Implementation of EU initiatives on gender diversity and executive directors’ pay in municipally-owned enterprises in Germany and The Netherlands

A popular topic in the assessment of the functioning of municipally-owned enterprises is the corporate governance (CG) of such organizations. The results of the comparative study presented in this paper indicate that European Union initiatives on gender diversity and executive directors’ pay are often not implemented in public CG codes and in practice in municipally-owned enterprises in Germany and The Netherlands. The paper proposes that EU initiatives should specifically target municipally-owned enterprises and shows concrete hard and soft regulation options for national and international policy-makers and future research perspectives.     

Noncognitive skills in economics: Models,measurement, and empirical evidence

There is an increasing economic literature considering personality traits as a source of individual differences in labor market productivity and other outcomes. This paper provides an overview on the role of these skills with a particular focus on measurement and estimation. Based on the relevant literature from different disciplines, common psychometric measures used to assess personality are discussed and critical assumptions for their applications are highlighted. Moreover, we report and describe ideas of recent research that aims at incorporating personality traits into economic models of decision making. Based on these foundations, the main results of the empirical literature regarding noncognitive skills are summarized. Finally, we provide a brief guide to econometric analysis with consideration of common econometric pitfalls that evolve in empirical analysis of personality traits and review possible solutions.     

Performance of municipally owned corporations: Determinants and mechanisms

Practitioners often expect service delivery by municipally owned corporations (MOCs) to differ substantially from delivery by municipal bureaucracy. However, research into the circumstances under which municipal corporatization is effective is scarce. We investigate determinants of MOCs’ performance based on a questionnaire sent to all Dutch MOCs, finding no evidence that many expected predictors of performance matter for performance. Key factors driving MOCs’ performance relate to size, resource access, and the interaction between their multiple principals. We suggest that in studying local corporatization, researchers should look less at traditional principal–agent conflict and more at intermunicipal coordination.     

Good Neighbours or Distant Friends?

Abstract

Agencification has extended and intensified the delegation problem. It has created new (administrative) principals, who are confronted with even more uncertainty as agents operate at arm's length. Trust is suggested as a new mode of governance. Based on the literature seven hypotheses are deduced on conditions that politicians can use to build trust: autonomy; contacts; policy involvement; and involvement in the design of monitoring devices. These hypotheses are tested using survey data on 219 Dutch executive agencies. Contrary to the expectations, executive agencies with low degrees of autonomy have a more trusting relationship with their parent ministry than agencies with high autonomy. Proximity and frequent interactions appear more important to trust than autonomy. Monitoring is not always perceived as a sign of distrust. These findings raise new questions on how principals can reduce the delegation problem and control executive agencies.     

The psychological contract in Chinese-African informal labor relations

This qualitative study analyzes Chinese-Ghanaian employment in trade as an example of South-South cross-cultural labor relations. Based on ethnographic fieldwork, employment practices and labor conflicts are discussed with regard to psychological contract and equity. The analysis is guided by a process model of psychological contract that has been adjusted and extended in consideration of the dimensions of foreignness and cross-cultural communication. After briefly introducing the situation in Ghana we elaborate that under conditions of foreignness, employment relations are conflict prone because of contradictory equity expectations of employers and employees. We discuss how Ghanaian employees perceiving their psychological contract as violated attempt to restore equity by means of voice, silence, retreat or destruction and often fail due to lack of mutual cultural understanding between employers and employees. We conclude that exit in contrast to expectations is a viable option for employers rather than employees, but most employment relations, though defective, are perpetuated.