Examining the Draw of Diversity: How Diversity Climate Perceptions Affect Job‐Pursuit Intentions

Organizations must target talented applicants, who will often be demographically diverse, to attract the most competent and competitive workforce possible. Despite the bottom‐line implications of attracting the best and brightest, surprisingly little is known about how and why diversity recruitment strategies affect recruitment outcomes (e.g., job‐pursuit intentions). To gain insight into this question, we conducted an initial experimental study (N = 194) to test the premise that other‐group orientation moderates the relationship between perceived organizational value of diversity and job‐pursuit intentions. In a follow‐up experiment (N = 255), identity affirmation was examined as the mediating mechanism for the interaction observed in the first study. Mediated moderation analyses supported the proposed model. Collectively, the studies indicate that job seekers high in other‐group orientation are more intent on pursuing employment with organizations deemed to value diversity because they feel that their salient identities are likely to be affirmed. No such indirect effect is present for those lower in other‐group orientation.     

Just‐cause provisions,severance pay,and the efficiency wage hypothesis

A simple model of employment contracting is employed to examine the effectiveness of just‐cause provisions in alleviating employer opportunism in two types of efficiency wage contracts—standard contracts, in which wages exceed the worker's marginal contribution, and deferred wages, which are paid after a period of tenure in the firm. It is argued that just‐cause employment policies are necessary and sufficient to prevent employer opportunism when standard efficiency wages are utilized. However, just‐cause policies are not sufficient to deter employer opportunism when employment contracts are of the delayed‐payment type. In these contracts, other contractual provisions, such as severance provisions, are also necessary. Copyright © 2000 John Wiley & Sons, Ltd.     

Brentuximab vedotin in relapsed/refractory Hodgkin lymphoma post-autologous stem cell transplant: a cost-effectiveness analysis in Scotland

Objective: To evaluate cost-effectiveness of brentuximab vedotin in patients with relapsed/refractory Hodgkin lymphoma who have received autologous stem cell transplantation, from a Scottish healthcare payer perspective.

Methods: A Microsoft Excel-based partitioned survival model comprising three health states (progression-free survival [PFS], post-progression survival, and death) was developed. Relevant comparators were chemotherapy with or without radiotherapy (C/R) and C/R with intent to allogeneic hematopoietic stem cell transplantation (alloSCT). Data were obtained from the pivotal phase II single-arm trial in 102 patients (SG035-0003; NCT00848926), a systematic literature review and clinical expert opinions (where empirical evidence was unavailable). PFS and overall survival for brentuximab vedotin were estimated using 5-year follow-up data from SG035-0003, and extrapolated using event rates observed for comparator treatments from published survival data. Resource use included drug acquisition and administration; alloSCT; treatment of adverse events; and long-term follow-up. Deterministic and probabilistic sensitivity analyses were conducted to evaluate the impact of uncertainty.

Results: In the base case, the incremental cost-effectiveness ratio (ICER) for brentuximab vedotin was £38,769 per quality-adjusted life year (QALY) vs C/R, whereas C/R with intent to alloSCT was dominated by brentuximab vedotin. ICERs for brentuximab vedotin generated by the deterministic sensitivity analysis ranged between £32,000–£54,000 per QALY. Including productivity benefits reduced the ICER to £28,881 per QALY.

Limitations: Limitations include lack of comparative data from this single arm study and the heterogeneous population. Inconsistent baseline characteristic reporting across studies prevented complete assessment of heterogeneity and the extent of potential bias in clinical and cost-effectiveness estimates.

Conclusions: Although the base case ICER is above the threshold usually applied in Scotland, it is relatively low compared with other orphan drugs, and lower than the ICER generated using a previous data cut of SG035-0003 that informed a positive recommendation from the Scottish Medicines Consortium, under its decision-making framework for assessment of ultra-orphan medicines.     

Fixed versus flexible election terms: explaining innovation in the timing of Canada’s election cycle

This paper argues that there is an efficiency gain underlying the recent adoption of legislation calling for a fixed 4-year governing term by the federal and most provincial governments in Canada. The efficiency gain arises from foreclosing an externality produced by the Canadian constitutional provision that sets a maximum length for a legislative term (5 years) while allowing the governing party (through the Governor General) to dissolve the House early. Because the opportunistic use of surprise can improve the governing party’s probability of winning, strategic choice can lead to elections being held at times that most disadvantage the incumbent’s rivals. Evidence from Canada is introduced suggesting that federal elections became less predictable through successive reductions in the campaign time given to competitors, thus raising the cost of this externality. The same reasoning suggests that the party most likely to propose this legislative innovation will be the party in opposition rather than in power and/or the new leader of an established party facing loss in the upcoming election. By fulfilling the fixed term even when it could benefit by calling the election early, the party establishes a precedent that raises the political cost to others of cancelling the fixed term legislation.     

Contingent payments in selection contests

The early literature on research contests stressed the advantages of a fixed prize in inspiring R&D effort. More recently the focus has moved towards endogenizing the rewards to research activity in these tournament settings, since this can induce extra effort or enhance the surplus of the buyer. We focus on a research contest as a means of selecting a partner for an R&D enterprise, in an informational setting in which the established providers of R&D services know more about each others’ relative capabilities than does the buyer/sponsor. An alternative use of our model is in choosing between prospective patentees where the Patent Trading Office has less information on the patents than the competitors. This asymmetry creates a source of inefficiency if a rank order contest is used as a selection device; we show how the contest can be modified to improve selection efficiency, while maintaining its simplicity (as only ordinal information is required). The modification that we suggest involves endogenizing the prizes that are awarded contingent upon whether a contestant wins or loses the contest. Furthermore, the payment system and the selection mechanism are detail-free. This paper is part of the project “The Knowledge-Based Society” sponsored by the Research Council of Norway (project 172603/V10).     

Reinterpreting the performance of immigrant wages from panel data

Immigrants differ from the native born in terms of unobserved factors, such as motivation, and observed factors, including those related to the interruption of labour market activity and earning capacity, which may bias estimates of immigrant integration. Using panel data from the Survey of Labour and Income Dynamics, we show that using potential experience, rather than actual experience, exaggerates estimates of the disruption and recovery caused by immigration. More importantly, we find support for omitted variables bias, arising from unobserved fixed effects. Instrumental variable estimates for both pooled and separate samples of immigrant and native born men demonstrate a wage disadvantage for immigrants upon entry that persists through their lifetime. Standard estimates of a modest wage advantage for the children of immigrants also suffer from omitted variables bias arising from unobservables. Contrary to most of the literature to date, our instrumental variable estimates which allow for unobservable fixed effects suggest that immigrants never catch up to otherwise comparable native born workers, but their children do just as well. We would like to thank Statistics Canada for permitting access to the data and solving associated technical problems, the Prairier Centre for Research on Immigration and Integration for financial assistance, and Peter Schnabl for excellent research assistance. An earlier version of this paper was presented to the 10th International Conference on Panel Data in Berlin, July 5–6, 2002. The authors take sole responsibility for errors, omissions and interpretation of the data.     

Know-how sharing with stochastic innovations

We provide a model of know-how sharing between competing firms in which each of two firms gets a stochastic innovation in its stock of know-how in every period. Separately considering the cases when innovations are indivisible and divisible, we examine the nature of the subgame perfect sharing agreements that can obtain. We discover that both stochasticity and indivisibility undermine the ability to support sharing. Furthermore, we find that there are equilibria in which know-how sharing can be intermittent and that small innovations are more likely to be shared than large ones, when innovations are divisible but not necessarily when they are indivisible. JEL Classification: O30, O33
Partage du savoir faire quand les innovations sont stochastiques. Les auteurs proposent un modèle de partage du savoir-faire entre entreprises concurrentes dans lequel chacune des deux entreprises obtient une innovation stochastique dans son stock of savoir-faire à chaque période. En considérant séparément les cas où les innovations sont divisibles et non-divisibles, on examine la nature des accords de partage parfait qui peuvent se produire dans le sous-jeu. On montre que la stochasticité et l'indivisibilité minent la possibilité de maintenir le partage. De plus, on découvre que des solutions d'équilibre avec partage de savoir-faire peuvent jouer par intermittence, et qu'on est davantage susceptible de partager les fruits des petites innovations plus que des grandes quand les innovations sont divisibles, mais pas nécessairement quand elles sont indivisibles.     

Correction to: Conservative solutions for progress: on solution types when combining QCA with in‑depth Process‑Tracing

Quality & Quantity -     

The influence of demand and supply side pressures on the quantity and quality of inventive activity

This article arguments the literature on the demand for professional team sports by estimating a demand function for attendance at home matches in the Malaysian Semi-Pro Football League (MSPFL) between 1989 and 1991. A single-equation demand (attendance) function based on a pooled cross-section and time-series panel data set of 399 games is estimated by ordinary least squares, a fixed effects dummy variable covariance model and an error components model. Our findings confirm the importance of market size and championship prospects for the home team (but not the visiting team), as well as divisional status and ‘star’ players. The first match of the season and derby matches also increased attendance.     

CRIME AND POVERTY: A SEARCH‐THEORETIC APPROACH*

Numerous studies document that criminal activity is positively related to unemployment and negatively related to educational attainment levels within given communities. We study this phenomenon in the context of a search‐equilibrium model, in which agents choose between formal employment and pursuing crime‐related activities (theft). Prior to their “occupational choices,” agents undertake costly schooling, raising their productivity. Crime acts, in essence, as a tax on human capital by affecting the probability that a worker's earnings (possessions) are subsequently appropriated. There are multiple equilibria. High crime, low levels of educational attainment, long spells of unemployment, and poverty are correlated across them.