The effect of unemployment insurance on weekly hours of work in Canada

Major revisions to the Canadian unemployment insurance program in 1997 created a benefit structure that effectively provides more insurance to workers who are employed for longer workweeks. This anomaly creates an incentive for workers and firms to tailor their weekly work schedules to maximize net program benefits. Analysis of Labour Force Survey data shows that workers and firms responded to these changes by altering weekly hours as expected. This behavioural response demonstrates the sensitivity of hours of work decisions to labour market policies. JEL classification: J65
Les effets de l'assurance-chômage sur le nombre hebdomadaire d'heures de travail au Canada. Des changements majeurs dans le programme canadien d'assurance-chômage en 1997 ont mis en place une structure de prestations qui fournissait un support additionnel aux travailleurs qui travaillaient de plus longues heures dans la semaine. Cette anomalie a créé une incitation pour travailleurs et entreprises à ajuster leur cédule hebdomadaire de travail de manière à maximiser les bénéfices nets du programme. L'analyse des données de l'Enquête sur la population active montre que travailleurs et entreprises ont répondu à ces changements en ajustant les heures hebdomadaires de travail comme prévu. Cette réaction montre bien la sensitivité des heures de travail aux politiques du marché du travail.     

Why gender and ‘difference’ matters: a critical appraisal of industrial relations research

Through a critical rereading of key UK workplace case studies this article explores why gender analysis matters to studies of people at work. We argue that the field of industrial relations could benefit from a greater engagement with feminist‐influenced methodologies. In particular, we analyse three methodological approaches that can assist in understanding the lives of workers; a framework that recognises intersectionality; an account that accommodates both material and cultural explanations; and a research process that is reflexive and recognises positionality. These are identified as intrinsic to a gender‐sensitive analysis, and through a comparison of key texts it is possible to highlight why their absence leads to much research in this field remaining ‘gender blind’.     

Attitudes toward employee and employer rights in the workplace

A large sample (N=692) of undergraduate business majors were surveyed in order to assess their attitudes toward 54 different employer activities that might impact on employee rights in the workplace. Demographic and lifestyle measures as well as one personality variable, authoritarianism, were also included in the survey. A factor analysis on attitudes toward employer activities revealed three distinct factors, which we labeled private, polydrug (i.e., polygraphs and drug tests), and normative activities. Mean levels of agreement with employer actions were highest for normative and lowest for private activities, with polydrug activities falling in between. All mean differences were highly significant. Authoritarianism proved to be the strongest predictor of attitudes toward both private and polydrug activities.     

Financial innovation and Divisia monetary indices in Taiwan: a neural network approach

In this paper a weighted index measure of money using the ‘Divisia’ formulation is constructed for the Taiwan economy and its inflation forecasting potential is compared with that of its traditional simple sum counterpart. This research extends an earlier study by Gazely and Binner by examining the theory that rapid financial innovation, particularly during the financial liberalization of the 1980s, has been responsible for the poor performance of conventional simple sum monetary aggregates. The Divisia index is adjusted in two ways to allow for the major financial innovations that Taiwan has experienced since the 1970s. The technique of neural networks is used to allow a completely flexible mapping of the variables and a greater variety of functional form than is currently achievable using conventional econometric techniques. Results suggest that superior tracking of inflation is possible for networks that employ a Divisia M2 measure of money that has been adjusted to incorporate a learning mechanism to allow individuals to gradually alter their perceptions of the increased productivity of money. Divisia measures of money appear to offer advantages over their simple sum counter parts as macroeconomic indicators.     

Individual Characteristics and the Disposition Effect: The Opposing Effects of Confidence and Self-Regard

We conduct two experiments to examine potential causes of the disposition effect. In Experiment 1, we rule out beliefs in mean reversion as a cause of the disposition effect. Although a belief in the mean reversion of stock prices should be independent of whether an investor owns or only follows the stock, we show only investors who own the stock behave as though prices will reverse. In Experiment 2, participants buy and sell securities over multiple periods. We find that self-regard and investing confidence (two types of self-esteem) have opposing influences on investors’ tendency to hold losing investments. Investors with lower self-regard hold losing investments longer than those with higher self-regard, and investors with higher confidence hold losing investments longer than those with lower confidence. We focus on investors’ tendency to hold losing stocks too long because prior research suggests the gain versus loss sides of the disposition effect are driven by different biases.     

Faith at Work Scale (FWS): Justification,Development, and Validation of a Measure of Judaeo-Christian Religion in the Workplace

Workplace spirituality research has sidestepped religion by focusing on the function of belief rather than its substance. Although establishing a unified foundation for research, the functional approach cannot shed light on issues of workplace pluralism, individual or institutional faith-work integration, or the institutional roles of religion in economic activity. To remedy this, we revisit definitions of spirituality and argue for the place of a belief-based approach to workplace religion. Additionally, we describe the construction of a 15-item measure of workplace religion informed by Judaism and Christianity – the Faith at Work Scale (FWS). A stratified random sample (n = 234) of managers and professionals assisted in refining the FWS which exhibits a single factor structure (Eigenvalue = 8.88; variance accounted for = 59.22%) that is internally consistent (Cronbach’s α = 0.77) and demonstrates convergent validity with the Faith Maturity Scale (r = 0.81, p > 0.0001). The scale shows lower skew and kurtosis with Mainline and Catholic adherents than with Mormons and Evangelicals. Validation of the scale among Jewish and diverse Christian adherants would extend research in workplace religion.     

Flattening the organization: the effect of organizational reporting structure on budgeting effectiveness

This study investigates whether increasing a superior’s span of control improves the effectiveness of the budgeting process. We characterize the superior’s utility function as consisting of utilities for norm enforcement and wealth, leading the superior to reject profitable projects believed to contain excessive slack. We develop theory to predict that superiors become more willing to reject projects as their span of control increases. Further, subordinates anticipate superiors’ behavior and reduce slack as span of control increases. Experimental results are consistent with these predictions. As span of control increases, superiors show a greater willingness to reject projects that they believe contain excessive slack, and subordinates submit budgets with less slack. The net result is that superiors earn more profit per subordinate under an expanded span of control. Our study suggests that increasing span of control can improve the effectiveness of the budgeting process, an important component of most firms’ control environments.     

The rise and fall of the Big Society in the UK

This article assesses the role of the Big Society within the complex pattern of UK service provision. It is argued that the relevance of the Big Society was transient and it has had little impact on practice. Reasons for this are located within the complexity of relationships between public, private and third sectors. Such complexity is a permanent feature of contemporary service provision in which the moment of the Big Society has now passed.     

The FairWear Campaign: An Ethical Network in the Australian Garment Industry

In many parts of the world, homework is a form of labour characterised by precariousness, lack of regulation, and invisibility and lack of protection of the workers who are often amongst the world’s poorest and most exploited. Homework is spreading, due to firm practices such as outsourcing. The analysis and understanding of complex corporate networks may assist with the identification and protection of those most at risk within the supply chain network. It can also expose some of the key ethical issues and dilemmas of supply chain management and corporate social responsibility (CSR). Based on a case-study of the Australian FairWear Campaign (FWC), this article identifies an ethical network that aims to increase corporate accountability (CA) via greater transparency in corporate supply chains and improve work conditions for homeworkers and increase their recognition in the supply chain.