Impact of the Great Recession on unemployed and NEET individuals’ labour market transitions in Ireland

The impact that the Great Recession has had on countries’ labour markets has been well documented. In Ireland, the contraction in economic activity that took place resulted in the country's overall unemployment rate increasing from 4.6% in 2006 to 15% in 2012. The country's youth unemployment rate rose from 9.9% to 33% over the same time period, while the proportion of NEETs increased from 10.1% in 2006 to 18.7% in 2012. Policymakers are aware of the unemployment rates of young and prime-aged people as well as the NEETs rate. However, little is known about these groups’ profiles, whether their profiles have changed since the recession and also their labour market transition patterns pre and post the Great Recession. Given the importance of this information in the design of effective activation measures to assist unemployed and NEET individuals, this paper examines each of these issues in turn. Overall, the study found for all three groups examined that the rate of transition to employment fell dramatically between 2006 and 2011. The analysis showed that the drop in the groups’ transition rates was not due to changes in the underlying sub-group population structures but to changes in the external environment that resulted in the impact of possessing certain characteristics changing over the recession. For example, education and nationality have become more important in finding a job in Ireland over the course of the recession, while there has been a fall in the scarring impact of unemployment durations.     

Effects of brand-related and market signals on franchisees’ entrepreneurial decisions: a multi-country panel data analysis

This paper analyses the influence of market and brand-related signals on franchisees’ decisions when choosing a franchise brand with which to open an outlet for the first time. Panel data methodology was used to analyse a sample of 1277 chains operating in Spain, Mexico and Peru between 2004 and 2013. The results show that market signals prevail over brand-related signals. Within brand-related signals, franchisees first seek information relating to the brand’s sector and then seek information relating to the brand’s value. Franchisors should match the content of the signals they send to the market to the true characteristics of the franchise. Franchisors should also endeavour to ensure the country where they operate has general and franchise-specific legislation that fosters business activity by both franchisor and franchisee. The use of institutional quality as a signal in a multi-country study represents a significant contribution to the literature on franchising.

     

Network Connections and Competitively Awarded Funding: The impacts of board network structures and status interlocks on nonprofit organizations’ foundation grant acquisition

This analysis investigates whether nonprofit board connections with other nonprofit organizations and foundations explain organizational performance in earning foundation grants. Using a sample of 402 nonprofits and sixty-eight foundations in a single metropolitan area, we find that greater connectedness and status interlocks significantly influence organizations’ ability to acquire resources. Network effects are partially mediated by the number of past grants received and a nonprofit’s financial characteristics, including organizational size, fundraising expenses, and financial health. These findings, while supporting the role of networks in resource attainment, point to the complex and mutual relationships between organizational characteristics, network characteristics, and organizational performance.     

‘Klin’-ing up: Effects of Polish tax reforms on those in and on those out

In 2007 and 2008 Polish governments introduced a series of reforms which led to a substantial reduction in the tax “wedge” (in Polish: “klin”) on labour. These consisted of reductions in the disability rate of social security contributions (SSCs) and an introduction of an income tax credit for families with children. We show that the SSCs reforms on their own brought much greater reductions in the tax burden compared to a widely discussed 15% “flat tax”, despite a very similar simulated cost. When considered together the package of introduced reforms reduced the mean ATR on total labour cost from 41.6% to 35.7%. This compares to the mean ATR of 39.6% which would result from the introduction of the “flat tax”. In the analysis we present the effects of the reforms both for the employed and for the non-employed populations. The latter analysis is done in such a way as to account for the entire (simulated) distribution of wages of the non-employed and shows interesting differences between the effects of reforms on employed and non-employed individuals. We argue that to fully appreciate the effect of reductions in labour taxation it is important to bear in mind that one of the reasons for introducing them is to make employment more likely for those who currently do not work, and demonstrate that the introduced package has had a particularly important effect on non-employed second earners. Given the extent of the reductions in the “klin” it is somewhat surprising that so far so little attention has been given to the recent Polish reforms.     

The impact of VIX on China’s financial market: A new perspective based on high-dimensional and time-varying methods

Based on the new perspective of high-dimensional and time-varying methods, this paper analyzes the contagion effects of US financial market volatility on China’s nine financial sub-markets. The results show evidence of non-linear Granger causality from the US financial volatility (VIX) to the China’s financial markets. Increased US financial volatility has a negative next-day impact on the stock, bond, fund, interest rate, foreign exchange, industrial product and agricultural product markets, and a positive next-day impact on the gold and real estate markets. US financial volatility has the greatest impact on industrial product market, following by stock, agricultural product, fund, real estate, bond, gold, foreign exchange, and interest rates. Major risk events such as the global financial crisis can cause an enhanced contagion effect of US financial volatility to China's financial markets. This paper supports the achievements of China's actions to prevent and resolve major financial risks in the period of the COVID-19 epidemic.     

Exploring the impact of innovation strategy on R&D employees’ job satisfaction: A mathematical model and empirical research

This study develops a mathematical model to examine the effect of innovation strategy on R&D employee’s job satisfaction and to identify the optimal guidelines of innovation strategy, with conflict and organization performance being treated as the intermediary variables. The study further conducts an empirical survey to illustrate the contributions of this mathematical model. The results indicate that the product innovation has a greater influence on organizational performance, while the process innovation has a greater influence on conflict resolution among R&D employees. The mathematical and empirical results have provided an optimal guideline for determining the allocation of resources, which suggests that firms must focus on product innovation to gain the optimal R&D employee’s job satisfaction. In addition, the types of innovation policies along with rivals’ attitudes influence the advantages to be taken from a firm innovation strategy.     

Employees are satisfied with their benefits,but so what? The consequences of benefit satisfaction on employees’ organizational commitment and turnover intentions

Firms are increasing their efforts to offer benefits that satisfy their employees. However, the attitudinal and behavioral consequences of such satisfaction remain unclear. This article draws on the social exchange perspective and organizational support theory to examine the consequences of three dimensions of employees’ benefit satisfaction on organizational commitment and turnover intention, by considering the mediating effect of perceived organizational support (POS). A hypothesized model is developed and tested using partial least squares analysis on a sample of 870 employees working in Spanish firms. The results show that three dimensions of benefit satisfaction contribute to the development of POS, and that POS mediates their effects on organizational commitment. However, only benefit determination and benefit administration satisfaction have an effect on turnover intention, through the mediation of POS and organizational commitment.     

‘Change or hold: reexamining HRM to meet new challenges and demands’: the future of people at work: a reflection on diverging human resource management policies and practices in Dutch organizations

As a consequence of continual change pressures on everyday organizations, a gradual but noticeable shift is taking place in the way managers and employees view the employment relationship. Expectation patterns between both parties are starting to diverge into what seems to be new forms of managing people, based on different assumptions regarding their importance in the (knowledge based) economy. Traditional differences in employment expectations between superiors and their subordinates, between higher and lesser educated and between intrinsically and extrinsically motivated employees, are currently making place for differences between younger and older knowledge workers and for diversity and professionalism. In this article, HRM is contrasted against two emerging approaches towards the management of people, which are currently subsets of HRM, but gaining momentum as potential replacements for HRM. First, we identify ‘Transaction-based Management of People (TM)’ in which the employment relationship mirrors that of a financially driven exchange relationship, similar to transaction economics. We refer to the second approach as ‘Professional-based Management of People (PM)’ in which the nature of the employment relationship reflects the recognition of people in organizations as ‘true’ professionals who know best what constitutes superior business performance. These approaches have been empirically examined by means of a representative survey among Dutch directors and managers.     

Exogenous shocks and citizens’ satisfaction with governmental policies: can empirical evidence from the 2008 financial crisis help us understand better the effects of the COVID-19 pandemic?

Quality & Quantity - I examine to what extend the financial crisis of 2008 affected levels of individual satisfaction with governments in general and three policy areas in particular; the...