Measuring Group Work; Findings and Lessons from a European Survey

Data from the EPOC-mail survey among managers in 10 European countries are used to fill the gap in our knowledge about the incidence of group work. Two variables were used to demarcate 'group-based' establishments. An attempt is made to compare the European data with American findings.     

Employer Strategies and Wages in New Service Activities: A Comparison of Co‐ordinated and Liberal Market Economies

Using survey data for call centre establishments in eight countries, we examine the relationship between wages and human resource practices. High‐involvement work design and the use of performance‐based pay are significantly positively related to wages, whereas intensive use of performance monitoring is negatively associated with wages. These relationships are larger among liberal economies compared with co‐ordinated ones, but individual country differences are large and, in many cases, do not conform to expectations regarding institutional differences between liberal and co‐ordinated market economies. The exception is Denmark.     

Flexible Work and Immigration in Europe

Immigration has risen substantially in many European economies, with far‐reaching if still uncertain implications for labour markets and industrial relations. This article investigates such implications, focusing on employment flexibility, involving both ‘external flexibility’ (fixed‐term or temporary agency and/or involuntary part‐time work) and ‘internal flexibility’ (overtime and/or balancing‐time accounts). The article identifies reasons why immigration should generally increase the incidence of such flexibility, and why external flexibility should rise more than internal flexibility. The article supports these claims using a dataset of establishments in 16 European countries.     

Do HR System Characteristics Affect the Frequency of Interpersonal Deviance in Organizations? The Role of Team Autonomy and Internal Labor Market Practices

Current research on determinants of interpersonal deviant behaviors in organizations, including incivility, bullying, and sexual harassment has focused primarily on the effects of individual‐level characteristics while neglecting inter‐organizational differences in human resource (HR) systems that shape the context for employee interactions at work. Using data from a nationally representative survey of over three hundred U.S. work establishments, I find empirical support for theory‐based predictions that organizations with HR systems characterized by greater use of internal labor markets and less team autonomy are associated with lower frequencies of reported interpersonal deviance behaviors than those that rely on external labor markets and self‐managed teams.     

New Evidence on Gender Differences in Promotion Rates: An Empirical Analysis of a Sample of New Hires

Using a large sample of establishments drawn from the Multi‐City Study of Urban Inequality employer survey, we studied gender differences in promotion rates and in the wage gains attached to promotions. Several unique features of our data distinguish our analysis from the previous literature on this topic. First, we have information on the wage increases attached to promotions, and relatively few studies on gender differences have considered promotions and wage increases together. Second, our data include job‐specific worker performance ratings, allowing us to control for performance and ability more precisely than through commonly used skill indicators such as educational attainment or tenure. Third, in addition to standard information on occupation and industry, we have data on a number of other firm characteristics, enabling us to control for these variables while still relying on a broad, representative sample, as opposed to a single firm or a similarly narrowly defined population. Our results indicate that women have lower probabilities of promotion and expected promotion than men do but that there is essentially no gender difference in wage growth with or without promotions.     

Indicative and Updated Estimates of the Collective Bargaining Premium in Germany

This study provides updated evidence on the union contract differential in Germany using establishment‐wide wage data and two estimation strategies. It provides pairwise estimates of the union differential based on separate samples of collective bargaining leavers and joiners vis‐à‐vis the corresponding counterfactual groups. We report that average wages increase by 3 to 3.5 percent after entering into a collective agreement and decrease by 3 to 4 percent after abandoning a collective agreement. Excluding establishments that experience mass layoffs does not significantly influence these net findings, although such establishments record wage losses—statistically insignificant for joiners but up to 10 percent in the case of leavers, as compared with the counterfactuals. The backdrop to these new indicative estimates, which are properly conditioned on establishment size and industry affiliation, inter alia, is one of wage stagnation and continuing union decline.     

Works Councils and Plant Closings in Germany

This paper is the first study to investigate the impact of workplace representation on plant closings in Germany, using data from a nationally representative establishment panel. Across all establishments in our sample, we find evidence of a positive association between works council presence and plant closings. There is the contrary suggestion that industry‐wide collective bargaining plays a neutral to benign role. As for the interaction between collective bargaining and workplace representation, this appears strongest for establishments with fewer than 50 employees: such plants are much more likely to close if they have a works council and are not covered by a collective agreement.     

The Impact of Living Wages on Employers: A Control Group Analysis of the Los Angeles Ordinance*

This paper analyzes the impact of the Los Angeles Living Wage Ordinance on employers using two original data sets and a quasi‐experimental research design. Relative to a control group of establishments, the starting pay of low‐wage workers has risen by $1.74 per hour, paid days off have risen by two days, and employer‐paid health benefits have not significantly changed among establishments covered by the living wage ordinance. Living wage establishments have witnessed a sizeable reduction in low‐wage worker turnover, a drop in absenteeism, reduced overtime hours, and reduced job training relative to the control group of establishments. The ordinance appears to have had no significant impact on the use of part‐time workers, the intensity of supervision, or the tendency of living wage firms to fill vacancies from within.     

Are aliens green? Assessing foreign establishments' environmental conduct in the United states

Previous research has found that foreign‐owned establishments often lack specific capabilities needed to respond to local business conditions and are held to a higher standard by local stakeholders. These establishments compensate, however, by possessing offsetting capabilities such as technological excellence. In this article, we investigate how these conflicting forces shape the environmental conduct of foreign‐owned facilities. Using data from the Environmental Protection Agency, we find that foreign‐owned establishments generate more waste yet manage more waste than U.S.‐owned establishments. We also find evidence that both domestic and foreign‐owned firms generate more waste if they operate multiple facilities across multiple jurisdictions in the United States. Copyright © 2001 John Wiley & Sons, Ltd.     

'Worth So Appallingly Little': A Workplace-Level Analysis of Low Pay

Using Britain's 1998 Workplace Employee Relations Survey, this paper investigates the characteristics of establishments paying low wages immediately prior to the introduction of the UK's National Minimum Wage in April 1999. It demonstrates that a range of personal, oragnizational and environmental factors are related to the incidence of low pay. These relationships are more complex than previously suggested. In particular, that between establishment size and low pay is moderated by whether the establishment is part of a larger organization; the incidence of low pay is high in single establishments and low in small establishments that are part of large organizations.     

Job Satisfaction in Britain

Little recent empirical work in economics or industrial relations has examined job satisfaction, despite its demonstrated correlation with labour market behaviour such as quits, absenteeism and productivity. This paper uses information from a study of 5000 British employees to investigate the relationship between three measures of job satisfaction and a wide range of individual and job characteristics. Notably, men, workers in their thirties, the well-educated, those working longer hours and workers in larger establishments have lower levels of job satisfaction. The estimated job satisfaction equations are used to calculate a measure of the shadow wage and to provide some evidence that is consistent with the existence of non-compensating differentials in the industry and occupational wage structure.     

How firms respond to mandatory information disclosure

Mandatory information disclosure regulations seek to create institutional pressure to spur performance improvement. By examining how organizational characteristics moderate establishments' responses to a prominent environmental information disclosure program, we provide among the first empirical evidence characterizing heterogeneous responses by those mandated to disclose information. We find particularly rapid improvement among establishments located close to their headquarters and among establishments with proximate siblings, especially when the proximate siblings are in the same industry. Large establishments improve more slowly than small establishments in sparse regions, but both groups perform similarly in dense regions, suggesting that density mitigates the power of large establishments to resist institutional pressures. Finally, establishments owned by private firms outperform those owned by public firms. We highlight implications for institutional theory, managers, and policymakers. Copyright © 2013 John Wiley & Sons, Ltd.     

On the Determinants of Shift Work and Overtime Work: Evidence from German Establishment Data

Using data from German manufacturing establishments, this article examines the empirical determinants of shift work and overtime. Technology and the organization of work, the managerial environment, the structure of the workforce and industrial relations are important determinants. Despite the similarities in the role of some determinants, a series of important differences exists between the estimations for overtime and shift work. Moreover, using an instrumental variables probit model, the estimates indicate a negative relationship between shift work and overtime.     

Product Market Competition and Human Resource Practices in the Retail Food Sector

In the wake of Wal‐Mart and other mass merchandisers’ entry into food retailing, the nature of competition in the industry has changed radically. Using longitudinal data on workers and firms to construct measures of compensation and churning for traditional food retailers, this paper examines how these measures change in response to mass merchandiser entry. While there is considerable heterogeneity across retail food establishments, human resource practices are persistent even in the face of new external competition.     

Human Resource Management’s Effects on Firm‐Level Relative Efficiency

Using stochastic frontier production functions methodology with data from 1579 private‐sector establishments, we demonstrate that HR practices are significantly associated with differences in relative firm‐level efficiency. Supplemental analysis implies that this efficiency analysis is substantively different than the common approach to evaluating HRM’s relationships with firm‐level labor productivity. The results suggest that HR practices’ contributions to relative firm‐level efficiency are an important but heretofore overlooked factor in the relationship between HRM and firm performance.     

The Impact of Recession on Adult Training: Evidence from the United Kingdom in 2008–2009

Analysis of longitudinal data from Employers Skills Updating Surveys in the United Kingdom suggests that in many establishments training plans were blown off course by the 2008–2009 recession, with reduced coverage of adult training and especially of off‐the‐job training. The effects of such cutbacks on skill levels have been partially alleviated by more precise targeting of on‐the‐job training on meeting skills improvement needs. However, in a sizeable proportion of establishments, future productivity and competitiveness are likely to be impaired by failure to upgrade adult workers' skills to standards which employers themselves perceived as necessary prior to the recession.     

Collective Voice under Decentralized Bargaining: A Comparative Study of Work Reorganization in US and German Call Centres

This article compares the process of and outcomes from work reorganization in US and German call centres, based on four matched case studies in the telecommunications industry. Both German cases adopted high‐involvement employment systems with broad skills and worker discretion, while the US cases relied on a narrow division of labour, tight discipline and individual incentives. These outcomes are explained by differences in institutional supports for collective voice. Works councils in the German companies used their stronger participation rights to limit monitoring and encourage upskilling at a time when US managers were rationalizing similar jobs. Findings demonstrate that industrial relations institutions can have a substantial influence on employment systems in work settings characterized by decentralized bargaining and strong cost pressures.     

The Implications of the Value Chain and Financial Institutions for Work and Employment: Insights from the Video Game Industry in Poland,Sweden and Germany

What are the reasons for national differences of international market access in high‐risk software development and what is the role of employment regulation? This analysis elucidates this question based on national sector studies of the video games industry with particular focus on financial systems, skill formation as well as work and employment systems in Sweden, Germany and Poland. National financial architectures and education are a decisive factor. However, the results also suggest that the ‘varieties‐of‐capitalism’ (VoC) approach underestimates industry divergence within and across supposedly homogeneous national models, especially in the field of labour regulation. The author proposes to link VoC theory to a transnational perspective, which complementarily takes into account firm embeddedness in industry‐specific value chains.     

Collective Wage Contracts,Opt‐Out Clauses,and Firm Wage Differentials: Evidence from Linked Employer–Employee Data

Using a large linked employer–employee data set, this article studies whether the existence and use of flexibility provisions within centralized collective wage agreements alter the structure of pay across employers. Using level regressions and first‐difference methods, we find that—compared with contracts without any flexibility—wages under opt‐out clauses are more responsive to local profitability conditions in below‐average‐performing establishments. In contrast, the sensitivity of wages to local profitability is smaller in high‐performance establishments. Our results provide further evidence for a threat potential of the existence of opt‐out clauses whose impact on flexibility is larger than the real application.     

Just a Question of Selection? The Causal Effect of Profit Sharing on a Firm's Performance

Using German firm panel data, we analyze the productivity effects of profit sharing. Because selectivity should pose a severe problem in this context, we combine matching with a difference‐in‐differences approach. This method enables us to rule out potential bias. Our results suggest that selectivity does indeed matter. Firms with very special characteristics apply profit sharing. We find that these establishments are already more productive before they decide to implement profit sharing. Nevertheless, after accounting for selection, our results show that the introduction of profit sharing leads to a significantly higher productivity in these firms.