Fair ranking of teachers

Economic theory suggests that it is optimal to reward teachers depending on the relative performance of their students. We develop an econometric approach, based on stochastic frontier analysis, to construct a fair ranking that accounts for the socio-economic background of students and schools and the imprecision inherent in achievement data. Using German PIRLS (IGLU) data, we exploit the hierarchical structure of the data to estimate the efficiency of each teacher. A parsimonious set of control variables suffices to get a “fair” estimate of unobserved teacher quality. A Hausman–Taylor type estimator is the preferred estimator because teacher efficiency and some exogenous variables may be correlated.     

Payments for environmental services to promote “climate‐smart agriculture”? Potential and challenges

Payments for environmental services (PES) have gained wide popularity as approaches to promote environmentally friendly land use or agricultural production practices. Yet academics have also voiced concerns against seeing PES as a panacea. This article discusses whether PES is an appropriate and promising approach to promote so‐called “climate‐smart agriculture” (CSA) practices, which we define as agricultural production practices that contribute to CO₂ emission reductions and/or removals and provide benefits to farmers via increased productivity and profits and reduced vulnerability to climate change. PES appears most promising for the promotion of CSA practices in small‐scale farming contexts with low incomes. Effective design, however, requires solid estimates of cost and benefit flows from CSA adoption over time, accounting for differences in socioeconomic and ecological conditions, and addressing the risk of leakage. Funding for such PES will likely have to come from public sources, and seems most promising where synergies with other objectives such as agricultural development, food security, and climate adaptation or other environmental services exist. The potential of alternative approaches for CSA support such as taxation with rebates for CSA practices, CSA‐related investment support such as microcredits, and hybrid approaches such as conditional microcredit should be further investigated.     

Soziale Lage — Was sind die drängendsten Probleme?

Democracy seems to be at risk. People elect populists and autocrats, who offer simple solutions to social problems. Often, these problems are not even real ones but are only perceived as such. Economists have measures to determine which problems are fact-based, but they cannot draw a clear distinction between academic analysis and normative demand. If politics pursues a correction of a market outcome, any normative criteria other than efficiency have to be outlined explicitly. Nevertheless, some authors consider inequality one of the central contemporary social and economic challenges. Marcel Fratzscher emphasises that the solution is not found in more redistribution via taxes and transfers, but rather through greater equality of opportunity and social and educational mobility. Bert Rürup thinks that to stabilise the acceptance of the compulsory pension scheme, the dominance of the equivalence principle should be reduced. Further, the existence of different federal subsidy schemes should be replaced by a fixed federal contribution rate in alignment with the pension expenditures. In an international comparison, the fiscal burden for households with small and mid-level earned incomes is exceptionally high in Germany. In order to reduce this burden, Rürup suggests a contribution-free allowance for the social insurance contributions.     

Reducing perceptions of overqualification and its impact on job satisfaction: the dual roles of interpersonal relationships at work

A sizeable portion of the working population perceives that they are overqualified for their jobs. This is problematic, given that research consistently shows that such beliefs translate into lower levels of job satisfaction. Hence, it behoves human resource management (HRM) scholars to identify factors that influence perceptions of overqualification and also moderators that may reduce the negative effect of perceived overqualification on job satisfaction. In this study, we present a moderated path model that posits that the quality of the relationships that employees hold with their leader and with their team is not only antecedents of perceived overqualification but it is also hypothesised to weaken the negative relationship between perceived overqualification and job satisfaction. Survey data that were gathered from two organisations in the Netherlands (n = 183) supported the model. Implications for theory and practice in HRM are discussed. © 2015 John Wiley & Sons Ltd     

Foresight with Delphi Surveys in Japan

Foresight activities are conducted in many countries, but the Japanese were the most active in this field for many years. Most of their activities are based on the Delphi methodology. They published their first Delphi study in 1971 and repeated studies every five years. There is more knowledge available on more than 30 years of foresight with the Delphi approach in Japan. This provides an excellent opportunity to examine the established foresight system with the use of some examples. The forecast of the fax machine as an example of success, and the earthquake warning as a failure are illustrated in more detail, and the question is raised why—in spite of this mixed picture—foresight with the Delphi method is regarded as useful in Japan.     

The link between perceived HRM practices,performance and well‐being: the moderating effect of trust in the employer

The present study examines the interaction between perceived HRM practices and trust in the employer on employee performance and well‐being. Specifically, the study tests whether trust in the employer moderates the relationships between perceptions of HRM practices and task performance (as rated by employees’ supervisors), organisational citizenship behaviour, turnover intentions and employee well‐being. Support was found for the majority of the hypotheses using data from 613 employees and their line managers in a service sector organisation in the UK. Trust in the employer moderates the relationships between perceived HRM practices and task performance, turnover intentions and individual well‐being, but not organisational citizenship behaviour. Implications of the findings for organisations and future research are discussed.     

Dictator games: a meta study

Over the last 25 years, more than a hundred dictator game experiments have been published. This meta study summarises the evidence. Exploiting the fact that most experiments had to fix parameters they did not intend to test, in multiple regression the meta study is able to assess the effect of single manipulations, controlling for a host of alternative explanatory factors. The resulting rich dataset also provides a testbed for comparing alternative specifications of the statistical model for analysing dictator game data. It shows how Tobit models (assuming that dictators would even want to take money) and hurdle models (assuming that the decision to give a positive amount is separate from the choice of amount, conditional on giving) provide additional insights.