Generational Accounting, Solidarity and Pension Losses

Summary The stock market collapse led to political tensions between generations due to the fuzzy definition of the property rights over the pension funds’ wealth. The problem is best resolved by the introduction of generational accounts. Modern consumption and portfolio theory shows that the younger generations should have the higher equity exposure due to their human capital. Stock market losses should be distributed smoothly over lifetime consumption by adjusting both current contributions and future entitlements. We present expressions for the substantial welfare losses involved in various practically relevant deviations from the optimal system. We are grateful to stimulating suggestions by Lans Bovenberg, Casper van Ewijk, Frank de Jong and by two anonymous referees.     

An experimental examination of rational rent-seeking

The theoretical literature exploring various ramifications and applications of Tullock's (1980) rent-seeking model is extensive and rapidly growing. In contrast, there exist as yet only a few experimental evaluations of this model, with ambiguous results. Moreover, these studies focus on one particular case (proportional probabilities) and use a problematic experimental design. With an appropriate design we investigate the extreme cases of proportional probabilities and perfect discrimination, which offer the starkest contrast in theoretical predictions. We find substantial evidence for the predictive power of the rent-seeking model, particularly if one allows for the fact that people sometimes make mistakes or are confused about what to do.     

Economic Organization, Innovation Systems, and the Internet

How can public policy best promote successful innovation inthe Internet sector? This paper creates a typology of differenttypes of Internet software firms. Institutions associated withthe ‘Silicon Valley Model’ are a strong driver ofsuccess for some key Internet technologies. However, patternsof human-resource development and knowledge management varywidely across Internet technologies, necessitating the developmentof very different commitments between managers and employees.Institutional frameworks associated with ‘organized’economies, such as Germany or Japan, might provide superiortool-kits to help some types of Internet firms to innovate.Furthermore, our analysis suggests that the creation of institutionalincentives is not the only way to promote patterns of technologicallyintense innovation associated with Silicon Valley. Technologicalstrategies of dominant firms are often equally important. Regardlessof institutional environment, the development of entrepreneurialsoftware firms can be strongly influenced by the activitiesof large firms working within core network telecommunicationtechnologies.     

IMF Support and Inter-Regime Exchange Rate Volatility

It is widely agreed that when moving from fixed to floating exchange rates the increase in exchange rate volatility is not matched by an equivalent rise in the volatility of fundamentals. We argue and demonstrate that in inter-regime comparisons one has to account for ‘missing variables’ that compensate for the fundamental variables’ volatility under fixed exchange rates. Previous studies have often used foreign exchange reserves, but without much success. We argue why reserves are not a reliable measure, while IMF credit support is. Our empirical analysis identifies IMF support as a crucial and significant compensating variable.     

South Korean social enterprises and their networks: On their organizational linkages at the interstice between the third,public, and corporate sectors

Social enterprise and government interactions have become an increasingly prominent theme in the literature on social entrepreneurship, due in part to the pressures confronting the welfare state and the rise of precarious work. This analysis is motivated by the efforts of the government of South Korea to incubate social enterprises since 2007. The constant scaling of the South Korean government's monitored social enterprise certification scheme had led to the registration of approximately 3440 social enterprises as of May 2021. This study documents the interorganizational network behaviour of these enterprises relative to the public sector, corporate sector, and civil society and the social economy. A cluster analysis approach is utilized to analyse network data obtained from a self-administered survey of 103 government-certified social enterprises operating in South Korea. We find that a sizeable number of government-certified social enterprises have diversified networks, as opposed to public sector-centric networks, although such social enterprises are in the minority. This study references social innovation cluster theory to argue that the aforementioned scheme has attained a partial degree of success in facilitating the emergence of social enterprises with diversified networks.However, the majority remain quasi-governmental implementers of government contracts and, generally, do not engage in networking.     

The Incidence of Pension Contributions: A Panel Based Analysis of the Impact of Pension Contributions on Labor Cost,Wages and Labor Supply

De Economist - One of the key elements in the planned pension reform in the Netherlands is to abolish the implicit subsidy from younger to older workers inherent in pension schemes with age...     

Predictors and processes of satisfaction with work–family balance: Examining the role of personal,work, and family resources and conflict and enrichment

Drawing from resource-based theories, we conduct two studies to investigate the unique and relative importance of personal (e.g., resilience, proactive health behaviors), work, and family resources (i.e., enriched job and family roles, work and family support) to balance satisfaction, and the mediating roles of conflict and enrichment. We test our hypotheses in Study 1 using a cross-sectional survey of 216 employees and in Study 2 using a time-lagged survey over 3 months with 220 employees. Across both studies, work and family resources (e.g., enriched job and family characteristics, work and family support) were positively related to balance satisfaction. In general, work resources were more relevant to balance satisfaction than were personal or family resources. In terms of processes, work resources relate to less work-to-family conflict and greater work-to-family enrichment which in turn, relate to greater balance. In contrast, the family-to-work directions of conflict and enrichment were just weakly related to balance. Across the two studies, findings regarding the role of personal resources were mixed. We discuss how these findings expand our understanding of work–family balance and the practical implications for human resource practitioners.     

Who Will We Recruit? Targeting Deep‐ and Surface‐Level Diversity with Human Resource Policy Advertising

Research on targeted recruitment has focused on targeting applicants with surface‐level attributes such as underrepresented demographic groups. The present study extends targeted recruitment research by examining how advertising human resource policies might be useful for targeting both surface‐ and deep‐level attributes. Specifically, the current study uses an experimental design to examine the impact of work‐family, diversity, and employee development policies on the job‐pursuit intentions of working adults in the United States. We examined surface‐ (demographic characteristics; e.g., race) and deep‐level differences (attitudes or values; e.g., diversity values) as predictors of whether participants intend to pursue jobs with firms advertising these human resource (HR) policies. Deep‐level differences consistently predicted job‐pursuit intentions for all three HR policies, but only marginal support was obtained for surface‐level variables as predictors. Findings suggest that targeted recruitment based on deep‐level attributes may be more successful than targeted recruitment based on surface‐level factors.