Privatisation, corporate control and employment growth:evidence from a panel of large Polish firms, 1996-2002

Using data on Polish firms this paper examines the relationship between corporate control structures, sales growth and the determinants of employment change. Privatised and de novo firms are the main drivers of employment growth; in the case of de novo firms, it is foreign ownership which underpins the result. Being privatised has a positive impact on employment but this is concentrated within a range of 3–6 years after privatisation. There are no systematic differences in employment response to negative sales growth across the ownership categories. Employment in state firms is less responsive to positive sales growth. From these results we infer that the behaviour of state firms is affected by both insider rent sharing and binding budget constraints.

Inherited labour hoarding, insiders and employment growth:panel data results : Poland, 1996-2002

Using panel data pertaining to large Polish (non-financial) firms this paper examines the determinants of employment change during the period 1996-2002. Paying particular attention to the asymmetry hypothesis we investigate the impact of own wages, outside wages, output growth, regional characteristics and sectoral affiliation on the evolution of employment. In keeping with the 'right to manage' model we find that employment dynamics are not affected negatively by alternative wages. Furthermore, in contrast to the early transition period, we find evidence that employment levels respond to positive sales growth (in all but state firms). The early literature, (e.g. Kollo, 1998) found that labour hoarding lowered employment elasticities in the presence of positive demand shocks. Our findings suggest that inherited labour hoarding may no longer be a factor. We argue that the present pattern of employment adjustment is better explained by the role of insiders. This tentative conclusion is hinged on the contrasting behaviour of state and privatised companies and the similar behaviour of privatised and new private companies. We conclude that lower responsiveness of employment to both positive and negative changes in revenue in state firms is consistent with the proposition that rent sharing by insiders is stronger in the state sector.

Privatisation, corporate control and employment growth:evidence from a panel of large Polish firms, 1996-2002

Using panel data on large Polish firms this paper examines the relationship between corporate control structures, sales growth and the determinants of employment change during the period 1996-2002. We find that privatised and de novo firms are the main drivers of employment growth and that, in the case of de novo firms, it is foreign ownership which underpins the result. Interestingly, we find that being privatised has a positive impact on employment growth but that this impact is concentrated within a range of three to six years after privatisation. In contrast with the findings of earlier literature, we find evidence that there are no systematic differences in employment response to negative sales growth across the ownership categories. On the other hand, employment in state firms is less responsive to positive sales growth. From these combined results we infer that the behaviour of state firms is constrained by both insider rent sharing and binding budget constraints. Consistent with this, we find that privatised companies, three to six years post-privatisation, are the firms for whom employment is most responsive to positive sales growth and as such, offer the best hope for rapid labour market expansion.

Foreign direct investment and employment in Central Europe

This article investigates the effects of foreign direct investment on employment generation in Central Europe. Foreign affiliates operate as a buffer to reductions in overall employment and show significant cross-country differences. A model analyzing the contribution of foreign direct investment to restructuring is developed. This model helps interpret the empirical evidence on the link between foreign direct investment and employment in Central Europe. Increasing differentiation in employment between manufacturing industries dominated by foreign affiliates suggests the importance of diversified sources of foreign direct investment for employment generation and preservation. A disaggregate analysis indeed reveals a much more complex and differentiated role of foreign direct investment in employment preservation, employment generation and structural change than the aggregate picture would suggest. This diversity has important policy implications for attracting and upgrading foreign direct investment.

Wage and employment decisions of enterprises in downsized industries:deliverable No. 11 to 13

The 5th framework programme research project ACCESSLAB researches the capability of candidate countries’ regions to deal with asymmetric shocks. Its goal is to provide analysts and policy makers with research results relevant to the process of enlargement. The project takes a broad and comparative view of labour market adjustments to address these issues. It examines the topic from both a macroeconomic and microeconomic viewpoint. It considers different adjustment mechanisms in depth and compares results with the European Union. It draws on a) the experiences in transition countries in the last decade, b) the experience of German integration and c) the experiences of border regions to gain insights on the likely regional labour market effects of accession of the candidate countries.

Individual spirit at work and its outcomes:an empirical examination in corporate Thailand

The purpose of the present study was to conduct empirical research in corporate Thailand in order to (1) investigate the relationships between individual spirit at work and three employee work attitudinal variables (organisational identification, job satisfaction and psychological well-being) and three organisational outcomes (in-role performance, organisational citizenship behaviours (OCB), and turnover intentions) (2) further examine causal relations among these organisational behaviour variables with a longitudinal design (3) examine three employee work attitudes as mediator variables between individual spirit at work and three organisational outcomes and (4) explore the potential antecedents of organisational conditions that foster employee experienced individual spirit at work. The 715 completed questionnaires were received from the first wave of data collection during July 2008 and the second wave was conducted again within the same organisations and 501 completed questionnaires were received during April 2009. Data were obtained through 52 organisations which were from three types of organisations within Thailand: public organisations (N=237,185), for-profit organisations (N=244,155), and not-for-profit organisations (N=234,161). Confirmatory factor analysis of all measures used in the study and hypothesized model were tested with structural equation modeling techniques. Results were strongly supportive. In addition, although the model was invariant across rater of performance and OCB, there were differences across self report and supervisor rating. Additionally, the antecedents of organisational conditions that fostered employees experienced individual spirit at work and the implications of these findings for practice and research are discussed.

Lockwood v Department for Work and Pensions 2012

Case law report - online

Engaging with a world outside of ourselves:vistas of flatness, children's work and the urban informal economy

This paper considers the work and labour of children living on the streets of Accra, Ghana. It does so in two distinctive ways. First, it considers how the children's photographs of a day or two in their working lives, and the dialogues that go on in, through and around them, may contribute to the making of strong sociological arguments about children's work. In so doing, this paper elaborates the connections between visual sociology and realist traditions of photography, and argues that photographs can contribute distinctive and novel sources of insight into working children's lives and a powerful, humanising media of dissemination. Second, these arguments are then deployed to examine street children's experiences of work. Conceptualised in terms of its 'flatness', the paper explores the informal means of regulation through which the children are locked into types of working that prove difficult to escape. © Sociological Research Online, 1996-2012.

European biorefineries:implications for land, trade and employment

Biorefineries are expected to play a major role in a future low carbon economy and substantial investments are being made to support this vision. However, it is important to consider the wider socio-economic impacts of such a transition. This paper quantifies the potential trade, employment and land impacts of economically viable European biorefinery options based on indigenous straw and wood feedstocks. It illustrates how there could be potential for 70-80 European biorefineries, but not hundreds. A single facility could generate tens of thousands of man-years of employment and employment creation per unit of feedstock is higher than for biomass power plants. However, contribution to national GDP is unlikely to exceed 1% in European member states, although contributions to national agricultural productivity may be more significant, particularly with straw feedstocks. There is also a risk that biorefinery development could result in reduced rates of straw incorporation into soil, raising concerns that economically rational decisions to sell rather than reincorporate straw could result in increased agricultural land-use or greenhouse gas emissions. © 2013.

Industrial policy, FDI and employment:Still 'missing a strategy'

This paper contrasts the effects of trade, inward FDI and technological development upon the demand for skilled and unskilled workers in the UK. By focussing on industry level data panel data on smaller firms, the paper also contrasts these effects with those generated by large scale domestic investment. The analysis is placed within the broader context of shifts in British industrial policy, which has seen significant shifts from sectoral to horizontal measures and towards stressing the importance of SMEs, clusters and new technology, all delivered at the regional scale. This, however, is contrasted with continued elements of British and EU regional policy which have emphasised the attraction of inward investment in order to alleviate regional unemployment. The results suggest that such policies are not naturally compatible; that while both trade and FDI benefit skilled workers, they have adverse effects on the demand for unskilled labour in the UK. At the very least this suggests the need for a range of policies to tackle various targets (including in this case unemployment and social inclusion) and the need to integrate these into a coherent industrial strategy at various levels of governance, whether regional and/or national. This has important implications for the form of any 'new' industrial policy.

Reconstructing institutional complexity in practice:a relational model of institutional work and complexity

This article develops a relational model of institutional work and complexity. This model advances current institutional debates on institutional complexity and institutional work in three ways. First, it provides a relational and dynamic perspective on institutional complexity by explaining how constellations of logics - and their degree of internal contradiction - are constructed rather than given. Second, it refines our current understanding of agency, intentionality and effort in institutional work by demonstrating how different dimensions of agency interact dynamically in the institutional work of reconstructing institutional complexity. Third, it situates institutional work in the everyday practice of individuals coping with the institutional complexities of their work. In doing so, it reconnects the construction of institutionally complex settings to the actions and interactions of the individuals who inhabit them. © The Author(s) 2013.

The local dimension of employment-related welfare policy in Germany, England and Sweden

The link between work and welfare is a key pathway of modern welfare state development in Western Europe. National governments face a constant balancing act between the welfare expectations of the labour forces and the labour market liberalisation demands of the business communities. Facilitating the transit from welfare into employment has therefore become an important tool for the British, German and Swedish governments, providing labour as and when needed while keeping welfare expenditure in check. However, the approaches to organising active labour market policies are quite different, notably with regard to the territorial dimension. Although labour markets are quite diverse in all three cases, the role of local authorities, local agencies and local labour market actors from the private and voluntary sector are generally under-developed and apparently under-appreciated, but in different ways and for different reasons. The article compares current employment-related welfare provisions and approaches to develop active labour market policies in the three countries, and concludes that while certain structural and procedural similarities exist, the basic political priorities and actual support and services provided remain very far apart.