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We analyze the effect of investments in corporate social responsibility (CSR) on workers’ motivation. In our experiment, a gift exchange game variant, CSR is captured by donating a certain share of a firm’s profit to charity. We are testing for CSR effects by varying the possible share of profits given to charity. Additionally, we investigate the effect of matching mission preferences, i.e., a worker preferring the same charity the firm donates to. Our results show that, on average, workers reciprocate investments in CSR with increased effort. Matching mission preferences also result in higher effort, independently of the extent of the CSR investment.
This chapter shows that a series of public policies have the potential to boost citizens’ perspectives for finding work and thereby foster incentives for peace. The first prominent policy is to invest in education. A more educated population generates countless benefits, one of which is the prospect of obtaining better jobs. Fundamentally, more meaningful employment raises the opportunity cost of giving up paid work to join an armed rebellion. Furthermore, physical capital (money) can more easily be stolen than human capital (knowledge). Hence, investing cash in building classrooms means that trying to topple the state will become less lucrative. Next, it is spelled out how better health leads to both a longer time horizon and a higher opportunity cost of conflict. This, in turn, makes long-run (peaceful) investments more appealing and reduces the scope for short-term appropriation and looting. Finally, a series of labor market policies are assessed, stressing the role of good jobs in making it less attractive to leave work and go to war. Empirical evidence from a variety of contexts is presented.
Monopsony is the label that Joan Robinson attached to a market in which a single employer faces a competitively structured supply of labor. For some reason, her early theoretical analysis, along with the insights of A. C. Piguo and J. R. Hicks, did not gain much traction. Recently, however, economists and policymakers have recognized the ill effects of monopsony and have offered some actions aimed at mitigating – if not eliminating – the monopsony problem. In our view, vigorous enforcement – both public and private – of the antitrust laws can play a large role in reducing the ill effects of monopsony power in the labor market.
The economics of monopsony power results in lower wages and other forms of compensation, as well as reduced employment. Wealth is transferred from workers to their employers. In addition, the employer's output is reduced, which leads to increased prices for consumers. Monopsony in Labor Markets demonstrates that elements of monopsony are pervasive and explores the available antitrust policy options. It presents the economic and empirical foundations for antitrust concerns and sets out the relevant antitrust policy. Building on this foundation, it examines collusion on compensation, collusive no-poaching agreements, and the inclusion of non-compete agreements in employment contracts. It also addresses the influence of labor unions, labor's antitrust exemption, which permits the exercise of countervailing power, and the consequences of mergers to monopsony. Offering a thorough explanation of antitrust policy, this book identifies the basic economic problems with monopsony in labor markets and explains the remedies currently available.
Debates about the best means of preparing archaeologists continue. This article reviews data from 674 archaeological job postings to assess in-demand archaeological knowledge, skills, and abilities. The needs assessment reveals American archaeology's demand for dynamic, highly skilled professionals capable of identifying, preserving, and protecting the past. The skills demanded in archaeology job postings are the skills necessary to not only succeed as an archaeologist in any sector but also meet the challenges faced by the discipline more generally.
Conflicts over the employment status of Uber, Lyft, and other gig workers have made headlines in recent years. I argue that the conditions facing these workers and other independent contractors today are in many respects the result of policy decisions made seventy-five years ago, in hard-fought battles over which workers would—and which would not—be protected by New Deal social programs and labor laws for employees. In 1947–48, New Deal Democrats were poised to establish a more expansive definition of “employee,” extending eligibility to a range of workers excluded by more restrictive common law standards. The Republican-led 80th Congress thwarted the attempt to expand coverage, however, by blocking administrative initiatives, reversing court rulings, and redefining employment-based eligibility for federal labor and social protections. Their actions redirected policy on employment relations, restricting the reach of New Deal protections in the post–WWII economy and shaping the terms of subsequent conflicts over employment status in ways that have left broad power and discretion in the hands of employers.
In the next 10 years, the US cultural resource management (CRM) industry will grow in terms of monies spent on CRM activities and the size of the CRM labor force. Between US fiscal years 2022 and 2031, annual spending on CRM will increase from about $1.46 to $1.85 billion, due in part to growth in the US economy but also to an added $1 billion of CRM activities conducted in response to the newly passed infrastructure bill. The increased spending will lead to the creation of about 11,000 new full-time positions in all CRM fields. Archaeologists will be required to fill more than 8,000 positions, and of these, about 70% will require advanced degrees. Based on current graduation rates, there will be a significant MA/PhD-level job deficit. Accordingly, there is a compelling need to (a) stop the trend to close or decrease the size of current graduate programs, (b) reorient academic programs to give a greater emphasis to the skills needed to be successful in CRM, and (c) better integrate academic and applied archaeology to leverage the vast amount of data that will be generated in the next decade to best benefit the public.
Unemployment insurance benefits are often extended during recessions. Existing research shows that this policy increases the unemployment rate and the duration of unemployment. But less is known about why these changes occur. I construct a job search model with an endogenous participation decision to quantify the contributions of (i) search effort, (ii) job selectivity, and (iii) labor market participation, to changes in unemployment outcomes. In a model calibrated to the US economy, I show that the increased participation accounts for a large fraction of the increase in the unemployment rate following a permanent extension of benefits. This finding indicates the importance of changes in the participation decision of workers facing extended benefits for the unemployment rate—a mechanism that is understudied and frequently overlooked in the quantitative labor market research exploring the impact of UI policies.
Since the late nineteenth century, some scholars have emphasized the free character of the traditional Chinese economy, while others have regarded it as a feudal or Asiatic one that prevented the development of a market economy. The question of property rights and factor markets, which are the themes of this chapter, is closely related to this subject. The first section of this chapter will give a brief survey of the institutions governing the markets for land, labor, and capital from the perspective of law and policy. In the second section, several concrete illustrations will be presented to describe the functioning of factor markets in the Song–Qing economy. In the last section, an outline of the short-, middle-, and long-term changes that occurred in factor markets will be described.
China after Mao is typically characterized as a country where economic opportunities are based on merit instead of ideological conformity. However, the salience of ideology has grown under the rule of Xi Jinping. Using a large-scale resume audit experiment and a conjoint survey experiment of hiring managers in China, we find that firms in China do not reward job candidates for expressing conformity to the ideology of the regime, but job candidates who express support for Western democracy are less employable. Results suggest that firms in innovative industries designated as strategically important by the Chinese regime (e.g., artificial intelligence) penalize support for Western democracy by the largest magnitude while the remaining firms in innovative industries do not penalize political non-conformity.
This article uses a linked sample of World War I Army veterans from the state of Missouri to study the impact of vocational rehabilitation on labor market outcomes for men wounded and disabled during the war. Veterans’ military service abstracts are linked to the 1940 US Census and a subset are linked to rehabilitation records. This creates a new dataset that contains information on military service, rehabilitation, and labor market outcomes. I find that 70 percent of veterans that were both wounded in action and disabled when discharged from the army participated in the rehabilitation program. These same veterans had significantly better labor market outcomes, which can be attributed to the rehabilitation program under certain assumptions.
This chapter focuses on borrowing to address social risks that arise from disrupted employment patterns such as unemployment, sickness, or fluctuating work hours. Within permissive credit regimes, households that are least protected by the welfare state borrow the most. In Denmark, upper-middle- and high-income groups who experience more substantive income losses during unemployment borrow more than low-income groups that are well protected by the welfare state. The limited American welfare state, by contrast, greatly affects low- and middle-income households, which increasingly tap into credit markets to bridge income losses due to fluctuating work hours, temporary employment, and job losses. In Germany, the unemployed rarely borrow money to address financial shortfalls because Germany’s restrictive credit regime makes it very difficult for them to access loans. This chapter demonstrates that political choices affect the relationship between social policies and household debt. Variation in the generosity of unemployment benefits across US states and over time reveals that individuals who become unemployed borrow more in US states where benefits are less generous. The German Hartz labor market reforms show that the significant cuts in social benefits for the long-term unemployed did not increase debt levels for affected households because access to credit remained restrictive.
This introductory chapter identifies key puzzles and questions, lays out the book’s main argument, and highlights the book’s contributions and implications. The book develops a new comparative framework that integrates credit regimes and social policies in the study of comparative political economy. It contributes to a range of literatures in political science and sociology, including the literatures on states and markets by moving beyond the focus on a purely substitutive link between welfare states and financial markets; it expands work in international political economy on capital flows and policy scope by introducing the notion of credit regimes; and it sheds new light on research on income and wealth inequality by documenting credit markets’ regressive allocation and distribution of resources and responsibilities and new forms of inequality and discrimination. The chapter then lays out the book’s main empirical strategies and data sources. The book’s key approach is to studying individuals within particular institutional constraints in different countries cope with social risks and seize social opportunities. It does so by drawing on a new measure of credit regime permissiveness, longitudinal micro-level panel data from Denmark, the United States, and Germany, and an original cross-national survey.
Aware that studies of gender relations include both the world of women and that of men, this chapter examines them primarily from women’s perspective, as they command a numerical majority of the Japanese population while forming a sociological minority subject to various forms of gender discrimination. In international comparison, the World Economic Forum reports that the gender gap in Japan is exceptionally vast, ranking one hundred twenty-first out of one hundred fifty-three countries, well behind the Philippines, China, and South Korea, and in last place among major advanced economies. To understand Japanese society, women’s situations and voices must be given priority and studied in depth with a critical eye.
Claire Bidart, French National Center for Scientific Research (CNRS), Aix Marseille Univ.,Alain Degenne, French National Center for Scientific Research (CNRS),Michel Grossetti, French National Center for Scientific Research (CNRS ) and the School of Advanced Studies in the Social Sciences (EHESS)
Relationships are not only an expression of sociability and the pleasure of being together. They also have a "utility" dimension: under certain conditions, they are a means of accessing resources. People who are in a relationship provide each other with many services, but these services alone are not enough to qualify relationships. This chapter examines the way in which relationships and networks can become resources, particularly economic resources, but also form the basis of daily mutual aid and influence. The best known case is that of the labor market, but the "economic" use of relationships goes far beyond that. Mutual aid and social support, but also influence within the personal network are other forms of relational resources.
The economic decline of Italy between the mid-1990s and the outset of the financial crisis is a critical case in European political economy because its model of capitalism was deeply reformed at the time when its decline commenced. This paper argues that the Italian economic stagnation cannot be attributed to the lack of market-friendly reforms in a globalized economic context, as argued by previous literature. Instead, Italian economic decline is a consequence of institutional change which on the one hand has destroyed previous institutional complementarities, and on the other hand has led to an incoherent, or ‘hybrid,’ capitalist setting. Under the lenses of the Varieties of Capitalism approach, this paper reviews the main reforms in the fields of corporate governance and finance as well as in the labor market. It shows that such reforms established new institutions alternatively apt to support both strategic coordination and market coordination, resulting in institutional incoherence, and mixed incentives. In the short-run, incoherent reforms have reduced the availability of capital to SMEs; in the longer-run, they failed to give actors incentives to pursue innovation. This paper contributes theories of economic growth/decline focused on the supply-side of the economy and it is compatible with other – non-rival – explanations focused on the demand-side.
A resurgence in work requirements for safety-net programs, including the Supplemental Nutrition Assistance Program (SNAP), has marked the early years of the Trump administration. Some lawmakers at both the federal and state level have moved to revive and expand SNAP’s work requirements, despite evidence that such work requirements do little to increase self-sufficiency or improve long-term economic outcomes among those living in poverty.This chapter takes up the issue of work requirements in the context of rural communities, where the need for safety-net programs and food system supports is acute. We begin with a brief overview of SNAP and examine the recent push to make SNAP work requirements more strict.We then turn to an overview of the need and current state of use of the social safety net in rural America. If work requirements are to be effective – and, indeed, appropriate – work opportunities must be available.We, therefore, consider employment data and information on safety-net use across the rural-urban axis. Finally, we present a case study about the results of relatively early efforts to impose work requirements on SNAP receipt in Maine.
Since 2007, Burkina Faso's mining sector has grown quickly, with gold replacing cotton as the country's biggest export. The decline in gold prices since 2012, however, has hit the Burkina Faso economy hard. Using a static computable general equilibrium model, we assess whether – in a context of gold-price decline and volatility – an increase in the tax burden on the mining sector, as implemented by the government of Burkina Faso, is the appropriate way to avoid the natural resource curse. The results show that a tax policy based solely on increasing taxes on the gold sector brings only limited economic benefits, notably in terms of employment, and fails to significantly mitigate the effects of gold-price volatility.