Does self-employment reduce unemployment?

This paper investigates the dynamic relationship between self-employment and unemployment rates. On the one hand, high unemployment rates may lead to start-up activity of self-employed individuals (the “refugee” effect). On the other hand, higher rates of self-employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods (the “entrepreneurial” effect). This paper introduces a new two-equation vector autoregression model capable of reconciling these ambiguities and estimates it for data from 23 OECD countries between 1974 and 2002. The empirical results confirm the existence of two distinct relationships between unemployment and self-employment: the “refugee” and “entrepreneurial” effects. We also find that the “entrepreneurial” effects are considerably stronger than the “refugee” effects.     

Does servicification of manufacturing increase the GVC activities of firms? Case of India

Does greater use of services’ inputs in manufacturing increase the global value chain (GVC) activities of the firms? In this study, we analyse the effects of servicification on the GVC activities of manufacturing firms in India. Using panel data of 4608 Indian manufacturing firms from 2001 to 2018, we examine the effects of servicification of manufacturing firms on their decision to participate in GVCs. The study examines the overall service inputs in manufacturing activities and its impact on GVC activities of firms. The results indicate that servicification of manufacturing tends to have a positive impact on GVC activities of firms. We also observe positive impact on Indian small and medium enterprises (SMEs) to participate in the GVC through the servicification of manufacturing. Further, the results also indicate the differential impact of servicification between high- and low-technology industries.     

Cure or curse: Does downsizing increase the likelihood of bankruptcy?

Downsizing is a common organizational practice, yet research on the outcomes of downsizing has produced mixed findings. To contribute to this debate, we use an organizational change perspective to investigate whether the large-scale changes inherent in downsizing set firms on a negative path that is difficult to overcome and ultimately increases the likelihood of bankruptcy. Additionally, we investigate what factors, if any, can mitigate this likelihood. To do so, we build on the resource-based view to suggest that valuable resources can reduce the likelihood that downsizing will lead to bankruptcy. We find support for our theorizing across a sample of publicly traded firms. Our findings suggest that downsizing firms are significantly more likely to declare bankruptcy than firms that do not engage in downsizing and that intangible resources help to mitigate this likelihood. We do not, however, find support for the role of physical and financial resources in preventing bankruptcy.     

Does the spillover of China's economic growth exist? Evidence from emerging markets

This paper primarily investigates if China affects emerging markets economies triggered by its rapid economic growth and the trend of economic globalization over the world. Our results indicate that China's economic growth causes a significant spillover effect on the economic performances of emerging markets, varying across the detected structural break in 2006 and the degree of economic globalization between China and 25 emerging economies over the period 2000–2012. The results herein support the formation of an inseparable interdependence between China and those emerging economies.     

Does health reform affect self-employment? Evidence from Massachusetts

This paper evaluates whether the implementation of the 2006 Massachusetts health reform law affected the decision of taxpayers to be self-employed, using both difference-in-differences and synthetic control methods on a panel of tax returns that spans 1999–2010. Though tenuous, our results suggest that the reform led to a decline in the rate of taxpayers earning a majority of income from self-employment. In addition, it appears to have had a positive impact on earning some self-employment income among joint filers and earning the majority of income from self-employment among older taxpayers, but these were offset by negative impacts on single filers and taxpayers age 35–49.     

Only the lonely? The influence of the spouse on the transition to self-employment

Previous research showed that married individuals are overrepresented among the self-employed. Few studies proposed skill-spillover between the spouses within the marriage as an explanation. This paper deviates from the previous research by exploring different relationship contexts (e.g., cohabitation, being married or divorced, a widow(er) or single) and the role of partner influences under these contexts. It argues that the interaction between gender and relationship status implies variation in not only resources but also constraints, and hence sorts individuals into two different types of self-employment: entrepreneurial self-employment (i.e., incorporated business) and unincorporated self-employment. Using “Panel Study of Income Dynamics (PSID) 1965–2005” data, results of the competing risk models show that marital status contributes to both types of self-employment transitions, especially for men, but also for women. Cohabitation is a less supportive context for entrepreneurship and a partner’s self-employment experience increases only women’s likelihood of entering into entrepreneurship. These results suggest that skill-spillover between partners might be context dependent and only in one direction (from men to women).     

Does vertical specialisation increase productivity?

This paper investigates the impact of global value chain (GVC) participation on productivity. It uses data on trade in value‐added from the World Input‐Output Database. The results based on a panel estimation covering 13 sectors in 40 countries over 15 years suggest that participation in GVCs is a significant driver of labour productivity. Backward participation in GVCs, that is, the use of imported inputs to produce for exports, emerges as particularly important. An increase by 10% in the level of GVC participation increased average productivity by close to 1.6%.     

Who skims the cream of the Italian graduate crop? Wage employment versus self-employment

This paper tests whether academic achievement is a significant determinant of employment status in the Italian labor market: are new entrepreneurs selected from the top or bottom end of the graduate ability distribution? Is the cream of the graduate crop pulled into self-employment by the higher expected earnings or are individuals with lower degree score pushed into entrepreneurship by poor alternatives? Our data show a strong negative relation between academic achievement and self-employment status, i.e., we find skimming of the best graduates into wage and salary work.     

A transformative service research agenda: a study of workers’ well-being

Interest in workers’ well-being is mounting – a key driver being the growing recognition that well-being is linked to performance. Utilizing a transformative service research (TSR) agenda, this study examines how people management practices impact the well-being of hospitality and retail workers. Comparing the experiences of permanent and precarious workers, we find it is not employment practices per se that promulgate feelings of insecurity and inferiority; rather, it is the attributions ascribed to them. This has practical implications. Most notably, some of the deleterious effects of precarious employment might be mitigated where careful attention is paid to the motives underlying an organization’s people management practices. Theoretically, TSR offers a more expansive lens for understanding the social exchange occurring in both employment relationships and service encounters, thus contributing significantly to knowledge on mutual gains theories. These findings and their implications are discussed in detail in the paper.     

Does FDI increase productivity? The role of regulation in upstream industries

In view of substantial changes having taken place in the regulatory environment and in the light of the increasing role of inter industry linkages, we examine whether the total factor productivity (TFP) growth impact of foreign direct investment (FDI) is determined by regulation in upstream sectors. Econometric estimates illustrate that FDI exerts a positive impact on the growth of OECD industries which slows down as upstream regulation rises. To raise the reliability of our estimates, we use instruments for FDI and regulation that are as free as possible of endogenous association with TFP growth. Our instrumental variable estimates verify that the influence of FDI on TFP growth depends negatively on the level of upstream regulation. Non‐parametric estimates confirm that the highest impact of FDI takes place at the lowest levels of entry regulation and public ownership.     

Black–White gap in self-employment. Does intra-race heterogeneity exist?

Past research on the determinants of self-employment in the United States has emphasized the importance of ethnicity. In particular, self-employment rates for Blacks lag far behind those of other racial groups for comparable individuals. This research examines two related issues: Does the dummy variable coefficient associated with the Black–White self-employment gap exhibit intra-race heterogeneity? Second, does this variable have diminished or increased impact across generations? We decompose the sample into subgroups and find that the size of the Black–White self-employment gap varies within subgroups of African-Americans.     

Does playing a video game really result in improvements in psychological well-being in the era of COVID-19?

This study examines the structural relationships between the perceived value dimensions of quality, emotional, price, and social, positive and negative emotions, psychological well-being, and loyalty in the video game context along with the moderating role of the perceived severity of COVID-19. This study collected data from 258 video game consumers in the United States via three waves of surveys. The findings of structural equation modeling revealed significant associations among the perceived value dimensions, emotions, psychological well-being, and loyalty. In addition, the moderating role of the perceived severity of COVID-19 showed that the impact of video game consumers' positive emotions on psychological well-being would be weaker with a high level of perception of the severity of COVID-19. Based on the empirical results, this research proposes theoretical (i.e., extension of the cognitive appraisal theory in a digital environment, and integration of the cognitive appraisal theory with the two-factor theory of motivation) and practical implications (i.e., how to increase levels of users’ psychological well-being and loyalty via video games) for the video game industry during and after the era of COVID-19.     

Does shelf-labeling of organic foods increase sales? Results from a natural experiment

Can a simple point-of-purchase (POP) shelf-label increase sales of organic foods? We use a random-effects׳, random-coefficients׳ model, including a time adjustment variable, to test data from a natural experiment in a hypermarket in Gävle, Sweden. Our model incorporates both product specific heterogeneity in the effects of labeling and consumer adjustment to the labels over time. We find that the introduction of POP displays leads to an increase in sales of organic coffee and olive oil, but a reduction in sales of organic flour. All targeted products became less price-sensitive. The results reveal that product specific differences have to be accounted for, and in some cases consumers adjusted to labeling over time.     

Longing for the past and embracing the new: Does nostalgia increase new product adoption?

Existing research has mostly focused on the salutary impact of nostalgia on nostalgia-related products (e.g., childhood products, classic brands). The current research examines whether this effect can extend to nostalgia-unrelated products: new products. We demonstrate that nostalgia fosters social support, which in turn encourages consumers to adopt new products, and this effect is weakened when individuals have independent self-construal. Three studies provide support for these predictions. Study 1 revealed that nostalgia increases new product adoption. Study 2 demonstrated that this positive effect of nostalgia on new product adoption is mediated by social support. Study 3 showed that this salutary effect occurs only when consumers’ interdependent self is activated. The marketing implications of these findings are discussed.

     

Does economic globalisation affect income inequality? A meta-analysis

A large volume of econometric literature has studied the impact of economic globalisation on income inequality around the world. However, reported econometric estimates vary substantially, which makes it difficult to draw valid conclusions. This paper presents a quantitative summary and analysis of existing estimates regarding the globalisation–inequality relationship. We use a new data set consisting of 1,254 observations from 123 primary studies. By applying meta-analysis and meta-regression methods, we obtain several main findings. First, globalisation has a (small-to-moderate) inequality-increasing effect. Second, while the effect of trade globalisation is small, financial globalisation shows a more sizeable and significantly stronger inequality-increasing impact. Third, we find an average inequality-increasing impact of globalisation in both advanced and developing countries. Fourth, education and technology moderate the impact of globalisation on income inequality.     

Does transparency influence the ethical behavior of salespeople?

This study introduces the concept of perceived salesperson transparency to the sales literature. It addresses how recent technological developments impact traditional agency theory concerns, while simultaneously creating a conceptual definition of perceived transparency for application on an individual level. Salesperson perceptions regarding managerial use of behavioral information obtained through technological means are empirically found to have a mediating effect on the relationship between managerial access to such information and the likelihood of unethical salesperson behavior. It concludes that salesperson ethical behavior is not influenced by management's ability to obtain behaviorally relevant information, but rather by the use of this information. Further, it is found that the mediating influence of use of information accessed via technology is itself moderated by the salesperson's job performance.     

Morality or economic interest? The impact of moral motives and economic factors on the purchase of fair trade groceries

In this article, we compare the impact of moral motives and economic factors on the purchase of fair trade groceries. Moral motives are measured by three different constructs, which are derived from different theoretical perspectives: one from the classical theory of attitude, one from the subjectively expected utility theory and one from the norm‐activation model. The empirical results of the analysis show that moral motives as well as economic factors are important determinants for explaining the purchase of fair trade groceries. Furthermore, the study indicates that the impact of moral motives is greater than that of economic factors, and among the moral factors, the personal norm is especially explanatorily powerful.     

Who are the essential and frontline workers?

Business Economics - Identifying essential and frontline workers and understanding their characteristics is useful for policymakers and researchers in targeting social insurance and safety net...     

Does tipping help to attract and retain better service workers?

A survey of several hundred restaurant servers in the United States found that servers’ attitudes toward working for tips and average tip sizes were weakly related (at best) to their service-orientation, intended job-tenure, and occupational-tenure. These findings suggest that tipping does not substantially help to attract and retain more service-oriented workers. Restaurateurs can eliminate tipping at their restaurants without fear that doing so will reduce the quality of their wait-staff.     

Does the inflation rate affect the performance of the stock market? The case of Egypt

The intention of this paper is to examine the impact of the inflation rate on the performance of the Egyptian stock market. Particular attention is paid to the effects of the rate of inflation on various stock market performance variables, in terms of market activity and market liquidity. From the co-integration analysis through error correction mechanisms (ECM), significant long-run and short-run relationships between the variables are found, implying that the inflation rate has had an impact upon the Egyptian stock market performance generally.