The long and short of asking questions about income: a comparison using data from Hungary

A lot of research on income mobility and income inequality is based on survey questions about income. Various question formats are being used. Researchers seem to assume that the actual format used delivers the best estimate of the “true” income. However, surprisingly little empirical support is available for this claim. We implemented an experimental design using the short and long versions of income questions in a Hungarian survey. Results show an overall positive difference between the long and short version. The differences are related to the income components (wages and salaries, transfers, and assets), and respondent characteristics, controlling for the effect of the order of the two versions of income questions. Based on the results, we provide some recommendations for implementing income questions in surveys.     

Networks,weak signals and technological innovations among SMEs in the land-based transportation equipment sector

On apprend plus par la conversation des Doctes,

que par la lecture de leurs livres

Les épistres de Seneque

Translation by François de Malherbe,

Paris, Anthoine de Sommaville, 1639, p. 21

Small and medium-sized enterprises, because of their limited resources, use a variety of sources and are linked to different networks to obtain the information they need to develop their strategy and then to gradually organize their environment. Among other things, networks keep them up-to-date with changes in the economy and allow them to take advantage of opportunities to innovate, thus remaining ahead of their competitors. The networks – personal or business – with which these firms interact the most are usually geographically or sociologically close by, embedded in the environment, and are known as strong tie networks. They generally supply signals in a familiar language, based on habit as well a good reciprocal knowledge, which are easy to understand. In addition to this, however, the most dynamic firms also have contacts with weak tie networks, which are further removed from the usual behaviours of entrepreneurs and provide weak signals that, while difficult to grasp and decode, nevertheless offer new, pre-competitive information that can support major innovations. Very little empirical research has been done so far to test the probability of this theory. This paper reports on the results of a survey involving 147 SMEs, all in the land-based transportation equipment sector. It confirms the importance of weak tie networks as opposed to other types of networks, recognizing their complementary contribution to technological innovation. The organization's absorptive capacity is also found to be a significant intermediary factor in taking advantage of weak tie networks.     

Factors shaping the international knowledge connectivity of industrial clusters: a comparative study of two Latin American cases

Abstract

Recent research has emphasized that success of industrial clusters is not only driven by intra-cluster knowledge sharing (‘local buzz’) but also by externally sourced knowledge (‘global knowledge pipelines’). This article examines the factors that determine the channels through which clusters connect with global knowledge pipelines depending on the structure of the global value chain within which they are inserted, their knowledge base and their stage of evolution. Building on a comparative case study of the salmon farming cluster in Chile and the software cluster in Costa Rica, we adopt an evolutionary perspective based on historical analysis to better understand how the configuration of clusters’ international knowledge linkages shifts over time. Our findings suggest that (i) the more hierarchical the global value chain structure, the less room for knowledge co-creation between local and foreign actors; (ii) clusters relying on analytical knowledge bases opt for more formal and coordinated links with high involvement of public actors, whereas in clusters relying on synthetic knowledge bases, international knowledge interaction is based on less formal links mainly between business actors; and (iii) as clusters evolve the channels through which they connect with foreign knowledge increase in number and new ‘hybrid’ varieties develop.     

Home alone and often unprepared – intercultural communication training for expatriated partners in German MNCs

This article reports the results of a study of partners who accompany the expatriated representatives of multinational corporations (MNCs) on overseas missions and identifies that they are mostly home alone and often unprepared. Following a review of the literature on issues related to expatriated partners, in particular intercultural communication training (ICT), the article presents the findings of empirical research conducted in Germany on current ICT trends for expatriated partners. The study identifies the ICT methods German MNCs use to support these partners before and during international assignments. The authors surveyed 141 German expatriated partners who went on overseas missions to 36 countries. The results of this research project indicate that traditional ICT is only provided to the minority of partners in German MNCs, follows no predictable time pattern, and is mostly perceived as rather useless by participants. Particular attention is paid, however, to the target culture in the ICT design. Non-traditional ICT methods, such as Look-&-See Trips, are rather generously taken advantage of.     

Challenged and satisfied: the role of organisational ownership and employee involvement

Abstract

This study aims to offer a more fine-grained approach to our understanding of the relationship between job stress and job satisfaction. Building on organisational theory and Job Demand-Control model, we investigated an important institutional characteristic – organisational ownership – as an additional moderator to influence the interactive effects of job demands and control upon job satisfaction. Using data collected from 1838 Chinese retail sector employees, we found that this three-way interaction was strongest for employees working in foreign-invested firms, who experienced higher employee involvement at work and perceived a high level of challenge-related stress. The relationship was weakest for employees in state-owned enterprises who reported low levels of both employee involvement and challenge-related stress. Our study constitutes an early attempt to assess the impact of institutional characteristics such as ownership on aspects of human resources management, and highlights the need for further research to recognise the importance of such characteristics as contextual factors that influence the effect of organisational practices and the work environment upon individual work-related outcomes. The paper’s concluding sections elaborate on the contributions our research makes both to theory as well as to the practicalities faced by human resource managers in contexts such as China.     

Human resources professionals and the cost/benefit argument: rational persuasion in action in municipal organizations

Abstract

This study examines the use of the cost/benefit argument by human resources professionals in municipal sector organizations. The analysis compares their approach to the social influence exercised by line managers. Drawing from critical incidents generated from in-depth interviews, the results suggest that human resources professionals and line managers use the cost/benefit argument in much the same way with greater use of the weak form. Both groups exert influence through rational persuasion in the form of ‘light’ financial arguments. A second wave of data collection was initiated to add the perspective of city managers relative to the use of this form of rational persuasion by human resources professionals and public works managers. Content analysis of the interviews conducted with city managers was revealing of different views of the public works and human resources departments, suggesting that the use of the stronger form of the cost/benefit argument by human resources professionals may actually be associated with lower influence capability.     

Training policy and organisational performance in the Spanish hotel industry

There is currently a general agreement about the importance of training as a tool to help companies in the development of sustainable competitive advantages based on their human resources. Staff qualification is not an option in the tourism industry; human capital training actually becomes a determining factor to be able to achieve a differential positioning within the sector. In Spain, where the tourism sector is a strategic element, it becomes essential to analyse the training policy applied by tourism enterprises with the aim of assessing its quality and effectiveness. The objective sought in this study is to identify the main factors related to training policy that have an impact on performance. The study carries out an empirical research into the effects that training practices cause on performance levels in the Spanish hotel industry using a sample of 110 hotels.     

Optimal fiscal policy in the Uzawa-Lucas model with CES production

This paper devises an endogenous growth model with human capital in the Uzawa-Lucas framework in which the average human capital has a positive external effect on the goods sector. Unlike previous works, this paper assumes that output is produced with a CES technology and analyzes the existence, uniqueness, and stability of equilibrium. Also, a fiscal policy is devised that is capable of providing the required incentives to optimize the competitive equilibrium. In order to correct the market failure caused by the externality, the authors introduce a subsidy to human capital and analyze how it can be financed in an optimal way. Some simulation results are presented.     

THE ROLE OF SUPPLY CONSTRAINTS IN MULTIPLIER ANALYSIS

Multiplier analysis based upon the information contained in Leontief's inverse is undoubtedly part of the core of the input–output methodology and numerous applications and extensions have been developed that exploit its informational content, both at the national and regional levels. Nonetheless there are some implicit theoretical assumptions whose policy implications need to be assessed. This is the case for the ‘excess capacity’ assumption, which implies that resources are available as needed to adjust production to new equilibrium states. In an actual economy, however, new resources are often scarce and always costly. When supply constraints intervene, the assessment of the effects of government demand policies may be substantially different from that of the standard Leontief multiplier matrix. Using a closed general equilibrium model that incorporates supply constraints, we perform some simple numerical exercises and proceed to derive two ‘constrained’ multiplier matrices, based upon the implicit Jacobian matrix, that can be compared with the standard ‘unconstrained’ Leontief matrix.     

The ‘recession-push’ hypothesis reconsidered

The relationship between unemployment and self-employment has been studied extensively. Due to its complex, multifaceted nature, various scholars have found a large array of different results, so that the exact nature of the relation is still not clear. An important element of the relation is captured by the recession-push hypothesis which states that in times of high unemployment individuals are pushed into self-employment for lack of alternative sources of income such as paid employment. We make two contributions to this literature. First, we argue that official unemployment rates may not capture the ??true?? rate of unemployment as it does not include ??hidden?? unemployed who are out of the labour force. Therefore, we propose a new method where the ??recession-push?? effect relates not only to the (official) unemployed but also to the inactive population. Second, we argue that the magnitude of the recession-push effect is non-linear in the business cycle, i.e. the effect is disproportionally stronger when economic circumstances are worse. We provide empirical support for our hypotheses by estimating an econometric model on Spanish data.