Does the Life Course Savings Scheme Have the Potential to Improve Work–Life Balance?

To improve individuals' work–life balance, trade unions, employers' organizations, governments and the European Commission currently promote a life course perspective in activating labour market policies. In 2006, the Life Course Savings Scheme (Levensloopregeling) was introduced in the Netherlands, which aims to increase labour participation and to improve the work–life balance over the life course. What can we learn from the Dutch case? In 2006, actual participation in the scheme was with 6% much lower than expected. Participation rates were higher among males, full timers, older employees, the higher‐income groups and persons with a partner. However, our multivariate analyses of data for over 500,000 civil servants show that the higher participation rates of males, full timers and older employees are related to the higher earnings of these groups, and that after control for earnings, participation is higher among females, part timers and the young. This indicates that the scheme has a potential to contribute to the work–life balance over the life‐cycle.     

Educational travel: The Overseas Internship

An important objective of educational travel programs is to teach students how to bridge cultural distance. Research remains inconclusive to what extent and under what circumstances students actually learn from educational travel experiences. This paper examines the influence of cultural distance on the perceived learning effects of the overseas internship, specifically cross-cultural competencies and management skills. It is shown that asymmetric cultural distance and psychic distance have a negative relationship with the perceived learning of management skills and interaction with locals. Students traveling to low-income countries in Sub-Saharan Africa and South Asia in particular tend to face difficulties.     

HRM implementation by multiple HRM actors: a social exchange perspective

Abstract

In this study, we understand HRM implementation as a social process that depends on the social exchange relationships between line managers and both HRM professionals and employees. As such, we offer a fresh approach to understanding HRM implementation by concentrating on the social exchange among HRM actors. We do so by investigating to what extent these exchange relationships influence HRM implementation, as reflected in employees’ perceptions of the presence of HRM practices and their affective commitment. We collected multilevel data from two sources (line managers and employees) and in two phases in a Dutch engineering firm, and obtained fully matched manager – employee information from 75 employees and 20 line managers. Our results show that employees perceive a larger number of HRM practices when they have a good relationship with their line managers and when their line managers are motivated to implement HRM practices. Line managers, in turn, reciprocate perceived support from the HRM department with greater motivation to implement these practices. We conclude that because HRM actors engage in social interactions, HRM practices will be implemented at the organizational level because employees perceive the presence of HRM practices and then reciprocate this with affective commitment.     

Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications

Recent advances in evolutionary theory have important implications for environmental economics. A short overview is offered of evolutionarythinking in economics. Subsequently, major concepts and approaches inevolutionary biology and evolutionary economics are presented andcompared. Attention is devoted, among others, to Darwinian selection,punctuated equilibrium, sorting mechanisms, Lamarckian evolution,coevolution and self-organization. Basic features of evolution, such assustained change, irreversible change, unpredictability, qualitativechange and disequilibrium, are examined. It is argued that there are anumber of fundamental differences as well as similarities betweenbiological and economic evolution. Next, some general implications ofevolutionary thinking for environmental economics are outlined. This isfollowed by a more detailed examination of potential uses ofevolutionary theories in specific areas of environmental economics,including sustainability and long run development theories, technologyand environment, ecosystem management and resilience, spatial evolutionand environmental processes, and design of environmental policy.     

Subsidizing R&D Cooperatives

A framework is developed with which the implementation of two commonly used R&D-stimulating policies can be evaluated: providing R&D subsidies and sustaining the formation of R&D cooperatives. Subsidized R&D cooperatives can also be analyzed. The analysis shows that providing R&D subsidies is more effective in raising private R&D investments than sustaining R&D cooperatives. Moreover, optimally subsidizing cooperative R&D or noncooperative R&D leads to the same level of R&D activity. Sustaining R&D cooperatives thus appears to be a redundant industrial policy, all else equal.     

Operationalising a resilience approach to adapting an urban delta to uncertain climate changes

Climate change may pose considerable challenges to coastal cities, particularly in low-lying urban deltas. Impacts are, however, associated with substantial uncertainties. This paper studies an uncertainty-robust adaptation strategy: strengthening the resilience of the impacted system. This approach is operationalised for the city of Rotterdam, using literature study, interviews, and a workshop. Potential impacts have been explored using national climate statistics and scenarios and a set of ‘wildcards’ (imaginable surprises). Sea level rise, particularly in combination with storm surge, and enduring heat and drought are the most relevant potential stresses in the area. These can lead to damage, loss of image, and societal disruption. Unclear responsibilities enhance disruption. ‘Resilience principles’ made the concept of resilience sufficiently operational for local actors to explore policy options. Useful principles for urban resilience include: homeostasis, omnivory, high flux, flatness, buffering, redundancy, foresight and preparedness/planning, compartmentalisation, and flexible planning/design. A resilience approach makes the system less prone to disturbances, enables quick and flexible responses, and is better capable of dealing with surprises than traditional predictive approaches. Local actors frame resilience as a flexible approach to adaptation that would be more suitable and tailored to local situations than rigid top-down regulations. In addition to a change in policy, it would require a more pro-active mentality among the population.     

An EM algorithm for the estimation of parametric and nonparametric hierarchical nonlinear models

It is shown how to implement an EM algorithm for maximum likelihood estimation of hierarchical nonlinear models for data sets consisting of more than two levels of nesting. This upward–downward algorithm makes use of the conditional independence assumptions implied by the hierarchical model. It cannot only be used for the estimation of models with a parametric specification of the random effects, but also to extend the two-level nonparametric approach – sometimes referred to as latent class regression – to three or more levels. The proposed approach is illustrated with an empirical application.     

Internal cartel stability with time-dependent detection probabilities

To account for the illegal nature of price-fixing agreements, per-period detection probabilities that can vary over time are introduced in a dynamic oligopoly. The resulting ICCs for internal cartel stability indicate that for discount factors up to 10% per-period detection probabilities of 5% are needed to reduce the number of cartel members by 50%. For the special case of stationary supergames with constant per-period detection probabilities p elegant rules emerge: internal cartel stability requires the discount factor to increase with 100 × p / (1 − p) percent while a fixed fine of 100 × (1 − p) / p percent of incremental cartel profits is required for making the ICC always binding.     

“Hot Hands” in bond funds

We investigate persistence in the relative performance of 3549 bond mutual funds from 1990 to 2003. We show that bond funds that display strong (weak) performance over a past period continue to do so in future periods. The out-of-sample difference in risk-adjusted return between the top and bottom decile of funds ranked on past alpha exceeds 3.5 percent per year. We demonstrate that a strategy based on past fund returns earns an economically and statistically significant abnormal return, suggesting that bond fund investors can exploit the observed persistence. Our results are robust to a wide range of model specifications and bootstrapped test statistics.     

Laboratory evidence on the effectiveness of corporate leniency programs

The number of cartels detected in the United States and in Europe has increased considerably since the introduction of corporate leniency programs in antitrust legislation. It cannot, however, be ruled out that this apparent success results in part from increased cartel activity. We explore the effects of corporate leniency programs on pricing and cartel activity by use of an experiment. We find that in the lab (i) fewer cartels are established when a leniency program is in place, and (ii) cartels that do exist are less successful in charging prices above the static Nash equilibrium price and have lower survival rates.