National skill-creation systems and career paths for service workers: hotels in the United States,Germany and the United Kingdom

Creating sufficient opportunities for individuals to develop their capabilities and earn a living wage is one of the central challenges facing all countries. However, some types of vocational education and training (VET) institutions may be more effective than others in promoting the development of career-enhancing ‘transferable’ skills. In order to investigate the links between national skill-creation systems and individual career paths, this study focuses on three countries with very different VET systems: the United States, the United Kingdom and Germany. The comparison is based on closely matched samples of three- and four-star hotels. The results suggest that individual career development and outcomes, such as wages and turnover rates, are strongly influenced by the interplay of three key elements – the breadth, relevance to employment and degree of standardization – of national initial VET systems. Our analysis identifies strengths and weaknesses of the different systems and key lessons for improvement.     

Foreign direct investment and vertical integration of production by Japanese multinationals in Thailand

We test the vertical model of foreign direct investment (FDI) empirically using firm level information on Japanese multinational activity in Thailand. These data allow us to investigate the effects of both home country (Japan) and host country (Thailand) characteristics on the inter-industry pattern of FDI. For 85 manufacturing industries over the period from 1985 to 1995, we find a positive influence of industry variation in skill intensity and market size in the host country and a negative effect of transport costs on the amount of FDI. These results provide strong direct econometric evidence of vertical integration of production across the countries. Journal of Comparative Economics 32 (4) (2004) 805–821.     

The costs and benefits of increased accounting regulation: a case study of Lloyd's of London

While a valuable literature exists on theoretical considerations in cost-benefit analysis (cba) of accounting regulation, and although the regulators themselves acknowledge the need for cost-benefit appraisal of their work, empirical analysis of the costs and benefits of changes in accounting regulation is almost non-existent. This paper attempts such an analysis for a step change in accounting and audit regulation—at Lloyd's between 1982 and 1985. It aims both to advance the cba methodology, and to inform debate about the evolution of the Lloyd's market. While the estimates do not show whether the changes produced an optimal level or form of Lloyd's regulation, they do suggest that, comparing changes, the extra benefits exceeded the extra costs—whether the chosen accounting unit is a private one—Lloyd's Names—or a social one.     

Localism and the Big Society: the asset transfer of leisure centres and libraries – fighting closures or empowering communities?

This paper critically examines the ‘asset transfer’ of leisure services from the public to the voluntary sector. Asset transfer might be theorised as ‘austerity localism’, in which volunteers are obliged to fill the gaps left by retreating public provision, or as ‘progressive localism’, which represents new opportunities through the localism and Big Society agendas to develop more locally responsive, cooperative and mutualist visions. In this way, asset transfer might overcome the limitations of the United Kingdom policies in which ‘Big Government’ is replaced by civic society. Drawing on qualitative interviews with key personnel (volunteers, managers and local authority officers) at 12 leisure facilities, a grounded assessment of the nuanced balance between ‘austerity localism’ and ‘progressive localism’ is provided, including three observations. First, the main impetus for transfer was cuts in local authority budgets which stimulated the emergence of local groups of volunteers. Secondly, the transfers themselves required interaction between local government and the volunteer groups; however, the nature of the relationship and support given varied and support was limited by austerity measures. Thirdly, volunteers do not automatically fill a gap left by the state: without support transfer viability relies on the financial and social capital among volunteer groups, and this is unevenly distributed. These findings suggest that the capacity for a ‘progressive localism’ to emerge through asset transfer is limited. However, where transfer has occurred, there are some progressive benefits of volunteer empowerment and a more flexible service.     

Means or ends? Ethical decision frameworks in the Western Australian Public Service

The paper analyses results from a questionnaire-based survey of ethical behavior of members of the Western Australian Senior Executive Service. Relating to definitions of deontology (duty) and teleology (ends over means) the study examines the validity of three hypotheses on ethical behaviour/decision making frameworks. Longitudinal data is related to the 1983–90WA Inc period. The study establishes that SES managers apply ethical frameworks in order to understand the meaning of: ethical behaviour and that there are groups of managers with distinct understandings of what constitutes ethical behavior which is reflective of particular ethics theories. Three groups of managers are identified: (1) emphasises teleology (2) focuses on external influences (rules, standards and codes) and (3) encompasses both teleology and external influences and, to a lesser extent deontology. Only this latter group is regarded as having an appropriate repertoire of potential responses to any given ethical dilemma. There is no support for the view that those beginning employment in the public service post 1984 adversely affected the ethical decision making frameworks of other senior managers.Allan Peachment holds a doctorate from Lancaster University and is a National Fellow of the Royal Institute of Public Administration of Australia. For co-authors, Geoff Soutar, Margaret McNeil and Caron Molster, see other papers.     

Because you're worth it? Determinants of Vice Chancellor pay in the UK

Wage inequality has increased across most developed nations; this has been manifested in a wide range of organisations and sectors, with implications for well‐being and sustainability; within UK universities, this has become increasingly visible. There is increasing pressure on universities to deliver social and economic impact in an increasingly market‐driven and metric‐driven environment. In the UK context, increasing financial pressure has led to both an escalation of student fees and constrained wage growth for faculty. In contrast, most Vice Chancellors have secured substantive pay packages raising concerns that regulatory failures may be contributing to the rise. We show that Vice Chancellors use their internal power within organisations to extract a disproportionate amount of the value created by the institution. However, we encountered much diversity according to the quality of governance, highlighting the extent to which not only contextual but also internal dynamics drive wage inequality.