Entrepreneurship: Cause and Consequence of Financial Optimism

Extant evidence that the self‐employed overestimate their returns by a greater margin than employees is consistent with two mutually inclusive possibilities. Self‐employment may foster optimism or intrinsic optimists may be drawn to self‐employment. Previous research is generally unable to disentangle these effects because of reliance on cross‐sectional data. Using longitudinal data, this paper finds that employees who will be self‐employed in the future overestimate their short‐term financial wellbeing by more than those who never become self‐employed. Optimism is higher still when self‐employed. These results suggest that the greater optimism of the self‐employed reflects both psychological disposition and environmental factors. By providing greater scope for optimism, self‐employment entices the intrinsically optimistic.     

Exploring variations in employment practices in the emerging economies of Europe: assessing the impact of foreign ownership and European integration

Few studies have assessed the impact of European Union (EU) integration on the emerging economies of Europe, especially with regard to employment practices. In this study, we focus on three aspects of employment practices and assess whether EU integration has lead to any differences between the emerging economies aligned to the EU and those that remain out of the EU fold. This comparison is quite valid because the emerging economies that we compare have all had a similar background in terms of their economic systems. We use a large World Bank database to compare domestically owned and foreign‐owned firms separately. The results show that, while there is some level of divergence between the two blocs of countries in terms of the percentage of temporary employees and education level of employees, in terms of the percentage of skilled workers employed, however, there is no divergence between firms in the two blocs of countries.     

Risky Businesses? Young People in Informal Self‐Employment in Sofia

This article studies how perceptions of the risks associated with informal self‐employment depend on the interplay between the institutional, structural (network) and cultural embeddedness of economic action. Informal self‐employment should create at least three types of risk. The first concerns the possible legal and social sanctions that stem from the illegal character of the entrepreneurial action. The second is related to the complete lack of social security protection among those for whom informal self‐employment is their sole employment. The third is connected with the lack of guarantees concerning contract enforcement, which may increase the probability of opportunistic behaviour by business partners and clients. On the basis of a qualitative study of young, highly educated, informally self‐employed workers in Bulgaria's capital Sofia, I argue that these risks are compensated by the specific network and cultural embeddedness of the economic action. This compensation takes the form of various types of insurance against risks. Its core is the replacement of the vacuum of institutional‐system trust with interpersonal trust. Thus, the specific constellation of institutional, network and cultural embeddedness is able to solve the problem of opportunism, as well as to create the perception that the informally self‐employed are faced with not much greater risks than registered self‐employed workers.     

Organization‐Based Self‐Esteem,Psychological Contract Fulfillment,and Perceived Employment Opportunities: A Test of Self‐Regulatory Theory

This study addresses organization‐based self‐esteem (OBSE) development by examining the role of perceptions of employer psychological contract fulfillment, and the self‐regulatory processes by which OBSE evolves and produces its effects. Self‐regulatory theory helps reveal why psychological contract fulfillment relates to OBSE, how OBSE mediates its effects, and the ways in which OBSE might interact with perceived employment opportunities to affect job satisfaction, performance, and turnover intentions. The results show that OBSE is related to and mediates the relationships between relational contract fulfillment and employee job satisfaction and performance, but OBSE is not related to transactional contract fulfillment. Nor does OBSE mediate the relationships between transactional contract fulfillment and the dependent variables. Perceived employment opportunities moderate the relationships of OBSE with job satisfaction and turnover intentions. This study concludes with recommendations of ways managers can increase their sensitivity to the types of messages they communicate to employees. © 2014 Wiley Periodicals, Inc.     

The decision to moonlight: does second job holding by the self‐employed and employed differ?

This article considers drivers of second job holding among the self‐employed in comparison with the employed. Econometric analysis of panel data explores whether the self‐employed are more or less likely to take on a second job when already running their own business than their employed counterparts. The findings contribute to the literature through identification of a need‐based variable—difficulty in meeting housing costs—as a key driver of movements from self‐employment to hybrid entrepreneurship. Findings, further, identify different patterns of second job holding by gender, particularly among self‐employed individuals.     

Involuntary part‐time workers in Britain: evidence from the labour force survey

Part‐time employment is widely considered functional for the economy, with both benign and detrimental implications for employees. However, specific analyses of involuntary part‐time work in Britain are surprisingly absent from the flexibility debate, and workers in such positions remain largely under‐researched. This article explores involuntary part‐time employment in relation to socio‐economic circumstances. We analyse Labour Force Survey data, using logistic regression modelling to identify the segments of workers filling part‐time jobs involuntarily. The results suggest that involuntariness for part‐time jobs is affected by a range of demographic and work‐related characteristics considered. Being a couple with dependent children, for example, reduces the likelihood of involuntariness among female part‐time employees whereas lower educational and occupational levels imply a higher involuntariness across both sexes.     

Evaluating cross‐national variations in the extent and nature of informal employment in the European Union

This article evaluates critically the contrasting explanations for the cross‐national variations in the prevalence and nature of informal employment, which variously view such work as more prevalent in poorer, under‐developed economies; driven by high taxes, corruption and state interference that lead workers to exit formal employment; or driven by inadequate state intervention leading to the exclusion of workers from formal employment and state welfare provision. By analysing cross‐national variations across the European Union in the size of informal employment using indirect measurement methods and in its varying character using evidence from a 2007 Eurobarometer survey, it was found that wealthier, less corrupt and more equal economies with higher levels of labour market intervention, social protection and redistribution via social transfers have lower levels of informal employment, much of which is conducted to exit formal employment. The paper concludes by exploring the theoretical and policy implications.     

A mutual gains perspective on workplace partnership: Employee outcomes and the mediating role of the employment relations climate

Recent years have witnessed increased research on the role of workplace partnership in promoting positive employment relations. However, there has been little quantitative analysis of the partnership experiences of employees. This article examines how the kinds of attributions employees make regarding indirect (union‐based) and direct (non‐union‐based) employee participation in workplace partnership might influence the process of mutual gains. It uses employee outcomes to reflect partnership gains for all stakeholders involved (i.e. employees, employers and trade unions). The article contributes to existing knowledge of workplace partnership by examining the potential role of the employment relations climate as an enabling mechanism for the process of mutual gains. The findings suggest mutual gains for all stakeholders are varied and mediated through the employment relations climate.     

Inequality for Wage Earners and Self‐Employed: Evidence from Panel Data*

In this paper we highlight the importance of analysing the evolution of income inequality separately for employees and self‐employed workers. Using Spanish panel data on income and consumption for the period 1987–96, we find noticeable differences across these groups in the evolution of income inequality, and in the relative importance of the transitory and permanent components of income variance. The evolution of inequality is mainly explained by movements in the transitory component for the self‐employed and by the permanent component for the employees. Our results suggest that different policies should be implemented for each group.     

A study of the employment system of Japanese multinational retailers in Hong Kong

This study examines the employment system of Japanese multinational retailing corporations in Hong Kong through two case companies - Morioka and Okadaya. The human resource management (HRM) practices- recruitment and selection, remuneration, and training and development - of the companies are studied. The different HRM practices applied to different groups of employees within each case company are compared using an employment systems model. The employment system is structured and multi-layered. The development of the structured employment system is then analysed in relation to the cultural and sectoral factors. It is shown that only the cultural characteristics of the Japanese parent companies can explain the ethnocentric management approach used in which Japanese personnel are employed in the internal labour marker (ILM) and local employees are employed outside the ILM. Economic and labour market conditions in both parent and host countries and sectoral characteristics have also contributed to the stratification of the employment system among the local employees. The implications of this study are that the long-term development of Japanese multinational retailers will be weakened if the structured employment system persists.     

Differentiating emotional intelligence in leadership

Leadership has received considerable attention since the 1990s. We claim that leaders can be found at all levels of employment, and at the very least, all managers are expected to be leaders. Yet managerial status does not guarantee leadership. Leadership is a necessary component of and a filter for successful management. Effective managers demonstrate leadership capabilities. Leadership attributes are well captured in measures of emotional intelligence (EQ). Hence, leadership can improve if managers work to develop their EQ. We show how EQ, and hence leadership, can vary by level of employment among a composite international group of 3,305 employees with the Six Seconds Emotional Intelligence Assessment. The relationship between six leadership groups, as based on their EQ performance, across different employment levels was statistically examined, suggesting that leadership is realized in different ways depending on level of employment. It appears that employees become more skillful in emotional literacy and consequential thinking as they progress up the employment ladder. Intrinsic motivation and optimism are best leveraged by nonmanagerial rather than senior employees. The diminishing incorporation of empathy with an increase in employment level seems to stand in sharp contrast. Nonmanagerial employees, specialists, and entrepreneurs will benefit from developing their competence in pursuing their objectives with an overarching sense of purpose. The finding that high‐EQ leaders seem to dominate in the managerial levels may be viewed as encouraging.     

Turning Unemployment into Self‐Employment: Effectiveness of Two Start‐Up Programmes*

Turning unemployment into self‐employment has become a major focus of German active labour market policy (ALMP) in recent years. If effective, this would not only reduce Germany's persistently high unemployment rate, but also increase its notoriously low self‐employment rate. Empirical evidence on the effectiveness of such programmes is scarce. We evaluate the effectiveness of two start‐up programmes for the unemployed, where we include the probability of being employed, the probability of being unemployed and personal income as outcome variables. Our results show that at the end of the observation period, both programmes are effective. The considerable positive effects present a stark contrast to findings from evaluations of other German ALMP programmes in recent years. Hence, ALMP programmes aimed at moving the unemployed into self‐employment may prove to be among the most effective, both in Germany and elsewhere.     

What Do Wages Add to the Health‐Employment Nexus? Evidence from Older European Workers

The role of wages in the health‐employment nexus can be important for designing employment policies aimed at older workers with health limitations. We, therefore, estimate the direct effect of health on employment and hours worked and its indirect effect that is mediated through wages using individual‐level panel data from SHARE. The endogeneity of self‐reported health is controlled for by instrumenting it with severe health conditions in a correlated random effects model. For men, we find that the direct effects of health deterioration, as measured by a reduction in health from the 75th to the 50th percentile of the health distribution, are about a 20% point lower employment probability and about 171 fewer hours worked per year. The indirect health effects through wages work in the opposite directions as health positively affects wages and wages negatively affect employment and hours worked. The total effects of this health deterioration amount to a 12% point lower employment probability and 95 fewer hours worked per year. In particular our finding of a large direct health effect on employment suggests an instrumental role for policy aimed at accommodating workers with health limitations to keep them employed at older ages.     

A job to believe in: recruitment in the Scottish voluntary sector

The voluntary sector is an important source of employment in the UK and is increasingly providing services previously provided by the public sector. However, the ability of the sector to provide such services is dependent on the quantity and quality of suitable labour. This article examines recruitment issues in seven case‐study voluntary organisations offering social care in Scotland. Interviews were conducted with 137 managers and employees in these organisations. In addition, to assess potential labour supply, interviews and focus groups were conducted with careers advisers and potential employees. The findings suggest that, with a tightening labour market, uncompetitive pay and misconceptions about the sector, recruitment is a problem. However, job satisfaction is high for current employees, and potential employees whose values are commensurate with the sector might be attracted. The findings thus have relevance not just for the case‐study organisations, but for HRM in the voluntary sector generally.     

Who's got the balance? A study of satisfaction with the work–family balance among part-time service sector employees in five western European countries

Working part-time is frequently considered a viable strategy for employees to better combine work and non-work responsibilities. The present study examines differences in satisfaction with work-family balance (SWFB) among professional and non-professional part-time service sector employees in five western European countries. Part-time employees were found to be more SWFB than full-time employees even after taking varying demands and resources into account. However, there are important differences among the part-timers. Employees in marginal part-time employment with considerably reduced working hours were the most satisfied. Professionals were found to profit less from reduced working hours and experienced lower levels of SWFB than non-professionals. No significant differences in SWFB were found between male and female part-time workers.     

Sustainable employment: the importance of intrinsically valuable work and an age-supportive climate

The aging workforce emphasizes the importance of sustainable employment, that is the extent to which workers are able and willing to remain working now and in the future . This raises the question how organizations can design work contexts that contribute to sustainable employment. This study investigated the role of a intrinsically motivating job (intrinsic job value) and an age-supportive climate for three indicators of employees’ sustainable employment: employability, work engagement and affective commitment. The questionnaire was completed by 119 office employees (response 35%) of a Dutch public transport organization. A SEM analysis revealed that intrinsic job value was strongly and positively related with all three indicators of sustainable employment for employees of all ages. In contrast, an age-supportive climate was especially important for older employees’ work engagement and affective commitment. This study has implications for practice and for research of sustainable employment, HRM and aging.     

Informal employment and the earnings of home-based home care workers in the United States

Informal employment continues to exist in parallel with formal employment among the US home-based home care workers and undermines the workers' economic security. This study examines the extent to which the earnings of the US home-based home care workers are affected by informal employment arrangements and state labour policies designed to benefit low-wage home care workers. Using a sample of 1,318 home-based home care workers from the 2017 and 2018 Annual Social and Economic Supplement of the Current Population Survey, this study found that (i) informally employed home-based home care workers had a 9% reduction in annual earnings and that (ii) their earnings were not improved by generous state minimum wages and Domestic Workers' Bill of Rights while the earnings of agency employees were. The findings highlight the importance of strong enforcement of labour standards for informally employed home care workers in the United States.     

Effects of the ‘principle of non‐discrimination’ on temporary agency work: compensation and working conditions of temporary agency workers in 15 European countries

This article examines, with reference to Europe (EU‐15), whether temporary agency workers experience less favourable working conditions and compensation than employees with a standard employment contract. Furthermore, it analyses whether the same differences exist in European countries with and without the principle of non‐discrimination in force. The results show that discrimination of temporary workers persists even when we control for other factors. Second, in countries with the principle of non‐discrimination in force, the discrimination is higher with respect to employer‐provided training.     

More voice after more exit? Unstable industrial relations in Central Eastern Europe

The article examines the industrial relations developments in the post‐communist countries that entered the EU in 2004. Rather than introducing the ‘European Social Model’, EU accession has led to some social tensions, in spite of relatively strong economic growth, because of deregulation, European Monetary Union conditions and the enduring need to compete for foreign investment. EU institutional promotion of social dialogue through the Directive on Information and Consultation of Workers, sector social dialogue committees and the European Employment Strategy has only had limited effects in increasing the ‘voice’ of employees in employment relations. National‐level social dialogue has produced poor results and has even been weakened in Slovenia (where it was originally strong) and, initially, in Slovakia. The lack of ‘voice’ for employees has led to increased ‘exit’ through political populism/abstention and migration. A double paradox emerges. Pro‐labour policies are being developed not by the EU, but rather by its opposite, Euro‐sceptical governments (in Poland and Slovakia), while in the workplaces, employers are forced to concessions not by their employees, but by those who leave and cause labour shortages. However, there is also some evidence of a resurgent ‘voice’ from below, through strikes, organising campaigns, informal collective protests and collective bargaining innovations. Drawing on both theory and history of industrial relations, it is concluded that some preconditions for more stable social compromises including more ‘voice’ are emerging.     

Workgroup Climates and Employees’ Counterproductive Work Behaviours: A Social‐Cognitive Perspective

This research examines employees' anticipation of social and self‐sanctions as a self‐regulatory mechanism linking workgroup climates and counterproductive work behaviours (CWBs) and personality as a limit to these effects. A cross‐level study with 158 employees from 26 workgroups demonstrated that in groups with a high compliance climate – a climate emphasizing the importance of complying with organizational rules – employees anticipate more social and self‐sanctions, leading those low in conscientiousness and low in agreeableness to engage less frequently in CWBs. In contrast, a high relational climate – a climate emphasizing the importance of positive social relations over self‐interest – indirectly unbridles the CWBs of these employees by alleviating the social and self‐sanctions they anticipate for CWBs. Climates did not have indirect effects for employees high in agreeableness and high in conscientiousness. These findings elucidate why workgroup climates do not affect the CWBs of all members in the same way.