Does institutional quality affect firm performance? Insights from a semiparametric approach

Using a novel modeling approach, and cross-country firm level data for the textiles industry, we examine the impact of institutional quality on firm performance. Our methodology allows us to estimate the marginal impact of institutional quality on productivity of each firm. Our results bring into question conventional wisdom about the desirable characteristics of market institutions, which is based on empirical evidence about the impact of institutional quality on the average firm. We demonstrate, for example, that once both the direct impact of a change in institutional quality on total factor productivity and the indirect impact through changes in efficiency of use of factor inputs are taken into account, an increase in labor market rigidity may have a positive impact on firm output, at least for some firms. We also demonstrate that there are significant intra-country variations in the marginal impact of institutional quality, such that the characteristics of “winners” and “losers” will have to be taken into account before policy is introduced to change institutional quality in any direction.

Satisfaction with knowledge and competencies:a multi-country study of employers and business graduates

This study critically discusses findings from a research project involving four European countries. The project had two main aims. The first was to develop a systematic procedure for assessing the balance between knowledge and competencies acquired in higher, further and vocational education and the specific needs of the labor market. The second aim was to develop and test a set of meta-level quality indicators aimed at evaluating the linkages between education and employment. The project was designed to address the lack of employer input concerning the requirements of business graduates for successful workplace performance and the need for more specific industry-driven feedback to guide administrative heads at universities and personnel at quality assurance agencies in curriculum development and revision. Approach: The project was distinctive in that it combined different partners from higher education, vocational training, industry and quality assurance. Project partners designed and implemented an innovative approach, based on literature review, qualitative interviews and surveys in the four countries, in order to identify and confirm key knowledge and competency requirements. This study presents this step-by-step approach, as well as survey findings from a sample of 900 business graduates and employers. In addition, it introduces two Partial Least Squares (PLS) path models for predicting satisfaction with work performance and satisfaction with business education. Results: Survey findings revealed that employers were not very confident regarding business graduates’ abilities in key knowledge areas and in key generic competencies. In subsequent analysis, these graduate abilities were tested and identified as important predictors of employers’ satisfaction with graduates’ work performance. Conclusion: The industry-driven approach introduced in this study can serve as a guide to assist different types of educational institutions to better align study programs with changing labor market requirements. Recommendations for curriculum improvement are discussed.

Off-farm labour supply and labour markets in rapidly changing circumstances:Bulgaria during transition

This study examines off-farm labor supply in the rapidly changing conditions of Bulgaria during the 1990s. In doing so, we make use of three different waves of the Bulgarian Integrated Household Survey, each reflecting remarkably different environmental conditions. The results suggest that standard theories of off-farm labor supply provide little guidance in situations characterized by chronic excess supply in the off-farm labor market and/or rapidly changing circumstances. In particular, the results show (1) that off-farm employment throughout the transition was predominantly determined by demand rather than by supply, and (2) that the magnitude and statistical significance of the various determinants are very sensitive to changing environmental conditions. As such, the results can be extremely relevant for both theory and policy for the many countries which may still need to go through privatization and painful restructuring as a result of financial crises and globalization.

Interest groups in multiple streams:specifying their involvement in the framework

Although interests inhabit a central place in the multiple streams framework (MSF), interest groups have played only a minor role in theoretical and empirical studies until now. In Kingdon’s original conception, organized interests are a key variable in the politics stream. Revisiting Kingdon’s concept with a particular focus on interest groups and their activities—in different streams and at various levels—in the policy process, we take this argument further. In particular, we argue that specifying groups’ roles in other streams adds value to the explanatory power of the framework. To do this, we look at how interest groups affect problems, policies, and politics. The influence of interest groups within the streams is explained by linking the MSF with literature on interest intermediation. We show that depending on the number of conditions and their activity level, interest groups can be involved in all three streams. We illustrate this in case studies reviewing labor market policies in Germany and chemicals regulation at the European level.

Educational Objectives and Evaluation of Student's Internship and Practice in Informatics

Report published in the Proceedings of the National Conference on "Education and Research in the Information Society", Plovdiv, May, 2014

Trimming the sails. The comparative political economy of expansionary fiscal consolidations. A Hungarian perspective

Provides a multidisciplinary and systematic analysis of the concept of fiscal consolidations. This book discusses the concept, suggesting that fiscal adjustment can be in trade-off with economic growth if certain conditions are met. Fiscal consolidation has significant short term costs which dampen economic growth. This widely shared consensus in literature on political economy makes fiscal adjustment highly unpopular. Benczes conducts a systematic analysis to find out whether it is possible to have fiscal consolidation and experience economic growth even in the short run.The book provides a clear, multidisciplinary and systematic analysis of the relatively new concept of the so-called expansionary fiscal consolidations. This concept suggests that fiscal adjustment can be in trade-off with economic growth if certain conditions are met. But why do only a few countries and only at certain times experience the expansionary effects, while others not at all? The necessary conditions and circumstances have been totally neglected in the literature, or analyzed only partially at best.Having evolved a theoretical framework, it is tested on a difficult case: Hungary, which has had the highest deficit in the European Union. The main question was whether Hungary has a chance to experience short term growth effects in times of adjustment. ----- Contents: List of Figures List of Tables Acknowledgements 1. Introduction Part One: A critical Assessment of the Concept of Non-Keynesian Effects 2. Stylized Facts of EU Countries’ Major Fiscal Episodes 3. An Expectational View of Fiscal Policy: A Non-Linear Approach to Fiscal Consolidation 4. The Composition of Adjustment and the Structure of Labor Markets: A Linear Approach to Fiscal Consolidation Part Two: Testing the Institutional Conditions of Non-Keynesian Effects in Hungary 5. From Goulash Communism To Neo-Kadarism: An Overview 6. Financial Intermediation in Hungary—a Comparative Perspective 7. The Structure of the Hungarian General Budget—a Decompositional Analysis 8. The Labor Market and Wage Bargaining in Hungary—the (Ir)relevance of a Social Pact 9. Conclusion References Appendices Index

Konjunktúraingadozások az Egyesült Államokban 1970-2010 - Értelmezési nehézségek = Business cycles and recession patterns in the US economy and in the G7

Lehet-e beszélni a 2011-ig felgyülemlett empirikus tapasztalatok tükrében egy egységes válságlefolyásról, amely a fejlett ipari országok egészére általában jellemző, és a meghatározó országok esetében is megragadható? Megállapíthatók-e olyan univerzális változások a kibocsátás, a munkapiacok, a fogyasztás, valamint a beruházás tekintetében, amelyek jól illeszkednek a korábbi tapasztalatokhoz, nem kevésbé az ismert makromodellek predikcióihoz? A válasz – legalábbis jelen sorok írásakor – nemleges: sem a válság lefolyásának jellegzetességeiben és a makrogazdasági teljesítmények romlásának ütemében, sem a visszacsúszás mértékében és időbeli kiterjedésében sincsenek jól azonosítható közös jegyek, olyanok, amelyek a meglévő elméleti keretekbe jól beilleszthetők. A tanulmány áttekinti a válsággal és a makrogazdasági sokkokkal foglalkozó empirikus irodalom – a pénzügyi globalizáció értelmezései nyomán – relevánsnak tartott munkáit. Ezt követően egy 60 év távlatát átfogó vizsgálatban próbáljuk megítélni a recessziós időszakokban az amerikai gazdaság teljesítményét azzal a célkitűzéssel, hogy az elmúlt válság súlyosságának megítélése kellően objektív lehessen, legalább a fontosabb makrováltozók elmozdulásának nagyságrendje tekintetében. / === / Based on the empirical evidence accumulated until 2011, using official statistics from the OECD data bank and the US Commerce Department, the article addresses the question whether one can, or cannot, speak about generally observable recession/crisis patterns, such that were to be universally recognized in all major industrial countries (the G7). The answer to this question is a firm no. Changes and volatility in most major macroeconomic indicators such as output-gap, labor market distortions and large deviations from trend in consumption and in investment did all, respectively, exhibit wide differences in depth and width across the G7 countries. The large deviations in output-gaps and especially strong distortions in labor market inputs and hours per capita worked over the crisis months can hardly be explained by the existing model classes of DSGE and those of the real business cycle. Especially bothering are the difficulties in fitting the data into any established model whether business cycle or some other types, in which financial distress reduces economic activity. It is argued that standard business cycle models with financial market imperfections have no mechanism for generating deviation from standard theory, thus they do not shed light on the key factors underlying the 2007–2009 recession. That does not imply that the financial crisis is unimportant in understanding the recession, but it does indicate however, that we do not fully understand the channels through which financial distress reduced labor input. Long historical trends on the privately held portion of the federal debt in the US economy indicate that the standard macro proposition of public debt crowding out private investment and thus inhibiting growth, can be strongly challenged in so far as this ratio is neither a direct indicator of growth slowing down, nor for recession.

Kompetencia alapú, output orientált oktatás az ideális foglalkoztathatóság érdekében

A kutatási projektünk tanulmánysorozata a magyar gazdaság fejlődésének különböző gazdaságfejlesztési útjait vizsgálja 2020-ig, amelyben a foglalkoztathatóság kérdése kulcs szerepet kapott. Jelen tanulmányunkban arra a kutatási kérdésre keressük a választ, hogy milyen oktatási rendszerre lenne szüksége a magyar gazdaságnak ahhoz, hogy az említett 2020-ig megvalósítható különböző gazdaságfejlesztési utak számára, biztosítani tudja a megfelelő mennyiségű és minőségű emberi erőforrást. A kutatási kérdés megválaszolásának érdekében bemutattuk az oktatási rendszer értékteremtési logikáját, a kompetencia alapú, outputorientált oktatás koncepcióját, a jelenlegi oktatási rendszert és annak kialakulását a rendszerváltás óta, valamint a gazdaságfejlesztési utak megvalósulásához készített számításainkat. A magyar oktatási rendszer, annak stacioner fejlődése esetén nem lesz képes még a stacioner gazdaságfejlesztési út (átlagosan évi 1%-os GDP növekedés 2020-ig) emberi erőforrás szükségletének a biztosítására sem, nemhogy az ennél magasabb GDP növekedéssel járó ipari termelésen, vagy gazdasági szolgáltatásokon nyugvó különböző szcenáriók szükségletének biztosítására. A diplomások túlképzésének a hiedelme megalapozatlan, nem a diplomások mennyiségével van a probléma, mivel belőlük lesz a legnagyobb hiány a különböző gazdaságfejlesztési pályák alapján, hanem maximum azok minősége vethet fel kérdéseket. Ahhoz, hogy a gazdasági növekedésünk mögé az emberi erőforrás hazánkban megfelelő minőségű és mennyiségű legyen egy teljesen új koncepció szükséges az oktatással kapcsolatban. Be kell vezetni a kompetencia alapú, output orientált oktatási modellt, amelynek irányításában a munkaerőpiac szerepét jelentősen meg kell erősíteni, és az át-, és továbbképzések területének hangsúlyát jelentősen növelni kell. Mindezek hiányában, vagy az óhajtott gazdasági növekedés nem lesz megvalósítható, vagy fél milliós nagyságrendű képzett munkaerő importjára fog Magyarország rászorulni. ________ The working papers of our research project analyze the development paths of the Hungarian economy until 2020, where employability is one of the cornerstones of the research. The research question addressed in this paper is what kind of educational system does Hungary need if we want to provide the needed human resources for the mentioned development paths until 2020. To answer the research question we introduced the value creation logic of the educational system, the concept of competency based output oriented education, today’s educational system and its 20 years history and our calculations for the development paths. The Hungarian educational system with its stationer development will not be able to provide the needed human resources to the stationer economic development path (average 1% GDP growth until 2020), not to mention the more productive manufacturing based or service based scenarios. The belief of overeducation in higher education is unfounded, the graduates will have the highest shortage according to the development paths, however their quality could raise some questions. To provide the needed quality and quantity in human resources for the economic development we need to implement a radically new educational concept, the competency based output oriented educational system, where the control of labor market and the emphasis of retraining, development as well as life-long learning has to be significantly strengthened. Without these either the desired growth will not be achievable or we should import around half million trained worker to Hungary.

A „kivonulás, tiltakozás, hűség” koncepció és a „kapitalizmus változatai” elmélet közti kapcsolat (The connection between the ‘Exit, Voice, and Loyalty’ conception and the ‘Varieties of Capitalism’ theory)

Tanulmányunkban az Albert 0. Hirschman által kialakított „kivonulás, tiltakozás, hűség” koncepció metaelméleti felhasználásával a „kapitalizmus változatai” elméletet vesszük bírálat alá. Egyrészt arra mutatunk rá, hogy már a különböző piacgazdasági modellek tipologizálásához használt vállalatelméleti dimenziójú elemzések is építkeznek a Hirschman-trilemmából, másrészt arra hívjuk fel a figyelmet, hogy olyan sajátos eszközről van szó, amely a tőke- és munkaerő-piaci folyamatok elemzésére támaszkodva új perspektívát is kínál a kapitalista gazdaságok komparatív vizsgálatához. A dolgozat terjedelmi okokból az empirikus kutatásokat megalapozó elméleti alapozásra szorítkozik. ____ In our study we deal with the critical analysis of the “varieties of capitalism” theory by using the “exit, voice, and loyalty” meta-theory invented by Albert O. Hirschman. The paper emphasizes that on the one hand the analyses of the theory of the firm and business used for the classification of distinct market models are also building upon the “Hirschman trilemma”, and on the other hand, it draws attention to the fact that the Hirschmanian method based on labor market and capital market offers a new perspective for the comparative analysis of capitalist economies. The focus of the article is only the theoretical foundation of empirical studies as a result of limitation of scope.

Az egyéni teljesítményértékelési rendszer működésének tapasztalatai a magyar közigazgatásban (Operating experiences of the individual performance appraisal system in the Hungarian public sector)

A tanulmány – egy 2005 végén lefolytatott, országosan reprezentatív kérdőíves felmérés empirikus bázisán – a magyar közigazgatási dolgozók körében 2002-től bevezetett egyéni teljesítményértékelési rendszert vizsgálja. A rendszer egészét tekintve a vizsgálat végkövetkeztetései nem túl rózsásak: az eredmények arra utalnak, hogy a rendszer mint egész nem képes kitűzött fő célját, a munkateljesítmények javítását elérni. Az egyes részrendszerek, szervezettípusok szintjén differenciáltabb eredményeket kapunk, míg a minisztériumokban a rendszer egésze a szándékolttól alapvetően különböző célokat látszik szolgálni, addig a többi szervezettípusnál inkább „csak” a rendszer tökéletlen működéséről beszélhetünk. ____ On the basis of a questionnaire survey of a nationally representative sample of Hungarian civil servants, the study attempts to give a preliminary evaluation of the individual performance assessment system introduced in 2002 throughout the Hungarian civil service. The general conclusion of the analysis is that the performance assessment system is unlikely to reach its goals: its central element, the performance related pay incentives are overly dispersed and, on the average, insignificant in size, meanwhile the objectivity of performance assessments is also questionable. Moreover, comparative analysis of responses from different administrative branches reveals an interesting idiosyncrasy characteristic for central government ministries. Here, the main function of the incentive system seems to be ensuring the labor market competitiveness of the ministries as employers by enabling them to pay higher-than-usual salaries for employees having certain types of expertise.

Keresleti-kínálati diszharmónia a szervezeti kultúra tükrében (Demand–supply disharmony in the organizational culture)

A szerzők kutatásának célja ráirányítani a figyelmet arra a tényre, hogy a tényleges és potenciális munkavállalók szervezeti kultúrára vonatkozó vágyai és a valóság között jelentős eltérés tapasztalható. Napjaink pénzpiaci és reálgazdasági válságának hatásaként még fokozottabban jelentkezik az igény a változásra, változtatásra nemcsak a szervezetek, de az egyén szintjén is. Ahhoz azonban, hogy a változtatás lehetséges útjai, módjai közül megalapozottan lehessen választani, nemcsak a kívánatos cél kitűzésére, de a kiinduló állapot minél precízebb meghatározására is szükség van. Jelen cikkükben a szerzők egyrészt azokról az eredményekről számolnak be, amelyek az egyetemi hallgatók „vágyott” munkahelyének szervezeti kultúráját, és ennek kapcsolatát a tényleges piaci kínálattal mutatják be. Másrészt egy közszolgáltató cég példáján a munkavállalók szervezeti kultúrára vonatkozó vágyai és a valóság kapcsolatával foglalkoznak. _____ The aim of the authors is to review and examine the gap between the aspirations and reality regarding organizational culture of those already employed and those seeking employment. These days the financial and real economic crisis generated an increased demand for change on the part of organizations as well as individuals. However, in order to map the possibilities for change and formulate a well-founded decision on which alternative to adopt it is essential to define the starting point and to set clear aims. Present article outlines the research results of the aspirations of university students regarding the organizational culture of their possible future workplaces and how they can be related to the reality of labor market supply. Furthermore, by providing the case of a public utility company, the aspirations of employees regarding organizational culture and the way it relates to reality is also presented.

Tradition, innovation and reform in local development. Conference proceedings

Understanding Local Development as the interaction of a complex mosaic of measures, resources and actors requires having an interdisciplinary perspective.‘Local’ means small-scale, focused, and within reach - one would suggest -, while comparing or understanding inter-regional dynamics (putting what we mean by ‘locality’ on the global map) is what brings into sight traits, which can be treated as universal, typical or individual. The sections of the conference tackled this kaleidoscope of themes that has evolved around tradition, innovation and reform, with roots in both academia and policy-making connected to entrepreneurship, governance, economic and social structure, the labor market and human capital.

Patterns and Drivers of the Agri-Food Intra-Industry Trade of European Union Countries

This paper investigates the drivers of agri-food intra-industry trade (IIT) indices in the European Union (EU-27) member states during the period from 2000–2011. The increased proportion of IIT in matched two-way agri-food trade of the EU-27 member states is consistent with economic integration and economic growth. When export prices were at least 15% higher than the import prices, high-vertical IIT, increased for most member states. This finding suggests that quality improvements occurred when comparing agri-food exports to similar imports of agri-food products. The IIT indices for both horizontal and vertical IIT are positively associated with higher economic development levels, new EU membership and EU enlargement. Additionally, as higher levels of economic development decreases, the size of the economy and marginal IIT increases the effects of agri-food trade liberalization on the costs of the labor market adjustment. Understanding how improvements in agri-food trade quality impact agribusiness and managerial competitiveness reveal significant policy implications.

Evaluating the impacts of Bolsa Escola programs on student performance in Brazil

Since the 1980s, governments and organizations have promoted cash transfers in education as a tool for motivating elementary aged children to attend school. Oftentimes, the monthly payments supplemented the income a child would be making in the labor market. In Brazil, where these Bolsa or grant programs were pioneered, there has been much success in removing children from harsh labor conditions and increasing enrollment rates among the poorest families. However, the capacity of Bolsa Escola programs to meet other objectives, such as impacting educational outcomes and reducing incidences of poverty, continues to be examined. As these programs continue to be adopted globally, funding millions of children and families, evidence that demonstrates such success becomes ever more imperative. This study, therefore, examined evidence to determine whether Bolsa Escola programs have a significant impact on the academic performance of beneficiaries in Brazil. ^ Through the course of three data collection phases, multiple data sources were used to demonstrate the academic performance of fourth and eighth grade Brazilian students who were eligible to participate in either an NGO or the federal cash transfer program. MANOVAs were conducted separately for fourth and eighth grade data to determine if significant differences existed between measures of academic performance of Bolsa and non-Bolsa students. In every case and for both grade levels, significant effects were found for participation. ^ The limited qualitative data collected did not support drawing conclusions. Thematic analysis of the limited interview data pointed to possible dependency on Bolsa monthly stipends, and reallocation of responsibilities in the home in cases where children shifted from being breadwinners to students. ^

Mobility of General Managers as Lodging Size, Service Vary

Hotel Managerment has usually been viewed as a single labor market which allows considerable movement between properties of different sizes and service levels. The authors question this assumption and support the hypothesis that general managers in one type of hotel will have spent a large majority of their careers in hotels of the same type.