Holdup in oligopsonistic labour markets - a new role for the minimum wage

We consider a labour market model of oligopsonistic wage competition and show that there is a holdup problem although workers do not have any bargaining power. When a firm invests more, it pays a higher wage in order to attract workers from competitors. Because workers participate in the returns on investment while only firms bear the costs, investment is inefficiently low. A binding minimum wage can achieve the first-best level of investment, both in the short run for a given number of firms and in the long run when the number of firms is endogenous.     

The University of Crisis

This article explores the history of the university as a modern social institution through the epistemological framework of crisis. Starting from the historical understanding that the university has always‐already been in the throes of crisis, and that such crisis (or crises) are cemented into the conceptual architecture of both the university itself and the inherently promiscuous nature of knowledge in society, this exploration of the university in crisis endeavors to show how crisis is as old as knowledge itself. Building on the insights of such social theorists and historians of the university as Samuel Weber, Bill Readings, Jean‐Francois Lyotard, and Gregg Lambert, my hope is to draw out from these writers the intellectual sustenance that is sorely needed (and largely lacking) in today’s discourse on the “university of crisis.”     

When natural resources run out,market knowledge steps in: Lessons on natural resource deployment from a longitudinal study in a resource-scarce region of Ethiopia

With the increasing scarcity of natural resources, the ability to maintain quality standards during resource-scarce times becomes more critical for business performance. Theories on managing resource scarcity cannot be easily tested in contexts where resources are still abundant. This study therefore turns to an emerging market context in which natural resource availability naturally varies strongly between seasons, namely, that of Ethiopian pastoralists who for many generations learned to adapt to natural resource scarcity. Central to our theory is the natural resource deployment capability, which is the ability of a business to make efficient and effective use of available resources to maintain business performance during resource-scarce times. Using three-wave longitudinal data from 120 pastoral family-based livestock businesses, the study shows that when resources are scarce or extremely scarce, market knowledge helps to better deploy the scarce natural resources, leading to higher product quality. The findings imply that businesses with a better understanding of markets have stronger natural resource deployment capability. The lesson for businesses that are confronted with approaching resource scarcity is therefore to strengthen their ability to deploy resources efficiently and effectively by strengthening their market knowledge in which such capability is rooted.     

Insider perspectives on growth: Implications for a nondichotomous understanding of ‘sustainable’ and conventional entrepreneurship

The aim of this paper is to offer an alternative to a priori theorising in research on firm-level growth and environmental sustainability. We outline an approach that combines John Shotter's phenomenology with post-hoc application of the Bourdieusian concepts of habitus, practices and social capital. This is illustrated empirically through a study conducted with a small group of Finnish entrepreneurs, which examines their lived experience of growth alongside its practical application in their ventures. The entrepreneurs' responses reveal holistic perspectives on growth that extend beyond the economic to incorporate personal commitments to norms of collectivity and well-being for themselves and others. The paper offers an exploratory but empirically grounded approach, arguing that a combination of insiders' perspectives and attention to the social embedding of economic activity challenge the dichotomous distinctions between sustainable and conventional entrepreneurship and reveal a degree of commonality that would not be evident via conventional categorisations on the basis of features such as business model type.     

The euro and developing country finance: A survey

More than eight years after the introduction of the euro, impacts on developing countries have been relatively modest. Overall, the euro has become much more important in debt issuance than in official foreign exchange reserve holdings. The former has benefited from the creation of a large set of investors for which the euro is the home currency, while demand for euro reserves has been held back by the dominance of the dollar as a vehicle and intervention currency, and the greater liquidity of the market for US treasury securities. Fears of further dollar decline may fuel some shifts out of dollars into euros, however, with the potential for a period of financial instability.     

Relationships between organizational justice,organizational trust and organizational commitment: a cross-cultural study of China,South Korea and Australia

In an increasingly globalized world, organizations that operate in more than one country are a substantial part of the world economy. It is therefore beneficial to understand the attitudes of employees in different countries and their impact on the organization. One important area is organizational justice and its relationships with organizational trust (OT) and organizational commitment. This empirical study collected survey data from university employees across China, South Korea and Australia. We proposed that OT would mediate the relationships between affective organizational commitment (AOC) and both distributive justice (DJ) and procedural justice (PJ) in all three countries. In Australia, we found that PJ and AOC were significantly related, and OT fully mediated the PJ-AOC relationship. In China and South Korea, both DJ and PJ were significantly related to AOC, and OT fully mediated the PJ-AOC relationship. OT partially mediated the DJ-AOC relationship in China but fully mediated this relationship in South Korea. Implications for theory and for management practitioners are discussed, and areas for future investigation are identified.     

Exploring the structure and meaning of public service motivation in the Turkish public sector: a test of the mediating effects of job characteristics

Using a data set consisting of 315 middle-managers at the district level in the Turkish public sector, we develop a structural equation model (SEM) for assessing the impact of empowerment and stewardship on public service motivation (PSM) through job characteristics. The results demonstrate that stewardship and empowerment are distinct ‘levers’ that managers can use in novel ways to influence PSM; and cultural context may factor into the manipulation of these levers. We find that job-based mediators may not compliment leadership styles and self-generating rewards, but, rather work separately in their appeal to PSM.     

Raising the bar (6)

Raising the bar (6). Spatial Economic Analysis. This editorial summarizes and comments on the papers published in issue 12(4) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper addresses the question of whether ‘jobs follow people’ or ‘people follow jobs’. The second paper develops a new methodology to determine functional regions. The third paper is a major contribution to the growing literature on new modelling approaches and applications of disaster impact models. The fourth paper focuses on the costs and benefits of higher education. The fifth paper develops a two-step procedure to identify endogenously spatial regimes in the first step using geographically weighted regression, and to account for spatial dependence in the second step. Finally, the sixth paper estimates a dynamic spatial panel data model to explain house prices and to show that restricted housing supply in the city of Cambridge, UK, has some undesirable labour market effects.