Enterprise Unions in the United States

Through a case study of a large industrial company ( TRW ) , this paper examines the history and functioning of independent local unions ( ILUs ). TRW's ILU plant wages were about the same as those at affiliated union plants and higher than those at nonunion plants. The premium explains why TRW and other companies discarded ILUs in favor of a "new" nonunion model. Yet ILUs can remedy some of the defects in that model and thus belong on the policy and research agenda     

Managerial Efficiency: A Study of Management Buyouts*

Abstract. Aggregate measures of firm performance such as market value and net income are less informative about the operating performance of a firm because they incorporate many other factors in addition to the direct outcomes of operating decisions. This study develops and uses a more direct measure of operating performance that is based on the total factor productivity of the firm. This measure is used to test for the presence of real gains in efficiency for management buyouts. Results for a sample of MBO firms in the manufacturing sector do not support the hypotheses of enhanced managerial efficiency. Relative productivity one and two years after the MBO is below the level one year before the MBO. Furthermore, relative changes in productivity for the MBO sample of firms are less than the average for the industry. These results are contrary to earlier results, which were based on profit margins alone. Résumé. Les mesures combinées de la performance des entreprises telles que la valeur marchande et le bénéfice net livrent moins d'information au sujet du rendement de l'exploitation de l'entreprise parce qu'elles incorporent de nombreux autres facteurs, outre les résultats directs des décisions d'exploitation. L'auteur a élaboré une mesure plus directe du rendement de l'exploitation reposant sur la productivité totale des facteurs de l'entreprise, dont il se sert pour vérifier la présence de gains réels d'efficience à la suite de rachats d'actions par les cadres. Les résultats obtenus pour un échantillon d'entreprises du secteur manufacturier dont les actions ont été rachetées par les cadres ne confirment pas l'hypothèse d'une efficience accrue de la gestion. La productivité relative, un an et deux ans après le rachat, est inférieure à la productivité observée un an avant le rachat. Plus encore, les variations relatives de la productivité des entreprises, constituant l'échantillon, dont les actions ont été rachetées par les cadres sont inférieures à la moyenne du secteur. Ces résultats sont en contradiction avec ceux de travaux antérieurs fondés strictement sur les marges bénéficiaires.     

Pricing Risk-Adjusted Deposit Insurance: An Option-Based Model

This paper presents a methodology for arriving at empirical estimates of deposit insurance premiums from market data by using isomorphic relationships between equity and a call option, and insurance and a put option. The data utilizes the market value of equity to solve for the asset value and its volatility. Market perceptions of FDIC bailout policies are explicitly modeled so as to eliminate the bias in inverted values of assets and their volatility. Sensitivity analyses are performed to show that rank orderings based on premiums are robust to changes in specification, thus facilitating allocation of aggregate premium across banks.     

Globalization,Human Resource Practices and Innovation: Recent Evidence from the Canadian Workplace and Employee Survey

This study examines the triangular relationship that connects the degree to which a workplace is internationally engaged, the extent to which it innovates, and the human resource practices it adopts. By pooling various years of data from the Canadian Workplace and Employee Survey, a nationally representative data set, we found that certain practices, such as variable pay and autonomy training, are more likely to be used in international workplaces. We subsequently found that for an international workplace, the use of variable pay contributes very little to workplace innovation while autonomy training has a positive relationship with innovation.     

FARM SIZE AND THE INTENSITY OF LAND USE IN GUJARAT

This paper investigates why smaller farms appear to use landmore intensively than larger farms in India Using data from400 farms in Gujarat, we find the inverse relationship betweenoutput per hectare and farm size is explained by regional variationsin fertility and labour supply. Within villages larger farmsproduce a little more output per hectare with much less labourper hectare This is explained by the relative abundance of familylabour on small farms. Family size impacts positively on farmlabour demand, suggesting perhaps a wedge between the opportunitycost of family labour and the wage of hired labour.     

Joint Participation Programs: Self-help or Suicide for Labor?

A model of the effects of worker participation programs on workers' attitudes and behavior toward their union under conditions of union involvement and noninvolvements is developed. It is hypothesized that if the union is a co-sponsor of such programs, the effects will be largely favorable to union predicted. General support is found for the model using survey data from establishments with union-sponsored programs.