Carbon Offset Provision with Guilt‐Ridden Consumers

Carbon offsets allow consumers to mitigate their guilt associated with their carbon footprint. On the one hand, when offsets are purchased in an industry unrelated to the consumption activity, offsets are complements to consumption and the introduction of an offset market causes consumption to rise. On the other hand, when offsets are purchased in a related industry, consumption and offsets are substitutes and consumption falls. In general, however, net emissions decline. We find two exceptions to this rule. First, when offsets are purchased in an unrelated market, if there is no latent demand for offsets in their absence, the introduction of offsets can potentially cause a rise in net emissions when producers of “dirty” consumption goods have market power. Second, when offsets are purchased to fund green energy, emissions can rise if “dirty” producers can engage in pre‐emptive strategic commitments and the price of offsets is chosen endogenously.     

Self‐Regulation and the Market for Activism

This paper presents a theory of the market for activism where citizens fund activists, campaigning activists pressure firms to change their practices, and firms self‐regulate to forestall or mitigate campaigns. Activists have leverage because firms must self‐regulate before they are targeted, and their self‐regulation must deter the activists conditional on being targeted. Activists anticipate gaining more from campaigns against soft (more vulnerable) firms than hard (less vulnerable) firms, so it is more costly for soft firms to forestall the activists, and some risk a campaign but self‐regulate to mitigate the probability that the campaign succeeds. Campaigns thus can occur in equilibrium. The threat from activism is the probability that a firm is targeted, and the stronger the threat the fewer campaigns there are because more firms self‐regulate to forestall a campaign. Radical activists target harder firms than do moderate activists, and the more radical the activists the more costly it is to forestall them. Some firms are too hard to be threatened by activism and maximize their profits. Firms that are too hard to target directly may be vulnerable to campaigns threatening their supply and distribution chains. Activists and their donors have an incentive to maximize the scope of activism; that is, the breadth of the threat from activism.     

Self‐managed work teams: An efficiency‐rationale for pay compression

This paper uncovers a novel mechanism through which pay dispersion can have a negative effect on firm performance, even in the absence of equity or fairness considerations. We use a stylized model of a self‐managed work team to show that, when team‐work involves heterogeneous tasks, the provision of incentives to exert effort conflicts with the provision of incentives to share information relevant for decision‐making. Pay dispersion deteriorates information sharing as it induces workers to conceal “bad news” to maintain their coworkers motivation. The practical implications of our theory are that team empowerment should go hand in hand with pay compression and that empowerment should be avoided when team production involves strongly heterogeneous tasks.     

Revenge Exacerbates the Effects of Interpersonal Problems on Mentors’ Emotional Exhaustion and Work‐Family Conflict: A Self‐Defeating Perspective

Drawing on conservation of resources theory, this study examined the link between negative mentoring experiences (i.e., interpersonal problems) perceived by mentors and their work‐family conflict (WFC) by focusing on the mediating role of emotional exhaustion and the moderating role of revenge. The results of a field survey of 187 mentors in China supported all of our hypotheses, indicating that interpersonal problems perceived by mentors were positively related to their WFC. This relationship was also found to be mediated by the mentors’ emotional exhaustion. In addition, revenge against protégés was found to moderate the main effect of interpersonal problems on emotional exhaustion and the indirect effect of interpersonal problems on WFC. Specifically, revenge exacerbated the positive relationship between interpersonal problems and emotional exhaustion. Further, emotional exhaustion mediated the indirect effect of interpersonal problems on WFC when the level of revenge was high, but not when it was low. The findings of this study provide insightful theoretical contributions and managerial implications that indicate new directions for research related to mentoring and work‐family relationships. © 2016 Wiley Periodicals, Inc.     

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.     

Return Migration,Self‐selection and Entrepreneurship

Are return migrants more entrepreneurial? Existing literature has not addressed how estimating the impact of return migration on entrepreneurship is affected by double unobservable migrant self‐selection, both at the initial outward migration and at the final inward return migration stages. This paper exploits exogenous variation provided by the civil war and the incidence of agricultural plagues in Mozambique, as well as social unrest and other shocks in migrant destination countries. The results lend support to overall negative unobservable return migrant self‐selection, which results in an under‐estimation of the effects of return migration on entrepreneurial outcomes when using a ‘naïve’ estimator that does not control for self‐selection at both the initial migration and at the final return migration stages.     

The burden of glory: Competing for nonmonetary incentives in rank‐order tournaments

In an environment in which elite, highly paid professionals compete for nonmonetary rewards, we find evidence of underperformance. Our analysis suggests that choking under pressure from high‐stakes nonmonetary rewards is behind the underperformance. This implies that high stakes nonmonetary rewards can create meaningful pressure on individuals and lead to worse performance, a distinct issue that has yet to be adequately examined. These findings come from an examination of the behavior of top U.S. golfers competing to earn a place on the U.S. Ryder Cup team via their performance in PGA Tour tournaments with differing allocations of Ryder Cup qualifying points.     

Growing Followers: Exploring the Effects of Leader Humility on Follower Self‐Expansion,Self‐Efficacy,and Performance

Although the effectiveness of leader humility has been well documented, our understanding of how leader humility influences followers psychologically is limited. Surpassing a mere leader‐centric understanding of the leader influence process by more fully understanding how leadership behavior shapes followers psychologically has been identified as a critical need by leadership scholars. Drawing on self‐expansion theory, we argue that leader humility triggers followers’ self‐expansion and that this psychological change enhances followers’ self‐efficacy, which in turn contributes to followers’ task performance. We also argue that the relationship between leader humility and followers’ self‐expansion is strengthened when leaders and followers are similar in age and gender. Using a time‐lagged research design with responses from 256 leader–follower dyads, we found support for our proposed model. We discuss the theoretical implications for our findings and suggest areas for future research.     

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.     

Race,Self‐Employment,and Labor Absorption

Past studies have argued that in the large cities of developing societies, unemployment is often alleviated when displaced workers are absorbed into the small‐scale entrepreneurial activities of the informal economy. The present study applies this argument to an analysis of women's self‐employment in the U.S. South during the Great Depression. Census data show that in large southern cities in 1940, the unemployment of black women was meaningfully reduced by the self‐employment of these women in domestic service. These data further suggest that dynamics of race, unemployment, and the self‐employment of women in domestic service can be represented by an inverted‐U‐shaped labor absorption curve. These results make several contributions to research on race, labor‐market disadvantage, and self‐employment in the informal sector.     

Forecasting With the Standardized Self‐Perturbed Kalman Filter

We propose and study the finite‐sample properties of a modified version of the self‐perturbed Kalman filter of Park and Jun (Electronics Letters 1992; 28 : 558–559) for the online estimation of models subject to parameter instability. The perturbation term in the updating equation of the state covariance matrix is weighted by the estimate of the measurement error variance. This avoids the calibration of a design parameter as the perturbation term is scaled by the amount of uncertainty in the data. It is shown by Monte Carlo simulations that this perturbation method is associated with a good tracking of the dynamics of the parameters compared to other online algorithms and to classical and Bayesian methods. The standardized self‐perturbed Kalman filter is adopted to forecast the equity premium on the S&P 500 index under several model specifications, and determines the extent to which realized variance can be used to predict excess returns. Copyright © 2016 John Wiley & Sons, Ltd.     

Adjusting for Non‐Response in Population‐Based Case‐Control Studies

In this paper we discuss the analysis of data from population‐based case‐control studies when there is appreciable non‐response. We develop a class of estimating equations that are relatively easy to implement. For some important special cases, we also provide efficient semi‐parametric maximum‐likelihood methods. We compare the methods in a simulation study based on data from the Women's Cardiovascular Health Study discussed in Arbogast et al. (Estimating incidence rates from population‐based case‐control studies in the presence of non‐respondents, Biometrical Journal 44, 227–239, 2002).     

Self‐help in housing and chengzhongcun in China's urbanization

This article focuses on the housing issues of rural migrants arising from urbanization, with particular reference to chengzhongcun, a topic with considerable impact on policymaking. An attempt is made to understand the underlying rationale of self‐help in housing and the important role of chengzhongcun in sheltering rural migrants in the context of China's rural‐urban dichotomy. As demonstrated in this study, chengzhongcun accommodate, with little in the way of government resources and assistance, millions of rural migrants because of their social accessibility and affordability. While not denying their social problems, we argue that chengzhongcun in fact act as an innovative and positive agent to promote urbanization in present day China by housing massive numbers of rural migrants and assimilating them into cities. Current government policies towards chengzhongcun have generated a wide range of interest conflicts and confrontations. The consequences of such conflicts show that the government policies were problematic and unworkable, as they violated basic market principles as well as citizen rights. Policy strategy towards the redevelopment of chengzhongcun must acknowledge their credibility in the Chinese road to urbanization and requires more thoughtful and prudent consideration of migrants' demands for affordable housing.     

Inference on Self‐Exciting Jumps in Prices and Volatility Using High‐Frequency Measures

Dynamic jumps in the price and volatility of an asset are modelled using a joint Hawkes process in conjunction with a bivariate jump diffusion. A state‐space representation is used to link observed returns, plus nonparametric measures of integrated volatility and price jumps, to the specified model components, with Bayesian inference conducted using a Markov chain Monte Carlo algorithm. An evaluation of marginal likelihoods for the proposed model relative to a large number of alternative models, including some that have featured in the literature, is provided. An extensive empirical investigation is undertaken using data on the S&P 500 market index over the 1996–2014 period, with substantial support for dynamic jump intensities—including in terms of predictive accuracy—documented. Copyright © 2016 John Wiley & Sons, Ltd.     

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.     

Imagination,Self‐Knowledge,and Poise: Jim March’s Lessons for Leadership

James G. March was a founding father of modern organization theory, and arguably its most eclectic scholar. His elegant writings, which were underpinned by a behavioural view of organizations, spanned ambiguity and choice, rationality and decision‐making, organizational change, organizational learning, and institutional theory, among others. In this editorial, we remember Jim March by reflecting on his lessons for leadership. It is structured into three parts, each portraying a key aspect of contemporary leadership: imagination, self‐knowledge, and poise. March believed that these qualities were essential to leadership, and he embodied them to the fullest.     

Iterative Project Processes Within Temporary Multi‐Organizations in Construction: The Self‐, Eco‐, Re‐Organizing Projects

Theory‐based studies claim that informal processes interfere with the formal mechanisms and structures of projects in the construction sector. These processes structure and transform multi‐organizations. This four‐year case study reveals empirical evidence about how processes effectively evolve over time and affect formal mechanisms and structures. The results show: (1) the significant differences between what is planned and what actually unfolds in project processes; (2) how iterative processes overshadow linear ones; (3) how informality and “iterativity” eventually end up as self‐, eco‐, and re‐organizing projects and organizations, confirming that projects (re)create the very processes and structures that initiate them.     

Time Use,Exploitation, and the Dual‐Career Household: Competing Perspectives

This article evaluates Laibman's reformulation of Marxian exploitation theory, and compares it to two preference‐based analyses of household time use (advanced by Becker and Hakim). Using a quantitative Marxist approach, and the British Household Panel Survey (BHPS), we show profound dissatisfaction with working hours for members of dual‐career households, and inequality, by gender, vis‐à‐vis pure consumption time. The results support exploitation‐based theories of the household, and cast doubt on such preference‐based theories of time use.