Explaining cross-country variations in the prevalence of informal sector competitors: lessons from the World Bank Enterprise Survey

To advance understanding of informal sector entrepreneurship, the aim of this paper is to evaluate and explain the cross-country variations in the prevalence of informal sector competitors. To do so, World Bank Enterprise Survey (WBES) data is reported from 142 countries. This reveals that 27% of formal enterprises view competition from the informal sector as a major constraint on their operations, although this varies from 72% of formal enterprises in Chad to no formal enterprises in El Salvador. To explain these cross-country variations, four competing theories are evaluated which variously view informal sector entrepreneurship and enterprise to be more prevalent when there is either: economic under-development (modernisation theory); high taxes and state over-interference (neo-liberal theory); too little state intervention (political economy theory), or an asymmetry between the laws and regulations of formal institutions and the unwritten socially shared rules of informal institutions (institutional theory). A multilevel probit regression analysis confirms the modernisation and institutional theories, but not the neo-liberal and political theories. Beyond economic under-development, therefore, it is not too much or too little state intervention that is associated with the prevalence of informal sector competition but rather, whether the laws and regulations developed by governments are in symmetry with the norms, values and beliefs of entrepreneurs. The paper concludes by discussing the theoretical and policy implications of these findings.

     

The restructuring of the institutional real estate portfolio in the UK

Real estate investment portfolios of financial institutions have seen dramatic changes over the last three decades or more. Historically such property investment decisions have been seen within a portfolio diversification paradigm that has sought to balance risk and return. This paper considers the role of the supply of assets in the determining and constraining the UK institutional portfolio. The supply of real estate assets not only expands during property booms but has also been transformed by a long term urban development cycle as cities adapt to cars and the ICT revolution that has brought new property forms. The research examines long term trends in investment change by disaggregating into ten property forms rather than the usual three land use sectors. It then assesses to what extent investment patterns can be explained in terms of portfolio theory, short term net returns of individual sectors or driven by the supply of real estate assets. It concludes that the supply of real assets is an overlooked explanation.     

A Cost Indirect Evaluation of Productivity Change in UK Universities

The study provides an empirical analysis of productivity change in publicly-funded UK universities, against a background of government policy specifically designed to enhance the productive efficiency of universities in the provision of teaching and research. The nonparametric analysis employs a cost indirect approach to measuring productivity change, taking explicit account of the quality of research output and decomposing productivity change into technical change and efficiency change. The latter is also decomposed into changes in pure technical efficiency, scale efficiency and output congestion. Changes in size efficiency are also computed. On average, productivity declined by 4% over 1989–92, mainly as a result of regressive technical change. Evidence of biased technological change was found, with the frontier shifting out in favour of the teaching outputs and in relative to the research output.     

Whistle Blowers: Saints of Secular Culture

Neither the corporate view of whistle blowers as tattle-tales and traitors, nor the more sympathethic understanding of them as tragic heroes battling corrupt or abused systems captures what is at stake in whistle blowing at its most distinctive. The courage, determination and sacrifice of the most ardent whistle blowers suggests that they only begin to be appreciated when they are seen as the saints of secular culture. Although some whistle blowers may be attempting to deflect attention from their own deficiencies and others may be disgruntled employees, the most serious instances involve a level of moral sensitivity that approaches religious proportions that are baffling for a culture that has dispensed with sainthood.     

Evaluating cross‐national variations in the extent and nature of informal employment in the European Union

This article evaluates critically the contrasting explanations for the cross‐national variations in the prevalence and nature of informal employment, which variously view such work as more prevalent in poorer, under‐developed economies; driven by high taxes, corruption and state interference that lead workers to exit formal employment; or driven by inadequate state intervention leading to the exclusion of workers from formal employment and state welfare provision. By analysing cross‐national variations across the European Union in the size of informal employment using indirect measurement methods and in its varying character using evidence from a 2007 Eurobarometer survey, it was found that wealthier, less corrupt and more equal economies with higher levels of labour market intervention, social protection and redistribution via social transfers have lower levels of informal employment, much of which is conducted to exit formal employment. The paper concludes by exploring the theoretical and policy implications.     

Direct and representative participation in Europe: recent survey evidence

Despite the wealth of literature on HRM and employee involvement, now there has been a remarkable lack of large-scale survey evidence on the diffusion employee involvement in work organizations in Europe. This gap in large-scale survey evidence on the diffusion of direct employee participation has now been filled representative sample of workplaces in ten major European Union countries which commissioned by the European Foundation for the Improvement of Living and Working Conditions in Dublin (the EPOC project). It is by far the most comprehensive overview of the implementation and effects of direct employee participation of its kind. The paper shows that, on the basis of the EPOC survey results, there appears to considerable gap between the rhetoric and reality of direct participation. The paper shows that while the incidence of different forms of direct participation was widespread ten countries, the scope, in terms of number of issues involved and the number of given to employees, was relatively limited for most direct participation forms. The survey also showed that the introduction of direct participation posed little threat to trade representatives. Indeed, works councils and union representatives were in most 'agents of change' rather than barriers to the development of the more intensive practice of direct participation.     

Technological change and participation in work organization: recent results from a European Community survey

In 1987–8 a large attitudinal survey covering all twelve Member States of the European Community was carried out by the European Foundation for the Improvement of Living and Working Conditions in Dublin which focused on various aspects of participation by employee representatives in new information technology. This paper presents evidence on one of the central trade union concerns about technological change – that of work organization.

The paper first sets out an explanatory framework which is based on much of the literature, surveys and case-study evidence on the impact of new technology on work and employment. Second, the explanatory factors are used to explain the wide diversity in the levels of participation in work organization across the Community. The paper concludes that there is a significant North/South divide, with the northern EC Member States, particularly Denmark, Germany, the Netherlands and Belgium having much higher levels of participation in work organization than their Mediterranean partners.