An ultimatum bargaining experiment on trade union efficiency

We present an ultimatum wage bargaining experiment showing that a trade union facilitating non-binding communication among workers, raises wages by simultaneously increasing employers’ posted offers and toughening the bargaining position of employees, without reducing overall market efficiency.

Essays on labour market dualisation in Western Europe: active labour market policies, temporary work regulation and inequality

European labour markets are increasingly divided between insiders in full-time permanent employment and outsiders in precarious work or unemployment. Using quantitative as well as qualitative methods, this thesis investigates the determinants and consequences of labour market policies that target these outsiders in three separate papers. The first paper looks at Active Labour Market Policies (ALMPs) that target the unemployed. It shows that left and right-wing parties choose different types of ALMPs depending on the policy and the welfare regime in which the party is located. These findings reconcile the conflicting theoretical expectations from the Power Resource approach and the insider-outsider theory. The second paper considers the regulation and protection of the temporary work sector. It solves the puzzle of temporary re-regulation in France, which contrasts with most other European countries that have deregulated temporary work. Permanent workers are adversely affected by the expansion of temporary work in France because of general skills and low wage coordination. The interests of temporary and permanent workers for re-regulation therefore overlap in France and left governments have an incentive to re-regulate the sector. The third paper then investigates what determines inequality between median and bottom income workers. It shows that non-inclusive economic coordination increases inequality in the absence of compensating institutions such as minimum wage regulation. The deregulation of temporary work as well as spending on employment incentives and rehabilitation also has adverse effects on inequality. Thus, policies that target outsiders have important economic effects on the rest of the workforce. Three broader contributions can be identified. First, welfare state policies may not always be in the interests of labour, so left parties may not always promote them. Second, the interests of insiders and outsiders are not necessarily at odds. Third, economic coordination may not be conducive to egalitarianism where it is not inclusive.

Are dangerous jobs paid better? European evidence

This article tests whether workers are indifferent between risky and safe jobs provided that, in labour market equilibrium, wages should serve as a utility equalizing device. Workers’ preferences are elicited through a partial measure of overall job satisfaction: satisfaction with job-related risk. Given that selectivity turns out to be important, we use selectivity corrected models. Results show that wage differentials do not exclusively compensate workers for being in dangerous jobs. However, as job characteristics are substitutable in workers’ utility, they could feel satisfied, even if they were not fully compensated financially for working in dangerous jobs.

Economic crises in England, 1270-1520: a statistical approach

The chapter examines how far medieval economic crises can be identified by analysing the residuals from a simultaneous equation model of the medieval English economy. High inflation, falls in gross domestic product and large intermittent changes in wage rates are all considered as potential indicators of crisis. Potential causal factors include bad harvests, wars and political instability. The chapter suggests that crises arose when a combination of different problems overwhelmed the capacity of government to address them. It may therefore be a mistake to look for a single cause of any crisis. The coincidence of separate problems is a more plausible explanation of many crises.

Marine protected areas in artisanal fisheries: a spatial bio-economic model based on observations in Costa Rica and Tanzania

In many lower-income countries, the establishment of marine protected areas (MPAs) involves significant opportunity costs for artisanal fishers, reflected in changes in how they allocate their labor in response to the MPA. The resource economics literature rarely addresses such labor allocation decisions of artisanal fishers and how, in turn, these contribute to the impact of MPAs on fish stocks, yield, and income. This paper develops a spatial bio-economic model of a fishery adjacent to a village of people who allocate their labor between fishing and on-shore wage opportunities to establish a spatial Nash equilibrium at a steady state fish stock in response to various locations for no-take zone MPAs and managed access MPAs. Villagers’ fishing location decisions are based on distance costs, fishing returns, and wages. Here, the MPA location determines its impact on fish stocks, fish yield, and villager income due to distance costs, congestion, and fish dispersal. Incorporating wage labor opportunities into the framework allows examination of the MPA’s impact on rural incomes, with results determining that win-wins between yield and stocks occur in very different MPA locations than do win-wins between income and stocks. Similarly, villagers in a high-wage setting face a lower burden from MPAs than do those in low-wage settings. Motivated by issues of central importance in Tanzania and Costa Rica, we impose various policies on this fishery – location specific no-take zones, increasing on-shore wages, and restricting MPA access to a subset of villagers – to analyze the impact of an MPA on fish stocks and rural incomes in such settings.

Legal and regulatory barriers to effective public-private partnership governance in Kazakhstan

Purpose – The purpose of this paper is to provide a critical assessment of legal and regulatory impediments to effective governance of public-private partnerships (PPPs) in Kazakhstan. Design/methodology/approach – The qualitative study develops propositions from the PPP literature and then tests them against findings from in-depth interviews. Interviewees have been selected by a purposeful sampling from PPP projects in Kazakhstan as well as from national and regional PPP centres. Findings – The identified barriers to effective PPP management include irregularities in the PPP legal framework, such as lack of legal definition of a PPP and controversy with the government guarantee’s legal status for its long-term payments to partnerships; bureaucratic tariff setting for partnership services; non-existent opportunity for private asset ownership; and excessive government regulation of PPP workers’ wage rates. Practical implications – The partners’ opposing perspectives on a number of PPP issues show that management needs to identify and carefully reconcile stakeholder values in a partnership in order to achieve more effective PPP governance. Practitioners, particularly those in the public agencies, have to be concerned with ways to reduce the government overregulation of the private operators, which is likely to result in greater PPP flexibility in management and, ultimately, higher efficiency in delivering the public services. Originality/value – By elucidating multiple examples of overregulation and PPPs’ inefficiency, the paper demonstrates that the government dominance in PPP management is conceptually inappropriate. Instead, the government should adopt the concept of co-production and manage its relations with the private sector partner in a collaborative fashion.

Nutrition in Transition: Dietary Patterns of Rural Amazonian Women During a Period of Economic Change

Objectives: The goal of this study was to understand the relationship between economic change (wage labor, retirement, and the Bolsa Familia program) and dietary patterns in the rural Amazon and to determine the extent to which these changes followed the pattern of the nutrition transition. Methods: The study was longitudinal. The weighed-inventory method and economic interviews were used to collect data on dietary intake and household economics in a sample of 30 and 52 women in 2002 and 2009, respectively. Twenty of the women participated in both years and make-up the longitudinal sub-sample. Comparative statistics were used to identify changes in dietary patterns over time and multiple linear regressions were used to explore the relationship between economics, subsistence strategies, and diet. Results: There was a significant decline in kcal (P < 0.01) and carbohydrate (P < 0.01) but no change in protein intake over time in both the larger and smaller, longitudinal subsample. The percent of energy, carbohydrate, protein, and fat purchased increased in the larger and longitudinal samples (P <= 0.02) and there was an increase in refined carbohydrate and processed, fatty-meat consumption over time. The abandonment of manioc gardens was associated with increased dependence on purchased food (P = 0.03) while receipt of the Bolsa Familia was associated with increased protein intake and adequacy (P = 0.02). Conclusions: The dietary changes observed are only in partial agreement with predictions of the nutrition transition literature. The relationship between the economic and diet changes was shaped by the local context which should be considered when implementing CCT programs, like the Bolsa Familia. Am. J. Hum. Biol. 23:458-469, 2011. (C) 2011 Wiley-Liss, Inc.

Arbetsorganisation i träbränsleeldande fjärrvärmeverk

The objective of this study has been to describe and analyse existing forms of organisation in heating plants using wood fuels, regarding work tasks, organisational structure, skill demands, crew recruitment, working hours and wage conditions. Sixteen plants ranging from 10 to 120 MW have been studied by means of interviews, work place observations and written material. The job of the operator of heating plants is fairly qualified, independent and varied. The most negative factor is shift work. Some of the bigger plants (enterprises) have a relatively hierarchic, segmented and perhaps also an oversized organisation. However, modern concepts of organisation, such as customer orientation, ”flat organisation”, integration of production and maintenance etc, are gaining ground. Blue collar and white collar tasks are increasingly being integrated. Some of the medium sized enterprises have reached very far and may serve as models for bigger enterprises.

Arbetsorganisation i träbränslefabriker

The objective of this study has been to describe and analyse existing forms of organisation in wood fuel plants regarding work tasks, organisational structure, work content, skill demands, crew recruitment, working hours and wage conditions. The study has been introductory, con¬sisting of 2-3 hour visits to 12 plants.The production of refined wood fuels is carried out in rather small plants. The number of employees ranges from 6 to 15 persons in the factories producing between 20 and 100 thousand tons per year. Generally one shift crew consists of only two persons. The operator job requires multiskill capacity, dexterity and autonomous problem-solving.The job can be considered as qualified, responsible, autonomous, meaningful and variable. It was generally considered that it takes about a year to become a good operator. And even after that, one is still learning. Negative factors are shift work, partly poor physical working environment (dust and noise) and, occasionally, mental pressure and overtime.Modern organisation concepts are, to a large extent, applied in the wood fuel plants. The organisation is flat, lean and customer-oriented.

Göra illa för att hjälpa eller hjälpa till att göra illa? : Arbetslösas reservationslöner, jobbchanser och återanställningsinkomster

Hurting to help or helping to hurt? The reservation wages of unemployed, job chances and reemployment incomes in Sweden Economic incentives and their impact on the job search behaviour of the unemployed have been a central focus in the academic and political debate in Sweden. A key concept has been the reservation wages of the unemployed, the lowest income at which an unemployed person would be willing to accept a job offer. Unemployment benefit systems have been argued to raise and maintain reservation wages at high levels that lower job chances. This has been supported by a large number of international studies. From this perspective lower reservation wages would function as protection against long term unemployment and the scarring effects associated with it. High reservation wages might however, based on the same behavioural assumptions, have a human capital preserving effect. The possibility to hold out for the right job should reduce human capital losses compared to accepting the first available job offer. In this article we use Swedish longitudinal micro data combining interview and register data in order to investigate three central aspects reservation wages in a Swedish context: factors influencing the setting of reservation wages, the effect of reservation wage on job chances and the impact of reservation wages on reemployment incomes. Our findings show that benefit level and pre-unemployment position in the wage structure are central factors for setting the reservation wage. The effects of reservation wages were however not the expected. No effects were found on job chances, while a strong positive effect was found on reemployment income. This together indicates that high reservation wages have a human capital preserving effect in Sweden.

The Passionate Combining Entrepreneurs

Entrepreneurs are portrayed as salient drivers of regional development and for a number of years nascent entrepreneurs have been studied in a large number of countries as part of the Global Entrepreneurship Monitor project and the Panel Study of Entrepreneurial Dynamics. Scholars have devoted much effort to investigating factors that determine how individuals engage in entrepreneurial activities, with most of the discussion limited to business start-ups. However, since this type of project does not follow identical nascent entrepreneurs over time, limited knowledge exists about their development and whether they stay in this nascent phase for a long time. In practice, it is common for entrepreneurs to run a business and at the same time work in wage work, so-called combining entrepreneurs. In Sweden, almost half of all business owners combine wage work with a business. However, not all combining entrepreneurs will eventually decide to leave the wage work and invest fully in the business. Consequently, much research has focused on the first step of entering entrepreneurship full time, but less has focused on the second step, the transition from the combining phase to full-time self-employment. The aim of this thesis is therefore to contribute to the theory of entrepreneurship by gaining a deeper understanding of combining entrepreneurs and their motives and intentions.   In the context of combining entrepreneurs, the theory of identity, resources and choice overload has been used to examine how entrepreneurs’ age (when starting the business), entrepreneurial tenure (the length of engagement in the side-business), hours spent (weekly involvement in the side-business), involvement in entrepreneurial teams (leading the business with one or more partners) and involvement in networks (business networks) influence their passion for engaging in entrepreneurship while sustaining wage work. Different categories of combining entrepreneurs and their intentions have also been examined.   A survey was administered to 1457 entrepreneurs within the creative sector in two counties in Sweden (Gävleborgs County and Jämtlands County). Since there were no separate mailing lists to only combining entrepreneurs, the survey was sent to all entrepreneurs within the chosen industry and counties. The total response rate was 33.5 percent and of them 57.6 percent combined, yielding 262 combining entrepreneurs who answered the questionnaire. The survey was then followed up with eight focus group interviews and two single interviews to validate the answers from the questionnaire.   The results indicate three types of combining entrepreneurs: nascent – with the intention to leave the combining phase for a transition into full-time self-employment, lifestyle – with the intention to stay in the combining phase, and occasional – with the intention to leave the combining phase for full-time wage work and close down the business. Transitioning fully to self-employment increases with the individual’s age. Also, a positive interactive effect exists with involvement in entrepreneurial networks. The results also indicate that the ability to work with something one is passionate about is the top motive for combining wage work with a side-business. Passion is also more likely to be the main motive behind the combining form among individuals who are older at business start-up, but passion is less likely to be the main motive behind the combining form among individuals who spend more time on the business. The longer the individual has had the side-business, the less likely passion is the main motive behind the combining form, and passion is less likely to be the main motive among those who are part of an entrepreneurial team.

Egenföretagande kvinnors försörjningsvillkor och strategier för att minimera försörjningsrisker

Conditions and strategies for economic security for self-employed women in Sweden Although political parties are singing praises of entrepreneurship, welfare systems do not recognize the self-employees’ rights to decent conditions of basic economic safety and oftheir access to social security. This means that self-employed are forced to find their own way to reduce the risks of losing the possibility to support them self economically. This article examines twelve self-employed women’s daily conditions to support themselves and their strategies to deal with risks. The study shows that the interviewed have more freedom to find their own support strategies than wage-employed but on (the other side) their position on the labour market and the systems for social security doesn’t recognize their vulnerability towards risk in the same manner as wage-employed.

Candidate Quality and Voter Response in U.S. House Elections

We propose and test the implications of a two-dimensional concept of candidate quality in U.S. House elections. Strategic quality is composed of the skills and resources necessary to wage an effective campaign; personal quality is composed of the characteristics most ordinary citizens value in their leaders and representatives, such as personal integrity and dedication to public service. We employ district informants in studies of the 1998 and 2002 congressional elections to measure these qualities in candidates, and we merge mass survey data with the district informant indicators to assess constituents’ awareness and evaluation of House candidates, and voting choice. We find that awareness tends to be responsive to candidates’ strategic quality, and that incumbent evaluation is remarkably responsive to variation in personal quality, even taking into account the quality of challenger emergence. These and other findings appear to support a more positive view of citizen capacity than is common in the congressional elections literature, especially in light of the electoral security of House incumbents.

Two essays on education and governament policies

Whether human capital increases or decreases wage uncertainty is an open ques- tion from an empirical standpoint. Yet, most policy prescriptions regarding human capital formation are based on models that impose riskiness on this type of invest- ment. We slightly deviate from the rest of the literature by allowing for non-linear income taxes in a two period model. This enables us to derive prescriptions that are robust to the risk characteristics of human capital: savings should be discouraged, human capital investments encouraged and both types of investment driven to an e¢ cient level from an aggregate perspective. These prescriptions are also robust to what choices are observed, even though the policy instruments used to implement them are not.

Income inequality in a job-search model with heterogeneous discount factors: (revised version, forthcoming 2006, Revista Economia)

This paper investigates the income inequality generated by a jobsearch process when di§erent cohorts of homogeneous workers are allowed to have di§erent degrees of impatience. Using the fact the average wage under the invariant Markovian distribution is a decreasing function of the discount factor (Cysne (2004, 2006)), I show that the Lorenz curve and the between-cohort Gini coe¢ cient of income inequality can be easily derived in this case. An example with arbitrary measures regarding the wage o§ers and the distribution of time preferences among cohorts provides some insights into how much income inequality can be generated, and into how it varies as a function of the probability of unemployment and of the probability that the worker does not Önd a job o§er each period.