Work–life balance in the EU and leave arrangements across welfare regimes

Work–life balance has been a central theme of the EU gender equality framework and has been promoted through both ‘hard’ and ‘soft’ components. Although the EU concern in promoting work–life balance has been more to increase employment and economic productivity than to promote gender equality, all Member States have now established standards in accordance with the EU regulations. Statutory leave arrangements are a key component of work–life balance policies and they vary significantly across Member States with different welfare regime traditions. This study examines the transposition of EU Directives and the implications of the European Employment Strategy for leave arrangements across the UK, Denmark, France and Spain as exemplars of four welfare regimes.     

Understanding the Cyclical Nature of Financial Intermediation Costs

Intermediation costs (i.e., all noninterest bank expenses) are counter‐cyclical and their changes have significant effects at the country‐level; however, the literature is silent on what drives their cyclicality. Previous studies have examined costs using cross‐sectional or low frequency data and thus cannot capture dynamic macroeconomic effects across time. We fill this gap by examining U.S. intermediation costs using a quarterly, bank‐level dataset from 1993 through 2012. This data set allows for the separation of microeconomic and macroeconomic factors affecting the cyclicality of costs. The analysis shows that house prices are the main driving source of this counter‐cyclicality. Because housing is used as collateral, a price decline leads banks to increase their operating costs for monitoring, screening and litigation costs which cause a credit crunch in the economy.     

FOREIGN DIRECT INVESTMENT AND ENVIRONMENTAL REGULATIONS: A SURVEY

This paper presents a survey of the literature on the relationship between foreign direct investment (FDI) and environmental policy. First, I focus on empirical studies that analyse the impact of environmental costs on foreign investment locations. Next, I review the main studies that attempt to explain the lack of evidence for the pollution haven hypothesis. Then, I discuss the literature on the impact of FDI on local environmental regulations by concentrating on two recent political economy models. Finally, I conclude by summarizing the main findings of the literature and suggesting some future research directions.     

State Dependence in Poverty: The Case of Turkey

Despite poverty alleviation efforts, almost a quarter of households live below the poverty line in Turkey. This article aims to examine the dynamics of poverty focusing on poverty persistence in Turkey, utilizing Income and Living Conditions panel data belonging to 2010–2013. A random effects dynamic panel probit model has been employed. In order to tackle the initial values problem Heckman’s reduced form approximation is utilized. Empirical results indicate that gender, educational attainment, employment type, and household structure have statistically significant impact on the probability of being poor. Besides, experiencing poverty has a positive impact on future poverty likelihood, signalling state dependence.     

Capital and Risk Revisited: A Structural Equation Model Approach for Life Insurers

The role of risk in the capital structure decision of firms is a vast topic in finance. Commonly, models of the interrelationship between risk and capital enumerate as many risk factors as possible by appropriate proxies, with the goal of detailing their individual effects. In this study of the life insurance industry for 1994 through 2000, we take a broader, holistic view of enterprise risk, identifying two groups of insurer risk factors that arise from the major activities of life insurers: investing and underwriting. We call the group of risk factors associated with investing asset risk, and the group associated with underwriting product risk. After specifying other important determinants of capital structure as controls, we allow all other risk factors to find expression in residual error. Within this framework, our focus is to compare two candidate measures for the role of proxy for asset‐related risks. One measure, called regulatory asset risk (RAR), derives from the regulatory tradition of concern with solvency and is related to the C‐1 component of risk‐based capital. The other measure, called opportunity asset risk (OAR), is motivated by traditional finance concerns with market risk and reflects volatility of returns. Product‐related risks are proxied by underwriting exposures in different product lines. We employ structural equation modeling (SEM), which uses longitudinal factor analysis. SEM is an innovative technique for such studies, in dealing effectively with multiple structural equations, autocorrelated panel data, unobserved underlying factors, and other issues that are not simultaneously addressed in other methodologies. We find that RAR and OAR are not equivalent proxies for asset risks. Although overlapping to some extent, each illuminates different aspects of the asset risk–capital interrelationship. In particular, RAR does not seem to affect the capital structure decision of small firms, although OAR does. We interpret this to suggest that small firms as a whole are not as sensitive in their capital decisions to the proxy of regulatory concerns as to the proxy of market opportunity. This contrasts with large insurers, for whom both RAR and OAR have significant effects on capital that comport with the finite risk hypothesis. More detailed analysis suggests that the lack of effect of RAR for small insurers may result from RAR's proxying some factors that induce finite risk for part of the small insurer sample, and other factors that favor the excessive risk hypothesis.     

Capitalist development in hostile conjunctures: War,dispossession, and class formation in Turkey

This article analyses how periods of geopolitical conflict and violence have affected the development of capitalism and class formation in Turkey. We argue that all major episodes of conflict, violence and war—from forced displacement and ethnic cleansing of the non‐Muslims in the late 19th and the early 20th century, to Kurdish secessionist warfare in the 1990s and the Syrian Civil War—have become major historical turning points in the development of historical capitalism in Turkey. These “hostile conjunctures” transformed capitalism through their direct and indirect effects on dispossession, class formation, and capital accumulation. Although each of these conflicts produced a violent dispossession process, none of them resembled the rural dispossession process in England. To make sense of Turkey's experience, we turn our attention to what we call the “Castilian/Spanish road,” and what Lenin called the “Junker/Prussian road” and the “farmers/American road.” Our analysis shows that these differential paths of dispossession, class formation, and capital accumulation have produced highly variegated rather than uniform outcomes. We conclude that we are living in a new “hostile conjuncture,” which is pregnant to a major structural crisis and is generating the preconditions of another historical transformation in the way capitalism operates.     

An integrative approach to relationship marketing,customer value,and customer outcomes in the retail banking industry: a customer-based perspective from Turkey

Given how important it is to provide superior value to customers and to maintain customer loyalty for a sustainable competitive advantage, the aim of this paper is to examine the relationships among relationship marketing components of – trust, competency, commitment, communication, and conflict handling, – relationship investment, relationship quality, perceived customer value, satisfaction and loyalty in an integrated framework in the Turkish retail banking industry. Unlike previous studies, this research extends the literature by analysing affective as well as cognitive dimensions in the same model with a holistic view by simultaneously examining the direct and indirect effects of the related concepts. The distinctive nature of this study is its evaluation of customer satisfaction and loyalty from the perspective of actual consumers. The research model was tested using data collected from 685 retail banking customers by applying structural equation modelling. The findings show that relationship marketing induces loyalty through relationship quality, customer value, and satisfaction, which are mainly provided by trust, communication, and relationship investment. Furthermore, relationship investment and relationship quality are the most important factors in the development of customer value, satisfaction, and loyalty. The emotional value dimension, which captures the affective aspects of perceived value, has the strongest effect on both satisfaction and loyalty.