Employment Decisions Research Articles

Supersizing the Impact of Unions in Downsizing Processes: A Configurational Approach Based on 19 Cases in France

This article explores how unions can influence employer decisions to downsize – a longstanding question that has been addressed through three waves of research. Although the literature has successively identified three types of factors that influence managerial decisions to downsize, it has not fully addressed the interactions of these factors, leading to inconsistencies. This article builds on and refines the existing work through a configurational approach which qualitatively evidences six downsizing configurations through a uniquely large number of cases ( n = 19). This research sheds new light on how factors combine to enhance union influence by theorizing four types of chemical-like factor interactions: catalysing, inhibiting, synthesizing and decomposing. By highlighting this interactive chemistry, this configurational approach revisits longstanding academic debates about the context–union strategy fit and the relative efficacy of union responses. From a practical perspective, it encourages unions to reject the idea that there is a single, optimal strategy for addressing downsizing.

Echoes of insecurity: The detrimental effect of crime on corporate employment

AbstractThis study investigates the influence of local crime on corporate employment in China. Leveraging a comprehensive data set of 85 million court judicial documents, we construct city‐level crime measures. We find that local crime is negatively associated with corporate employment. Using China's Gang Crime Crackdown program as a quasi‐natural experiment and the difference‐in‐differences approach, we further identify the causal relationship. Violent crimes and those with longer sentences drive the negative correlation between local crime and corporate employment. This relation is particularly pronounced among low‐skilled employees, in cities with inadequate commuter security, and in financially constrained firms. Our findings emphasize the role of a secure social environment in the local labor market and firms' employment decisions.

Исследование мотивации будущих врачей к работе в сельской местности и малых городах.

The staffing of state medical organizations with medical personnel is one of the main factors in the implementation of the strategic goals of the state. The relevance of studying the attractiveness of public health care in rural areas and small towns for medical university students is due to the need to take preventive measures to increase the interest of future doctors in working in these areas. Purpose of the study is to develop proposals to increase the interest of future doctors in working in rural areas and small towns. Materials and methods. 529 students of Tyumen Medical University participated in the sociological study. The survey questions are aimed at identifying intentions for the future place of residence, the significance of motivating factors and measures of social support for medical workers in rural areas and small towns that can influence the employment decisions. Results. The priority for 9 out of 10 respondents is career. More than a third of respondents want to live in cities with more than a million inhabitants and about 40% – in the largest city up to 1 million people. Four out of five target students do not plan to continue working in the same locality after fulfilling their obligations to the employer. Findings. The risk of staffing in medical organizations located in some rural areas and small towns of the Tyumen region have been identified. The proposed initiatives can be taken into account by authorities and heads of medical organizations when making management decisions and help improve staffing levels in medical organizations in rural areas, small and medium-sized cities.

Does non-farm employment influence a farmer’s decision to adopt hybrid rice seeds or improved variety?

Purpose. The study aims to examine the effect of non-farm employment decisions on the adoption decision of rice hybrid seeds or improved variety in Vietnam. Methodology / approach. This study uses panel data from the Vietnam Access to Resources Household Survey (VARHS) 2008–2016 dataset. The study uses the correlated random effect Probit model with the Mundlak approach to control unobserved heterogeneity of panel data and the endogenous switching Probit model (ESPM) to solve the endogeneity problem and self-selection of the non-farm participation variable. Results. There has been increasing interest that the development of rural non-farm employment has effects on agricultural production as well as agricultural growth. However, still relatively poor understanding of how non-farm participation affects the farmers’ decision to adopt modern technologies in the face of market failure. Our findings indicate that non-farm employment has a positive effect on the adoption of rice hybrid seeds or improved varieties in Vietnam. The value ATT is predicted from the endogenous switching Probit model, which implies that farm households who engage in non-farm employment had a 35.1 % of probability of modern varieties adoption, vs. 19.0 % in the sample overall. Originality / scientific novelty. This study adds evidence from a developing country (using the example of Vietnam) to the broader literature on the role of non-farm employment participation on farmers’ adoption behaviour under market imperfections. In addition, the research addresses the limitations of unobserved heterogeneity of an unbalanced panel by applying the Mundlak approach and contributes to the literature by controlling the endogenous problem and self-selection problem of non-farm participation by using the endogenous switching Probit model. Practical value / implications. Based on the empirical results of this paper, some policy implications are provided to develop the rural non-farm sector and to diffuse modern technologies among rural farmers.

The impact of employee satisfaction on company's labour investment efficiency

This study examines the impact of employee satisfaction on company's labour investment efficiency (CLIE) using a sample of 2,333 company-year observations associated with 302 companies listed in the UK between 2008 and 2020. Arguments based on human relations theory suggest that satisfied employees are likely to be motived to exert greater efforts and exhibit lower turnover, thereby reducing employer's exposure to labour market frictions. In contrast, agency theory argues that satisfied employees may become entrenched and thus harm organisational outcomes, including CLIE. We measure satisfaction with employers across our sample companies using 164,341 employees' ratings posted on Glassdoor UK. We observe a positive impact of employee satisfaction on CLIE, demonstrating the validity of underlying human relations theory for the present business context characterised by labour shortages. We also find the positive impact of employee satisfaction on CLIE to be stronger for companies with higher labour intensity, more reliance on skilled labour, and more competitive industry environments. Our study contributes to research investigating the determinants of efficient investment in workforce. We also demonstrate the informational value of employee' online reviews for understanding a company's performance, particularly in assessing the efficiency of its employment decisions.

Bias audit laws: how effective are they at preventing bias in automated employment decision tools?

ABSTRACT Automated employment decision tools use machine learning, artificial intelligence, predictive analytics, and other data-driven approaches to enhance candidate experiences and streamline employment related decision-making, allowing human resources to be concentrated where they are needed most. However, the use of these tools without appropriate safeguards has resulted in a number of high-profile scandals in recent years, particularly in regard to bias. Accordingly, lawmakers have started to propose laws that require bias audits of automated employment decision tools to examine their outputs for subgroup differences. The first of its kind was New York City Local Law 144, but other US states have since followed suit. In this paper, we examine the concerns about the effectiveness of this and other similar laws, including the suitability of metrics, the scope of the law, and low levels of compliance. We conclude that despite the law being a good initial first step towards greater transparency around automated employment decision tools and reducing bias, examining outcomes alone is not sufficient to prevent bias elsewhere in the tool. Moreover, effective bias prevention will require a multidisciplinary approach that combines expertise in IO psychology, law, and computer science to develop appropriate metrics and maximize the enforceability of such laws.

Employment Decisions of Newly Graduated Occupational Therapists.

Introduction. Employment decision-making is essential for understanding workforce trends. Current occupational therapy workforce research describes distribution disparities of occupational therapists within geographic locations, services such as acute care or community health, and private or public sectors. New graduates of occupational therapy programs are critical to meeting the demand and distribution disparities of occupational therapy services in British Columbia. However, recent employment decision-making of new occupational therapy graduates has not been well studied. Purpose. This study aimed to examine factors that influence newly graduated occupational therapists' employment decisions. Methods. This descriptive study sampled 122 occupational therapists who were registered in one province and graduated from a Canadian occupational therapy program between 2017 and 2022. Data was collected through an online survey about intrinsic factors, extrinsic factors, and past fieldwork experiences that affected participants' employment decision-making. Descriptive data analysis was used to organize participants' responses. Findings. Results identified that work-life balance and mentorship were the highest rated factors that influenced participants' current and first employment respectively. Participants agreed that the variety and number of placements they had as students were more influential to their employment decisions than the length of the fieldwork education. Conclusion. This study identified the intrinsic and extrinsic factors in employment choices that may influence recruitment, retention, and workplace planning of new graduates.

Not a good fit? The roles of aesthetic labour, gender, race, Indigeneity, and citizenship in food service employment

Abstract Companies and business lobby groups bemoan a lack of qualified workers, even for entry-level or low-skill jobs. At issue is a stated inability to find workers with the right ‘fit’ for the role or business. But what does fit really mean? We draw on human capital theory and labour segmentation theory to examine how perceptions of fit are shaped. We conducted ninety-three interviews with food service workers, managers, and other industry stakeholders and found that employment decisions are shaped by stereotypes, with a particular focus on ‘pretty privilege’ or aesthetic labour, as well as Indigeneity, citizenship, race, and gender. We present implications for research and practice in the food services industry.

A Quantitative Theory of the New Life Cycle of Women's Employment

“A new life cycle of women's labor force participation has emerged” (Goldin and Mitchell, 2017). Compared to previous cohorts, the employment profile of American college-educated married women born after the mid-1950s is flatter and higher with no hump but with a dip in the middle between ages 30-39. At the same time, these younger cohorts have delayed births, but their completed fertility rate has increased. I develop a quantitative theory to explain the changes in college-educated women's employment and fertility decisions across cohorts. First, I provide reduced-form evidence of a positive correlation between fertility and employment decisions. Second, I build a life-cycle model of labor supply and fertility decisions. My estimates indicate that the marginal returns to experience of college-educated married women increased by 33 percent. Although on-the-job accumulation of experience plays a crucial role in generating employment shifts and birth delays, the model does not generate an increase in the total fertility rate in the absence of infertility treatments. Thus, to understand why college-educated married women's life-cycle employment profiles and fertility decisions are changing, both factors must be considered.

F-BWM-MARCOS approach for performance evaluation of Türkiye's top 500 industrial enterprises in the pre-pandemic and pandemic era

PurposeThe purpose of this study is to analyze the impacts of the COVID-19 pandemic on the performance of companies using a hybrid Multi-Criteria Decision-Making (MCDM) approach. Specifically, the study examines Türkiye’s Top 500 Industrial Enterprises to analyze their performance before and during the pandemic, and to capture their performance in determining investment and production strategy.Design/methodology/approachTo achieve the study’s objectives, the Fuzzy Best-Worst Method (F-BWM) was used to obtain importance levels of performance indicators, decreasing the vagueness in experts’ decision-making preferences. The Measurement Alternatives and Ranking According to Compromise Solution (MARCOS) method was used to rank enterprises based on their performance.FindingsThe COVID-19 pandemic has clearly had a substantial impact on the performance of Türkiye’s top 500 industrial enterprises. While some companies suffered decreased sales, others reported that their revenues increased or remained constant during the outbreak. The results reveal that the pandemic caused a shift in the initial ranking outcomes for the first two enterprises.Research limitations/implicationsThe study’s limitations include the sample size and the time period under consideration, which may have an impact on the generalizability of the findings.Practical implicationsDecision-makers’ investment, employment and operational decisions were influenced by the impact of the COVID-19 pandemic. The results provide insights for decision-makers on how to achieve higher growth and performance under the pressure of the pandemic.Social implicationsThe study’s practical consequences help decision-makers understand how to attain higher growth and performance in the face of the epidemic.Originality/valueThe originality of this study lies in using a hybrid MCDM approach to examine the impact of the COVID-19 pandemic on company performance. A hybrid MCDM approach is proposed to help decision-makers make the best possible investment and implementation decisions.

Where to go: Factors influencing Hong Kong university students' attitude towards working in the Greater Bay Area

AbstractThis study explores Hong Kong university students' concerns when making employment decisions after graduation and their attitudes towards working in mainland China, especially in the Greater Bay Area (GBA). Two research questions were identified: What are Hong Kong students' attitudes towards working in the GBA? What factors influence Hong Kong students' employment choices? A qualitative research approach was adopted with semi‐structured interviews with 38 final‐year students from eight Hong Kong universities. Based on thematic analysis, the findings showed that Hong Kong university students' willingness to work in the GBA was mainly influenced by their previous connections with the destination and potential career development opportunities. However, Shenzhen was the only city out of nine in the GBA they considered for employment. University students were aware of the economic rationale for their employment preparation, but, more importantly, they placed a high value on professional development opportunities and work–life balance. They also valued opportunities for internationalisation and emphasised the importance of the work culture and environment in choosing employment. The findings have policy implications for graduate employment and the intra‐mobility of talented young people across GBA cities in China.

Optimal employment decisions in the hospitality sector under uncertain productivity loss due to catastrophe: A mean-variance utility approach

How do exogenous disruptions such as natural disasters affect employment and labour productivity in the hospitality sector? This article addresses this crucial issue by proposing a two-moment (i.e., mean-variance) decision model to determine the pattern of productivity and employment losses in this sector. In our model, a representative hotel owner selects the optimal employment level based on the risk-taking orientation of the manager. During a catastrophe, a high operational fixed investment cost causes optimal employment decisions for a hotel owner to become an endogenous choice variable. Our proposed model and a calibration exercise predict that, on average, as operational uncertainty increases, expected profits decrease substantially, causing managers to terminate employees. Government intervention in the form of a lumpsum grant can be beneficial, but the level of the grant should be contingent on the risk preference of the hotel management. For instance, restoring complete employment with a substantial lump-sum aid may take longer. We discuss the implications of our findings for hospitality sector research and tourism industry professionals.

How does climate regulatory risk influence labor employment decisions? Evidence from a quasi-natural experiment

We exploit a green lending mandate as a quasi-natural experiment and estimate its effect on labor investment inefficiency of firms with high carbon risk. We document that heightened climate regulatory risk through mandatory green lending requirements motivates firms with higher carbon risk to adjust their labor investments to levels supported by economic fundamentals. We especially show that climate regulatory risk lowers labor investment inefficiency by curbing overinvestment in labor. This impact is more concentrated among firms that are more dependent on banks for liquidity, firms with severe financial constraints, and those with more institutional investors. After the green credit policy, we also observe an increase in bank lending costs and a reduction in loan maturities for carbon-intensive firms. Overall, our findings suggest that climate bank lending regulation is one of the major channels through which climate risks get embedded in labor employment decisions. In particular, green lending regulatory costs can have significant effects on corporate labor investment efficiency.

Analyzing Elderly Labour Participation: The Role of Intergenerational Cash Support, Financial and Loneliness in Malaysia

Objective – Malaysia's elderly population is expanding at an unprecedented rate, surpassing the pace of ageing in historically established 'aged nations.' Statisticians project that Malaysia will reach 'aged nation' status by 2030, a transition occurring more rapidly than any previously recorded. Methodology – The concept of productive aging is pivotal to national sustainability, implying that the elderly should remain active contributors to society, both socially and economically, to alleviate potential strain on governmental resources. This study probes the labour force participation of Malaysia's elderly by examining the influence of intergenerational cash support, financial status, and feelings of loneliness on their employment decisions. Findings – Employing bivariate and logistic regression analyses, the research conclusively demonstrates that these variables significantly affect labour force engagement among the aged. Specifically, the absence of cash support from employed adult children, lack of savings or investments, and experiences of loneliness increase the probability of the elderly re-entering the workforce. Novelty – The implications of these empirical findings are profound for policymakers, who can utilise this data to craft more nuanced policies aimed at incentivizing labour force re-entry among the elderly. Such policies could not only foster productive ageing but also mitigate the risks of an inactive elderly population during their later years. Type of Paper: Empirical JEL Classification: J14, J18, J22 Keywords: elderly people; financial status; intergenerational cash support; labour force participation; loneliness; sustainability Reference to this paper should be made as follows: Chung, C.F.; Voo, I.C.; Hamid, R.B.A. (2024). Analyzing Elderly Labour Participation: The Role of Intergenerational Cash Support, Financial, and Loneliness in Malaysia, J. Bus. Econ. Review, 9(1), 48–54. https://doi.org/10.35609/jber.2024.9.1(1)

Social security contributions and corporate outsourcing

This paper empirically examines the relationship between the pressure of social security contributions and employment decisions regarding labor outsourcing among non-financial, non-insurance listed companies in China's capital market, under the country's unique institutional background. The findings indicate that higher social security contributions lead companies to lean more towards labor outsourcing decisions. Heterogeneity analysis shows that the positive impact of social security contributions on the inclination for labor outsourcing is primarily found in non-state-owned enterprises and manufacturing industry samples.

Slovakia's departure from strong labor protection of employees as a consequence of the pandemic and the transposition of european directives

This scientific paper delves into the notable shift in Slovak labor law, which has departed from its historically strong emphasis on safeguarding the rights of employees, traditionally seen as the weaker party in labor relations. Until recently, this emphasis served as a substantial barrier against the globalizing and standardizing influences of employers. The paper identifies two key factors driving recent legislative "reforms" in Slovakia's labor regulation. These changes are rooted in the transposition of European labor law directives while also embracing a more liberal political perspective regarding the nature of labor relations. This shift involves moving away from rigid employee protection and adopting the concept of "increased flexibility" in employee work as a remedy for addressing the post-Covid-19 economic challenges. The previous emphasis on employee or employee representative involvement in defining working conditions, wages, and important employer decisions regarding work organization has shifted. This shift allows employers to act unilaterally, contingent on fulfilling new information obligations towards employees. However, the recent labor law reforms run counter to this historical legal tradition. Taking into account the wage levels in the Slovak Republic compared to the majority of other European Union member states, these reforms establish an unsettling level of labor law protection pro futuro of Slovak employees.

The Upshot of Bs Industrial Technology Graduates' Acquired Competencies Aligned to Employment Opportunities

In today's global economy, competencies and skills are highly valued in employment opportunities. This research examines the employment profile, skills acquired in college, and the challenges of BS Industrial Technology graduates concerning job opportunities and their ability to successfully transition from college to employment. This study utilized concurrent triangulation research design. The respondents were chosen randomly for survey questionnaire and purposively for the interview. The results revealed that all majors have more single respondents than married respondents. The gender distribution of BSIT graduates varies according on their major, with some majors having a male- or female-dominated cohort. Additionally, the number of graduates varies from year to year across all majors, with some years having more or fewer graduates. Meanwhile, many students are also greatly motivated by a personal interest in the topic, highlighting the value of curiosity and passion in choosing a vocation. BSIT graduates have varying work situations which clarifies the characteristics of the labor market and the outlook for employment across a range of field of specialization. All majors agree that salaries and benefits are the main factors influencing employment decisions while career challenge ranks as the second most frequently cited factor. Furthermore, the variability in job opportunities, the impact of specialization, the relevance of education to employment, the role of transferable skills, and employment adjustments to market dynamics are some of the key themes that the challenges faced by BSIT graduates concerning job opportunities and their successful transition from college to employment encompass.

Does decentralisation promote learning? Local political settlements and education policies in Indonesia

ABSTRACT This article examines the effect of local political settlements on education policies in a decentralised political system. Under what conditions does decentralisation promote learning-enhancing policies? Despite the numerous works on decentralisation and education, little is known about how local politics influences student learning. We develop a novel approach to the politics of education policies by looking at the effect of local political settlements on education policymaking. Using a heuristic case study method comparing three districts in Indonesia, we found that constraints on the discretionary power of the district head over employment decisions in the bureaucracy matter for the development of learning-enhancing policies. Such a constraint can pave the way for the development of the bureaucratic capacity required for local governments to pursue quality-promoting reforms. In the absence of such a constraint, the extent to which district governments will implement learning-enhancing policies depends on district heads’ commitment to learning.

IPO suspensions and labor employment decisions: Evidence from China

The Chinese regulator occasionally suspends all initial public offerings (IPOs) to maintain stability in the capital markets and facilitate capital market reform. These suspensions temporarily prevent firms that have obtained IPO approval from going public. We hypothesize that this suspension-induced listing delay influences firms’ labor employment decisions. Consistent with this argument, we find that a suspension-induced listing delay is associated with an increase in labor costs, both in terms of total and average employee payments. This positive relationship is more pronounced for human capital-intensive firms and non-state-owned enterprises. We also find that there is an increase in employment and employee turnover for firms facing suspension-induced listing delays. Moreover, IPO suspensions result in lower labor productivity and firm performance. Overall, our results indicate that government policy uncertainty leads firms to incur high labor costs and reduces capital allocation efficiency.

Does employee ownership improve labour investment efficiency? Evidence from European firms

This paper studies the impact of non-executive employee ownership on labour investment efficiency for a sample of European firms. It empirically documents a negative association between employee ownership and labour investment inefficiency, which serves an inverse measure of labour investment efficiency. This negative association is notably more pronounced for firms reporting higher discretionary accruals in their financial statements (i.e. firms with higher information asymmetry) and for those with a lower percentage of independent directors (i.e. firms with greater agency problems). As such, this paper offers evidence that employee shareholding enhances employment decisions through two channels: reduced information asymmetry and improved management monitoring.