economic decline. Many of these towns experience periods of growth and shrinkage, mirroring the ebbs and flows of international mineral markets which determine the fortunes of the dominant mining corporation upon which each of these towns heavily depends. This dependence on one main industry produces a parallel development in the fluctuations of both workforce and population. Thus, the strategies of the main company in these towns can, to a great extent, determine future developments and have a great impact on urban management plans. Climate conditions, knowledge, education and health services, as well as transportation links, are important factors that have impacted on lifestyles in mining cities, but it is the parallel development with the private sector operators (often a single corporation) that constitutes the distinctive feature of these cities and that ultimately defines their shrinkage. This article discusses shrinking mining cities in capitalist economies, the factors underpinning their development, and some of the planning and community challenges faced by these cities in Australia, Canada, Japan and Mexico.     

Subjective Inheritance Expectations and Economic Outcomes

In this paper we investigate whether and to what extent inheritance expectations act as a driver of economic choices. We use survey data that are representative of the Dutch adult population with a specific module on subjective probabilities on receiving an inheritance and its amount in the next 10 years. We analyze whether the expected inheritance acts as a deterrent to saving. Results suggest that individuals perceive the expected inheritances as a potential increase of personal wealth, which leads to a reduction in savings. Expectations also appear to matter for the intentions to bequeath and for intended choices on work versus leisure in the future.     

Do standards improve the quality of traded products?

We examine whether standards raise the quality of traded products. Matching a panel of French firm–product–destination export data with a data set on sanitary and phytosanitary measures and technical barriers to trade, we find that such quality standards enforced on products by destination countries: (i) favour the export probability of high-quality firms provided that their productivity is high enough, (ii) raise the export sales of high-productivity, high-quality firms at the expense of low-productivity and low-quality firms and (iii) increase the quality supplied by firms if their productivity is high enough. We then develop a simple new trade model under uncertainty about product quality in which heterogeneous firms can strategically invest in quality signalling to rationalize these empirical results on quality and selection effects.     

Graduate employment: Does the type of higher education institution matter?

The paper analyses whether the type of institution from which students graduate has an impact on their unemployment propensity. It uses official data on the Portuguese higher education system, for 2018, at the program/institution level, which provides information on graduate unemployment, as well as demographic and socioeconomic background information. A fractional probit model on graduates’ propensity for unemployment is estimated. Results suggest that polytechnic graduates face higher unemployment propensity than university graduates, maintaining inequalities present in students’ previous trajectories. Policies targeting socioeconomic segregation need to address not only access to higher education but also the transition to the labor market.     

Strategy implementation for the 2030 agenda: Insights from Brazilian companies

While firms' engagement with Corporate Social Responsibility has been associated with positive performance impacts, little is known about the incorporation of the United Nations 2030 Agenda into business practices. Precisely, although the literature suggests that firms are pursuing the Sustainable Development Goals (SDGs), there are limited insights on their strategy to implement them in the context of developing countries. To address this gap, we conducted a comprehensive large-scale investigation of 2030 Agenda adoption by Brazilian companies. Accordingly, the analysis of our multicase study reveals (1) variations on the business opportunities brought by the SDGs depending on the firm position in the value chain, (2) which SDGs and target stakeholders are addressed through corporate policies and practices, (3) the different ways firms embrace the SDGs to pursue ambidexterity. Our findings clarify how firms in the developing countries interpret the institutional pressures and assemble their internal resources to respond to the SDGs challenges. Boundary conditions and policy implications are further discussed.     

Bias-optimal vol-of-vol estimation: the role of window overlapping

Decisions in Economics and Finance - The simplest and most natural vol-of-vol estimator, the pre-estimated spot variance-based realized variance, is typically plagued by a large finite-sample bias....     

Global talent management during the COVID-19 pandemic? The Gods must be crazy!

The ongoing COVID-19 pandemic has brought terrifying effects for labor markets all around the world. Just as we witness rapid changes in terms of the ways of working (working from home), we are also observing an increase in unemployment. The ways in which major corporations with international operations process their global talent management (GTM) already represents a challenge in relatively stable times and clearly, in a period of such great and sustained turbulence as current experienced, this task becomes still more difficult. Hence, our research aims to study the impact of GTM on the international performance of major companies during the COVID-19 pandemic period. To this end, we surveyed a sample of 59 large companies that act in external markets. Through recourse to multiple linear regressions, we conclude that GTM practices return positive impacts on levels of international performance. Our research returns theoretical implications in terms of the application of integrated GTM models and with the results of significant relevance to corporations operating internationally, and thus enabling them to better understand which strategic human resource management policies will return the best GTM results.     

Assurance of corporate social responsibility reports: Does it reduce decoupling practices?

Recent research shows the existence of a selective corporate social responsibility (CSR) disclosure strategy that creates a gap between CSR disclosure and actual performance. These CSR decoupling practices compromise the credibility of CSR reports and have triggered a demand for the adoption of credibility enhancement mechanisms, such as adherence to the global reporting initiative (GRI) reporting guidelines, and the external assurance of CSR reports. The effectiveness of such mechanisms is not clear, however. This paper draws on legitimacy theory and addresses the issue of symbolic versus substantive use of assurance, and compliance with GRI reporting standards, by analysing their effect on CSR decoupling using an international sample of 1,939 companies (15,219 observations from 2002 to 2017). Analysis of a sub-sample of 708 firms (3,730 observations from 2011 to 2017) also shows that the application of GRI guidelines and the specific characteristics of the assurance provider—accountant, experience and specialisation—reduce CSR decoupling practices. The results provide researchers, managers, assurance providers, investors, stakeholders and regulators with additional insight into the value of the external assurance of sustainability reports and have important managerial and policy implications.