Union–firm bargaining: Order of play and efficiency

This paper shows that a modified alternating offers Rubinstein model can provide a Pareto superior outcome in the context of the right-to-manage union–firm bargaining. Two examples of bargaining protocols that yield a superior outcome are provided. In the first example, the parties engage in a game in which the order of play is determined as part of the bargaining. We show that the game has a unique subgame perfect equilibrium in which the firm always moves first in the wage bargaining game. The equilibrium wage is, therefore, unique. In the second example, we examine a two-part-tariff alternating offers bargaining protocol, where the parties bargain over the wage and transfer payments. We show that this bargaining protocol has a Pareto efficient, unique subgame perfect equilibrium. Thus, although the parties do not bargain over the level of employment, the outcome under this protocol is, nevertheless, socially optimal.     

Employee involvement and group incentives in manufacturing companies: a multi-level analysis

The effects of employee involvement and group incentives on organisational commitment and turnover intention were examined using data from a survey of over 4,000 employees in 29 manufacturing companies. Using the mediated moderation model, we investigated the moderating role of capital intensity on the relationships between employee involvement and group incentives and these outcomes, and the mediating role of organisational commitment on the effects of employee involvement and group incentives on turnover intention. The findings revealed that employee involvement is more effective in capital-intensive companies than in labour-intensive companies, but group incentives are more effective in labour-intensive companies. The moderated effects on turnover intention were mediated through organisational commitment. Implications for company policies and future research are discussed.     

Import-Price Uncertainty, Production Decisions, and Relative Factor Shares

The effects of import-price uncertainty on factor income in Switzerland are estimated. The production-theory approach is used to derive the import demand function from an expected utility maximization problem, treating imports as an input to the technology. The model is also used to test for risk aversion and to assess the impact of uncertainty on the volume of imports and gross output. Evidence is found that, for most years, labor has been relatively more vulnerable to uncertainty than has capital.     

Testing price taking behavior

The purpose of this paper is to present an empirically implementable technique for the analysis of non-competitive behavior in production. We provide a statistical test for the price taking behavior hypothesis which can be used to distinguish among different market structures. We apply this approach to the U.S. crude petroleum and natural gas industry and find that the price taking behavior hypothesis is not appropriate for this industry.     

Uncertainty and the measurement of productivity

The purpose of this paper is to provide an empirically implementable framework for the analysis of the effects of uncertainty on firm behavior. In particular, the paper provides a model which can be used to calculate productivity growth for firms facing uncertainty and to decompose the growth in total factor productivity into its various components. It can also be used to identify the contributions of uncertainty and risk aversion.Applying the model to the U.S. textile industry, we find that price uncertainty had a small effect on productivity growth.The refereeing process of this paper was handled through M. Brown.     

Balancing Work and Family: The Role of High-Commitment Environments

Recently, researchers have begun to recognize that the nature of jobs, the workplace environment, and more generally, the culture of the workplace can have a significant impact on the ability of workers to balance their work and family lives. This article examines the effect of high-performance work practices, job characteristics, and the work environment on workers' views about whether the company helps them balance work and family. Using data from a survey of workers across three manufacturing industries, we show that a high-commitment environment—characterized by high-performance work practices, intrinsically rewarding jobs, and understanding supervisors—positively influences employees' perceptions that the company is helping them achieve this balance. This article reinforces the view that helping workers balance work and family responsibilities is not just a matter of benefits and formal family-friendly policies. Rather, it also depends on the characteristics of jobs within the business enterprise.     

Cheap Labor Strategies and Export-Oriented Industrialization: Some Lessons from the Los Angeles/East Asia Apparel Connection

In today's global manufacturing system, production is increasingly dispersed across borders. Particularly noteworthy is the rapid expansion of industrial exports from third world countries, especially the NICs of East Asia. With the entry of the formerly socialist countries of eastern Europe into the global capitalist economy, the dynamics of global economic restructuring are likely to change. This paper focuses on the lessons that can be learned from studying trans-Pacific global commodity chains, drawing out implications for East-Central Europe. In particular, we explore the role of flexibilization, subcontracting and state policy.     

Hospital employment under revised Medicare payment schedules.

A preliminary study of the employment effects of medicare payments based on Diagnosis Related Groups suggests that cost-cutting responses by hospitals will result in smaller, more highly skilled staff and a higher proportion of clerical to health care workers.     

Long-run industry equilibrium with uncertainty

In this paper we consider the effects of uncertainty on industry equilibrium when firms must commit themselves to production before prices are revealed. We show that (a) an increase in demand uncertainty will (i) not affect the equilibrium number and size of firms if they are risk neutral, (ii) reduce the equilibrium number of firms if they are risk averse, but will have an ambiguous effect on their size. (b) In equilibrium, firms operate at capacity if they are risk neutral, but at excess capacity if they are risk averse.