Editorial Comment

The fact that the Conservative Party won the general election in June means that its policy for the reform of the British system of industrial relations is now of immediate relevance to all who are concerned with that system—either as practitioners or as students. The industrial relations policies of the Conservatives have been tossed about in public debate and, in the process, may have lost some of their clarity. It would seem to us, therefore, that it is both important and relevant to examine exactly what the Conservative Party has said in its policy document, Fair Deal at Work,¹ and what major points were added at the Party's Conference last year.     

Gender Effects in Grievance Arbitration

This study investigates arbitrators' decisions in 557 suspension cases and reveals that, other things equal, male arbitrators were 74 per cent more likely to sustain the grievances of female grievants than male grievants. There was no evidence, however, that female arbitrators treat male and female grievants differently. A review of studies on gender effects in arbitration suggests a weak gender effect where male arbitrators are more lenient with female grievants than with male grievants.     

Stock Options as Lotteries

We investigate the relationship between ex ante total skewness and holding returns on individual equity options. Recent theoretical developments predict a negative relationship between total skewness and average returns, in contrast to the traditional view that only coskewness is priced. We find, consistent with recent theory, that total skewness exhibits a strong negative relationship with average option returns. Differences in average returns for option portfolios sorted on ex ante skewness range from 10% to 50% per week, even after controlling for risk. Our findings suggest that these large premiums compensate intermediaries for bearing unhedgeable risk when accommodating investor demand for lottery‐like options.     

Gender Effects in Grievance Arbitration

This study investigates arbitrators' decisions in 557 suspension cases and reveals that, other things equal, male arbitrators were 74 per cent more likely to sustain the grievances of female grievants than male grievants. There was no evidence, however, that female arbitrators treat male and female grievants differently. A review of studies on gender effects in arbitration suggests a weak gender effect where male arbitrators are more lenient with female grievants than with male grievants.     

PROFITABILITY,TRANSACTIONAL ALIGNMENT,AND ORGANIZATIONAL MORTALITY IN THE U.S. TRUCKING INDUSTRY

The winds of creative destruction rarely blow more fiercely than in a newly deregulated environment. Managers simultaneously face a novel focus on operating efficiency and an onslaught of new competitors. What must managers do to enable their firms to survive in such an environment? What factors bear on firms’ survival? This paper presents an analysis of mortality of large motor carriers in the U.S. interstate for-hire trucking industry after deregulation. It examines this phenomenon through a multidisciplinary lens that encompasses organizational ecology, neoclassical economics, and transaction cost economics. The paper posits that carrier mortality is a function of both firm-level and industry-level attributes, which are drawn from both ecological and economic theories. While each of these theories separately informs motor carrier mortality, the inclusion of predictions derived from both disciplines in one model significantly increases explanatory power over either theory evaluated alone. The empirical analysis is among the first to show increased mortality when firms do not adhere to operating policies consistent with transaction cost minimization principles. In sum, managers are well advised to adopt a multidisciplinary approach to strategy to ensure their firms’ survival. © 1997 by John Wiley & Sons, Ltd.     

The changing distribution of earnings in Ireland, 1937 to 1968

Data from the Irish Census of Industrial Production are used to illuminate changes in the distribution of earnings from 1937 to 1968, an important period in Irish economic history, relevant to debates about globalization and inequality. Between the late 1930s and mid‐1950s there was a greater compression of earnings than in the US's ‘great compression’ of the same period. Sectoral data suggest that this occurred quite generally. The degree of integration with the British labour market is key, and the impact of out‐migration, wage controls during the Second World War, and industrial protection all merit in‐depth investigation.