Do Smaller Classes Always Improve Students’ Long‐run Outcomes?

We exploit the strict class size rule in Norway and matched individual and school register information for 1982–2011 to estimate long‐run causal effects on income and educational attainment. Contrary to recent evidence from the US and Sweden, we do not find any significant average effect on long‐run outcomes of reduced class size. We further use the large register data set and quasi‐experimental strategy to estimate whether the class size effect depends on external conditions facing students and schools, such as teacher quality, extent of upper secondary school choice, school district size, local fiscal constraints and labour market conditions. Overall, we find that the class size effect does not depend on these factors measured at the school district level. The absence of class size effects on long‐run outcomes in Norway is consistent with earlier findings for short‐run outcomes, using comparable data and empirical strategies.     

Does Repeated Measurement Improve Income Data Quality?

This paper exploits a natural experiment created by a survey design to show that the quality of income data systematically changes across waves of a panel. We estimate that the effect of being interviewed for a second time, relative to the first, is to increase mean monthly income by 8%. Dependent interviewing – a recall device commonly used in panel surveys – explains one third of the observed increase. The remaining share is attributed to changes in respondent behaviour (panel conditioning). We review the evidence for and against a reporting improvement vs. a behavioural response by survey participants.     

How Can a Phenomenological Approach Innovate Leadership in a High‐Tech World?

The author opines that the litmus test for good or defective leadership can be obtained from the philosophical lens with which a leader approaches the world. A leader who is not rooted in nature will practices a calculative type of thinking and leadership. Because the origin of such leadership is based on illusion, the destiny of such leadership is also projected towards an illusionary vista. Phenomenological logic influences our relationship to space, time, values, and perceptions. Humans are not the central lens epistemology that allows leaders to listen to the protesting environment that they are immersed in. This kind of deep ethics is possible only in the realm of Heidegger's meditative thinking, and it leads to longsighted and deeper answers for a sustainable world. Because humans have tried to make technology absolute, humans now live on products of technology instead of living in our natural habitat. Deep listening to the song of creation will make human beings more compassionate to the natural order and the foresight to fashion a symmetrical relationship with flora and fauna.     

Do Neighbours Influence Value‐Added‐Tax Introduction? A Spatial Duration Analysis

The spatial survival models typically impose frailties, which characterize unobserved heterogeneity, to be spatially correlated. However, the spatial effect may not only exist in the unobserved errors, but it can also be present in the baseline hazards and the dependent variables. A new spatial survival model with these three possible spatial correlation structures is explored and used to investigate the implementation of value‐added tax (VAT) in 99 countries over the period 1970–2009. Estimation is performed by a Bayesian approach through the Markov chain Monte Carlo method. The estimation results suggest the presence of a significant spatial correlation among the VAT introductions of neighbouring countries.     

Do LGBT‐supportive corporate policies enhance firm performance?

Prior research provides evidence that lesbian, gay, bisexual, and transgender (LGBT)‐supportive corporate policies are related to important human resource functions, such as enhanced recruitment and retention. In addition, prior research indicates that investors view the adoption of such policies positively. We examine the firm‐performance mechanisms underlying favorable stock‐market reactions based on an integration of perspectives from corporate social responsibility and the business case for diversity. Specifically, we estimate a hierarchical linear model (HLM) to account for the nested nature of our data (firms nested within states) and find that (1) the presence of LGBT‐supportive policies is associated with higher firm value, productivity, and profitability; (2) the firm‐value and profitability benefits associated with LGBT‐supportive policies are larger for companies engaged in research and development (R&D) activities; and (3) the firm‐value and profitability benefits of LGBT‐supportive policies persist in the presence of state antidiscrimination laws. In supplemental analyses, we find that firms implementing (discontinuing) LGBT‐supportive policies experience increases (decreases) in firm value, productivity, and profitability. We are among the first to link LGBT‐supportive policies specifically to financial performance outcomes as well as to develop and test a multilevel model of these relationships. Our results have important implications for theory and research on LGBT issues in organizations, human resource managers, and policymakers.     

Do discriminatory leniency policies fight hard‐core cartels?

This paper experimentally analyzes the effects of nondiscriminatory and discriminatory leniency policies on hard‐core cartels. We design a mechanism to form a hard‐core cartel, which allows that multiple ringleaders emerge. Ringleaders often take a leading role in the coordination and formation of hard‐core cartels. A leniency policy that grants amnesty to all “whistle‐blowers” except for ringleaders may therefore reduce the incentive to become a ringleader and disrupt cartel formation. Yet, our experimental results show that whistle‐blowing rarely occurs. Paradoxically, the discriminatory leniency policy induces firms to become ringleaders. We find that firms create trust among other firms when acting as ringleaders. This signaling effect ultimately facilitates coordination in the explicit cartel.     

Rallying the Troops or Beating the Horses? How Project‐Related Demands Can Lead to Either High‐Performance or Abusive Supervision

In today's high‐pressure work environment, project managers are often forced to “do more with less.” We argue that this imperative can lead project managers to engage in either high‐performance or abusive supervision behaviors. To understand this process, we develop a model and associated propositions linking a project manager's cognitive appraisal of project‐related demands to high‐performance work practices versus abusive supervision behaviors—both of which impact three project outcomes: stakeholder relationships, people‐related project success factors, and employee well‐being. We propose that the choice between high‐performance work practices and abusive supervision behaviors is moderated by a project manager's personal resources (psychological capital, emotional intelligence, and dark triad personality).     

Do Low‐Wage Workers React Less to Longer Unemployment Benefits? Quasi‐Experimental Evidence*

The fact that unemployed workers have different abilities to smooth consumption entails heterogeneous responses to extended unemployment benefits. Our empirical exercise explores a quasi‐experimental setting generated by an increase in the benefits entitlement period. The results suggest a hump‐shape response of unemployment duration over the one‐year pre‐unemployment wage distribution; individuals at the bottom and top of the wage distribution reacted less than those in the interquartile range. This behaviour of job searchers is consistent with labour supply models with unemployment insurance and savings. It questions the optimality of very long entitlement periods to target the unemployment experiences of low‐wage workers.     

Do Opportunities for Formal Learning Stimulate Follow‐Up Participation in Informal Learning? A Three‐Wave Study

Informal learning is an important source of employee adaptability and expertise, yet it is unclear how it may be encouraged through human resource management (HRM) practices. In this study, we investigate how opportunities for formal learning may be used to stimulate short‐ and long‐term participation in informal learning. In addition, we examine whether HRM system strength intensifies the relationship between opportunities for formal learning and informal learning. Using a sample of 430 respondents in 52 teams within six Dutch vocational and educational training schools, we adopt a longitudinal design to examine two types of autonomous informal learning activities (reflection and keeping up to date), and three collaborative activities (asking for feedback, knowledge sharing and innovative behavior) over two years. Opportunity for formal learning was positively related to short‐ and long‐term participation in informal learning activities, with the exception of long‐term innovation. Moreover, HRM system strength intensified these relationships. Managerial implications of these findings for encouraging informal learning activities at work are discussed. © 2016 Wiley Periodicals, Inc.     

Why Do I Feel Valued and Why Do I Contribute? A Relational Approach to Employee's Organization‐Based Self‐Esteem and Job Performance

Drawing on the relational perspective and self‐consistency theory, we theorize how relationships involving work‐centric, off‐work‐centric, and/or personal components can affect an employee's organization‐based self‐esteem and job performance in Chinese organizational contexts. Matched data were collected from a multi‐source sample that included 219 employee–supervisor dyads from a Chinese bank. Results based on hierarchical regression analyses reveal that a high‐quality relationship with a supervisor through work and off‐work domains (leader–member exchange and guanxi) is positively related to organization‐based self‐esteem. Organization‐based self‐esteem plays a mediating role in the relationship between guanxi and job performance. Additionally, career mentoring from a supervisor (a work‐centric relationship involving personal components) moderates the relationship between organization‐based self‐esteem and job performance.     

Do Liberalising Reforms Harm the Environment? Evidence from the Post‐Communist Transition

Whether or not economic freedom and capitalism are associated with better or worse environmental performance gives rise to a heated political debate. This article sheds empirical light on the debate by examining the association between economic and political freedom on the one hand and environmental performance on the other. Estimating the effects of economic freedom and democracy on four environmental measures since 1993 across 27 formerly communist countries shows that liberalising the size of the public sector is associated with less environmental damage, although only in autocracies. The consequences of regulatory activity, market openness and the rule of law are more mixed.     

Do Boards of Directors Influence Corporate Sustainable Development? An Attention‐Based Analysis

Following the attention‐based view of the firm (ABV), boards of directors’ link to corporate sustainable development (CSD) could be dependent upon certain attention structures: valuation of environmental stimuli, rules of the game and the players. Studying a sample of large Australian firms, the findings indicate that the proposed attention‐directing structures do appear to be linked to CSD in a manner consistent with the ABV. Specifically, creating awareness through scanning efforts links boards to CSD. Stakeholder debate, as a boardroom rule, is also significantly associated with CSD. Furthermore, as a so‐called ‘player’ on the board, women directors have a moderating effect on the relationships between environmental scanning, stakeholder debate and CSD. The findings are discussed along with limitations and directions for future research. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment     

Self‐employment among women: Do children matter more than we previously thought?

This paper presents an estimation approach that addresses the problems of sample selection and endogeneity of fertility decisions when estimating the effect of young children on women's self‐employment. Using data from the National Longitudinal Survey of Youth 1979, 1982–2006, we find that ignoring self‐selection and endogeneity leads to underestimating the effect of young children. Once both sources of biases are accounted for, the estimated effect of young children roughly triples when compared to uncorrected results. This finding is robust to several changes in the specification and to the use of a different dataset.     

Sustainable Tuna – Can the Marketplace Improve Fishery Management?

Tuna is a major global seafood commodity and thus of significance to retailers in most countries, but especially in countries consuming large quantities of canned tuna such as the United Kingdom, United States and many European countries. Some key species are under heavy fishing pressure, and companies realize that without conservation oriented management their future supplies may be in jeopardy. Sustainable sourcing policies are becoming an integral part of supply chains for seafood products. Under the influence of public opinion bodies such as the media and environmental NGOs, many retailers have adopted seafood sourcing policies in the past decade. The business strategy of any particular company in seeking to support sustainable fishing can vary, but may include the pursuit of market opportunities, protection from damaging publicity and corporate social responsibility commitments. Companies that seek to involve themselves in fishery sustainability issues need to be committed to broad based partnerships with other companies and NGOs, and transparency about all aspects of their decision making, intentions and progress. The sustainable seafood movement has proven persistent and adaptable, and this is increasing the number of retailers seeking sustainable tuna. In a demand driven market economy this growth will surely be influential. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Are Related‐Party Sales Value‐Adding or Value‐Destroying? Evidence from China

Prior literature provides mixed and relatively little evidence on the economic consequences of related‐party transactions. We examine a hitherto underexplored issue of whether transactions among firms within the same business group increase or reduce firm value. Using a large sample of Chinese listed firms, we find that related‐party sales increase firm value. However, this value enhancement disappears for firms with (i) large percentage of parent directors, (ii) high government ownership, or (iii) tax avoidance incentives that often couple with management's rent extraction activities. Although we find that intragroup sales improve firm value in general, we also find that corporate insiders use intragroup sales to deprive value from minority shareholders. Overall, our findings highlight the interplay between ownership structure and tax avoidance incentives in determining the economic consequences of related‐party transactions.     

Who Is Eligible? Should Affirmative Action be Group‐ or Class‐Based?

We explore the consequences for eligibility of members of subaltern groups for affirmative action (AA), when AA policies are based on social class criteria rather than on group affiliation (race, ethnicity, or gender), by means of a general model with simplifying assumptions. The model is developed first for the case where everyone eligible for AA becomes a beneficiary, and then for the case where beneficiaries are only those eligibles who are able to meet minimum qualification requirements for the positions at issue—an ability that is (reasonably) assumed to be correlated with socioeconomic status. The model demonstrates that class‐based affirmative action cannot provide as many subaltern‐group beneficiaries as group‐based affirmative action, especially when access to the desired positions hinges on performance qualifications. Data on AA‐targeted subaltern groups in rural India and in the United States are used to illustrate the conclusions of the model.     

Product Differentiation through Exclusivity: Is there a One‐Market‐Power‐Rent Theorem?

In systems industries, combinations of components are consumed together to generate user benefits. Arrangements among component providers sometimes limit consumers’ ability to mix‐and‐match components, and such exclusive arrangements have been highly controversial. We examine the competitive and welfare effects of exclusive arrangements among system components in a model of relatively differentiated applications that run on relatively undifferentiated platforms. We show that there is no “One‐Market‐Power‐Rent Theorem.” Specifically, exclusive deals with providers of differentiated applications can raise platforms’ margins without reducing applications’ margins, so that overall industry profits rise. Hence, for a given set of components and prices, exclusive arrangements can reduce consumer welfare by limiting consumer choice and raising equilibrium prices. In some cases, however, exclusivity can raise consumer welfare by increasing the equilibrium number of platforms, which leads to lower prices relative to the monopoly outcome that would prevail absent exclusivity.     

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.     

Euro‐insurance‐bonds: a long‐term solution for the European sovereign debt problem?

This article proposes that all new Euro area sovereign borrowing be in the form of jointly underwritten ‘Euro‐insurance‐bonds’ trading at the same price for outside investors. To avoid classic moral hazard problems and to insure the guarantors against default, each country would pay a risk premium conditional on economic fundamentals to a joint debt management agency…     

Price‐level targeting ‐the next objective for monetary policy?

Inflation-targeting monetary policy is compared with price-level targeting. It is argued that price-level targeting offers greater certainty about the long-term inflation rate, greater economic growth, a superior response to a deflationary depression, and other advantages.