Explaining cross-country variations in the prevalence of informal sector competitors: lessons from the World Bank Enterprise Survey

To advance understanding of informal sector entrepreneurship, the aim of this paper is to evaluate and explain the cross-country variations in the prevalence of informal sector competitors. To do so, World Bank Enterprise Survey (WBES) data is reported from 142 countries. This reveals that 27% of formal enterprises view competition from the informal sector as a major constraint on their operations, although this varies from 72% of formal enterprises in Chad to no formal enterprises in El Salvador. To explain these cross-country variations, four competing theories are evaluated which variously view informal sector entrepreneurship and enterprise to be more prevalent when there is either: economic under-development (modernisation theory); high taxes and state over-interference (neo-liberal theory); too little state intervention (political economy theory), or an asymmetry between the laws and regulations of formal institutions and the unwritten socially shared rules of informal institutions (institutional theory). A multilevel probit regression analysis confirms the modernisation and institutional theories, but not the neo-liberal and political theories. Beyond economic under-development, therefore, it is not too much or too little state intervention that is associated with the prevalence of informal sector competition but rather, whether the laws and regulations developed by governments are in symmetry with the norms, values and beliefs of entrepreneurs. The paper concludes by discussing the theoretical and policy implications of these findings.

     

Technological change and participation in work organization: recent results from a European Community survey

In 1987–8 a large attitudinal survey covering all twelve Member States of the European Community was carried out by the European Foundation for the Improvement of Living and Working Conditions in Dublin which focused on various aspects of participation by employee representatives in new information technology. This paper presents evidence on one of the central trade union concerns about technological change – that of work organization.

The paper first sets out an explanatory framework which is based on much of the literature, surveys and case-study evidence on the impact of new technology on work and employment. Second, the explanatory factors are used to explain the wide diversity in the levels of participation in work organization across the Community. The paper concludes that there is a significant North/South divide, with the northern EC Member States, particularly Denmark, Germany, the Netherlands and Belgium having much higher levels of participation in work organization than their Mediterranean partners.     

Direct and representative participation in Europe: recent survey evidence

Despite the wealth of literature on HRM and employee involvement, now there has been a remarkable lack of large-scale survey evidence on the diffusion employee involvement in work organizations in Europe. This gap in large-scale survey evidence on the diffusion of direct employee participation has now been filled representative sample of workplaces in ten major European Union countries which commissioned by the European Foundation for the Improvement of Living and Working Conditions in Dublin (the EPOC project). It is by far the most comprehensive overview of the implementation and effects of direct employee participation of its kind. The paper shows that, on the basis of the EPOC survey results, there appears to considerable gap between the rhetoric and reality of direct participation. The paper shows that while the incidence of different forms of direct participation was widespread ten countries, the scope, in terms of number of issues involved and the number of given to employees, was relatively limited for most direct participation forms. The survey also showed that the introduction of direct participation posed little threat to trade representatives. Indeed, works councils and union representatives were in most 'agents of change' rather than barriers to the development of the more intensive practice of direct participation.     

Expressive voting and two-dimensional political competition: an application to law and order policy by New Labour in the UK

There has been much debate regarding the electoral strategy adopted by New Labour in the lead-up to and then during their time in government. This paper addresses the issue from the perspective of left/right and liberal/authoritarian considerations by examining data on individual attitudes from the British Social Attitudes survey between 1986 and 2009. The analysis indicates that New Labour’s move towards the right on economic and public policy was the main driver towards attracting new centrist voters and could thus be labelled ‘broadly’ populist. The move towards a tougher stance on law and order was more ‘narrowly’ populist in that it was used more to minimise the reduction in support from Labour’s traditional base on the left than to attract new votes. The evidence presented provides support for an expressive theory of voting in that law and order policy was arguably used to counter alienation amongst traditional, left-wing Labour supporters.     

Firm Investment decisions in the post‐conflict context

Economic and political transition can occur through peaceful or violent means. Violent transition disrupts the incentive for firms to make productive investments. This paper studies the determinants of profit reinvestment for firms in post‐conflict transition economies. Results indicate that while access to finance is an important determinant of reinvestment during transition, it is not as important in the post‐conflict context. However, property rights protections, in particular institutions of contract enforcement, are a more important determinant of profit reinvestment for firms operating in the post‐conflict environment than for firms in general. This indicates that obstacles to investment are context specific.     

Unrelated question model with two decks of cards

In this paper, we propose a new unrelated question model for estimating the prevalence of a sensitive characteristic within a population by utilizing two decks of cards. The resultant estimator is then compared to its competitors as to efficiency and as to protection of respondents. A real data application analyzing e-cigarette use among college students is considered.     

Ethics and corporate governance: The issues raised by the Cadbury report in the United Kingdom

In the late 1980s there was a series of sensational business scandals in the United Kingdom. There was particular public outrage at the plundering of pension funds by Robert Maxwell, at the failure of auditors to expose the impending bankruptcy of the Bank of Credit and Commerce International, and at the apparently undeserved high pay raises received by senior business executives. The City of London responded by creating a special committee to examine the financial aspects of corporate governance. This paper describes the resulting Code of Best Practice produced by the Cadbury Committee. To reduce the power of executive directors in the boardroom the Code recommends a greater role for non-executive directors, changes in board operations, and a more active role for auditors. The paper reviews the various published reactions to the Cadbury Report, and concludes that the Code is unlikely to halt the incidence of business scandals in the United Kingdom.Colin Boyd teaches at the College of Commerce, University of Saskatchewan. His study of the Zeebrugge Car Ferry Disaster is published in a number of strategy and ethics case-books. In 1993/94 he was a Visiting Research Fellow at the Centre for Applied Ethics, University of British Columbia, which provided financial support for the production of this paper.     

“Horses for courses”: A stakeholder approach to the evaluation of GDSSs

Evaluation of the performance of GDSSs has been dominated by an experimental and laboratory based approach. Other writers have argued for evaluation to be based in the “real-world” of decision making teams. The evaluation criteria have tended to ignore many of the issues that would be paramount for some of the stakeholders in the evaluation process. This article seeks to explore the criteria that might be used by a wide variety of stakeholders, including developers, facilitators, clients, key actors, vendors, as well as academics. By drawing together the criteria associated with all of the stakeholders we discover a broader, and possibly more thorough, framework for evaluation. The evaluation of any particular GDSS in relation to other GDSSs can then be seen in the context of contingent weighting applied to each of the criteria where each GDSS is able to be seen in its best light and in relation to its declared aims. This article argues for a more eclectic and contingent approach to the evaluation of GDSSs which will encourage their future development to be clearer about purpose and the boundaries of their use.     

Business Angel Networks and the Development of the Informal Venture Capital Market in the U.K.: Is There Still a Role for the Public Sector

Business angel networks (BANs) provide a channel of communication between private venture capital investors (business angels) and entrepreneurs seeking risk capital. Most operate locally on a not-for-profit basis with their costs underwritten by the public sector. However, the recent establishment of BANs by private sector organisations in the U.K. has led to a questioning of the government's continuing role in the financing of BANs. This paper demonstrates that there are significant differences between public sector and other not-for-profit BANs and private sector, commercially-oriented BANs in terms of the investments that they facilitate. Private sector BANs are primarily involved with larger, later stage deals whereas investments made through not-for-profit BANs are generally smaller, involve start-ups and other early stage businesses and are local. The emergence of private sector BANs has therefore not eliminated the need for public sector support for locally-oriented networks.