Regulation and shadow economy: empirical evidence for 25 OECD-countries

New empirical findings for the impact of regulations on economic activities in the shadow economy are presented here. A comprehensive regulation index covering major fields (e.g. labour and product market regulation and the quality of institutions) has been used to analyze the relationship between the density of regulations and the size of shadow economies. The empirical results from 25 OECD countries for the time period 1995–2005 show that—apart from tax burden and tax moral—main causes for the development of the size of shadow economies are labour and product market regulations, overall regulations and poor quality of official public institutions and administration. These findings can provide additional information on policy measures to tackle the problem of growing shadow economies.     

Quality Marks, Metrics, and Measurement Procedures for Business Process Models

The availability of high-quality business process models is a central prerequisite for a successful process management. Nevertheless, in practice process models exhibit a large number of quality deficits, among them grammatical, content-related, and stylistic defects. In addition, there exist only very few approaches to determine the quality of business process models. In this paper, we present the 3QM-Framework, an analytical approach to systematically determine the quality of business process models. The 3QM-Framework makes three contributions: it provides quality marks, metrics, and measurement procedures to quantify the quality level as elements of a theoretically justified quality model. The applicability of the 3QM-Framework has been empirically evaluated in case studies. The results of a survey that was conducted among experts moreover attest its practical relevance.     

Einzelbesprechungen

Ohne Zusammenfassung     

Age,employability and the role of learning activities and their motivational antecedents: a conceptual model

In today's time of demographic change and rapid innovation, age and employability as well as the role of learning and development are high on the agenda of human resource managers and chief learning officers. However, existing research has failed to integrate these concepts in a clear model and offers little explanation of how the concepts may be linked exactly. In this conceptual paper we show how chronological age, despite its poor characteristics as a predictor, might still affect employability indirectly. Specifically, we propose that employees' motivation – in terms of future time perspective and goal orientation – and formal and informal learning activities need to be considered. Since an individual's chronological age cannot be changed, it is important to recognize these mediating variables, which may be targeted more easily by human resource development or age management initiatives.     

Vor der Bundestagswahl: Argumente für Mindestlöhne überzeugen nicht

For the first time ever, all political parties represented in the German Bundestag are proposing some form of minimum wage regulation in their federal campaigns. After sketching an overview of the vast empirical literature on the employment effects of minimum wages, which has yet to come to a consensus, the paper concentrates on the most common theoretical arguments for the view that minimum wages need not reduce the employment levels of affected workers. The authors find that those arguments are either conceptually inconsistent or assume market characteristics that can hardly describe the reality of low-wage labour markets. In the end, minimum wages are a blunt instrument to reduce poverty among workers — its primary objective — because it benefits many that are not poor and does not address the most important determinant of poverty in Germany, namely unemployment.     

Progressive Lending as an Enforcement Mechanism in Microfinance Programs

Microfinance programs are often characterized by progressive lending. A typical borrower receives at first very small amounts, which increase with good repayment conduct. The author rationalizes this feature of microfinance. It is shown that there is a strong tendency to split up projects into subprojects, and that it might be necessary to perform less productive projects first in order to keep pressure on the borrower to repay.     

When paranoia makes sense

On September 11, 2001, in the space of a few horrific minutes, Americans realized the fragility of trust. The country's evident vulnerability to deadly terrorism rocked our faith in the systems we rely on for security. Our trust was shaken again only a few months later with the stunning collapse of Enron, forcing us to question many of the methods and assumptions underpinning the way we work. These two crises are obviously very different, yet both serve as reminders of the perils of trusting too much. The abiding belief that trust is a strength now seems dangerously naive. This new doubtfulness runs contrary to most management literature, which has traditionally touted trust as an organizational asset. It's an easy case to make. When there are high levels of trust, employees can fully commit themselves to the organization because they can be confident that their efforts will be recognized and rewarded. Trust also means that leaders don't have to worry so much about putting the right spin on things. They can act and speak forthrightly and focus on essentials. In short, trust is an organizational superglue. Nevertheless, two decades of research on trust and cooperation in organizations have convinced social psychologist Roderick Kramer that--despite its costs--distrust can be beneficial in the workplace. Kramer has observed that a moderate form of suspicion, which he calls prudent paranoia, can in many cases prove highly beneficial to the distrustful individual or organization. In this article, he describes situations in which prudent paranoia makes sense and shows how, when properly deployed, it can serve as a powerful morale booster--even a competitive weapon--for organizations.