Ideological Currency in the Psychological Contracts of Corporate Manufacturing Employees

Previous research on employee psychological contracts has focused on three different types of expectations that workers have of their employers: transactional exchange of economic currency, relational exchange of socioemotional currency, and, more recently, covenantal exchange of ideological currency. This last type of currency, however, has been studied almost entirely in nonprofit workplaces among employees in helping professions (e.g., healthcare, education) who hold advanced degrees. Although not explicit in the extant literature, the implication of such is that expressions of ideological currency may be limited to certain types of professions. In the present study, we therefore analyzed both white and blue-collar employees’ ideological expectations in a corporate, for-profit, manufacturing environment. Using 1492 responses to an open-ended question received from an email survey, we found that 36% contained an expression of ideological currency, with an additional 44.8% possessing a possible expression of ideological currency. Comparisons of these expressions reveal many similarities between white and blue-collar employees within this organization as well as between these employees and those found in the published literature from workers in other industries. We discuss the implications of these findings for theory and future research.     

The Demand for Water: Consumer Response to Scarcity

Provision of water raises several issues for municipal utility companies and other suppliers, including reliability of supply in arid regions or during droughts, equity issues that arise because water is literally a necessity, and heterogeneity in consumer response to regulatory policy. We combine experimental and survey responses to investigate demand for water. The experiments simulate water consumption from a potentially exhaustible source, revealing heterogeneous demand for water. We estimate econometrically water demand for different consumer groups. A regulator could use estimates of disaggregated demand to attain conservation goals by designing an incentive compatible pricing system. The example given achieves a conservation goal while minimizing enforcement costs and welfare loss.     

Robust supplier relationships: Key lessons from the economic downturn

Recent events in the economic and natural environments have tested buyer-supplier relationships like never before. Based on dyadic buyer-supplier case data from a variety of industries that were deeply affected by the 2008–2009 recession, this article explores how long-term relationships responded to an economic downturn. Prior to the downturn, these mutually dependent relationships all appeared to be very similar to each other and were characterized by significant value-added and social capital stores. However, due to varying degrees of bounded rationality, the relationships were affected differently and responded differently to the downturn. Based on the characteristics of the relationship, we develop a framework of three types of close supplier alliances. This framework can be used to assess such relationships and likely responses to adversity to reduce unpleasant surprises for the alliance partners. This article also provides a set of lessons learned for managers.     

Inflation dynamics with search frictions: A structural econometric analysis

The New Keynesian Phillips curve explains inflation dynamics as being driven by current and expected future real marginal costs. In competitive labor markets, the labor share can serve as a proxy for the latter. In this paper, we study the role of real marginal cost components implied by search frictions in the labor market. We construct a measure of real marginal costs by using newly available labor market data on worker finding rates. Over the business cycle, the measure is highly correlated with the labor share. Estimates of the Phillips curve using generalized method of moments reveal that the marginal cost measure remains significant, and that inflation dynamics are mainly driven by the forward-looking component. Bayesian estimation of the full New Keynesian model with search frictions helps us disentangle which shocks are driving the economy to generate the observed unit labor cost dynamics. We find that mark-up shocks are the dominant force in labor market fluctuations.     

Randomness is problematic for social science research purposes

Quality & Quantity - Mathematically defined random chance requires that every possible alternative sampling or assignment outcome has an equal or known probability of occurring. This is very...