Downsizing: Personnel Reductions at the Swedish Tobacco Monopoly, 1915-1939

Downsizing is a phenomenon that remarkably seldom has been the subject of historical inquiry. This study investigates how a state-owned enterprise, the Swedish Tobacco Monopoly, reduced its labour inputs because of changed consumer preferences and mechanization in the 1920s and 1930s. By combining qualitative and quantitative evidence, the study addresses questions about the ways of achieving reductions, categorization of workers and decision-making. It is shown that most of the reduction was achieved by reducing the number of workers. Attrition, early retirements and buyouts accounted for about half of the reduction and layoffs for the other half. The management initially made cuts at both ends of the age distribution, but with the advent of mechanization, downsizing measures became more focused on older workers and the principle ‘last in, first out’ was abandoned in favour of a more need-based approach to layoffs. This policy shift was associated with an increased inclination of the management to involve the union in establishing the order of selection, which was a dilemma for the union leaders. Gender was an important aspect of the downsizing process. Women were in the majority in the Swedish tobacco industry, but male workers had a strong position in the union. Tensions between union members of different sex arose after the management had been persuaded to substitute male for female workers in 1927. Although downsizing involved delicate trade-offs for the company as well as the union, both organizations eventually managed to overcome the challenges. The Swedish Tobacco Monopoly is an example of a state-owned enterprise that was able to shed labour and take advantage of new technology

Impact of 4D channel distribution on the achievable rates in coherent optical communication experiments

We experimentally investigate mutual information and generalized mutual information for coherent optical transmission systems. The impact of the assumed channel distribution on the achievable rate is investigated for distributions in up to four dimensions. Single channel and wavelength division multiplexing (WDM) transmission over transmission links with and without inline dispersion compensation are studied. We show that for conventional WDM systems without inline dispersion compensation, a circularly symmetric complex Gaussian distribution is a good approximation of the channel. For other channels, such as with inline dispersion compensation, this is no longer true and gains in the achievable information rate are obtained by considering more sophisticated four-dimensional (4D) distributions. We also show that for nonlinear channels, gains in the achievable information rate can also be achieved by estimating the mean values of the received constellation in four dimensions. The highest gain for such channels is seen for a 4D correlated Gaussian distribution

Gender, Productivity and the Nature of Work and Pay: Evidence from the Late Nineteenth-Century Tobacco Industry

Women have, on average, been less well-paid than men throughout history. Prior to 1900, most economic historians see the gender wage gap as a reflection of men's greater strength and correspondingly higher productivity. This paper investigates the gender wage gap in cigar making around 1900. Strength was rarely an issue, but the gender wage gap was large. Two findings suggest that employers were not sexist. First, differences in earnings by gender for workers paid piece rates can be fully explained by differences in experience and other productivity-related characteristics. Second, conditioning on those characteristics, women were just as likely to be promoted to the better paying piece rate section. Neither finding is compatible with a simple model of sex-based discrimination. Instead, the gender wage gap can be decomposed into two components. First, women were typically less experienced, in an industry in which experience mattered. Second there were some jobs that required strength, for which men were better suited. Because strength was so valuable in the other jobs at this time, men commanded a wage premium in the general labour market, raising their reservation wage. Hiring a man required the firm to pay a 'man's wage'. This implies that firms that were slow to feminise their time rate workforce ended up with a higher cost structure than those that made the transition more quickly. We show that firms with a higher proportion of women in their workforce in 1863 were indeed more likely to survive 35 years later.gender, productivity, discrimination, piece-rates, time-rates, labour markets, firm survival

To be or not to be? Risk attitudes and gender differences in union membership

Attracting membership while stifling freeriding and heterogeneous preferences among potential members is critical for trade union success. Women are generally seen as less inclined to join trade unions, particularly at the onset of the labor movement. We highlight a previously neglected explanation for this: the importance of risk and gender differences in assessment hereof. We study matched employer-employee data from two industries around the year 1900 where union membership was associated with different levels of risk: the Swedish cigar and printing industries. We find that the gender gap in membership was larger in the high-risk environment (cigar) and smaller in the low-risk environment (printing). Women were not hard to organize but avoided risks and uncertain returns

The Historical Gender Gap Index: A Longitudinal and Spatial Assessment of Sweden, 1870-1990

Our knowledge of the long-run evolution of gender equality is limited. We currently lackquantitative indicators capable of capturing the variations on and changes in the individualdimensions of gender equality. This paper seeks to assess the long-run evolution of gender rolesand relations in Sweden. To this end, we build a database with quantitative indicators of genderequality. These indicators allow us to construct a Historical Gender Gap Index (HGGI), whichis used to describe and analyze the evolution of gender equality in Sweden during a phasecharacterized by industrialization, urbanization and demographic transition. We find that aftera period of stagnation, Sweden from the 1940s onwards made significant progress in closingthe gender gap to reach the high level of gender equality that it is now famous for. All countieshave made substantial improvements in closing the gap over time, although some counties havebeen quicker than others. Our investigation reveals the existence of a convergence patternbetween counties

Social Democracy and the Decline of Strikes

This paper tests if a strong labor movement leads to fewer industrial conflicts. The focus is on Sweden between the first general election in 1919 and the famous Saltsjöbaden Agreement in 1938, a formative period when the country transitioned from fierce labor conflicts to a state of industrial peace. Using panel data techniques to analyze more than 2,000 strikes in 103 Swedish towns, we find that a shift of municipal political majority towards the Social Democrats led to a significant decline in local strike activity, but only in towns where union presence was strong. The strike-reducing mechanism is related to corporatist explanations rather than increased social spending in municipal budgets

Workforce Reductions in Theory and Practice: The Swedish Tobacco Monopoly in the 1920s

The aim of this paper is to clarify and discuss the various ways firms can make workforce reductions. This aim is accomplished by an in-depth study of an historical case; the downsizing process undertaken in the 1920s by the Swedish Tobacco Monopoly, a state-owned company that had to balance between rational business conduct and social responsibility. The paper makes use of qualitative sources, such as board minutes and memos, and a database covering all blue-collar workers in one of the company’s factories. The paper adresses conceptual questions concerning how to theoretically and empirically distinguish between various reduction strategies and tactics. Its main contribution is to move beyond the simple characterization of reductions as being either smooth or harsh and instead emphasize the multitude of management choices involved in reducing headcount and, consequently, the diversity of downsizing processes

Four-Dimensional Estimates of Mutual Information in Coherent Optical Communication Experiments

Mutual information is experimentally investigated for long-haul coherent transmission. Receivers that consider memoryless four-dimensional noise distributions can achieve significantly higher rates than receivers assuming two-dimensional symmetric distributions