Happy Labor Day from Management INK!

1118679421_b0d120d892_zIn honor of Labor Day in the United States, we’re pleased to feature a collection of articles from ILR ReviewThe collection includes nine articles related to Labor Economics. One paper, entitled Workforce Reduction at Women-Owned Businesses in the United States,” authors David A. Mats and Amalia R. Miller find an association between female business leadership and increased labor hoarding. The abstract for the paper:

The authors find that privately held firms owned by women were less likely than those owned by men to downsize their workforces during the Great Recession. Year-to-year employment reductions were as much as 29% smaller at women-owned firms, even after controlling for industry, size, and profitability. Using data that allow the authors to control for additional detailed firm and owner characteristics, they also find that women-owned firms operated with greater labor intensity after the previous recession and were less likely to hire temporary or leased workers. These patterns extend previous findings associating female business leadership with increased labor hoarding.

Another paper in the collection, entitled “Revisiting the Current Issue CoverMinimum Wage–Employment Debate: Throwing Out the Baby with the Bathwater,” from authors David Neumark, J.M. Ian Salas, and William Wascher revisit the minimum wage debate with a new approach to the research design. The abstract for the paper:

The authors revisit the long-running minimum wage–employment debate to assess new studies claiming that estimates produced by the panel data approach commonly used in recent minimum wage research are flawed by that approach’s failure to account for spatial heterogeneity. The new studies use research designs intended to control for this heterogeneity and conclude that minimum wages in the United States have not reduced employment. The authors explore the ability of the new research designs to isolate reliable identifying information, and they test the designs’ untested assumptions about the construction of better control groups. Their analysis reveals problems with the new research designs. Moreover, using methods that let the data identify the appropriate control groups, their results reaffirm the evidence of disemployment effects, with teen employment elasticities near −0.15. This evidence, they conclude, still shows that minimum wages pose a tradeoff of higher wages for some against job losses for others.

You can read these two articles and more from the Labor Economics collection from ILR Review free for the next two weeks by clicking here. Want to stay current on all of the latest research from ILR Review? Click here to sign up for e-alerts!

Happy Labor Day from Management INK!

*Coffee shop image attributed to Dave Bleasdale (CC)


Is There A Skill Shortage in the US?

5832437491_a8d1b4512d_z[We’re pleased to welcome Peter Cappelli
of the Wharton School of the University of Pennsylvania. Peter recently published an article in ILR Review entitled “Skill Gaps, Skill Shortages, and Skill Mismatches: Evidence and Arguments for the United States” ]

Concerns over the supply of skills in the labor force, especially education-related skills, continue in the United States as well as in some other countries where employers complain about difficulty finding the talent they want. In the United States, there is little evidence consistent with the complaints about a skills shortage, and a wide range of evidence suggests the complaints are not warranted. Indeed, a reasonable conclusion is that over-education remains the persistent and even growing condition of the U.S. labor force with respect to skills. The best explanation for persistent employer complaints begins with a reminder that there is a market for labor regulated at least in part by supply and demand. Employers appear to be demanding more from applicants, most important, that they be able to perform jobs without any employer-provided training, and wages have not increased to match that greater demand. Employers and ILR_72ppiRGB_powerpointespecially their associations and consultants suggest some public policy response is in order to address employer complaints, but what that response should be is far from obvious.

The abstract:

Concerns over the supply of skills in the U.S. labor force, especially education-related skills, have exploded in recent years with a series of reports not only from employer-associated organizations but also from independent and even government sources making similar claims. These complaints about skills are driving much of the debate around labor force and education policy, yet they have not been examined carefully. In this article, the author assesses the range of these charges as well as other evidence about skills in the labor force. Very little evidence is consistent with the complaints about a skills shortage, and a wide range of evidence suggests the complaints are not warranted. Indeed, a reasonable conclusion is that overeducation remains the persistent and even growing condition of the U.S. labor force with respect to skills. The author considers three possible explanations for the employer complaints and the associated policy implications.

You can read “Skill Gaps, Skill Shortages, and Skill Mismatches: Evidence and Arguments for the United States”  from ILR Review free for the next two weeks by clicking here. Want to know all about the latest research from ILR ReviewClick here to sign up for e-alerts!

*Desk image credited to Nick Keppol (CC)

Peter CappelliPeter Cappelli is the George W. Taylor Professor of Management at The Wharton School and Director of Wharton’s Center for Human Resources.  He is also a Research Associate at the National Bureau of Economic Research in Cambridge, MA, served as Senior Advisor to the Kingdom of Bahrain for Employment Policy from 2003-2005, and since 2007 is a Distinguished Scholar of the Ministry of Manpower for Singapore.  He has degrees in industrial relations from Cornell University and in labor economics from Oxford where he was a Fulbright Scholar. He was recently named by HR Magazine as one of the top 5 most influential thinkers in management and was elected a fellow of the National Academy of Human Resources.  He received the 2009 PRO award from the International Association of Corporate and Professional Recruiters for contributions to human resources.  He serves on Global Agenda Council on Employment for the World Economic Forum and a number of advisory boards.




Whose Jobs Are These?

women_cfosIn firms with more female managers, are newly created jobs more likely to be filled by men or by women?

Lisa E. Cohen of McGill University and Joseph P. Broschak of the University of Arizona uncover the answer and its implications for practice in their study, “Whose Jobs Are These? The Impact of the Proportion of Female Managers on the Number of New Management Jobs Filled by Women versus Men,” forthcoming in Administrative Science Quarterly and now available in the journal’s OnlineFirst section:

asq150In this paper, we examine the relationship between an organization’s proportion of female managers and the number of new management jobs initially filled by women versus men. We draw on theories of job differentiation, job change, and organizational demography to develop theory and predictions about this relationship and whether the relationship differs for jobs filled by female and male managers. Using data on a sample of New York City advertising agencies over a 13-year period, we find that the number of newly created jobs first filled by women increases with an agency’s proportion of female managers. In contrast, the effect of the proportion of female managers on the number of new management jobs filled by men is positive initially but plateaus and turns negative. In showing these influences on job creation, we highlight the dynamic and socially influenced nature of jobs themselves: new jobs are created regularly in firms and not merely as a response to technical and administrative imperatives. The results also point to another job-related process that differs between women and men and that could potentially aggravate, mitigate, or alleviate inequality: the creation of jobs. Thus this research contributes to literatures on demography, the organization of work, and inequality.

Continue reading the article online in Administrative Science Quarterly, and sign up for e-alerts here so you don’t miss out on ASQ’s latest articles and issues.