Scale-dependent and risky returns to savings: Consequences for optimal capital taxation

I present a model of optimal capital taxation where agents with heterogeneous labor productivity randomly draw their rate of return to savings. Because of scale dependence, the distribution of rates of returns can depend on the amount saved. Uncertainty in returns to savings yields an insurance rationale for taxing capital on top of labor income. I first show that, because of scale dependence, agents making the same saving decision should access the same rate of return at the optimum. I then constrain the information set of the government and show that, as soon as return are uncertain, positive capital income taxation is needed at the optimum. The optimal linear tax on capital income trades off insurance with distortions to both savings and to the rate of return in a context of scale dependence. Eventually, I argue that scale dependence in and of itself is not sufficient to justify capital taxation on top of labor income taxes. These results are still valid when agents can optimize between a risk-free and a risky-asset that can both exhibit scale dependence.     

Membership patterns in USDAW 1980–1990: survival as success?

This research note examines the pattern of union membership growth in USDAW during 1980 to 1990. The union's recruitment strategies, campaigns at local and national level, and the effect of changes in the labour market such as recent equal value judgements are examined with respect to changes in membership levels.     

The interplay between cost accounting knowledge and presentation formats in cost-based decision-making

Most studies on cost-based decision-making examine the profit impact of cost reports that rely on different methods to allocate costs. In practice, firms’ cost reports often employ the same cost allocation method with subtle variations in the way that the cost data are presented. This paper examines experimentally the profit impact of a cost report’s presentation format in relation to a decision maker’s level of cost accounting knowledge. Using a customer profitability report prepared using activity-based costing and presented in either a tabular or a graphical format, participants analyze a complex pricing and resource allocation task that affects firm profitability. The results suggest a strong relation between presentation format and cost accounting knowledge. Specifically, decision makers with a low level of cost accounting knowledge attain higher profits when they use a graphical format in comparison to a tabular format. More surprisingly, graphs (versus tables) have an adverse effect on profits for users with a high level of cost knowledge. This result has broad implications: in order to facilitate the decisions of a variety of users of accounting data (e.g. managers, external investors, etc.), firms may need to adapt the presentation format of their accounting data to the level of accounting sophistication of the users.     

Person–organization fit and the war for talent: does diversity management make a difference?

This study investigates the importance of diversity management in applicants' job choice decisions. According to the person–organization fit theory, individuals make assessments of fit between their personal values and the values of the organizations, and they make job choice decisions based on these assessments. A survey of 113 MBA job seekers concluded that women and ethnic minorities found diversity management to be important when accepting offers of employment. In addition, high achievers and new immigrants rated organizations with diversity management as more attractive as potential employers. The findings suggest a need to place a higher emphasis on diversity management in women and minority applicant attraction.     

Organizational Agility of Family Small and Medium-Sized Enterprises: Evidence from the Eastern Democratic Republic of Congo

International Advances in Economic Research -