A study of environmental policies and regulations,governance structures,and environmental performance: The role of female directors

This paper seeks to contribute to the existing business strategy and the environment literature by examining the effect of governance structures on environmental performance within a unique context of improving environmental governance, policies, regulations, and management. Specifically, we investigate the extent to which corporate board gender diversity, including the proportion, age, and level of education of female directors, affects environmental performance of Chinese publicly listed corporations. Using one of the largest Chinese data sets to date, consisting of a sample of 383 listed A‐shares from 2011 to 2015 (i.e., observations of 1,674), our findings are threefold. First, we find that the proportion and age of female directors have a positive effect on the overall corporate environmental performance. Second, our findings indicate that the proportion and age of female directors also have a positive effect on the three individual environmental performance components, namely, environmental (a) strategy, (b) implementation, and (c) disclosure. Finally, and by contrast, we do not find any evidence that suggests that the level of education of female directors has any impact on environmental performance, neither the overall environmental performance measure nor its individual components. Our findings have important implication for regulators and policymakers. Our evidence is robust to controlling for alternative measures, other governance and firm‐level control variables, and possible endogeneities. We interpret our findings within a multitheoretical framework that draws insights from agency, legitimacy, neo‐institutional, resource dependence, stakeholder, and tokenism theoretical perspectives.     

Working hours in Chinese enterprises: evidence from matched employer–employee data

The purpose of this article is to explore the factors that are correlated with hours worked in China. A distinguishing feature of the study is that we used representative‐matched employer and employee data. Hence, in addition to the usual worker characteristics examined in conventional economic models of labour supply, we also took into account the influence of firm characteristics and policies on the number of hours worked. The results suggested that in addition to the hourly wage rate, labour supply characteristics and human capital characteristics of the individual, firm‐level differences are important in explaining variation in weekly hours worked in Chinese firms. In particular, our results suggested that there is a norm of longer working hours in firms that employ a high proportion of female and migrant workers, that hours worked are less in firms which pay overtime and that hours worked are less in firms in which labour disputes have disrupted production. The policy implications of Chinese firms reducing hours worked were discussed.     

Temporary contracts and employee effort

Temporary contracts provide employers with a tool to screen potential new employees and have been shown to provide “stepping stones” into permanent employment for workers. For both reasons, workers on temporary contracts have an incentive to provide more effort than permanent employees. Using indicators for unpaid overtime work and absences taken from the Swiss Labor Force Survey (SLFS), we present evidence that temporary workers indeed provide higher effort than permanent employees: Their probability of working unpaid overtime exceeds that of permanently employed workers by 60%. We show the heterogeneity of this effect across different types of temporary contracts, investigate differences between men and women, and discuss the relevance of endogenous selection into temporary employment.     

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.     

Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms

This study investigates the effects of the psychological mechanisms activated by different proportions of tournament winners on effort. Using a real-effort experiment that allows the evolution of social comparison, which is central to our theory, we show that firms can increase employee effort (and performance) by increasing the proportion of winners. Based on a causal model, we generate evidence for our theory that this effect is driven by relative performance concerns and bonus concerns, both of which depend on the proportion of tournament winners. In addition, we find that, over time, the change in effort is more negative the lower the proportion of winners. This effect is driven by the different behaviors of winners and losers in a previous tournament.     

An adjustment cost model of long-term employment in Japan

A dynamic factor demand model is presented which pays special attention to the prevalence of a long-term employment relationship in Japan. The model is based on the representation of technology by a variable cost function with adjustment costs for employment and capital stock, where the variable cost consists of the sum of overtime costs and materials costs. With employment being quasi-fixed and scheduled hours institutionally regulated, short-run adjustments are mostly made by overtime hours. Application to a time-series data on the Japanese electrical machinery industry indicates quasi-fixity of capital and employment and reproduces short-run overshooting of overtime hours to compensate for the sluggish adjustment of employment.     

The Low‐Pay No‐Pay Cycle: Are There Systematic Differences across Demographic Groups?

We investigate transitions between unemployment, low‐paid employment and higher‐paid employment using dynamic panel data methods applied to household panel data. We find state dependence in both unemployment and low‐paid employment and evidence of a low‐pay no‐pay cycle. However, we also find significant differences in effects across population subgroups. Typically, the young and better‐educated face lower penalties from unemployment and low‐paid employment. Further, low‐paid employment is preferable to unemployment for women regardless of their demographic characteristics, but for men who have only completed secondary schooling, low‐paid employment actually decreases the chances of entering higher‐paid employment by more than does unemployment.     

Children and female employment in Mongolia

Although a large body of literature has argued that motherhood has a profound and long-lasting negative effect on the employment and earnings of women, there is little evidence focusing on the post-communist region. This paper exploits the latest rounds of the EBRD-World Bank Life in Transition Survey (LiTS) and the Mongolian National Statistics Office Household Socio-Economic Survey (HSES) to examine the correlation between the presence of children of different age categories in a family and female employment in Mongolia in 2016. We examine the availability of childcare, social norms and attitudes towards women, as well as household decision-making as potential explanations. We find that small children decrease the probability of female employment relative to women with no small children. In particular, women with two children aged one to six years are 21.5 percentage points less likely to be employed. Our results also suggest that cultural biases against women may be at least partially responsible for the low female employment levels we uncovered. These results are unlikely to be driven by omitted variable bias.     

Earning or Learning? How Extending Closing Time in the Retail Sector Affects Youth Employment and Education

This paper estimates the causal impact of increased demand for low‐skilled workers on youth employment, and short and long run education. We exploit quasi‐experimental demand shifts for retail workers due to changes in allowed opening hours for retail stores across Norwegian municipalities. We find that relaxed restrictions on opening hours increased employment in the sector and permanently reduced educational attainment for affected high school students. The results suggest that policies or shocks that increase demand for low‐skilled workers in the short term might have negative long‐run effects in terms of reduced educational attainment.     

Part‐Time Work,Fixed‐Term Contracts,and the Returns to Experience

Using data from Spanish Social Security records, we investigate the returns to experience for female workers in different flexible work arrangements. Our model consists of four random‐effects equations simultaneously estimated using Markov Chain Monte Carlo techniques. We find a large negative wage effect of working part‐time (PT), which differs by motherhood status and contract type. We also find that working PT involves lower returns to experience than standard full‐time employment and thus a substantial negative wage effect accumulates over time for those employed PT. Finally, our simulations reveal that working PT also raises the probability of working under a fixed‐term contract.     

East–West migration and gender: Is there a differential effect for migrant women?

This paper examines whether female East–West migrants in Germany face a differential effect on their labor market outcomes after they move compared to both males and stayers. It builds on a “difference-in-difference-in-difference” approach, employs a matching procedure to define the corresponding before and after periods for movers and stayers and uses panel data techniques to difference away time-invariant unobservable confounders. I find that migrant women after migration do not experience significantly different earnings or employment prospects, compared to migrant males and female stayers. They do, however, face an additional negative effect on hours worked and on annual income. The results also suggest that for them, the income effect seems to dominate the substitution effect and they substitute some market work in the West with home production, in particular, with childcare.     

Feminisation of the medical profession: a strategic HRM dilemma? The effects of family‐friendly HR practices on female doctors' contracted working hours

Health‐care institutions face a strategic HR dilemma. They need to attract female doctors from a tight, feminised labour market by offering family‐friendly HR practices (e.g. part‐time employment), often based on collective labour agreements, while trying to contain their labour costs by employing as many full‐timers as possible. In this study, we investigate which family‐friendly arrangements serve health‐care institutions' HR strategies best in terms of retaining female doctors' working hours. Data collected in 2008 from 1,070 Dutch female doctors indicate that offering family‐friendly HR practices such as flexible working hours (in contrast to part‐time working) minimise the strategic HR dilemma, since it offers scope for improving the work–life balance without encouraging female doctors to work less hours. However, the effect of family‐friendly arrangements on working hours is dependent on the family‐friendly workforce philosophy: only with proper support for career goals do women using family‐friendly arrangements work more hours.     

Overtime pay regulation and weekly hours of work in Canada

The idea that overtime pay regulation can be used to create employment continues to receive attention in a variety of countries. Standard hours, beyond which a statutory overtime premium must be paid, varies across Canadian provinces, as do coverage rules. Exploiting this variation produces a smaller estimated response of weekly hours to standard hours than previous researchers have found in other countries. Combined with evidence of substantially more moonlighting and higher wages in jurisdictions with lower standard hours, these results support a somewhat pessimistic view of the idea that reducing standard hours can be used promote work-sharing in Canada.     

Career lesbians. Getting hired for not having kids?

Using a field experiment, we investigate whether discrimination based on women's sexual orientation differs by age and family constraints. We find weakly significant evidence of discrimination against young heterosexual women. This effect is driven by age (and fertility) rather than by motherhood. We do not find any unequal treatment at older ages. This age effect is consistent with our theoretical expectation that, relative to lesbian women, young heterosexual women are penalised for getting children more frequently and taking on, on average, more at‐home‐caring tasks.     

The Effects of Immigration on Household Services,Labour Supply and Fertility

Fertility and female labour force participation are no longer negatively correlated in developed countries. At the same time, increased immigration affects supply and prices of household services, which are relevant to fertility and employment decisions. This paper analyses the effect of immigration on labour supply and fertility of native women in the UK. Adopting an instrumental variable approach, I find that immigration increases female labour supply without affecting fertility. My results show that immigration increases the size of the childcare sector, and reduces its prices, suggesting that immigrants may ease the trade‐off between working and child rearing among native women.     

Difference‐in‐differences when the treatment status is observed in only one period

This paper considers the difference‐in‐differences (DID) method when the data come from repeated cross‐sections and the treatment status is observed either before or after the implementation of a program. We propose a new method that point‐identifies the average treatment effect on the treated (ATT) via a DID method when there is at least one proxy variable for the latent treatment. Key assumptions are the stationarity of the propensity score conditional on the proxy and an exclusion restriction that the proxy must satisfy with respect to the change in average outcomes over time conditional on the true treatment status. We propose a generalized method of moments estimator for the ATT and we show that the associated overidentification test can be used to test our key assumptions. The method is used to evaluate JUNTOS, a Peruvian conditional cash transfer program. We find that the program significantly increased the demand for health inputs among children and women of reproductive age.     

A dynamic analysis of informal care and employment in England

This paper analyzes the dynamics in employment and informal care outcomes of women in England. To this end, we develop a dynamic model to describe pathways leading to a negative correlation between informal care and employment in a cross-section. The model allows for different types of caregiving, correlated permanent unobserved heterogeneity and initial sorting. The model is estimated on data from 6 waves of the BHPS 2000–2005. Our findings suggest modest feedback effects. We find a negative effect of co-residential caregiving on future employment and a negative effect of employment on future co-residential and extra-residential caregiving. We also find evidence of positive state-dependence in caregiving although most of the persistence in such activities is related to unobserved heterogeneity rather than state-dependence.     

With a little help from abroad: The effect of low-skilled immigration on the female labour supply

We examine whether and how the inflow of female immigrants who specialize in household production affects the labour supply of Italian women. To identify the causal effect, we exploit the family reunification motives and network effects (i.e., the tendency of newly arriving female immigrants to settle in places where males of the same country already live) which is used as an instrument for the geographical distribution of female foreign workers. We find that when the number of immigrants who provide household services is higher, native Italian women spend more time at work (intensive margin) without affecting their labour force participation (extensive margin). This impact is concentrated on highly skilled women whose time has a higher opportunity cost. These results also hold after a battery of robustness checks. We present some further evidence that is also consistent with the idea that the impact works through substitution in household work rather than complementarities in the production sector. Finally, we show that immigration arises as a substitute to publicly provided welfare services, although this phenomenon raises concerns regarding the fairness and sustainability of this private and informal welfare model.     

Wage–hours contracts,overtime working and premium pay

This paper offers a contract-based theory to explain the determination of standard hours, overtime hours and overtime premium pay. We expand on the wage contract literature that emphasises the role of firm-specific human capital and that explores problems of contract efficiency in the face of information asymmetries between the firm and the worker. We first explore a simple wage–hours contract without overtime and show that incorporating hours into the contract may itself produce efficiency gains. We then show how the introduction of overtime hours, remunerated at premium rates, can further improve contract efficiency. Our modelling outcomes in respect of the relationship between the overtime premium and the standard wage rate relate closely to earlier developments in hedonic wage theory. Throughout, we emphasise the intuitive reasoning behind the theory and we also supply relevant empirical evidence. Mathematical derivations are provided in an Appendix.     

Play Hard,Shirk Hard? The Effect of Bar Hours Regulation on Worker Absence

The regulation of alcohol availability has the potential to influence worker productivity. This paper uses legislative changes in bar opening hours to provide a potential quasi‐natural experiment of the effect of alcohol availability on working effort, focusing on worker absenteeism. We examine two recent policy changes, one in England/Wales and one in Spain that increased and decreased opening hours respectively. We demonstrate a robust positive causal link between opening hours and absenteeism, although short‐lived for Spain. The effect is long lasting for the UK where we provide evidence which suggests that increased alcohol consumption is a key mechanism.