An Empirical Assessment of Alternative Conceptualizations of the Psychological Contract Construct: Meaningful Differences or “Much to do about Nothing”?

The reported study helps move the literature beyond conceptual arguments that have been made and repeated in the literature by investigating the equivalence of three psychological contract (PC) measures that were based on alternative conceptualizations of the PC construct. Employees from a wide range of organizations (n = 1054) were randomly assigned to complete either an expectation, obligation, or promise based measure of their PCs. The equivalence of the PC measures was assessed by comparing factor structures across the three forms, and examining the observed pattern of correlations between the PC measures and external criteria (e.g., trust, equity sensitivity, work centrality, education level). The results indicate that while the three PC measures evoke the same general mental framework in the minds of respondents, and behave similarly for some purposes, depending on the specific relationships being investigated, the measures may yield significantly different results (i.e., they are not fully interchangeable). Implications for theorizing and future research regarding the PC construct are discussed. Also reported is new evidence linking individual differences (e.g., work centrality, equity sensitivity) to perceived responsibilities and rights in the employment relationship.     

Market Structure and Racial and Gender Discrimination:

The Annual Equal Employment Opportunity Reports and Current Population Survey files are used to examine employment and earnings by race and gender in the telecommunications industry following changes in the industry's affirmative action guidelines and following the divestiture of the American Telephone and Telegraph Company. Nonblack minority men were the only underrepresented group to experience marked employment gains as managers and professional. The relative employment probability of other underrepresented workers remained similar to the levels experienced during the implementation of affirmative action guidelines. Earnings differentials did decline for minority men and white women in the telecommunications industry. However, this finding is only unique to black men as the earnings pattern for white women and nonblack minority men mirror that found for these groups nationally.     

Beware of ‘Good’ Outliers and Overoptimistic Conclusions*

The main goal of this paper is to warn practitioners of the danger of neglecting outliers in regression analysis, in particular, good leverage points (i.e. points lying close to the regression hyperplane but outlying in the x‐dimension). While the types of outliers which do influence regression estimates (vertical outliers and bad leverage points) have been extensively investigated, good leverage points have been largely ignored, probably because they do not affect the estimated regression parameters. However, their effect on inference is far from negligible. We propose a step‐by‐step procedure to identify and treat all types of outliers. The paper of Persson and Tabellini [American Economic Review (2004) Vol. 94, pp. 25–46] linking the degree of proportionality of an electoral system to the size of government is discussed to illustrate how the choice of a measure and the existence of atypical observations may substantially influence results.     

Policies to support ethnic minority enterprise: the English experience

Using Global Entrepreneurship Monitor data for 29 countries this study investigates the (differential) impact of several factors on female and male entrepreneurship at the country level. These factors are derived from three streams of literature, including that on entrepreneurship in general, on female labour force participation and on female entrepreneurship. The paper deals with the methodological aspects of investigating (female) entrepreneurship by distinguishing between two measures of female entrepreneurship: the number of female entrepreneurs and the share of women in the total number of entrepreneurs. The first measure is used to investigate whether variables have an impact on entrepreneurship in general (influencing both the number of female and male entrepreneurs). The second measure is used to investigate whether factors have a differential relative impact on female and male entrepreneurship, i.e. whether they influence the diversity or gender composition of entrepreneurship. Findings indicate that – by and large – female and male entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors (e.g. unemployment, life satisfaction) we find a differential impact on female and male entrepreneurship. The present study also shows that the factors influencing the number of female entrepreneurs may be different from those influencing the share of female entrepreneurs. In this light it is important that governments are aware of what they want to accomplish (i.e. do they want to stimulate the number of female entrepreneurs or the gender composition of entrepreneurship) to be able to select appropriate policy measures.     

National minorities and their representation in social surveys: which practices make a difference?

This paper presents a systematic study of survey mechanisms that produce or reduce minority bias in social surveys. It extends the work of Lipps et al. (2011) who have demonstrated that, in the Swiss context, the more an ethno-national minority community differs, socio-culturally and socio-economically, from the national majority, the less it is likely to be represented in its proper proportion in the major national surveys. Minority bias furthermore has a vertical dimension: socio-economic bias against individuals from the most deprived backgrounds becomes extreme within ethno-national minority communities. Using data from the Swiss Labour Force Survey, the Swiss Household Panel, and the Swiss sample of the European Social Survey, in the present work we empirically assess the impact of three types of survey practices on minority bias: (1) strategies to increase overall response rates of the whole population indiscriminately from its minority status, (2) the use of pre- and post-stratification measures that take into account the overall share of foreigners in the national population, and (3) the conduct of interviews in a wider range of languages, in order to facilitate survey response among certain (linguistic) minorities. Our findings show that efforts to increase overall response rates can, paradoxically, create even more minority bias. On the other hand, they suggest that a combination of stratified sampling and a wider range of survey languages can have a positive effect in reducing survey bias, both between and within national categories. We conclude that measures that take into account and adapt to the social and cultural heterogeneity of surveyed populations do make a difference, whereas additional efforts that only replicate existing routine practices can be counter-productive.     

Measure of privacy in randomized response model

Randomized response (say, RR) techniques on survey are used for collecting data on sensitive issues while trying to protect the respondents’ privacy. The degree of confidentiality will clearly determine whether or not respondents choose to cooperate. There have been many proposals for privacy measures with very different implications for an optimal model design. These derived measures of protection privacy involve both conditional probabilities of being perceived as belonging to sensitive group, denoted as P(A|yes) and P(A|no). In this paper, we introduce an alternative criterion to measure privacy protection and reconsider and compare some RR models in the light of the efficiency/protection privacy. This measure is known to the respondents before they agree to use the RR model. This measure is helpful for choosing an optimal RR model in practice.     

Seasonal Employment, Seasonal Unemployment and Unemployment Compensation: The Case of the Tourist Industry of the Greek Islands

Abstract . A theoretical and empirical investigation of the employment opportunities generated in the tourist industry of the Greek islands, this study supports the conventional thesis that unemployment is not necessarily produced by seasonal employment. Unemployment following a period of seasonal employment may be voluntary or involuntary. Some employees choose seasonal occupations because they pay more. Others do so because seasonal occupations suit their non-market activities during their off-peak season(s), or they may lack any other occupational alternatives. Any unemployment compensation policy designed to smooth out the seasonal nature of employment in industries such as tourism may accentuate the unemployment problem.     

The Use of Forecast Accuracy Indicators to Improve Planning Quality: Insights from a Case Study

Abstract

Accounting studies have analyzed rolling forecasts and similar dynamic approaches to planning as a way to improve the quality of planning. We complement this research by investigating an alternative (complementary) way to improve planning quality, i.e. the use of forecast accuracy indicators as a results control mechanism. Our study particularly explores the practical challenges that might emerge when firms use a performance measure for forecast accuracy. We examine such challenges by means of an in-depth case study of a manufacturing firm that started to monitor sales forecast accuracy. Drawing from interviews, meeting observations and written documentation, we highlight two possible concerns with the use of forecast accuracy: concerns related to the limited degree of controllability of the performance measure and concerns with its goal congruence. We illustrate how organizational actors experienced these challenges and how they adapted their approach to forecast accuracy in response to them. Our empirical observations do not only shed light on the possibilities and challenges pertaining to the use of forecast accuracy as a performance measure; they also improve our understanding of how specific qualities of performance measures apply to ‘truth-inducing’ indicators, and how the particular organizational and market context can shape the quality of performance measures more generally.     

Violence in the Workplace—A Review with Recommendations

Workplace violence is a serious, growing and costly problem for American business and industry. In spite of the scope of the problem managers have been slow to respond, in fact appear to be in a state of denial. Profiles of both perpetuators and victims of workplace violence have been developed, but these profiles are so inclusive as to include almost everyone. Many causes have been recognized, most of which are related to stress. The courts offer only limited assistance; in fact, some laws limit tests and measures that might help identify violent employment candidates and employees. There are recommended courses of action intended to prevent workplace violence but little assurance that they can prevent it. Most of these approaches address the root causes of violence by focusing on stress.     

Yield measure for the process with multiple streams

Process capability indices, such as C _pk , have been widely used in the manufacturing industry to provide common quantitative measures for process performance. The index C _pk only provides an approximate rather than an exact measure of the process yield. To obtain an exact measure of the process yield, Boyles proposed a yield index S _pk . Capability measures for processes with single stream have been investigated extensively; however, multiple streams processes often occur in practice. Bothe presented a capability index for multiple streams process. In the present paper, a new index that is able to provide an exact measure of yield for a multiple streams process is developed. Three examples are given for illustration. From the results of the yield measure in the three examples, the conventional approach, using the arithmetic average of the estimated yield indices of all streams, will certainly over-estimate the process yield.     

Reciprocity,Multiplexity, and Exchange: Measures

We introduce measures and statistical tests for multiplexity and exchange that are modeled on similar ideas developed for reciprocity quite early in the history of social network research. As properties of a multi-relation network, multiplexity, and exchange have almost as ancient a history as reciprocity, but have not been as intensively investigated from a methodological perspective. Multiplexity refers to the extent to which two ties, for example, advice and friendship, coincide over population; that is, do respondents name the same people as friends as the persons they nominate as individuals from who they seek advice. Exchange refers to the extent to which a tie of one type directed from person i to person j is returned by a tie of another type from j to i. We conceive of the current paper as the first part of a two-part paper, wherein the second part explores specific theoretical models for multiplexity and exchange.     

Flexibility,labour retention and productivity in the EU

Abstract

This paper examines the relationship between internal flexibility, the employment of fixed-term contract workers and productivity in 27 European Union countries. Drawing on European Company Survey data, the paper assesses whether establishments that employ on a fixed-term basis experience higher productivity than their competitors and stronger labour productivity improvements over time. These issues are of importance, given the recent weakness of productivity growth in many EU member countries, the steps that governments have taken to relax rules relating to the employment of fixed-term workers and the emphasis placed on contractual flexibility within the European Commission’s flexicurity agenda. The paper finds that establishments that do not use fixed-term contracts enjoy productivity advantages over those that do. Establishments that employ on a fixed-term basis but retain workers once their fixed-term contract has expired perform better than those that do not retain workers. The findings also show that establishments that pursue internal flexibility report both higher productivity than competitors and productivity increases over time. In addition, they are more likely to retain workers who have reached the end of a fixed-term contract.     

The General Public and the Art Museum: Case Studies of Visitors to Several Institutions Identify Characteristics of Weir Publics

Abstract . From case studies at several art museums, characteristics of several types of museum goers have been identified. Typically museum visitors are in the upper educational, occupational and income groups, younger than the population in general (average age is 34) and active in community and leisure-time organizations. Frequent visitors do so to be with people, to do something they consider worthwhile, to use surroundings in which they feel comfortable and at ease, to be challenged by new experiences, to use an opportunity to learn and to participate actively in an experience they value. Replication in the U.S. of a classic study in England corroborates its findings.     

Cognitive interviewing and factor-analytic techniques: a mixed method approach to validity of survey items measuring national identity

This paper explores the possibilities of method triangulation between two methodological approaches for assessing the validity performance of survey items: cognitive interviewing and factor analytic techniques. Although their means of approaching validity differ, both methods attempt to prove whether a measure corresponds to a theoretical (latent) concept (e.g. patriotism vs. nationalism), thus both are concerned with the question, whether an indicator measures what it is supposed to measure. Based on two representative samples for Austria [data gathered within the framework of the International Social Survey Program (ISSP) on National Identity in 1995 and 2003] and 18 cognitive interviews conducted between 2003 and 2005, the paper shows the considerable advantages of using a multi-method approach for ensuring the quality of survey items. On the one hand, we apply exploratory and confirmatory factor analysis in order to identify poorly performing indicators with regard to validity and reliability. On the other hand, the analysis of the cognitive interviews reveals the substantial sources of response error. Results show that to a large extent, respondents do not understand the items that have been defined to measure national identification and related concepts in Austria the way intended by the drafting group of this ISSP Module, a fact that has considerable implications on the scales’ predictive power.     

Dealing with differences: the impact of perceived diversity outcomes on selection and assessment of minority candidates

Although many strategies have been employed to specifically recruit and select minority employees, the selection rates for designated minority groups are often lower than those for the majority group. Minority candidates with high cultural maintenance (CM) are particularly vulnerable to cultural bias in selection procedures, a process which has proved difficult to change. This paper aims to examine whether these effects may be moderated by recruiters’ perceived diversity outcomes; whether they view diversity as beneficial or threatening to the organization's performance. In an experimental study, participants belonging to a cultural majority group played the role of recruiters (n = 99). Their diversity perceptions were manipulated by asking them to think about, and discuss, either positive or negative outcomes of cultural diversity in the workplace. They were then asked to rate fictional profiles of minority candidates for a job opening. The results confirm that CM of minority candidates has a negative main effect on the ratings they receive in assessment procedures. However, as predicted, this effect is moderated by diversity perceptions. Recruiters who perceive individual differences in the workplace as positive and beneficial, give higher ratings to candidates who maintain their own culture. This provides a promising insight in possible ways to reduce cultural bias in selection procedures.     

The Fair Work Wales report: a manifesto for all of us

Fair Work Wales, the report of the Wales Fair Work Commission, details the characteristics of fair work and recommends how to promote them. Its wider significance is that it offers a blueprint for what the UK should be doing—a challenge that could hardly be more fundamental . It is a timely reminder for employment relations teachers and researchers that the world of work may be changing but what they do and how they go about it really do matter.     

Summary Notes on the Statistics of Federal Affirmative Action Programs*

Abstract . In a review and critique of selected aspects of Federal requirements for use of statistical procedures to detect the absence of equal employment opportunity, seven statisticians find certain aspects capable of improvement. An overlap exists in protected groups between women and racelethnic groups which may lead to double-counting. Classification may be left to the employer. The Spanish-surname test may exclude 25 percent of people of Hispanic origin. Ethnic identification based on self-identification must be compared to identification by others (employer). The occupational categories required have but an imprecise relationship to available statistics. The statistics contain an unmeasurable data error. Chance factors may produce errors that are offsetting or additive, and which may be confused with data of significance. Recommendations are made for procedural improvements.     

Mechanisms that efficiently verify the optimality of a proposed action

The best known achievement of the literature on resource-allocating mechanisms and their message spaces is the first rigorous proof of the competitive mechanism's informational efficiency. In an exchange economy withN persons andK+1 commodities (including a numeraire), that mechanism announcesK prices as well as aK-compenent trade vector for each ofN−1 persons, making a total ofNK message variables. Trial messages are successively announced and after each announcement each personprivately determines, usingprivate information, whether she finds the proposed trades acceptable at the announced prices. When a message is reached with which all are content, then the trades specified in that message take place, and they satisfy Pareto optimality and individual rationality. The literature shows that no (suitably regular) mechanism can achieve the same thing with fewer thanNK message variables. In the classic proof, all the candidate mechanisms have the privacy property, and the proof uses that property in a crucial way. ‘Non-private’ mechanisms are, however, well-defined. We present a proof that forN>K,NK remains a lower bound even when we permit ‘non-private’ mechanisms. Our new proof does not use privacy at all. But in a non-private mechanism, minimality of the number of message variables can hardly be defended as the hallmark of informational efficiency, since a non-private mechanism requires some persons to know something about the private information of othersin addition to the information contained in the messages. The new proof of the lower boundNK invites a new interpretation of the competitive mechanism's informational efficiency. We provide a new concept of efficiency which the competitive mechanism exhibits and which does rest on privacy even whenN>K. To do so, we first define a class ofprojection mechanisms, wherein some of the message variables are proposed values of the action to be taken, and the rest are auxiliary variables. The competitive mechanism has the projection property, with a trade vector as its action and prices as the auxiliary variables. A projection mechanism proposes an action; for each proposal, the agents then use the auxiliary variables, together with their private information, to verify that the proposed action meets the mechanism's goal (Pareto optimality and individual rationality for the competitive mechanism) if, indeed, it does meet that goal. For a given goal, we seek projection mechanisms for which theverification effort (suitably measured) is not greater than that of any other projection mechanism that achieves the goal. We show the competitive mechanism to be verification-minimal within the class of private projection mechanisms that achieve Pareto optimality and individual rationality; that proofdoes use the privacy of the candidate mechanisms. We also show, under certain conditions, that a verification-minimal projection mechanism achieving a given goal has smallest ‘total communication effort’ (which is locally equivalent to the classic ‘message-space size’) among all private mechanisms that achieve the goal, whether or not they have the projection property.     

De-industrialization and comparative advantage in the global value chain

We investigate the causes of de-industrialization and potential for re-industrialization using trade-linked input–output data from WIOD. By introducing a new global value chain measure of comparative advantage, we relate a sector's share in domestic final demand to that in production and separate the direct effect of trade on its income share. This method identifies the declining share of manufacturing value added in domestic final expenditures to be the main cause of de-industrialization. Differences in comparative advantage between countries do matter, especially in the case of employment shares, but have a limited impact via the direct trade effect on value added. The findings point to a peculiar paradox of industrial policy: precisely when it is successful in raising competitiveness and hence productivity growth of manufacturing, it also furthers the global decline of relative prices in manufacturing. In contrast to the national objectives of re-industrialization, effective industrial policies accelerate de-industrialization in the global economy.