Overeducation, wages and promotions within the firm

We analyse data from personnel records of a large firm producing energy and telecommunication and test for the effect of deviations between required and attained education of workers. Required education is measured as hiring standards set by the firm. We find the usual effects of over- and undereducation in a wage regression, thus rejecting the argument that such effects are exclusively due to firm fixed effects. Distinguishing, within the firm, between a sheltered internal labour market and an exposed external labour market, we find that at the internal labour market over- and undereducation significantly affect career development, in particular at younger ages, but that such effects are mostly absent at the firm's external labour market.     

How helpful is a long memory on financial markets?

Summary. How should portfolio decisions depend on the past? In a simple model with boundedly rational agents we show that there is no universal answer to this question. Both, long and short memory, can be optimal in the appropriate environment. In most cases there is an equilibrium where both dispositions are equally successful. We characterize such equilibria for the case of two assets and two states. For dynamics based on average payoff, equilibria are global attractors whereas discrete choice dynamics in general do not converge to the equilibrium. Received: August 31, 1998; revised version: November 15, 1999     

Investigating the psychometric properties and assessment capabilities of the short version of the Health and Safety Executive’s Management Standards Indicator Tool

Abstract

Policies on psychosocial hazards at work are gaining importance. Subsequently, a number of indicators have been proposed to assess the phenomenon such as the Management Standards Indicator Tool (MSIT). This study focuses on the short-version of the MSIT and aims to evaluate the convergent and discriminant validities of the measures, explore whether these measures can be represented by a higher-order factor of work-related stress and to contribute towards better understanding of its concurrent validity. Data were obtained from 452 full-time managerial-grade employees working in a multinational manufacturing plant in Malta. The study shows that the original 25-item MSIT measures have convergent and discriminant validity issues. Following the removal of five items, the revised indicator demonstrated good construct validity and was well-represented by a higher order factor. Additionally, the second-order factor of the modified MSIT mediated the relationship between psychosocial safety climate and psychological well-being and slightly interacted with engagement to explain improved well-being in the mediational pathway. This study suggests that the modified MSIT is effective in assessing psychosocial factors in stress-management interventions. The MSIT has good prospects to be further adopted in the process of developing better policy and standards for the improvement of psychological conditions at work.     

Disaggregating the group effect: Vertical and horizontal <Emphasis Type="Italic">keiretsu</Emphasis> in changing economic times

This paper examines the evolution of keiretsu group affiliation among members of horizontal and vertical keiretsu in Japan over two time periods: 1992–1997, and 1997–2002. We found that ties were more stable in the later time period and therefore restricted our empirical analysis to the 1992–1997 period. We also found differences in the response of vertically and horizontally linked groups to economic downturn and capital market change—vertically linked groups weakened their ties while horizontally linked groups showed more stability.     

An Evaluation of the One-Time Capital Gains Exclusion for Older Homeowners

This paper provides an evaluation of the one-time capital gains exclusion for older homeowners. This provision was largely intended to prevent large capital gains tax liabilities from locking older households into current, and possibly inappropriate, housing. We find the exclusion facilitates a modest number of moves, through not entirely of the downscaling type intended by Congress. Among beneficiaries, the distribution of benefits appears to be highly regressive. Modest benefits are also found to be enjoyed by the real estate and mortgage industries. Revenue losses are estimated and found to be significantly larger than estimates provided by the Treasury Department.