Taxes, benefits, and careers: Complete versus incomplete markets

An incomplete-market life-cycle model with indivisible labor makes career lengths and human capital accumulation respond to labor tax rates and government supplied non-employment benefits. We compare aggregate and individual outcomes in this individualistic incomplete-market model with those in a comparable collectivist representative-family model with employment lotteries and complete-insurance markets. The incomplete- and complete-market structures assign leisure to different types of individuals who are distinguished by their human capital and age. These microeconomic differences distinguish the two models in terms of how macroeconomic aggregates respond to some types of government supplied non-employment benefits, but remarkably, not to labor tax changes.     

High Performance Work Systems and Employee Experience of Work in the Service Sector: The Case of Aged Care

In spite of the growing body of research on high performance work systems (HPWS), there is little evidence on their application in the service sector. It is commonly argued, however, that occupational segmentation in services is a barrier to HPWS. Analysis of data from aged‐care workers indicates that: HPWS have positive outcomes for workers; highly skilled nurses are no more likely than lowly skilled personal care workers to be subject to HPWS; and in some cases, HPWS are associated with more positive outcomes for low‐skilled than high‐skilled workers. These findings suggest that HPWS may well be widely applicable in service settings.     

Human Resource Approaches to Retirement: Gatekeeping,Improvising, Orchestrating,and Partnering

This qualitative study examines the patterns in human resource (HR) approaches to retirement across 24 organizations to explore innovative practices as well as gain understanding of the differences in how firms are dealing with major changes surrounding retirement and workforce demographics. Using organizational adaptation theory and carrying out a thorough analysis of in‐depth interviews with HR managers, we identify three dimensions that differentiate organizations’ approaches to retirement: (1) actions and interactions of key stakeholders in the retirement process; (2) HR information gathering focus regarding workforce issues; and (3) HR posture around changes needed in retirement policies and practices. Based on organizational profiles on these dimensions, four distinct approaches to retirement emerge and are described in some detail: gatekeeping, improvising, orchestrating, and partnering. These different approaches also provide insight into how organizations differ in their adaptation to change. © 2016 Wiley Periodicals, Inc.     

Identifying Innovators in Consumer Service Markets

This article describes the use of a short, valid, reliable self-report scale to measure consumer innovativeness in a service industry context, thereby identifying the potential earliest buyers in a specific service-market category. Suitable for mail questionnaire or personal interview, this six-item, Likert-type scale enables marketers and researchers to identify these important consumers prior to introducing any specific service innovation. This study used a survey of 185 adult men and women to demonstrate how the scale performs by giving valuable insights into the travel services market     

The Quality of Maquiladora Investment in a Post China/WTO World: A Literature Review and Case Studies from Reynosa

ABSTRACT

Studies have consistently shown that exports manufactured in China have taken a significant market share away from Mexican producers in the United States (US) import market. In this paper, we examine how this change is shaping the quality of foreign direct investment (FDI) in Mexico's maquiladora industry. Various thought leaders have suggested that low wage Chinese competition will force maquilas of out labor intensive sectors and will make them lean towards higher value added, technology intensive activities. An alternative perspective has been provided by those who argue that Mexico's unique comparative advantage is its geographic proximity to the US, and that there is no reason to believe proximity dependent maquilas will fit into a high-tech, high value added model. To determine which of these scenarios is more accurate, we summarize relevant literature and provide case studies drawn from five startup plants located in the only major Mexican city that has seen maquila employment gains over the 2000-2006 period. Research suggests that maquilas are leaning towards proximity dependent, and not necessarily technology intensive business models. The case studies illustrate a number of long term characteristics of the maquiladora environment that may limit upgrading. We conclude with policy recommendations as well as suggestions for future research.

RESUMEN. Los estudios realizados mostraron consistentemente que las exportaciones de manufacturados provenientes de China han ganado una porción significativa del mercado de importación en los Estados Unidos, que solía estar en las manos de los productores mexicanos. En este estudio examinamos cómo este cambio está modelando la calidad de la inversión extranjera directa (FDI) en la industria maquiladora mexicana. Varios líderes de la industria han expresado que la competencia resultante de los bajos salarios chinos forzará a las maquiladoras a salir de los sectores con intensiva mano de obra, para desplazarse hacia otros de mayor valor agregado, y otras actividades vinculadas profundamente a la tecnología. Una perspectiva alternativa ha sido suministrada por aquellos que sostienen que la singular ventaja competitiva mexicana reside en su proximidad geográfica a los EE.UU., y no existe razón alguna para pensar que las maquilas que dependen de esta proximidad se encajarán correctamente en este modelo altamente tecnológico, de alto valor agregado. Con el propósito de determinar cual de estos escenarios es el más correcto, hemos resumido la literatura importante y suministrado estudios de caso extraídos de cinco plantas puestas en marcha, situadas en una de las más importantes ciudades mexicanas, cuyos índices de empleo provenientes de maquiladoras han aumentado durante el período 2000-2006. Las investigaciones sugieren que las maquilas están evolucionando hacia modelos comerciales que dependen de la proximidad geográfica, y no necesariamente intensivos en tecnología. Los estudios de caso ilustran un número de características del entorno de las maquiladoras a largo plazo, que pueden limitar su actualización. Hemos concluido emitiendo una política de recomendaciones, así como sugerencias para futuras investigaciones.

RESUMO. Estudos mostram, consistentemente, que as exportações manufaturadas da China abocanharam uma fatia significativa do mercado dos produtores mexicanos no mercado de importação americano. Neste trabalho, examinamos como tal mudança está determinando a qualidade do investimento direto estrangeiro (FDI) na indústria maquiladora do México. Diversos líderes pensadores afirmaram que a competição chinesa, através de baixos salários, forçará as maquilas a deixar setores de mão-de-obra intensa e crescer em busca de um maior valor adicional, as atividades de alta tecnologia. A partir de uma perspectiva alternativa, outros defendem que a única vantagem comparativa mexicana é a proximidade com os Estados Unidos, e não há razão para acreditar que as maquilas dependentes desta proximidade adaptar-se-ão ao modelo de maior valor adicional e de alta tecnologia. Para comprovar a precisão destes cenários, resumimos o que há de relevante na literatura e apresentamos estudos de casos baseados em cinco fábricas inauguradas, na única grande cidade mexicana, que presenciou o aumento de emprego das maquilas no período de 2000 a 2006. Pesquisas sugerem que as maquilas estão tornando-se dependentes da proximidade e, não necessariamente, da alta tecnologia e dos modelos de negócios. Os estudos de caso registram uma série de características arraigadas do ambiente da maquiladora, que pode limitar o seu crescimento. Concluímos com recomendações políticas e com sugestões para pesquisas futuras.     

Three types of ambiguity

For each of three types of ambiguity, we compute a robust Ramsey plan and an associated worst-case probability model. Ex post, ambiguity of type I implies endogenously distorted homogeneous beliefs, while ambiguities of types II and III imply distorted heterogeneous beliefs. Martingales characterize alternative probability specifications and clarify distinctions among the three types of ambiguity. We use recursive formulations of Ramsey problems to impose local predictability of commitment multipliers directly. To reduce the dimension of the state in a recursive formulation, we transform the commitment multiplier to accommodate the heterogeneous beliefs that arise with ambiguity of types II and III. Our formulations facilitate comparisons of the consequences of these alternative types of ambiguity.     

Robustness and Pricing with Uncertain Growth

We study how decision-makers' concerns about robustness affectprices and quantities in a stochastic growth model. In the modeleconomy, growth rates in technology are altered by infrequentlarge shocks and continuous small shocks. An investor observesmovements in the technology level but cannot perfectly distinguishtheir sources. Instead the investor solves a signal extractionproblem. We depart from most of the macroeconomics and financeliterature by presuming that the investor treats the specificationof technology evolution as an approximation. To promote a decisionrule that is robust to model misspecification, an investor actsas if a malevolent player threatens to perturb the actual data-generatingprocess relative to his approximating model. We study how aconcern about robustness alters asset prices. We show that thedynamic evolution of the risk-return trade-off is dominatedby movements in the growth-state probabilities and that theevolution of the dividend-price ratio is driven primarily bythe capital-technology ratio.