Public–private wage gap in Latin America (1992–2007): A matching approach

Using matching methods, we estimate the public–private wage gap for urban workers in eleven Latin American countries for the 1992–2007 period. These methods do not require any estimation of earnings equations and hence no validity-out-of-the-support assumptions; furthermore, this approach allows us to estimate not only the average wage gap but also its distribution. Our main findings indicate that the average public sector worker earns more than his/her private counterpart, and that this differential increased over the 1992–2007 period. Important differences along the wage distribution are also shown in the results; in fact, public servants in the highest percentiles of the wage distribution generally earn less than their private sector equivalents. Nonetheless, the percentile at which a positive wage gap becomes a wage penalty shifted over the period as the average wage gap experienced by most countries widened. Still, the most qualified public sector workers do face a wage penalty. Furthermore, indicators of government effectiveness show no relationship with the country ranking according to the public–private wage gap.     

The US debt–growth nexus along the business cycle

We use the US data gathered by Reinhart and Rogoff (2010) to assess whether debt affects economic growth differently at different phases of the business cycle. In order to do that, we extend the threshold regression model of Chudik et al. (2017) and propose a new threshold quantile ARDL regression model. Our results show that to stimulate growth policy makers can manage the debt/GDP percentage according to how well the economy is doing. The estimated quantile thresholds (range 31–53 per cent) are larger than the one found by Lee et al. (2017) using median regressions, but still (much) smaller than the 90 per cent of Reinhart and Rogoff. In particular, when the US economy observes growth rates above their median value, that is when a smaller debt-to-GDP threshold affects the performance of the economy. In a steady-state situation, in general, regardless of the position of the business cycle and whether the debt-to-GDP ratio is below or above its threshold effect, less debt as a percentage of GDP boosts the US growth. Remarkably, this effect was always greater before than after World War II. Moreover, the most recent decades have witnessed the negative (positive) effect of more (less) debt when the economy had growth rates at their first quartile (median and third quartile). That is, the US policy makers are advised to reduce the debt-to-GDP ratio during expansions to promote growth.     

Public–private partnerships: lessons from the British approach

British governments have for many years sought to move activities from the public to the private sector. For the past decade, this has included the provision of public services not only operated but also financed by the private sector. In 2000, these private finance initiative (PFI) projects were incorporated into a wider programme of public–private partnerships (PPPs). Compared to conventionally financed procurement, the PFI approach has brought both benefits and costs. The balance of advantage is often unclear, and at the strategic level the main drivers appear still to be ideology and accounting. However in its practical application many useful lessons have been drawn and applied.     

Public infrastructure provision and skilled–unskilled wage inequality in developing countries

In this paper, we develop several static three-sector general equilibrium models with diverse labor market structures to investigate the effects of government provision of public infrastructure on the skilled–unskilled wage inequality in developing countries. The basic full employment model shows that the production sectors' relative dependence on the public infrastructure provision plays a crucial role in determining the skilled–unskilled wage inequality. Different relative dependences on public infrastructure may even result in opposite changes in the skilled–unskilled wage inequality. The above results are robust even when we extend the basic full employment model to three fundamentally different cases.     

Firm–bank credit network,business cycle and macroprudential policy

We present an agent-based model to study firm–bank credit market interactions in different phases of the business cycle. The business cycle is exogenously set, and it can give rise to various scenarios. Compared to other models in this literature strand, we improve the mechanism according to which the dividends are distributed, including the possibility of stock repurchase by firms. In addition, we locate firms and banks over a space and firms may ask credit to many banks, resulting in a complex spatial network. The model reproduces a long list of stylized facts and their dynamic evolution as described by the cross-correlations among model variables. The model allows us to test the effectiveness of rules designed by the current financial regulation, such as the Basel III countercyclical capital buffer. We find that the effectiveness of this rule changes in different business cycle environments and this should be considered by policy makers.

     

Public and private healthcare services: What drives the choice?

This paper has explored patients' propensity to consume private healthcare services. We based our analysis on the typical tangible and intangible (for instance, responsiveness, reliability, assurance and staff empathy) domains of the SERVQUAL and SERVPERF methods. These variables may influence patients' decision-making when they choose between the public and private sectors. We combined factor analysis (to obtain a set of latent factors related to perceived quality) and a partial proportional ordered logit model to estimate the probability that a patient would access private healthcare services. To test the main hypotheses, we used data from a stratified sample in Sardinia, a peripheral region of Italy. Findings revealed that private and public healthcare are substitutes, especially for primary/specialised services. Patients who used public healthcare frequently and had a low income were unlikely to change to private healthcare or to recommend private services. ‘Responsiveness’ and perceptions on ‘tangibles’ were key in determining the probability that a patient would choose and recommend private services. This paper offers a multifaceted framework that can be used in future research to generalise these findings, especially in insular regions that are constrained by mobility.     

Public–private partnership in Public Administration discipline: a literature review

Public–private partnerships (PPPs) have become popular tools to deliver infrastructure and public services around the world. As an innovative public procurement approach, PPPs have drawn considerable attention from academic circles. In order to enhance our knowledge of PPPs, the authors conducted a systematic literature review of articles published in international journals of the Public Administration (PA) discipline. Four main topics in this discipline are identified by means of social network analysis, including PPP concept, risk sharing amongst PPP participants, the drivers of PPP adoption, and PPP performance. Seven propositions about the four topics are summarized. Directions for future research are also considered.     

Templates for financial control? Management and employees under the private equity business model

The term ‘private equity business model’ (PEBM) refers to private equity investors that delist publicly quoted firms, managing them as private equity‐controlled portfolio firms. But how and in what form do these investors diffuse a preferred template for the PEBM in portfolio firms? Is diffusion codified, institutionalised or merely tacit? What is the difference between these forms of diffusion? As a method of financial control, how is diffusion evident for managers and workers? Theoretically, while ‘financialisation’ is a contemporary pressure on the British economy, there is a ‘disconnection’ between competitive pressures for financialisation and the diffusion of practices to manage these pressures in portfolio firms. Forty‐two interviews in eight portfolio firms and five associated private equity firms concludes that potentially transformative and decisive restructuring for managers and workers is more evident than a defined template.     

An artificial Wicksell–Keynes economy integrating short-run business cycle and long-term cumulative trend

Journal of Economic Interaction and Coordination - Economists have investigated how price–wage rigidity influences macroeconomic stability. A widely accepted view asserts that increased...     

Public Money and Mickey Mouse: Evaluating performance and accountability in the Hong Kong Disneyland joint venture public–private partnership

Abstract

Joint venture public–private partnerships (PPPs) allow partners to share in the risks and rewards of joint production. But the literature offers little theoretical guidance on assessing performance and accountability in this type of PPP. This article fills this gap by examining joint ventures as PPPs and formulates a comprehensive performance evaluation framework. Its application to the case of Hong Kong’s Disneyland Resort reveals a project that has endured several challenges related to achieving objectives, ensuring cooperation among partners, and upholding principles of democratic accountability. Outcomes from this study offer new insight into an underexplored aspect of PPP research.     

HRD practices in local private sector companies and MNC subsidiaries in Australia, 1996–2009

This study charts human resource development (HRD) practices in locally owned private sector companies (APS) and subsidiaries of overseas-headquartered multinational companies (MNCs) located in Australia from 1996 to 2009.Using data from three iterations of the CRANET Australia survey, the research analyses the degree of difference between APS and MNCs, tests whether HRD practices are increasing in sophistication and if there is convergence or divergence between the two groups. The influence of company size and industry category is also explored as separate independent variables. The results suggest a decreasing overall level of HRD sophistication, that MNC subsidiaries are generally operating at a higher level of sophistication than APS companies and that there is directional, but not final, convergence.     

A relational view of climate adaptation in the private sector: How do value chain interactions shape business perceptions of climate risk and adaptive behaviours?

Studies exploring climate change adaptation in the private sector have seldom investigated the effect of business network interactions on climate vulnerability and adaptation outcomes. This paper proposes a novel theoretical framework to explore how business–network dynamics affect risk perceptions and adaptive behaviours in business firms. The framework is empirically grounded in a comparative analysis of business–network dynamics from three agricultural value chains in Jamaica that are vulnerable to climate change impacts. The results illustrate how the exposure, sensitivity, and adaptive capacity of value chain actors are influenced by business interdependencies and interfirm relationships. We find that the level of formality of business exchanges (contractual or noncontractual), the level of resource interdependency, and the ability to diversify access channels to critical resources can influence the propagation of climate‐related risks and influence actors' exposure and sensitivity to those risks. The study also offers evidence of the role played by bonding and bridging relational ties on adaptive capacity. The framework and findings provide a foundation for a new research agenda exploring a relational view of firm adaptation strategy in response to climate risks.     

Institutional tensions and private sector promotion in Tanzania: whose agenda?

This paper examines the current phase of transition of Tanzania's economy from state-led to market-led development, and considers the impacts of this transition on technological capabilities. The focus is on the different agendas and practices which surround private sector promotion in Tanzania, and examines these from the viewpoint of three sets of actors: the state, aid donors and the private sector itself. It is argued that while there is a consensus that private sector promotion is the way forward for Tanzania to rebuild its industrial and technological base, there are differences of opinions between the main players and there are differences between what is said (the agendas) and what is done (the practice). Historical enmities and distrust between sections of the private sector also contribute to these differences. The conclusion identifies a possible emerging consensus and new alliances between African and Asian Tanzanian business interests that can have a positive impact on technological capabilities and industrial renovation.     

Self-employment and business cycle persistence: Does the composition of employment matter for economic recoveries?

Self-employment comprises an important share of employment in many countries, and tends to expand during downturns through higher inflows from unemployment. Furthermore, countries with higher self-employment shares exhibit lower cyclical output persistence. I build a business cycle model with frictional labor markets where individuals can be self-employed or salaried employed. I show that economies with larger self-employment shares exhibit faster economic recoveries. Differences in the ease of entry into self-employment as the economy recovers explain the contrasting cyclical dynamics. The model successfully captures the cyclical patterns of self-employment and the relationship between self-employment and output persistence in the data.     

Comparing the impact of leader–member exchange,psychological empowerment and affective commitment upon Australian public and private sector nurses: implications for retention

This study uses Leader–Member Exchange (LMX) theory to test the associations between the supervisor–subordinate relationship, psychological empowerment and affective commitment amongst 1283 nurses working in Australian public and private hospitals. Both qualitative and quantitative data were collected, analysed and presented. The findings show that the quality of LMX is more important in public sector nursing contexts than in the private sector with regard to the relationship between empowerment and affective commitment. Furthermore, the relationship between empowerment and affective commitment is stronger for nurses in public sector organisations with low-quality LMX than for nurses in public sector organisations with high-quality LMX. As empowerment and affective commitment are both predictors of staff retention, the findings can assist in developing targeted current and future retention strategies for healthcare management.     

Public–private innovation: barriers in the case of mobility as a service in West Sweden

Departing from open innovation (OI), this case study explores the development of Mobility as a Service (MaaS) in West Sweden. An analysis of 19 interviews reveals how representatives from involved actors perceive internal and external barriers as hampering the regional public transport authority’s attempts to collaborate with private actors, and that the perception of barriers is incongruent across public and private actors. Transferability to other cases of public–private OI is discussed, and implications for public actors are proposed. The paper expands the knowledge of preconditions for MaaS’ development and of the unique conditions for OI in public–private settings.     

The impact of supervisor–subordinate relationships on morale: implications for public and private sector nurses' commitment

This paper used leader–member exchange theory as a lens for comparing the impact of the supervisor–subordinate relationship on public and private nurses' perceptions of morale and affective commitment. Many countries that are part of the Organisation for Economic Co-operation and Development are experiencing nurse shortages, and this theoretical framework proved insightful into factors contributing to turnover. The findings suggested that private sector nurses are significantly more satisfied with their supervision, enjoy greater morale and are more committed to their organisations. However, both groups were only slightly satisfied with their supervisor–subordinate relationships, implying that present management practices are not ideal for promoting effective workplace relationships. Implications for health-care management are discussed.     

Can you pay employees to innovate? Evidence from the Canadian private sector

Using 7 years of data representing the Canadian private sector, we estimate the effects of the major components of compensation on a rarely studied form of employee performance: innovation. Although there are some limitations inherent in the data, our results indicate the complex motivation required for consistent innovation success. Surprisingly, we find that fixed pay (salary) and individual performance pay have no effect on innovation, while variable group pay and indirect pay (employee benefits) have a positive effect. In other words, our results suggest that you can pay employees to innovate, provided that you select the right compensation incentives.     

The private equity business model and associated strategies for HRM: evidence and implications?

Are private equity firms significant actors in the UK market for corporate control? Do they represent a new organizational form befitting a new business model? What are the direct and indirect pressures on management that flow from the diffusion of this business model and its associated organizational form? In terms of human resource management does acquisition by private equity have a significant or negligible effect? This paper looks at the development and diffusion of private equity and the ‘take private’ private equity business model (PEBM) and the effects of these on the management of HR. In addition to this the paper evaluates the PEBM within comparative institutional approaches to international business and HRM.     

Personnel Formalization and the Enhancement Of Teamwork: A public–private comparison

Formalization has long been regarded as one of the most distinctive features of the public sector. Personnel systems in the public sector are particularly formalized due to merit system protections and strong due process requirements. In much of the contemporary public management literature, personnel formalization implies red tape, referring to excessive rules that bring negative outcomes such as employee frustration. The present study offers an alternative view, suggesting that personnel formalization results in high-performance work practices, particularly teamwork, by ensuring that organizations attract the right employees and provide employees with various protections such as worker safety, procedural justice and conflict resolution. Given that public organizations are structured more formally, public sector employees are more likely to work in teams than their peers in the private sector. The authors test this view by using variables from the National Organization Survey (NOS) data set and find strong statistical support. Therefore, personnel formalization is not necessarily equivalent to red tape and not always detrimental to the public sector. It enhances teamwork, a central element of high-performance work practices.