How does investing in cheap labour countries affect performance at home? Firm-level evidence from France and Italy

Transferring low tech manufacturing jobs to cheap labour countries is often seen by part of the general public and policy makers as a step into the de-industrialization of the European economies. However, recent contributions have shown that the effects on home economies are rarely negative. Our paper contributes to this literature by examining how outward investments to developing and less developed countries (LDCs) affect home activities of French and Italian firms that turn multinational in the period analysed. The effects of these investments are also compared to the effects of investments to developed economies (DCs). The analysis is carried out by using propensity score matching. We find no evidence of a negative effect of outward investments to LDCs. In Italy they have a positive long term effect on value added and employment. For France we find a positive effect on the size of domestic output and employment.

Struggles over family land? Tree crops, land and labour in Ghana's Brong-Ahafo region

Agricultural land use in much of Brong-Ahafo region, Ghana has been shifting from the production of food crops towards increased cashew nut cultivation in recent years. This article explores everyday, less visible, gendered and generational struggles over family farms in West Africa, based on qualitative, participatory research in a rural community that is becoming increasingly integrated into the global capitalist system. As a tree crop, cashew was regarded as an individual man's property to be passed on to his wife and children rather than to extended family members, which differed from the communal land tenure arrangements governing food crop cultivation. The tendency for land, cash crops and income to be controlled by men, despite women's and young people's significant labour contributions to family farms, and for women to rely on food crop production for their main source of income and for household food security, means that women and girls are more likely to lose out when cashew plantations are expanded to the detriment of land for food crops. Intergenerational tensions emerged when young people felt that their parents and elders were neglecting their views and concerns. The research provides important insights into gendered and generational power relations regarding land access, property rights and intra-household decision-making processes. Greater dialogue between genders and generations may help to tackle unequal power relations and lead to shared decision-making processes that build the resilience of rural communities.

Compensation and Rewards for Environmental Services (CRES) and efficient design of contracts in developing countries. Behavioral insights from a natural field experiment

The use of economic incentives for biodiversity (mostly Compensation and Reward for Environmental Services including Payment for ES) has been widely supported in the past decades and became the main innovative policy tools for biodiversity conservation worldwide. These policy tools are often based on the insight that rational actors perfectly weigh the costs and benefits of adopting certain behaviors and well-crafted economic incentives and disincentives will lead to socially desirable development scenarios. This rationalist mode of thought has provided interesting insights and results, but it also misestimates the context by which ‘real individuals’ come to decisions, and the multitude of factors influencing development sequences. In this study, our goal is to examine how these policies can take advantage of some unintended behavioral reactions that might in return impact, either positively or negatively, general policy performances. We test the effect of income's origin (‘Low effort’ based money vs. ‘High effort’ based money) on spending decisions (Necessity vs. Superior goods) and subsequent pro social preferences (Future pro-environmental behavior) within Madagascar rural areas, using a natural field experiment. Our results show that money obtained under low effort leads to different consumption patterns than money obtained under high efforts: superior goods are more salient in the case of low effort money. In parallel, money obtained under low effort leads to subsequent higher pro social behavior. Compensation and rewards policies for ecosystem services may mobilize knowledge on behavioral biases to improve their design and foster positive spillovers on their development goals.

Endogenous managerial compensation contracts in experimental quantity-setting duopolies

Given the ongoing debate on managerial compensation schemes, our paper offers empirical insights on the strategic choice of firms' owners over the terms of a managerial compensation contract, as a commitment device aiming at gaining competitive advantage in the product market. In a quantity setting duopoly we experimentally test whether firms' owners compensate their managers through contracts combining own profits either with revenues or with relative performance, and the resulting managerial behaviour in the product market. Prominent among our results is that firms' owners choose relative performance over profit revenue contracts more frequently. Further, firms' owners successfully induce a more aggressive behaviour by their managers in the market, by setting incentives which deviate from strict profit maximization.

Gender and the business cycle: an analysis of labour markets in the US and UK

Starting from an improved understanding of the relationship between gender labour market stocks and the business cycle, we analyse the contributing role of flows in the US and UK. Focusing on the post 2008 recession period, the subsequent greater rise in male unemployment can mostly be explained by a less cyclical response of flows between employment and unemployment for women, especially the entry into unemployment. Across gender and country, the inactivity rate is generally not sensitive to the state of the economy. However, a flows based analysis reveals a greater importance of the participation margin over the cycle. Changes in the rates of flow between unemployment and inactivity can each account for around 0.8-1.1 percentage points of the rise in US male and female unemployment rates during the latest downturn. For the UK, although the participation flow to unemployment similarly contributed to the increase of the female unemployment rate, this was not the case for men. The countercyclical flow rate from inactivity to employment was also more significant for women, especially in the US, where it accounted for approximately all of the fall in employment, compared with only 40% for men.

Risk taking of executives under different incentive contracts: experimental evidence

Classic financial agency theory recommends compensation through stock options rather than shares to counteract excessive risk aversion in agents. In a setting where any kind of risk taking is suboptimal for shareholders, we show that excessive risk taking may occur for one of two reasons: risk preferences or incentives. Even when compensated through restricted company stock, experimental CEOs take large amounts of excessive risk. This contradicts classical financial theory, but can be explained through risk preferences that are not uniform over the probability and outcome spaces, and in particular, risk seeking for small probability gains and large probability losses. Compensation through options further increases risk taking as expected. We show that this effect is driven mainly by the personal asset position of the experimental CEO, thus having deleterious effects on company performance.

Construction contracts: law and management. 5th edition

The fifth edition of this best-selling textbook has been thoroughly revised to provide the most up-to-date and comprehensive coverage of the legislation, administration and management of construction contracts. It now includes comparison of working with JCT, NEC3 and FIDIC contracts, throughout. In line with new thinking in construction management research, this authoritative guide is essential reading for every construction undergraduate and is an extremely useful source of reference for practitioners.

Interaction and Persuasion:An analysis of the use of rhetorical devices in Gordon Brown's speech to the Labour Party Conference, on September 25, 2006

This essay has identified and analysed rhetorical devices in Gordon Brown’s speech delivered at the Labour Party conference on September 25, 2006. The aim of the study was to identify specific rhetorical devices which are described as interactional resources, analyse their uses and discuss possible effects that they may have when included in a political speech. The results are based on my own interpretations but are supported by information provided in current literature by analysts and researchers of rhetoric use. The result findings could probably serve as evidence of the need for better understanding of the devices used by politicians in their relentless endeavours to influence audience decisions.

Obstacles and Opportunities Foreign Graduates Meet In Dalarna Labour Market, Sweden

Foreign graduates have been part of the success stories of many developed countries. This is as a result of their immeasurable deposit of ideas, knowledge, and innovation in the host country. Though the process of these foreign graduates penetrating and integrating into the labour market of the host country could be slow and rough as they encounter some obstacles on the way; they still strive to break through and be part of the country’s workforce because they foresee some opportunities therein. This research study is about the obstacles and opportunities foreign graduates meet in Dalarna labour market. The study investigated and identified the obstacles and opportunities foreign graduates meet in Dalarna labour market. For a thorough execution of this research, we collected primary data by handing questionnaires to 65 foreign graduates searching for jobs in Dalarna region and interviewed eight people, among which seven were foreign graduates and one of them was a staff at Arbestförmedlingen (Employment Agency) to give us a general view of the Dalarna labour market. We read previous research works and related articles to understand the topic in order to get an overview of the terminologies and concept to apply. This study concluded that language is a major obstacle foreign graduates meet in the Dalarna labour market. Other possible obstacles include culture, poor integration policies, lack of a placement bureau, lack of trust, limited opportunities, favoritism, lack of jobs, lack of references and experience. On the other hand factors like job availability, outgoing labour force and unskilled labour are possible opportunities foreign graduates meet in the Dalarna labour market. Furthermore flexible work time, good working atmosphere, experience, social security/welfare, good standard of living, family friendly region, higher wages, job security and cheap cost of living are also possible benefits that foreign graduates get in Dalarna.

Flexibilitetens frammarsch, en studie om den intermittenta anställningen

Flexible working conditions is used extensively in organizations today as a way to create flexibility for the employer. Recently we’ve been reading in the newspapers that this approach is a growing problem and the EU has warned Sweden twice that abuse of these forms of employment must be stopped. The Government has recently submitted a proposed rule change to reduce the possibility of stacking one temporary contract after another. Borlänge kommun makes themselves more flexible with the intermittent employments. This study aims to examine why infrequent employments, such as the intermittent employment is used and preferred by Borlänge kommun and how it’s perceived by affected employees in the organization. The questions related, besides why the intermittent employment is used by the organization and how its perceived by those involved, also includes the management of intermittent employment and how the organization is handling work contracts. The background information on the employment law implications gives the reader an insight into how the regulatory framework works surrounding the topic. The theory section highlights the main theories about flexibility and its different shapes and perspectives. For the study a qualitative approach is used. A case study with semi-structured interviews was performed. The respondents were employees involved in the staffing of intermittent employees and also members of the staff with an intermittent employment. The results show that the employment and contracts is correctly handled by labour law regulations. This study shows that Borlänge kommun uses intermittent employments extensively, with its 1 320 intermittently employees. If this is abuse, or not, is not clear from the result. The authors discuss, however, if that is the case. The intermittent employment is used mainly because of the great needs. This is because society is changing and the average age is increasing, both by those using the services and the employees. All respondents perceive the intermittent employment as most flexible for the employees. Respondents working in the staffing department say that they are not flexible enough. The intermittent employees’ working today does not cover the great need. Borlänge kommun think that the flexibility should benefit them more and is currently trying to become more flexible. The employees were generally satisfied with their work situation. Some tendencies of insecurity and uncertainty could be inferred from the intermittent employees answers. The author’s conclusions are that flexibility and the intermittent employment contracts mainly benefit the employer and the employees who actively choose this type of work, such as students. This kind of employment affects, however, the society and those who need a secure lifestyle. The necessary permanent contracts are becoming fewer and replaced by precarious and flexible employment conditions.