Temporal Orientation and Corporate Social Responsibility: Global Evidence

There has been a growing emphasis on the importance of a long-term perspective in academia and practice. Yet understanding of the interdependency of those factors – the temporal preferences embedded in organizations and in societal values as well as the influence of temporal orientation of investors – remains limited. We theorize whether and how a firm's corporate social responsibility (CSR) is affected by the societal temporal orientation, its time horizon, and its investors' time horizon. Using a global sample, we confirm that CSR activity is higher when a country has a long-term orientation culture, when the firm has a long-time horizon, and when the controlling institutional investor has a long-term investment horizon. We also find that the national culture's long-term orientation heightens the effect of a firm's long-time horizon on its CSR. Further, our results show that the effects of temporal orientation are more pronounced in environmental than in social CSR.     

Outsourcing as a cooperative game between the CEO and labor: theory and evidence

Review of Quantitative Finance and Accounting - We develop a model of a cooperative power game between a chief executive officer (CEO) and labor over a proposed corporate outsourcing, and test the...     

The value of informal learning within work-based learning: The economic benefits of WBL

Recent updates to federal policy governing career and technical education (CTE) in the United States have emphasised the need to include work-based learning (WBL) experiences as central components of CTE programming. Many of these experiences showcase an informal learning component which has strong ties to early career success as suggested by the Human Capital Theory. This study explores the following questions: What is the relationship between WBL and early career income? Are there differential relationships based on the type of WBL experience? The Education Longitudinal Study of 2002 (ELS) includes nationally representative data for student participation in WBL and early career income. We used school-fixed effects and propensity score matching techniques to respond to our questions regarding the potential relationship between WBL participation and early career income. We found that students who participated in at least one WBL experience in high school could expect to have an average 7% higher income compared to non-WBL participants. With respect to specific WBL experiences, job shadowing, community service, and mentoring had the largest positive relationship to higher early career income. Findings from this study indicate that participation in WBL experiences can have a positive impact on a high school graduate's college and career readiness as measured through early career income. Given the differential relationships observed for different types of WBL, schools, policymakers, and students should explore WBL options that best align with their personal goals.     

Dispersion in Dispersion: Measuring Establishment-Level Differences in Productivity

We describe new experimental productivity dispersion statistics, Dispersion Statistics on Productivity (DiSP), jointly produced by the Bureau of Labor Statistics (BLS) and the Census Bureau, that complement the official BLS industry-level productivity statistics. The BLS has a long history of producing industry-level productivity statistics, which represent the average establishment-level productivity within industries when appropriately weighted. These statistics cannot, however, tell us about the variation in productivity levels across establishments within those industries. Dispersion in productivity across businesses can provide information about the nature of competition and frictions within sectors and the sources of rising wage inequality across businesses. DiSP data show enormous differences in productivity across establishments within industries in the manufacturing sector. We find substantial variation in dispersion across industries, increasing dispersion from 1997 to 2016, and countercyclical total factor productivity dispersion. We hope DiSP will enable further research into understanding productivity differences across industries and establishments and over time.