Essays on Personnel Economics and Gender Issues

This thesis consists of four self-contained essays in economics. Tournaments and unfair treatment. This paper introduces the negative feelings associated with the perception of being unfairly treated into a tournament model and examines the impact of these perceptions on workers’ efforts and their willingness to work overtime. The effect of unfair treatment on workers’ behavior is ambiguous in the model in that two countervailing effects arise: a negative impulsive effect and a positive strategic effect. The impulsive effect implies that workers react to the perception of being unfairly treated by reducing their level of effort. The strategic effect implies that workers raise this level in order to improve their career opportunities and thereby avoid feeling even more unfairly treated in the future. An empirical test of the model using survey data from a Swedish municipal utility shows that the overall effect is negative. This suggests that employers should consider the negative impulsive effect of unfair treatment on effort and overtime in designing contracts and determining on promotions. Late careers in Sweden between 1970 and 2000. In this essay Swedish workers’ late careers between 1970 and 2000 are studied. The aim is to examine older workers’ career patterns and whether they have changed during this period. For example, is there a difference in career mobility or labor market exiting between cohorts? What affects the late career, and does this differ between cohorts? The analysis shows that between 1970 and 2000 the late careers of Swedish workers comprised of few job changes and consisted more of “trying to keep the job you had in your mid-fifties” than of climbing up the promotion ladder. There are no cohort differences in this pattern. Also a large fraction of the older workers exited the labor market before the normal retirement age of 65. During the 1970s and first part of the 1980s, 56 percent of the older workers made an early exit and the average drop-out age was 63. During the late 1980s and the 1990s the share of old workers who made an early exit had risen to 76 percent and the average drop-out age had dropped to 61.5. Different factors have affected the probabilities of an early exit between 1970 and 2000. For example, skills did affect the risk of exiting the labor market during the 1970s and up to the mid-1980s, but not in the late 1980s or the 1990s. During the first period old workers in the lowest occupations or with the lowest level of education were more likely to exit the labor market than more highly skilled workers. In the second period old workers at all levels of skill had the same probability of leaving the labor market. The growth and survival of establishments: does gender segregation matter? We empirically examine the employment dynamics that arise in Becker’s (1957) model of labor market discrimination. According to the model, firms that employ a large fraction of women will be relatively more profitable due to lower wage costs, and thus enjoy a greater probability of surviving and growing by underselling other firms in the competitive product market. In order to test these implications, we use a unique Swedish matched employer-employee data set. We find that female-dominated establishments do not enjoy any greater probability of surviving and do not grow faster than other establishments. Additionally, we find that integrated establishments, in terms of gender, age and education levels, are more successful than other establishments. Thus, attempts by legislators to integrate firms along all dimensions of diversity may have positive effects on the growth and survival of firms. Risk and overconfidence – Gender differences in financial decision-making as revealed in the TV game-show Jeopardy. We have used unique data from the Swedish version of the TV-show Jeopardy to uncover gender differences in financial decision-making by looking at the contestants’ final wagering strategies. After ruling out empirical best-responses, which do appear in Jeopardy in the US, a simple model is derived to show that risk preferences, the subjective and objective probabilities of answering correctly (individual and group competence), determine wagering strategies. The empirical model shows that, on average, women adopt more conservative and diversified strategies, while men’s strategies aim for the greatest gains. Further, women’s strategies are more responsive to the competence measures, which suggests that they are less overconfident. Together these traits make women more successful players. These results are in line with earlier findings on gender and financial trading.

‘Neutral, native-like or authentic’ : Investigating attitudes and beliefs of expanding circle speakers of English

The status of English as the language of international communication is by now well-established. However, in the past 16 years, research has tried to emphasize the fact that the English spoken in international contact situations and between people with other first languages than English has different needs than the English spoken locally amongst native speakers, resulting in the emergence of English as a lingua franca (ELF) as a scholarly field. However, the impact of findings in ELF has so far only led to a moderate shift in English language teaching. Especially in expanding circle countries, where ELF should have the biggest impact, change is only gradually becoming palpable. Accent and pronunciation, as one of the biggest factors on both identity and mutual intelligibility (Jenkins 2000; 2007) are at the root of discussion. The scope of this study is therefore to examine accent choices and the extent to which native speaker ideology informs the preferences of ten speakers of ELF and 27 German natives with experience in international communication. Both ethnographical and sociolinguistic methods, as well as auditory analysis have been applied and conducted. The auditory analysis of six variables in the recorded speech production of the ten speakers suggests that there is no significant preference of one norm-giving variety over the other. Rather, speakers tend to mix-and-match General American- and Standard Southern British English-like features in their pronunciation. When reporting their accent ideals, the idea of a ‘neutral’ English accent is mentioned by four participants. Neutral accents seem to have been understood as ‘unmarked accents’. Expressed beliefs on their own English pronunciation show a comparatively high level of reflection on and confidence in their own production. Results from a rating task and a survey given to 27 German participants reveal attitudes that are more negatively stacked. While Germans reported openness towards NNS (non-native speaker) accents and showed awareness of the priority of intelligibility over accent choice in both their own and others’ pronunciation, they still largely reported NS accent preference. The ratings of the production from ten ELF speakers confirmed this and showed that ‘neutral’ is equated with native-like. In the light of these findings, issues are discussed that ultimately relate to the influence of NS Englishes, identity and the development of English as an international language.

Essays on the Economics of Networks Under Incomplete Information

Social networks constitute a major channel for the diffusion of information and the formation of attitudes in a society. Introducing a dynamic model of social learning, the first part of this thesis studies the emergence of socially influential individuals and groups, and identifies the characteristics that make them influential. The second part uses a Bayesian network game to analyse the role of social interaction and conformism in the making of decisions whose returns or costs are ex ante uncertain.