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Outsourcing and the skilled–unskilled wage gap

Anwar, Sajid - In: Economics Letters 118 (2013) 2, pp. 347-350

Within the context of a product variety model, this paper examines the impact of outsourcing of skill-intensive tasks … on the skilled–unskilled wage gap. Outsourcing affects the wage gap through direct as well as indirect channels. While … outsourcing decreases the effective wage of skilled workers in the services sector, owing to inter-sectoral labour mobility, its …

Persistent link: https://www.econbiz.de/10010608071

Time zone differences as trade barriers

Egger, Peter H.; Larch, Mario - In: Economics Letters 119 (2013) 2, pp. 172-175

This paper estimates the impact of time zone differences between trading locations on trade costs and trade in general equilibrium. Using homogeneous bilateral trade data between US states and Canadian provinces, time zone differences are found to reduce bilateral trade by 11% on average, which...

Persistent link: https://www.econbiz.de/10010664122

Career dynamics and span of control

Nikolowa, Radoslawa - In: Economics Letters 128 (2015) C, pp. 6-8

We offer a model that combines a knowledge based organizational structure with progressive learning of employees’ talent. We show that higher span of control is associated with better selected managers, higher wages, higher probability to be promoted, and higher turn-over in the early career...

Persistent link: https://www.econbiz.de/10011208467

Performance pay and unemployment during the great recession

Parent, Daniel - In: Economics Letters 126 (2015) C, pp. 31-34

With data from the Panel Study of Income Dynamics I show that individuals in performance pay jobs were much less likely to be unemployed at the time of the interview than those in “fixed” wage jobs during the 2008 recession. While their unemployment rate is always lower in non-recession...

Persistent link: https://www.econbiz.de/10011189546

The retention effects of high years of service cliff-vesting pension plans

Cunha, Jesse M.; Menichini, Amilcar A.; Crockett, Adam - In: Economics Letters 126 (2015) C, pp. 6-9

We study the retention effects of the Australian military’s decision to remove a 20-year cliff-vesting requirement from their retirement system in 1991. We follow to the present individuals who self-selected into and out of the 20-year cliff-vesting plan, as well as those who were forced out...

Persistent link: https://www.econbiz.de/10011189563

The disappearing gay income penalty

Clarke, Geoffrey; Sevak, Purvi - In: Economics Letters 121 (2013) 3, pp. 542-545

Since 1995, labor economists have reported on the income disparities between individuals who engage in same-sex behavior and those that do not. Many of these papers report a significant wage penalty, while others find no effect, but few look at the trend over time. We find, using National Health...

Persistent link: https://www.econbiz.de/10010729479

The minimum wage from a two-sided perspective

Brown, Alessio J.G.; Merkl, Christian; Snower, Dennis J. - In: Economics Letters 124 (2014) 3, pp. 389-391

This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms’ job offer and workers’ job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show...

Persistent link: https://www.econbiz.de/10010930730

Compensation and performance: An experimental study

Dodonova, Anna; Khoroshilov, Yuri - In: Economics Letters 124 (2014) 2, pp. 304-307

This paper investigates how compensation structure affects performance in a simple but effort-consuming task. In this experimental study, the subjects were asked to multiply two-digit numbers for 40 min and were paid using either a linear (with different pay for performance sensitivities) or a...

Persistent link: https://www.econbiz.de/10010933299

Shirking and “choking” under incentive-based pressure: A behavioral economic theory of performance production

Sanders, Shane; Walia, Bhavneet - In: Economics Letters 116 (2012) 3, pp. 363-366

Significant empirical evidence exists within psychology and economics that greater incentives under pressure can lead to lower performance outcomes. However, standard economic theory does not account for this possibility. Efficiency wage models, for example, conclude a positive relationship...

Persistent link: https://www.econbiz.de/10011041769

Sabotage in teams

Kräkel, Matthias; Müller, Daniel - In: Economics Letters 115 (2012) 2, pp. 289-292

We show that a team may favor self-sabotage to influence the principal’s contract decision. Sabotage increases a team member’s bonus and total team effort. If these benefits outweigh the reduction in the success probability, sabotaging the team is rational.

Persistent link: https://www.econbiz.de/10011041830