International Journal of Manpower

Purpose The purpose of this paper is to examine the impact of the tragic events of 9/11 on the self‐employment entry/exit decisions of native‐born Hispanics. Design/methodology/approach The paper uses the difference‐in‐differences approach with native Whites as the control group. The dynamics of entry and exit decisions are examined using data from 1999‐2003 CPS‐ORG. Findings The estimates reveal a negative impact of 9/11 on Hispanics' self‐employment entry decisions, which is mainly the result of less entry from the wage sector, and it has increased Hispanics' self‐employment exit, which is mainly the result of increased exit to the wage sector. Research limitations/implications The results suggest that native Hispanics may have experienced increased job opportunities in the wake of 9/11 and hence became less likely to be “pushed” into self‐employment and more likely to be “pulled” out of self‐employment. The improved labor market opportunities stem from government increased sanctions against undocumented immigrants, which reduced the demand for illegal immigrant workers, many of whom are Hispanic immigrants, and that native‐born Hispanics are likely to be relatively close substitutes for immigrants Hispanics. A limitation of the research is that the estimates are statistically insignificant, possibly due to the relatively small sample size. Originality/value Existing studies that examine the impact of 9/11 on the Hispanic's labor market outcomes are all focused on immigrants or wage‐employment. The paper complements the literature by examining the impact of 9/11 on native‐born Hispanics and in particular their self‐employment decisions, and thus provides a more complete picture of the impact of 9/11 on Hispanics.

Purpose The purpose of this study is to examine the empirical link between the naturalization of immigrants and their subsequent employment status in France from 1968 to 1999. Design/methodology/approach For that purpose, longitudinal data coming from a panel dataset which follows almost 1 percent of the French population from 1968 to 1999 through information contained in the 1968, 1975, 1982, 1990 and 1999 French censuses were used. Control for the potential endogeneity of the naturalization process was through a bivariate probit model. Findings It was found that naturalization has a significant positive relationship with immigrants' subsequent employability. This is particularly true for groups of immigrants who have a low probability of employment in the host country. Research limitations/implications The dataset can only measure statistical association between naturalization and employment, given the lack of timing information. Interpretation in terms of causality is thus not permitted. Originality/value The dataset used is especially valuable for studying social integration of immigrants, since it allows significant samples of immigrants, according to their country of origin, these groups being generally too small in other surveys.

Purpose The paper seeks to describe the multitude of pathways to early exit from the labour force and to estimate how individuals allocate into different pathways out of the labour force conditional on early retirement. Design/methodology/approach A multinomial logit approach is used to analyse the characteristics of individuals who retire through each pathway compared to those remaining in the labour force. Findings Eight pathways from work to an early retirement programme are identified. Overall, availability and/or generosity of retirement programmes are important for early retirement through the employment and unemployment insurance benefit dominated pathways, while personal characteristics seem to be at least as important for early retirement through other pathways. Research limitations/implications An interesting approach in future work would be to gain access to health data, making it possible to build a competing risks model where some pathways are used due to health shocks and others are chosen based on economic optimisation comparing compensation rates with disutility from continued work. Originality/value While the dominant approach in many retirement studies is on destinations, the analytical focus in this paper is instead on how people span the period from leaving the job until entry into an early retirement programme. The period the authors study contains a policy experiment, where a programme for early retirement conditional on age and unemployment is opened and closed down again later in the period.

Purpose To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components. Design/methodology/approach Selection and wage equations are estimated for each of the population groups (Eastern women, Western women, Eastern men, Western men) separately. The wage equations are corrected for selectivity using the Heckman procedure and subsequently wage differentials are decomposed into the three components mentioned above, using four alternative decompositions suggested in 2004 by Neuman and Oaxaca. Findings Gender wage differentials are significantly larger than ethnic differences. Discrimination is more common between the genders. The four alternative decompositions – that are based on different assumptions and objectives – yield different results. Research limitations/implications Decomposition of wage differences between groups needs to take into account information on the local relevant labor market and the wage setting process. Practical implications Information on the relative shares of the endowments, discrimination and selectivity components leads to a more effective way to close wage gaps. Originality/value Employment of new proposed decomposition methodologies that might lead to practical implications to combat gender and ethnic wage gaps in Israel.

Purpose The purpose of this study is to use the theory of planned behavior to test a structural model of retirement timing intentions of older workers in Canada following the abolishment of mandatory retirement. Design/methodology/approach A survey of 281 working individuals was conducted in order to test a model of retirement timing. Findings The model was a good fit to the data. Attitudes toward people at work predicted people's attitudes toward work. Attitudes toward work predicted age and life perceptions. Age and life perceptions predicted control. Control predicted social/policy influences, and finally social/policy influences predicted planned retirement age. Research limitations/implications The main limitations of this study were that the authors tested a model based on self report data. Furthermore the data were correlational therefore they cannot make causal inferences. Practical implications Work attitudes predict people's own perceptions of their life and age. And these are predictive of norms. Organizations need to consider people's perceptions of their work, if they are to retain workers past the normal retirement age. Implementing work practices/policies, e.g. flexible work, become key considerations for these organizations. Originality/value The authors now have empirical support for the contention that norms are important for investigating the short term effects of lifting mandatory retirement, but also when considering the long term effects that changing mandatory retirement policies may have on individual's retirement timing. Furthermore, they have a more comprehensive model of retirement timing.

Purpose The paper aims to present research findings on the return intentions of Turkish professionals residing abroad, where the targeted group comprises individuals working at a full‐time job abroad who possess at least a tertiary level degree. Design/methodology/approach The study uses a descriptive framework to establish the validity of several proposed models of non‐return. The results are based on an internet survey of Turkish professionals conducted by the authors during the first half of 2002. A combination of internet search and referral sampling methods is used to collect the data. Correspondence analysis is used to examine the relationship between return intentions and various factors that may affect this intention. Findings The results emphasize the importance of student non‐return versus traditional brain and appear to complement the various theories of student non‐return. Many Turkish professionals working abroad are non‐returning post‐graduate students rather than holders of higher degrees obtained in Turkey who subsequently moved. The respondents appear to come from relatively well‐to‐do families with highly educated parents. Many have earned their degrees from universities that have foreign language instruction. The recent economic crises in Turkey have negatively affected return intentions. It is verified that return intentions are indeed linked closely with initial return plans, and that this relationship weakens with stay duration. Specialized study and work experience in the host country also all appear to contribute to explaining the incidence of non‐return. Return intentions are weaker for those working in an academic environment. Originality/value The study is the first of its kind for Turkey and other developing countries in terms of the number of responses received and the kind of information collected. Implications are valuable for Turkish and other developing country planners.

Purpose This paper seeks to analyse to what extent absolute wage levels, relative wages compared with colleagues, and the position in a firm's hierarchy affect workers' absenteeism behaviour. Design/methodology/approach The paper uses personnel data of a large German company from January 1999 to December 2005. The data set contains 62,774 monthly observations of 1,187 full‐time white‐collar workers. Probit and Tobit models for individual monthly absenteeism are estimated. Findings Absenteeism is negatively correlated with absolute wages, relative wages, and hierarchical levels, which is in line with the paper's hypotheses. Moreover, the results indicate that a positive relative wage has a stronger impact than a negative relative wage, which gives rise to the issue of unequal wage structures. Research limitations/implications The findings point to the relevance of interdependent preferences and status in utility functions. From the non‐linear relationship between relative wages and absenteeism it follows that an unequal wage structure has the benefit that relatively better paid workers are absent less frequenty, while the costs of higher absenteeism of workers at the lower tail of the wage distribution are rather low. Practical implications The results show that not only the absolute wage level but also status‐related factors (e.g. relative wage, hierarchical level) affect employees' work effort and that unequal wage structures can be efficient to some degree. Originality/value The paper provides “real world” evidence from scarce personnel data for the importance of interdependent preferences and status. Furthermore, the non‐linear relationship between relative wages and absenteeism is examined.

Purpose The purpose of this paper is to investigate the rates of return and the risks of different types of educational paths – all leading to a tertiary educational degree. The paper seeks to distinguish a purely academic educational path from a purely vocational path and a mixed path with loops through both systems. Design/methodology/approach The paper studies the labor market outcome to compare earnings and calculate net return rates as well as risk measures to investigate whether different educational paths are characterized by different risk‐return trade‐offs. Entrepreneurs are separated from employees in order to examine whether for the same combination of education the labour market outcomes differ between the two groups. Findings The empirical results are based on the Swiss Labor Force Survey (SLFS) and demonstrate that mixed educational paths are well rewarded in the labor market. However, for entrepreneurs a high return is also associated with a high income variance. Research limitations/implications The findings provide evidence for the existence of complementarities between vocational and academic education. Further research on mixed educational paths might provide more insight into this presumed relationship. Practical implications Since the results indicate that mixed educational paths are a worthwhile strategy, the permeability of a national education system is a very important educational policy issue. Originality/value The study is innovative in three ways: first, it focuses on complete educational paths and not just the highest educational degree. Second, an alternative measure, the Baldwin rate of return, is used to assess the profitability attached to different educational paths. Third, the income risk associated with each educational path is calculated.

Purpose This paper aims to offer a typology of temporary workers, based on their motives for accepting their work arrangement, which includes voluntary, involuntary and stepping‐stone motives, and relate this typology to various individual and work‐related variables. Design/methodology/approach Latent class analysis of 645 European workers was used to construct a typology of temporary workers. Variation of individual and work‐related variables between types of temporary workers was analyzed using ANOVA. Findings The analyses suggest that there are three types of workers: involuntary temporary workers highlight the involuntary motive and the stepping‐stone motive; the stepping‐stone type stresses the stepping‐stone motive only, and the non‐involuntary group disagrees with all three motives. Moreover, the groups differed significantly on important work‐related variables such as occupational position, tenure, employability, and work‐involvement. However, differences in individual variables were limited. Research limitations/implications The research puts forward a more complex typology of temporary workers than is usually suggested. Moreover, the study shows a non‐involuntary group for which temporary employment can become a trap, and hence these workers should be targeted by future policy and interventions. Originality/value The research offers a typology of temporary workers, which is founded on motivation theory, and existing research on motives for accepting temporary employment.

Purpose This paper aims to analyze the relationship between labour flexibility and innovation performance. Design/methodology/approach This paper is a review of theoretical perspectives to analyze this relationship. A postal survey of a sample of Spanish manufacturing and service firms was conducted and this was subject to nonparametric analysis. Findings High‐innovative Spanish firms are more flexible than low‐innovative firms although the comparison across industries and type of innovation indicates that not all flexibility dimensions are statistically significant in their relationship to innovation performance. Research limitations/implications The study's single country setting could limit the generalizability of the findings. Longitudinal as opposed to cross‐sectional data are needed for studying the causal assumptions suggested by this research. Practical implications Given the differences of flexibility dimensions found across industries and type of innovation firms should use flexibility capabilities to complement innovation capabilities. On the other hand, some flexible managerial practices should be adopted as early as possible because they appear to be global in knowledge‐intensive firms and do not have differences across sectors and type of innovation. Originality/value This paper combines in the same analysis the relationship of internal and external flexibility with innovation performance, and their managerial implications.

Purpose – The primary objective of this study is to test whether gender differences in job satisfaction are assignable to variations in labour market and welfare state regimes in the light of gender‐related labour market modernization. Design/methodology/approach – Using data derived from the European Household Community Panel (EHCP) and covering 14 member states of the European Union the study constructs a series of summary statistics to lay the foundation for the analysis. An ordinary ordered‐probit regression model is employed to test for the (non‐) emergence of a gender‐job satisfaction paradox. Findings – The results suggest that objective (socio‐economic and institutional) determinants of labour market status and subjective (assessed and evaluated) perspectives are mutually complementary. The more restrictive the labour market access and process is for women, the more likely a gender‐job satisfaction paradox is to emerge in any country. Equal opportunities for women and men (such as those observed in Scandinavian countries) indicate that the gender‐job satisfaction paradox does not appear anymore due to a fading‐out process over past decades, which was driven by appropriate institutional labour market interventions. Originality/value – The gender‐job satisfaction paradox was confirmed for the UK, whereas little has been done to test this hypothesis on a cross‐national basis. This investigation thus fills the gap in the empirical literature.

Purpose Today, in small and medium‐sized enterprises (SMEs), entrepreneurs must take a more strategic perspective that is evidenced by the need to scan the enterprise to discover how they might improve customer relations as well as promote improved entrepreneurial actions. The paper aims to focus on this issue. Design/methodology/approach This study examines the impact of the existence of an “open‐minded context” in an organisation at time (T) on actions that concern the challenging of entrepreneurial actions at time (T+1). It also examines the relationship between explorative and exploitation processes and customer relations. These relationships are examined through an empirical investigation of data obtained from 107 SMEs from the Spanish telecommunications industry, using partial least squares (PLS). Findings The results indicate that the effects of an “open‐minded context” at time (T) on customer relations at time (T+1) are mediated through the existence of explorative and exploitation knowledge processes at time (T+1). Research limitations/implications Practices which may be based on explicit knowledge or on tacit knowledge in the form of processes and routines need to be challenged prior to the adoption of new knowledge by the organisation. In such situations, it will be necessary to modify or even delete some knowledge in order to ensure that employees have access to the up‐to‐date explorative and exploitative knowledge processes necessary to maintain or enhance customer relations. Practical implications In situations where organisations and their members face rapidly changing environments it is necessary to challenge the entrepreneurial actions which have been derived from the founding entrepreneurs. Originality/value The paper examines how the nature and existence of an open‐mindedness context is linked to the nature and existence of knowledge exploration and exploitation processes enacted by the workforce of an organisation.

Purpose The aim of this paper is to model the dynamic path of adjustment towards pre‐unemployment levels of wellbeing for a group of full‐time workers who experienced job loss. Design/methodology/approach Based on data from the German Socio‐economic Panel, a large‐scale panel survey, the paper captures the non‐linear nature of the adaptation process by using an Exponential Smooth Transition Autoregressive (ESTAR) model. Findings The study finds that adaptation takes place in a non‐linear fashion, with the speed of adjustment being higher for high earners, those with high pre‐unemployment levels of life satisfaction and those who were most satisfied with their jobs before becoming unemployed. It also finds that most of the adaptation takes place during the first year of unemployment, with adaptation speeds decreasing with unemployment duration, suggestive of possible habituation effects being present. Originality/value This is the first study to model the dynamic path of adjustment towards pre‐unemployment wellbeing levels as a non‐linear process. Despite the challenge posed by adaptation theory and the recent interest in the wellbeing effects of job loss, there is only sparse empirical evidence on the dynamics of the adaptation to unemployment process.

Purpose The purpose of this research is to investigate the influence of psychological contracts on the adjustment and organisational commitment of expatriates during international business assignments. The study also aims to investigate the influence of psychological barriers to expatriate adjustment. Design/methodology/approach A unique survey questionnaire was developed to collect data from 219 Taiwanese business expatriates during the first quarter of 2007. A LISREL analysis is used to test the hypotheses of the research framework. Findings The study finds that: perceived fulfilment of the psychological contracts of expatriates significantly influences both their adjustment to foreign situations and their organisational commitment; psychological barriers to adjustment have a negative influence on both socio‐cultural adjustment and psychological adjustment; and expatriate psychological adjustment has both a direct and an indirect influence on organisational commitment. Practical implications International managers should implement appropriate human resource measures to meet expatriates' expectations for their psychological contracts. Managers should ensure that expatriates receive adequate counsel and training to assist them in minimizing any psychological barriers they might have to adjustment in a foreign environment. Originality/value The study extends concepts from organisational behaviour theory and applies them to the process of international manpower management.

Purpose The purpose of this paper is to examine two aspects of the self‐employment adjustment of immigrant groups in the UK. First, how the probability of self‐employment for males changes with time since migration relative to the native population and second, how the probability of self‐employment for males differs between immigrants and the UK‐born within ethnic groups. Design/methodology/approach Limited dependent variable regression models are estimated using data from the UK Labour Force Survey collected between 2001 and 2005. The results are presented graphically to make clear the differences between ethnic groups. Findings The predicted self‐employment probability of “Asian” immigrants increases faster than that of natives over the lifecycle while that of “Black” groups declines. Furthermore, the observed lower propensity of UK‐born members of certain ethnic groups to be in self‐employment is largely explained by differences in human capital. Practical implications High rates of self‐employment amongst some ethnic groups in the UK are unlikely to be a transitory phenomenon. Originality/value While previous work on the UK has examined patterns of self‐employment between groups and over time, the paper looks for the first time at how adjustment within groups takes place over the life cycle and across nativity status.

Purpose This paper aims to analyze the repatriation adjustment process of international employees in the Spanish context. The paper also aims to test the applicability of Black et al. 's repatriation adjustment model for Spanish repatriates. Design/methodology/approach The paper reports on empirical quantitative research, based on data from 124 Spanish repatriates. Multiple regression analysis and factor analysis are used to test the hypotheses of the study. Findings The findings provide evidence for some of the relations proposed in the model but they do not support the model as a whole. The paper questions the existence of the different dimensions of expectations/adjustment and the importance of some of the factors included in the model. Research limitations/implications The sample is not very large; some bias could appear as only repatriates who continue working in their companies were questioned. Future research should conduct longitudinal studies. Practical implications The study provides evidence of the relevance of facilitating repatriates' adjustment, as it affects their performance. The study also shows that some variables can facilitate the process. In particular, having a mentor and frequent communication with home during the expatriation has been found to help the repatriates to create accurate expectations, which, in turn, affect their general adjustment. Social capacity and the fact that the repatriates had not adjusted completely overseas also facilitate readjustment. Finally, work autonomy on return and social status have been found to positively affect work adjustment. Originality/value The paper contributes to the literature by examining the repatriation model of Black et al. that has not been thoroughly analyzed before wither as a whole regarding its applicability to non‐Anglo‐Saxon countries.

Purpose Investigating employee responses to relational fulfilment of the psychological contract and work‐life benefits of a telecommuting program, this study aims to contribute to the literature on social exchange in employment. Design/methodology/approach The setting of the study was the German public administration. Survey data from 947 Civil Servants were analyzed in structural equation models. Analysis of mean structure was used to compare telecommuting participants ( n =601) and regular workers ( n =346). Findings Trust and affective commitment consecutively mediated between relational fulfilment of the psychological contract and organizational citizenship behavior. Members of the telecommuting program had more positive representations of social exchange, reporting higher levels of fulfilment, trust, and commitment than their peers. Research limitations/implications Reliance on cross‐sectional self‐report data poses a limitation. Selection effects in the quasi‐experimental design for comparing telecommuters and regular employees cannot be ruled out. Generalizability to more transactional or short‐term employment is debatable. Originality/value The study adds to a more integrated understanding of the psychological processes that reinforce and strengthen employee trust and commitment, thus forming the basis of the motivation to go above and beyond specified duties and reward‐contingent behavior.

Purpose The objective of this research is to examine to what extent Japanese recruitment practices are introduced and practiced in the auto manufacturing companies in Malaysia, since the implementation of the Look East Policy. Design/methodology/approach The process involves the gathering of both primary and secondary data, but the main method is a primary data survey. The approach is to target local enterprises as much as possible in the collection of primary data through a set of questionnaires, as well as in‐depth interviews with the human resource (HR) directors and some employees of each company. Findings It appears that the Malaysian manufacturing companies have not designed their recruitment practices after those of the Japanese. There is no one single model of recruitment practices operating in Malaysia, either among Japanese joint ventures or local enterprises. However, the findings do suggest the existence of some consistent sets of recruitment behavior among the companies, though it cannot be said with much confidence that these patterns are indeed representative of Malaysian recruitment behavior. Research limitations/implications Research has been limited to the manufacturing industry only. Practical implications HR practitioners can use the outcome of the study to gauge the adaptability of certain elements of Japanese recruitment practices to the Malaysian workplace. Originality/value This paper offers an insight into the applicability of Japanese recruitment practices and offers practical help to HR practitioners embarking on new recruitment policies.

Purpose This paper aims to investigate desired leadership characteristics of South African managers, and link differences in desired traits to contextually crucial demographic group differences and managerial advancement. Design/methodology/approach South African managers ( n =205) ranked ten items of the characteristics of admired leadership scale. Aggregate rank analysis and nonparametric ANOVAs reveal significant preference differences in the sample and demographic sub‐groups. The research compares traits across managerial advancement and age, providing an implicit success test. Findings Managers most highly ranked the three “credibility” characteristics (competence, honesty and inspiration) prevalent in comparative worldwide studies. Key differences exist between managers and employees, many contextually crucial demographic sub‐groups, and higher and lower‐level managers of younger and older ages. Practical implications This research provides potentially important information for leadership identification, selection and development, in that it may identify characteristics that current leaders associate with contextual success. The research also identifies discrepancies between employees and managers and demographic groups, which may be sources of dissatisfaction or misunderstanding, and which organizations should address to better align expectations of subordinates and actions of leaders. Individuals might also use the information in self‐development, comparing their own views to successful leaders. Originality/value Significant informational and statistical advantages exist over prior studies. This research provides individual‐level analyses, and an explicit test of association with objective success that previous studies have not provided. It includes top management, whereas prior studies have limited samples to subordinates or middle managers. Greater demographic differentiation is provided, allowing for more contextually relevant understanding.

Purpose The purpose of this paper is to test the relationship between gross domestic product (GDP) and agency work. Design/methodology/approach The paper develops a theoretical model for the time interdependence of GDP, agency work and regular employment and tested model predictions using a VAR model. Findings Results show that on the macro level temporary agency work leads GDP development. Temporary agency work is an excellent instrument for employers to adjust the size of their workforce to fluctuations in product demand. Temporary work agencies, however, have a tough job finding qualified personnel in tight labour markets because workers generally prefer the security of a permanent contract. It is shown in this paper that, as a result of these two countervailing forces, the number of hours worked through temporary work agencies precedes GDP development. Agency work increases in the last phase of a recession after regular workers have been dismissed. It expands further, in line with GDP, when the trough is passed until agency worker's labour supply stagnates. This leads to a decrease in agency hours even before the business cycle reaches its peak. Then agency work declines further, in line with GDP, until regular workers are dismissed and the cycle start again. Originality/value Temporary work arrangements have become a key area of interest for firms, academics and policy makers. This paper shows how the use of these work arrangement fluctuates over time. Also, this paper shows that agency work can be used in predicting future GDP development.

Purpose The aim of this paper is to study the economic effects of risk attitudes, time preferences, trust and reciprocity and to compare natives and second generation migrants. Design/methodology/approach This paper is based on the IZA Evaluation Dataset, a recently collected survey of a representative inflow sample into unemployment in Germany. The data include a large number of migrant‐specific variables as well as information about economic preferences and attitudes. This allows an assessment of whether and how unemployed second generation migrants differ from unemployed natives in terms of economic preferences and attitudes. Findings Differences are found between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. It was also found that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry. Research limitations/implications The findings offer interesting perspectives, e.g. with regard to the design and targeting of active labor market policy. It may be reasonable to specifically focus on less risk averse individuals with measures such as job search requirements and monitoring. Originality/value This paper provides novel and direct evidence on the relationship between economic preferences, attitudes and labor market reintegration of natives and second generation migrants.

Purpose The purpose of this paper is to point to the inefficiency of the Italian educational system as a key factor of persistent differences between the distribution of incomes (skewed) and that of talents (normal), stated in the Pigou paradox. In fact, against the intention assigned to it by the Italian constitution, the educational system is designed in such a way to reinforce, rather than weaken, the current unequal distribution of incomes. Design/methodology/approach The authors study the socio‐educational background of AlmaLaurea graduates by way of correlation and regression analysis. The AlmaLaurea databank is the most important source of statistical information of its type in the country. The authors, consider several indicators of performance, such as the probability of getting a degree, the final grade achieved and the length of studies. Findings Parents’ educational level appears to be the main determinant of the grade achieved at secondary high school and at the university. The effect of family background on children's success at the university is not direct, but through the high school track. In fact, although any secondary high school gives access to the university, nonetheless lyceums provide students with far higher quality of education than technical and professional schools. Parental background affects also the length of studies, which suggests that the indirect cost of tertiary education is much higher for those with a poorer educational background and limited means. Practical implications Increasing the average educational level was one of the promises of the “3+2” university reform implemented in 2001. This objective has been achieved only in part, due to the continuing high indirect cost of tertiary education, which particularly affects individuals with limited means. More coordination in the interpretation and implementation of the aims of the reform would have prevented the main actors of the reform from failing it. School tracking should be reformed so as to allow more consideration for low school grades in the choice of parents and provide more on‐the‐job training to students in the professional/technical schools. Originality/value The paper proposes an interpretation of the Pigou paradox in Italy, based on the inefficiency of the university system, due to the peculiar school tracking and the ensuing high indirect cost of education. On this, the paper provides new circumstantial evidence based on the AlmaLaurea database almost ten years after the “3+2” reform.

Purpose Although research is emerging, the knowledge base on the evaluative determinants of the effectiveness of corporate employment web sites is still limited. This paper attempts to narrow this gap by investigating how potential job applicants' evaluations of web site content‐ and form‐related attributes contribute to corporate employment web site effectiveness. Design/methodology/approach The approach takes the form of an empirical study using PLS path modeling. Findings Applicants' attitude toward a corporate employment web site is found to be differentially influenced by the web site's content‐ and form‐related evaluations. In turn, attitude toward the web site influences intentions to apply. This relationship is fully mediated by attraction toward the organization. The latter is also influenced by attitude toward corporate employment web sites in general, which consequently contributes indirectly to application intentions. Research limitations/implications Using a non‐laboratory setting and a broader sample, future research should further apply a person‐organization fit perspective to corporate online recruitment and investigate effects of personality‐related factors such as risk/security‐seeking tendencies. Furthermore, it may be worthwhile to include technology‐oriented variables such as technological self‐efficacy as well. Practical implications Corporate employment web sites used to inform potential applicants about employment opportunities should be easy to use. In addition, firms should provide applicants with updated information and make sure that the information provided matches the applicants' needs during their information search process.. Persons who hold a more favorable overall predisposition toward corporate employment web sites are more attracted toward an organization using such sites. This suggests that corporate employment web sites may be particularly effective for certain groups of applicants, beyond the effects of web site content and form. Originality/value Drawing on literature in areas such as job applicant decision making, information systems, and web site effectiveness, the paper develops the understanding of the role of web site features in determining intentions to apply for a job via corporate employment web sites.

This econometric study deals with the question as to what extent apprentices after successfully completing their training stay with the firm where they have received their training and, if so, how long that job tenure holds. Determinants of both decisions can be seen from both the employer`s and the employee`s viewpoint. The firm is interested to employ this apprentices in order to collect the returns from its investment in their training which frequently is associated with net costs. On the other hand, the firm dismisses apprentices if training is viewed by the firm as a screening device or if apprentices are engaged in work for which, in terms of wages, they are too expensive afterwards. The young trained worker bases his or her decision to stay or to leave on considerations such as experimenting with several jobs ("job shopping"). The realization of such an experimenting may depend on the situation on the labour market. The empirical part uses individual employee data covering the time period 1980 to 1991 in West Germany and is based on a hazard rate model.

Purpose The purpose of this paper is to derive an empirical method to identify different types of training strategies of companies based on publicly available company data. Design/methodology/approach Using a ten‐year panel, the within‐firm retention rate, defined as the average proportion of apprentices staying in a company in relation to all apprenticeship graduates of a company over several years, was analyzed. The within‐firm retention rate is used to identify these companies' training strategies. Findings It was shown that companies' motivation for apprenticeship training in Germany is not homogeneous: 19 percent of all companies follow a substitution strategy and 44 percent follow an investment strategy. The determinants of the substitution strategy were estimated and, for example, sizeable differences were found between sectors with different skill requirements and between firms' coverage of industrial relations. Research limitations/implications The method is well suited to classify substitution‐motivated training firms but it is less precise in identifying the investment motivation. Moreover, very small firms which train only one apprentice need longer panel duration for precise results and therefore the classification results are less precise for very small firms. Practical implications The classification can be used to identify determinants of company participation in apprenticeship training and to predict changes in demand for apprentices. Originality/value A simple and innovative method of identifying different types of training motivation with publicly available company data was derived, which has so far been possible only with very detailed company‐specific apprenticeship surveys.

The apprenticeship system is the most important source of formal post-secondary training in Germany. Using German register data – the IAB Employment Sample – it is found that apprentices staying with their training firm after graduation have a longer first-job durations but not higher wages than apprentices leaving the training firm. Retention rates, first job durations, and post-apprenticeship wages are all increasing functions of training intensity. Some implications for the ongoing debate as to why firms are willing to invest in general training are discussed.

Purpose The aim of this paper is to examine whether Swedish employers implicitly/automatically hold negative attitudes toward Arab‐Muslims, an ethnic minority group subjected to substantial labor market discrimination in Sweden and, more specifically, associate members of this minority group with lower work productivity, as compared with native Swedes. Design/methodology/approach Adapted versions of the Implicit Association Test (IAT; Greenwald et al. , 1998) designed to measure implicit attitudes and productivity stereotypes toward Arab‐Muslims were used. Corresponding explicit measures were administered. Findings The results clearly show that employers have stronger negative implicit attitudes toward Arab‐Muslims relative to native Swedes as well as implicitly perceiving Arab‐Muslims to be less productive than native Swedes. Notably, the explicit measures reveal much weaker negative associations. Practical implications Since Arab‐Muslims are automatically perceived as being less productive, the present findings suggest that negative implicit productivity stereotypes could have significant effects on labor market outcomes, such as when employers make hiring decisions. Given that many hiring decisions are presumably based on “gut‐feelings”, implicit attitudes and stereotypes, more so than their explicit counterparts, may exert a substantial impact on how employers contemplate and make decisions regarding human resources. Originality/value Whereas traditional research has focused on self‐conscious, explicit work‐related attitudes toward various ethnic minority groups, the study offers a novel approach to understanding work‐related prejudice.

Purpose The purpose of this study is to examine what kinds of Dutch organisations offer their employees a choice in the composition of their benefits with the aid of a theoretical model that incorporates insights from rational choice theory, the theory of institutional pressures and the bundles of human resource management (HRM) theory. Design/methodology/approach To test the theoretical model data were collected from nearly 600 Dutch organisations in the market sector. Multivariate binary logistic regression analyses were used to analyse these data. Findings The research showed that flexible benefit plans (FBPs) are widespread and show a considerable degree of consistency in the options they offer. FBPs are most likely to be offered by organisations that have freedom to manoeuvre in their benefits, that witness other organisations around them offering such arrangements, and that offer HRM policies and practices that are strongly focussed on the combination of work and family, and on flexibility in working arrangements. Research limitations/implications Attention to HRM policies in addition to a combination of rational choice and institutional theory proved valuable in explaining the uptake of a new arrangement, and this merits further exploration. Practical implications FPBs offer Dutch organisations the opportunity to give their employees more choice in the way they are paid, and to adjust this pay to their personal situation. Offering this choice fits in with a family‐friendly HRM structure and increases flexibility for both parties. Originality/value The paper provides useful information on FBPs.

Purpose The Saint Valentine's Decree (1984) and the ensuing hard‐fought referendum (1985), which reduced the automatisms of scala mobile , started a process of redefinition of wage fixing in Italy, which culminated with the final abolition of scala mobile (1992) and the approval of Protocollo d'intesa (1993). Since then, following new corporatist principles, a national system of centralised wage bargaining ( concertazione ) and so‐called “institutional indexation” have governed the determination of wages. Does incomes policy generate greater coordination in the process of wage formation? Does it cause greater co‐movement of wages, prices, labour productivity and unemployment? This paper aims to answer these questions with reference to one of the G8 economies. Design/methodology/approach After testing for unit root each component by using the ADF, Phillips and Perron, DF‐GLS and Zivot and Andrews statistics, the paper tests for co‐integration the so‐called WPYE model using different methods. The Engle and Granger approach is used to assess the impact of incomes policy on the speed of adjustment of real wages, productivity (and unemployment) to their equilibrium value, while the Gregory and Hansen procedure serves as a means to endogenously detect the presence of a regime shift. The paper estimates coefficients before and after the structural break. Findings Incomes policy based on the 1993 Protocol has caused a regime shift in the process of wage determination. The long‐run estimates of the WPYE model do not generate stationary residuals except when a dummy for 1993 is added. The share of wages over GDP reduces by about ten percentage points in the early 1990s and has stood at about 57 per cent since 1995. The link with productivity is close to one‐to‐one only before the break. The feedback mechanism, as measured by the coefficient of lagged residuals in short‐run estimates, is increased from −0.46 in the pre‐reform to −0.79 in the post‐reform period, suggesting that incomes policy has increased real wage flexibility indeed. In recent years the link between real wages and (very low) labour productivity growth has weakened. In a sense, incomes policy has introduced a new form of (upward) wage rigidity. Last but not least, incomes policy has changed the correlation with the unemployment rate from positive to not statistically significant. Research limitations/implications Future developments will focus on disentangling the impact of incomes policy vis‐à‐vis other policy interventions on WPYE and on unemployment. Practical implications The analysis calls for a careful revision of the 1993 Protocol aimed at better protecting the purchasing power of real wages without losing control on inflation, and introducing growth‐generating mechanisms. Originality/value The paper studies the impact of incomes policy on WPYE and the Phillips curve by means of co‐integration and structural break analysis. It proposes to interpret the effect of incomes policy on the Phillips curve as changing the coefficient of the error correction mechanism that leads real wages to their long‐run equilibrium value.

Purpose The purpose of this paper is to explore the implications for HRM of employers' use of migrants in low‐skilled work in a UK‐based firm. Is the use of migrant workers for low skilled work associated with “soft” or “hard” approaches to HRM? How do employers recruit migrant workers? What career progression paths are available to these workers in firms? What are the expectations and aspirations of migrant workers? Design/methodology/approach The paper examines these issues through a case study of a UK‐based employer using large numbers of migrant workers. The paper draws on data from a survey of migrant workers in the firm conducted in 2006, and from interviews with managers and migrant workers within this firm, conducted between 2005 and 2006. Findings The paper highlights the “hard” HRM strategy pursued by the company in order to maintain a competitive advantage based on low labour costs and substitutability of workers. A contradiction is noted between the desire of the firm to retain migrant workers with a strong work ethic and gain high commitment, on the one hand, and their continued attempt to compete on the basis on minimal labour costs and follow a “hard” approach to HRM, on the other. Practical implications The paper points to the importance of analysis of employers' use of migrants and the strategies they are adopting towards using these workers. Developing an understanding of these strategies is critical to understanding the social and economic experiences of migrant workers. Originality/value The paper combines qualitative and quantitative research through an intensive case study to illuminate the implications for HRM of employers' use of migrants in low‐skilled jobs.

Purpose The purpose of this paper is to explore the factors influencing whether a multinational corporation (MNC) appoints an expatriate or a local national as the CEO of its subsidiary. Design/methodology/approach The study proposes a framework comprising ownership‐specific, location‐specific and internalization‐specific factors to examine determinants of expatriate CEO assignment. MNCs' subsidiaries in Taiwan were selected for the study. Findings For the effect on the assignment of an expatriated CEO to a subsidiary, the factors of a subsidiary's capability and size, MNC's global strategy and internalization motivation are positive; in contrast, the factor of the host country's locational advantages is negative. In addition, in circumstances of large cultural distances, the effect of high internalization motivation is positive and that of low internalization motivation is negative. Research limitations/implications The research does not differentiate between two different types of expatriates and focuses on advanced countries' MNCs' subsidiaries in Taiwan. The theoretical implication of the study lies in the application of the perspectives of resource‐based view and transaction cost theory on an MNC's decision concerning the assignment of an expatriated CEO for subsidiaries. Practical implications MNCs could make a subsidiary's staffing decision by taking into account ownership‐, location‐, and internalization‐specific factors. Failure to do so will lead to poor operation of the subsidiary. Originality/value The research contributes to knowledge about the determinants of expatriate CEO assignment, and illuminates the importance of ownership, location and internalization factors for MNCs.

Purpose – This study aims to explore how the motivational construct of intrinsic motivation for an international assignment relates to variables of interest in international expatriation research. Design/methodology/approach – Questionnaire data from 331 employed business school alumni of a high‐ranking Canadian MBA program was analyzed. The sample consisted of respondents from a wide variety of industries and occupations, with more than half of them in marketing, administration or engineering. Findings – Higher intrinsic motivation for an international assignment was associated with greater willingness to accept an international assignment and to communicate in a foreign language. Externally driven motivation for an international assignment was associated with perceiving more difficulties associated with an international assignment. Intrinsic and extrinsic motivations for an international assignment were, however, associated with comparable reactions to organizational support. Originality/value – Drawing from self‐determination theory, this study explores the distinction between authentic versus externally controlled motivations for an international assignment. It underscores the need to pay more attention to motivational constructs in selecting, coaching, and training individuals for international expatriation assignments. It extends a rich tradition of research in the area of motivation to the international assignment arena.

Purpose The aim of this paper is to study the role of intermarriage in the process of immigrant economic assimilation in France. Design/methodology/approach The authors estimate an earnings equation for immigrants in France to examine the extent to which intermarried immigrants are better assimilated in the labor market – as measured by earnings – than their non‐intermarried counterparts. To handle the possible endogeneity problem of intermarriage, two novel instruments are used: the “sex ratio” for each region‐ethnicity cell, and “probability of marrying within one's own ethnic group”. Findings It wass found that immigrants who are intermarried earn around 17 per cent more than immigrants who are endogamously married. After taking into account individual characteristics and endogeneity of intermarriage, the premium is around 25 to 35 per cent. In addition, the intermarriage premium is substantially higher for individuals who have a better grasp of the French language before migration than for those whose language skill is poor. This result seems to suggest that, perhaps, immigrants who have a strong base in the native language can gain greater benefit from intermarriage. Originality/value The paper is the first to investigate this important aspect of immigrants' assimilation process in the French labor market.

Labour market assimilation of Danish first generation male immigrants is analysed based on two panel data sets covering the population of immigrants and 10 % of the Danish population during 1984-1995. Wages and employment probabilities are estimated jointly in a random effects model which corrects for unobserved cohort and individual effects and panel selectivity due to missing wage information. The results show that immigrants assimilate partially to Danes, but the assimilation process differs between refugees and non-refugees.

Purpose The purpose of this paper is to test whether marriage to a native affects the probability that an immigrant will be employed. Design/methodology/approach Utilizing 2000 US Census data, first the effect of cross‐nativity marriages on employment is examined using an ordinary least squares model. To deal with endogeneity concerns, a two‐stage least squares model instrument for marriage to a native using local marriage market conditions is then estimated. Findings Results from an ordinary least squares model controlling for the usual measures of human capital and immigrant assimilation suggest that marriage to a native increases an immigrant's employment probability by approximately four percentage points. When taking into account the endogeneity of the intermarriage decision, marriage to a native increases the probability of employment by about 11 percentage points. Research limitations/implications Although various mechanisms are discussed through which marriage to a native can increase employment probabilities of immigrants, the authors do not disentangle these mechanisms. This is an area ripe for future research. Originality/value It is shown that, from a theoretical perspective, marriage to a native has an ambiguous effect on immigrant employment rates. The empirical answer to this question provides insights into the assimilation process, which may prove useful in designing optimal immigration policies.

Purpose The purpose of this paper is to study opinions and attitudes towards immigrants and minorities and their interactions with other barriers to minorities' economic integration. Specifically, the minority experts' own perceptions about these issues, the veracities and repercussions of unfavorable attitudes of natives are to be considered. Design/methodology/approach Employing newly available data from the IZA Expert Opinion Survey 2007 main trends in the integration situation of ethnic minorities in Europe are depicted in a comparative manner. Findings Robust findings show that: ethnic minorities face integration problems; natives' general negative attitudes are a key factor of their challenging situation; discrimination is acknowledged as the single most important integration barrier; low education and self‐confidence as well as cultural differences also hinder integration; minorities want change and that it comes about by policies based on the principle of equal treatment. Research limitations/implications Future research should not only investigate how negative attitudes are formed but also study their dynamics with respect to integration policies. Practical implications Well‐designed integration policies, that take the specific situation of the respective ethnic minority into account, are persistent and enforcement of anti‐discrimination laws is desirable. Originality/value Using a unique dataset, the innovative study is the first to gauge the perspectives of expert stakeholders and ethnic minorities on their integration situation and the main barriers that hinder it.

Purpose – The purpose of this research is to investigate whether the participants in an employee survey who do not answer one or more demographic items differ systematically from those who fill out all demographic items. Design/methodology/approach – Logistic regression, with affective commitment, job satisfaction, and attitude towards leadership as predictors of responding to demographic items is used to analyze the data of an employee survey in a German company. Findings – Survey participants with low commitment, poor job satisfaction, and negative attitudes towards leadership are more likely not to provide demographic information, while highly committed participants tend to answer all demographic items. Non-respondents are also more concerned that their skills become obsolete, and they feel that employees do not have enough say. Research limitations/implications – The paper does not distinguish among demographic item non-respondents on the basis of how many and which items are omitted. Future research should take a closer look at the different sensitivity of the demographic items. Practical implications – Managers should be aware that it is likely that the results of an employee survey for their organizational subunits tend to be biased and show a picture that is too optimistic as compared to company-wide results. Originality/value – The value of the paper lies in demonstrating a systematic and practically important bias in employee survey statistics that has been overlooked so far.

Purpose The purpose of this paper is to examine the relationships between both job insecurity and fairness and employees' attitudes (job satisfaction, organisational commitment and turnover intention). Moreover, of even greater interest, it aims to test whether fairness mitigates the negative correlates associated with job insecurity. Design/methodology/approach The aproach takes the form of a cross‐sectional study based on self‐reported data. The sample was composed of 697 employees from a Spanish public organisation. Findings The findings showed that job insecurity is detrimental to employees' attitudes, whereas fairness is beneficial. Moreover, the results showed the negative correlates of job insecurity to be less strong in the presence of fairness. Research limitations/implications First, this is a cross‐sectional study, and therefore no causal relationships can be assumed. Second, the study is based on self‐reported data, which could lead to common variance source and method problems. Practical implications Job insecurity is a widespread concern in contemporary societies. Thus, research on how to palliate its negative correlates is valued. This study suggests fairness judgements might buffer the negative correlates associated with job insecurity. Originality/value Previous research has shown job insecurity to be detrimental to both individuals and organisations (e.g. job satisfaction, organisational commitment and turnover intention). Nonetheless, differences observed across studies in the strength of these relationships suggest the presence of moderating factors. The study provides evidence on the moderating role of fairness judgements.

Purpose The purpose of this paper is to examine occupational health and safety (OHS) and workers' compensation legal entitlements and policy issues raised by the use of foreign temporary workers under the s457 visa scheme in Australia. Design/methodology/approach Interviews were conducted with 15 representatives of unions and employers along with written responses from government agencies and examination of government statistics, court and other documents. Findings The study suggests that foreign temporary workers can face significant difficulty in accessing their OHS rights and entitlements. This represents a challenge for government as well as unions and human resource professionals trying to manage workforce diversity. Research limitations/implications Further detailed investigation is required into the extent of problems identified in this paper in Australia and other countries. Practical implications The study indicates that governments making use of guestworkers need to investigate whether these workers have effective access to the protection of OHS and workers' compensation laws and, if not, as indicated by this study, to make suitable policy interventions. Originality/value The human resource implications of managing guestworkers have been under‐researched to date despite the global growth in numbers. The paper starts to fill this gap, identifying a number of important policy issues in relation to OHS.

Purpose The aim of this study is to investigate the relationship between employee perceptions of their organization's management of cultural diversity, their perceived organizational support and affective commitment. Design/methodology/approach A questionnaire survey was developed and distributed to a sample of employees working in a large Australian financial institution. Findings Analysis of the data shows that, when controlling for perceived organizational support, there is no direct relationship between cultural diversity management perceptions and affective commitment. Rather, the data support an indirect relationship between the two variables via perceived organizational support. Research limitations/implications Implications are, first, that managers need to recognize the potential contribution of developing a positive workplace atmosphere for cultural diversity to strengthen employee perceived organizational support, which in turn enhances affective commitment. Second, the research findings underscore the importance of perceived organizational support in linking cultural diversity management perceptions to organizational outcomes, such as affective commitment. Third, managers should not underestimate the influence of initiatives, such as making all employees feel included in the “taken‐for‐granted” informal networks in engendering positive organizational and individual attitudes. Originality/value The paper examines cultural diversity management from the employees' (rather than a management) perspective to develop a fully mediated model using organizational support to link cultural diversity management perceptions to commitment. The study reinforces the need to rethink simple relationships between cultural diversity management perceptions and organizational/individual outcomes, to consider more complex models that include important mediating variables to more fully understand the effects of cultural diversity management.

Purpose The purpose of this paper is to assess the role of the Protocol '93 bargaining model in favouring the slow‐down of the Italian economy and to design a correction. Design/methodology/approach The impact of the Protocol on factor income distribution is assessed through a deterministic dynamic model, and tested for the 1993‐2008 period. The paper explores theoretically and empirically the weakening of the incentives for both workers and employers to engage in fostering productivity. Findings In a macroeconomic setting with structural imbalance between the product and the labour markets reforms, the bargaining model has automatically increased up to 2002 the capital share in income, reducing the incentives for both social partners to accelerate productivity, as the labour share in income and the propensity to invest are co‐integrated (Johansen test). An analytical solution for correcting the bargaining distributive bias is proposed. Research limitations/implications Further research should provide a picture of the different distributive behaviours of industrial sectors, particularly for industries exposed to/protected from international competition. The actual functioning of the new bargaining model (the Accordo Quadro of 2009) should also be assessed. Practical implications The bargaining model should be reformed so as to restore the right incentives for social partners. National industry‐wide wage bargaining should both incentivise and complement insufficient local bargaining. Social implications The benefit of increased productivity and resumed growth has vast social implications, especially with reference to the sustainability of the welfare system. Originality/value The scientific literature has lacked any formal description of the dynamic operation of the Italian bargaining model, which is particularly valuable to both social partners and policy makers.

Purpose The purpose of this study is to investigate to what extent the existence of high labor adjustment costs has some influence on the process of wage negotiation. In particular, it aims to analyse if the risk of being laid off has any impact on insiders' bargaining power and, consequently, on their wage claims. Design/methodology/approach A collective bargaining model that closely follows those developed by Nickell et al. and Bentolila and Dolado is adopted and a longitudinal panel of large Portuguese firms from all sectors over the 1993‐199 period is used. Findings The results reveal that firms where insider workers appear to have more bargaining power tend to pay higher wages. In particular, we found that the threat of dismissal tends to weaken insiders' bargaining power and, consequently, to depress wages. Research limitations/implications In future research an attempt should be made to measure directly the labor turnover costs. Originality/value This paper presents robust empirical evidence using micro‐data for individual firms that support one of the predictions of the insider‐outsider theory that wages will be higher in sectors (firms) with high labor turnover costs.

Purpose Many unemployed people become self‐employed. Self‐employment, however, does not necessarily lead to success. The main objective of the paper is to compare the economic outcome and success as self‐employed between those who entered self‐employment from paid employment, unemployment and inactivity. The question is if individuals who enter self‐employment from a weak position on the labour market are equally successful as those who enter self‐employment from a stronger position. Design/methodology/approach Micro‐econometric methods are used to estimate first the propensity to become self‐employed in the period 1998‐2002 among Swedish‐born men aged 20‐60 years who were unemployed, inactive or wage earners in 1998, and second, the economic outcome of self‐employment. Economic outcome in 2002 is measured using income from self‐employment and having employees in the firm. Findings The study finds that the unemployed, and even more the inactive, are overrepresented among those who become self‐employed. Those who were wage earners in 1998 have higher incomes and are also employing other people in their business to a much higher extent in 2002 than those who were unemployed or inactive in 1998. Practical implications The results indicate that support for unemployed to become self‐employed should be implemented with great care. The economic outcome of self‐employment is inadequate for many who were unemployed earlier. Originality/value The study will be valuable for those who are interested in those who become self‐employed and in the economic outcome of self‐employment for different groups.

Purpose The aim of this paper is to empirically explore the relationship between human resource rewards management and innovative behaviours, particularly between the utilitarianism and romanticism reward approaches and employee creativity in the workplace. Design/methodology/approach The paper adopts a quantitative approach. After analysing construct validity and reliability, the study empirically tests its hypotheses by performing a multi‐regression analysis with a sample of 216 individuals. Findings The study reaches three main conclusions. First, tangible extrinsic rewards affect the innovative behaviour of employees in an “inverse‐U” shape. Second, intrinsic motivations have a substantially positive impact on the innovative behaviour of employees. And third, extrinsic rewards and intrinsic motivations have positive interaction effects on individual creativity at the workplace. Originality/value The paper focuses on the theoretical battle between the utilitarianism and the romanticism perspective of human resource reward approaches toward employees' creativity. Based on examination of the main effects of monetary incentives and intrinsic reward practices respectively, the study highlights a complementary view to explore a positive interaction between the two reward configurations, and to exploit a total reward system for facilitating individual innovative behaviours.

Purpose The paper aims at providing evidence on the impact on employment of outward foreign direct investment, particularly from developed countries into low‐wage countries, which is a major concern in many developed countries. Design/methodology/approach The effects of foreign production undertaken by Belgian foreign‐oriented companies on employment in Belgium are investigated by performing econometric tests for complementarity or substitution between home and affiliate employment. The data are from the Amadeus database and consist of a sample of 254 Belgian parent companies with foreign affiliates in low‐wage and other high‐wage European countries during the 1999‐2007 period. Findings The results show that, given the size of parent production in the home country, Belgian multinational enterprises with foreign affiliates in higher‐wage European countries tend to employ more labour at home the more they produce in the host country. This probably reflects the needs of foreign affiliates in higher‐wage European countries for management and supervisory services from parent companies. Another explanation might be that Belgian outward FDI is largely vertical. In contrast, no evidence is found about employment reallocation between parents and affiliates operating in lower‐wage European countries. Originality/value The paper provides evidence on overall effects on employment in Belgium of its outward foreign direct investment for the period 1999‐2007, i.e. using the most recent data available. In contrast to many other studies, statistical diagnostic tests were carried out to choose the appropriate model to best fit the data.

This study investigates, on the basis of a unique combination of two large-scale data sets, how rent sharing interacts with the gender wage gap in the Belgian private sector. Empirical findings show that individual gross hourly wages are significantly and positively related to firm profits-per-employee even when controlling for group effects in the residuals, individual and firm characteristics, industry wage differentials and endogeneity of profits. Our instrumented wage-profit elasticity is of the magnitude 0.06 and it is not significantly different for men and women. Of the overall gender wage gap (on average women earn 23.7 per cent less than men), results show that around 14 per cent can be explained by the fact that on average women are employed in firms where profits-per-employee are lower. Thus, findings suggest that a substantial part of the gender wage gap is attributable to the segregation of women in less profitable firms.

Purpose The purpose of this paper is to investigate the causes of unemployment persistence among the Belgian labour force. The underlying issue is to determine the eventual existence of a true causal relationship between successive unemployment spells. Design/methodology/approach The model used is a dynamic random effects probit model controlling for unobserved heterogeneity and the initial condition problem. It was applied to the Panel Study on Belgian Households (1994‐2002). Findings The results suggest that while observed and unobserved heterogeneity explain between 57 per cent and 82 per cent of unemployment persistence, the remainder is induced by the presence of state dependence. All else being equal, an individual unemployed this year will be between 11.4 and 33 percentage points more likely to be unemployed next year as compared with an employed person. Practical implications The presence of a stigmatisation effect of unemployment means that the costs of unemployment are much higher than the simple loss of income and human capital associated with the current job loss. The study demonstrates the importance of concentrating efforts on the prevention of unemployment. Originality/value The paper's contribution is to test again the hypothesis of the presence of state dependence in unemployment using a different technique, allowing, among other things, to control for exogenous variables. The paper demonstrates its existence and measures its contribution in the explanation of unemployment persistence in Belgium, besides that of observed and unobserved characteristics.

Purpose The paper seeks to empirically identify the theoretically ambiguous relationship between employer fringe benefit provision and worker job satisfaction. Design/methodology/approach Using the five most recent waves of the National Longitudinal Survey of Youth, both pooled cross‐section and fixed effects estimates explain the relationship between fringe benefits and job satisfaction. The potential endogenous relationship is also tested using a recursive bivariate probit procedure. Findings Fringe benefits are significant and positive determinants of job satisfaction. The potential endogeneity between fringe benefits and job satisfaction is not shown in this dataset while controlling for fixed effects does not remove the significant impact of fringe benefits. Research limitations/implications A limitation is the inability to control for total compensation within the estimations and control for wage changes as a result of fringe benefit provision. Practical implications Higher levels of worker job satisfaction, potentially resulting from fringe benefit provisions, have been linked to important productivity measures such as lower quit rates and absenteeism. Originality/value The paper is the first to study the relationship between fringe benefits and job satisfaction in detail while additionally testing for the endogeneity of the relationship and controlling for fixed effects.

Purpose International organizations pursue multiple objectives in hiring policies including cultural diversity, reducing costs and avoiding discrimination among which there can be sharp trade‐offs. The paper has the purpose of studying how these trade‐offs are resolved in the World Bank's hiring processes. Design/methodology/approach The paper estimates that half of salary and grade differentials between men and women and staff from high‐ and low‐income countries are attributable to differences in productive characteristics. Alternative explanations for the remainder are explored, including omitted variable bias, quotas and discrimination. Findings The paper argues that the salary and grade differentials and differences in productive characteristics are not compelling explanations. Discrimination probably exists, though less than would be implied by a cost minimizing hiring policy. Originality/value Provides a discussion of the World Bank's hiring processes.

Purpose – The purpose of this paper is to analyse if introduction of new technologies and work practices are negatively related to the employment opportunities of immigrants. Design/methodology/approach – A representative plant-level panel survey merged with register data is used. Random effect regression Tobit models are estimated. The dependent variable is wage costs share of immigrants at the plant. The important explanatory variables are measures of new technologies and work practices. Findings – The results show that workplaces where employees use personal computers intensively and have broad autonomy hire fewer non-western immigrants who have not been raised in Norway. The negative relationship is especially strong for low-skilled non-western immigrants. Originality/value – The estimation framework for studying this topic is new. The paper also presents original evidence on the relationship between characteristics of the “new” economy and demand for immigrant workers.