The Gender Pay Gap

only-few-cents-247849-mBack in the news is an issue of importance in the field of management: the gender pay gap. Fifty years after the passage of the Equal Pay Act of 1963, women continue to be paid less than men, even when accounting for factors commonly understood to affect earnings. As the U.S. Census Bureau data has shown, “for the last decade, median earnings for women working full-time, year-round, have been just 77% of men’s earnings.” The American Association of University Women’s research report, Graduating to a Pay Gap, further reveals that college-educated women working full-time were “paid an unexplained 7% less than their male counterparts were paid one year after graduation.”

What does recent research tell us about the gender pay gap? What’s behind it? What are the effects of unequal pay on the workplace, families, the economy? Does it matter? We’re pleased to present the following articles to enrich the discussion. Click on the titles below to read the articles, free through March.

The March Issue of Administrative Science Quarterly is Now Online!

The March issue of Administrative Science Quarterly is now available and can be read online for free for the next 30 days. This issue offers a range of compelling articles on organizational studies as well as astute book reviews.

The lead article, “Creativity from Constraint? How the Political Correctness Norm Influences Creativity in Mixed-sex Work Groups” was authored by Jack A. Goncalo, Jennifer A. Chatman, Michelle M. Duguid and Jessica A. Kennedy. You can read the abstract below:

As work organizations become increasingly gender diverse, existing theoretical models have failed to explain why such diversity can have a ASQ_v60n1_Mar2015_cover.inddnegative impact on idea generation. Using evidence from two group experiments, this paper tests theory on the effects of imposing a political correctness (PC) norm, one that sets clear expectations for how men and women should interact, on reducing interaction uncertainty and boosting creativity in mixed-sex groups. Our research shows that men and women both experience uncertainty when asked to generate ideas as members of a mixed-sex work group: men because they may fear offending the women in the group and women because they may fear having their ideas devalued or rejected. Most group creativity research begins with the assumption that creativity is unleashed by removing normative constraints, but our results show that the PC norm promotes rather than suppresses the free expression of ideas by reducing the uncertainty experienced by both sexes in mixed-sex work groups and signaling that the group is predictable enough to risk sharing more—and more-novel—ideas. Our results demonstrate that the PC norm, which is often maligned as a threat to free speech, may play an important role in promoting gender parity at work by allowing demographically heterogeneous work groups to more freely exchange creative ideas.

You can access the Table of Contents for this issue of Administrative Science Quarterly by clicking here. You can keep up-to-date on all the latest news and research from Administrative Science Quarterly by clicking here to sign up for e-alerts!

Book Review: Informal Labor, Formal Politics, and Dignified Discontent in India

51+jLLjZIfLInformal Labor, Formal Politics, and Dignified Discontent in India. By Rina Agarwala. New York: Cambridge University Press, 2013. 264 pp. ISBN 978-1-107-66308-4, $29.99 (Paperback).

Looking for a good read for the long weekend? Akshay Mangla of Harvard Business School recently reviewed “Informal Labor, Formal Politics, and Dignified Discontent in India” in ILR Review.

Informal workers, unprotected by official labor law, make up a majority of the labor force in most developing countries. In addition to performing agricultural labor, informal workers construct roads, clean homes, staff kitchens, and knit clothing. Notwithstanding their centrality to the ILR_72ppiRGB_powerpointeconomy, scholarship on the organization and politics of informal workers remains sparse. We know far too little about the work conditions they experience, how they understand their rights, and not least of all, the strategies by which they organize and engage in formal politics. As with much of the informal economy, informal workers are largely treated as a residual category, one whose import is expected to diminish with economic and political modernization. While much recent scholarship documents the resilience of the informal economy in both developing and rich countries, few studies have investigated whether and how informal workers mobilize as a class and demand their rights. If anything, informality is thought to preclude workers from engaging in collective action given the dispersed and insecure nature of informal employment.

Informal Labor, Formal Politics, and Dignified Discontent in India offers a fascinating account of how informal workers in India have organized themselves to make collective demands on the state. India provides a rich and important context in which to study informal labor. More than 90% of the Indian labor force is engaged in informal work. Moreover, India’s diverse federal democracy offers considerable variation for analyzing the conditions under which informal workers successfully organize themselves. Agarwala exploits this variation effectively to examine informal worker organizations across two sectors, the construction industry and the bidi (hand-rolled cigarette) industry, and analyzes how successful they are across three Indian states. The study can be divided broadly into two parts: 1) it examines the organizational demands and strategies of India’s informal workers, and 2) it analyzes the political conditions that enable or constrain informal workers’ organizations from achieving their objectives. The research design allows Agarwala to analyze both industry- and state-level factors that could potentially shape the organizational strategies and effectiveness of informal workers’ organizations.

Click here to read the rest of the review from ILR Review! Want to know about all the latest research and reviews like this from ILR Review? Click here to sign up for e-alerts!

Mark S. Johnson on the Travel Promotion Act’s Impact on Hotel Firm Stock Returns

[We’re pleased to welcome Mark Johnson of Michigan State University. Dr. Johnson recently collaborated with A. J. Singh of Michigan State University and Qing Ma of Cornell University on their paper “The Impact of Authorization of the Travel Promotion Act on Hotel Firm Stock Returns” from the February issue of Cornell Hospitality Quarterly.]

I have found that some of the best research ideas arise from comments made by cqx coveraccountants. This occurs because accountants keep close track of firms and industries through the process of auditing and consulting. Our curiosity was peaked when we read a publication from Ernst and Young. In this publication they mentioned the Travel Promotion Act as one of the three most important issues facing the Hotel Industry in 2011.

Our results were surprising to us for two ways. One, the stock price impact from the act was larger than we had anticipated. Two, the way in which a firm is organized, c-corp versus REIT, influenced the degree to which a firm could capture value from the act.

The most important result from our research is that Travel Promotion by the Federal Government produces wealth in the Hotel Industry. This result is particularly important because policy makers are currently reviewing the progress of TPA since its inception. We hope that our analysis encourages policy makers to continue to support the act now and in the future.

You can read “The Impact of Authorization of the Travel Promotion Act on Hotel Firm Stock Returns” from Cornell Hospitality Quarterly for free by clicking here. Want to know about all the latest research like this from Cornell Hospitality Quarterly? Click here to sign up for e-alerts!

575c2fc6d81ed395ddc4f8d8f696e987Mark S. Johnson is a Professor of Practice, Finance, at the Eli Broad Graduate School of Management, Michigan State University, East Lansing. Dr. Johnson’s research interest has focused on the market for corporate control and the impact of government regulations on the market value of firms

d83aa498f991084b6ecf5b866b46d86aA.J. Singh is the International Lodging, Finance and Real Estate Professor in The School of Hospitality Business at Michigan State University. Dr. Singh’s research is heavily involved with predicting the U.S. lodging industry’s current and future sources & needs of financing. An integral part of his research is to work closely with industry leaders representing the lodging, real estate and financial services industries.

get.htmlQingzhong (Qing) Ma is an assistant professor of finance in the School of Hotel Administration at Cornell University. His research is in the area corporate finance, especially mergers and acquisitions, divestitures, corporate restructuring, corporate governance, behavioral finance, insider trading, and their applications in the hospitality industries.

Book Review: Hazard or Hardship: Crafting Global Norms on the Right to Refuse Unsafe Work

80140100093600LHazard or Hardship: Crafting Global Norms on the Right to Refuse Unsafe Work. By Jeffrey Hilgert . Ithaca, NY: Cornell University Press/ILR Press, 2013. 224 pp. ISBN 978-0-8014-5189-8, $45 (Cloth).

Read the review by Guy Mundlak of Tel Aviv University from the January 2015 issue of ILR Review.

“Workplace health and safety has now become an area of labor and employment relations that is ‘extensively regulated’ with ‘intense legislative activity worldwide’ in recent years” (p. 159). This apt observation by Jeffrey Hilgert can also account for the ILR_72ppiRGB_powerpointmarginalization of health and safety issues from the agenda of many labor scholars. Health and safety is often associated with technical standards on matters such as safety procedures on cranes or maximum exposure levels to toxic substances. Many scholars acknowledge that health and safety is important to human life, reaching into the heart of the labor rights–human rights intersection. Scholars of international labor law also pointed at the omission of health and safety from the roster of core labor standards in the International Labour Organization’s (ILO) 1998 Declaration on Fundamental Principles and Rights at Work. Few, however, are willing to plunge into the challenge to unveil the human rights dimension of what may seem a highly technical field.

In Hazard or Hardship, Hilgert provides a fascinating account of the missing link. This exploration of the link does not commence with a general theory of regulation or human rights, but instead with a very focused and seemingly minute corner of the health and safety field—the right to refuse unsafe work. The author begins the book with details, with stories, with human lives, and workers’ attempts to assert their rights; some were successful, many were not. Why focus on the right to refuse when so many other issues are at stake in the field, from standard setting, to enforcement, compensation, and rehabilitation? The reader is quickly initiated, learning that the right to refuse is a door through which many dilemmas are admitted and woven together in nonconcentric circles. The plot therefore involves multiple themes, ranging from the process of juridification and the substitution of collective bargaining with statutory rights, to the new policy-based regulatory trend in which fixed mandatory standards are replaced by processes in the workplace. The story flows from the individuals’ fight for health and safety to national legislation and adjudication, and to international standards. On the way, the author draws on fundamental concepts that are necessary for understanding governance of work—rights, power, commodification, and citizenship. This book is not for the technicians of health and safety, but rather for those who want to rethink the broader themes of labor governance, international labor law, and human rights.

You can read the rest of the review from ILR Review for free by clicking here. Want to know about all the latest research and reviews from ILR Review? Click here to sign up for e-alerts!

Book Review: Jacob N. Shapiro: The Terrorist’s Dilemma: Managing Violent Covert Organizations

thJacob N. Shapiro : The Terrorist’s Dilemma: Managing Violent Covert Organizations. Princeton, NJ: Princeton University Press, 2013. 335 pp. $29.95/£19.95, hardcover.

Anita M. McGahan of Rotman School of Management at the University of Toronto recently took the time to review Shapiro’s book in the OnlineFirst section of Administrative Science Quarterly.

In this well-organized book, Shapiro invites us to turn away from ASQ_v59n4_Dec2014_cover.inddsensationalized media descriptions and toward more analytical, accurate, and effective approaches for understanding what terrorism is and how it works. At the core of his argument is the idea that groups such as al-Qa’ida, the Irish Republican Army, and even pre-revolutionary Russian leftists are organizations that must exert control over field operations while preserving secrecy so as to avoid detection by governmental and other authorities.

The purpose of the book is to demonstrate analytically that this tradeoff between field control and secrecy is pervasive among terrorist organizations. For the public, this message should be reassuring, argues Shapiro, as the costs of secrecy are normally high enough to prevent the effective operation of organizations such as al-Qa’ida in Afghanistan in the years prior to the 9/11 attacks on the United States; Shapiro refers to the organization behind 9/11 as “the exception that proves the rule,” by which he means that terrorist groups can no longer operate with the security and secrecy of pre-9/11 al-Qa’ida in Afghanistan and therefore cannot execute attacks on the same scale (p. 15).

Click here to read the rest of the review from Administrative Science Quarterly. Want to know about all the latest reviews and research from Administrative Science Quarterly? Click here to sign up for e-alerts!

Book Review: Betsy Leondar-Wright: Missing Class: How Seeing Class Cultures Can Strengthen Social Movement Groups

80140100646770LCold weather getting you down? Why not curl up by the fire with a good book?

Betsy Leondar-Wright : Missing Class: How Seeing Class Cultures Can Strengthen Social Movement Groups. Ithaca, NY: Cornell University/ILR Press, 2014. 288 pp. $21.95, paperback.

Read the review by Fabio Rojas of Indiana University Bloomington from the OnlineFirst section of Administrative Science Quarterly.

Social class has always been an important element in research on social movements and their organizations. Much of it ASQ_v59n4_Dec2014_cover.inddstems from Marx, of course, but also from later authors such as Alberto Melucci, Claus Offe, and Kathleen Blee who examined the ways that social class shapes how people pursue political goals. This recent book is an examination of how social class shapes activism. Using data from two years of field work and dozens of interviews, Leondar-Wright shows how class differences guide activists as they work together.

This book has many virtues. For example, it presents a typology of progressive groups that captures the major streams of North American progressivism, including its most radical elements, such as anarchists. The numerous illuminating examples of people employing class-based rhetoric in their meetings is another strength. The book’s greatest virtue is that it makes a strong case that class cultures do create substantial barriers among activists and can undermine their groups’ efficacy. Anyone working with people of varying class backgrounds will appreciate the material presented in this book.

Read the rest of the review from Administrative Science Quarterly for free by clicking here. Want to have all the latest news, reviews and research from Administrative Science Quarterly sent directly to your inbox? Click here to sign up for e-alerts!