Stakeholder-Oriented Corporate Governance and Firm-Specific Human Capital: Wage analysis of employer-employee matched data

Theories of economic institutions predict that complementarity exists between the nature of corporate governance of a firm and the nature of its human capital investment. The complementarity theory insists that the commitment of a firm and its employees to invest in firm-specific human capital will be reinforced by the commitment of the firm to adopt stakeholder-oriented corporate governance. Using employer-employee matched data from the headquarters of large Japanese firms, this paper investigates the relationship between the wage-tenure profile of a firm and the nature of its corporate governance. Analysis of the wage-tenure profiles shows that firms with stakeholder-oriented corporate governance invest in firm-specific human capital more heavily than those with shareholder-oriented corporate governance.

Measuring the Gap between Wage and Productivity: Wage-Tenure Profile and Productivity-Tenure Profile Cross Twice

Abstract This paper proposes a new empirical method to measure the gap between wage and productivity of workers. Our method aggregates Mincer-type human capital function of all workers of a firm and obtains the total labor input. We put it into the Cobb-Douglas production function and estimate the coefficients of gap between wage and productivity. Applying the method to employer-employee matched panel data, we find that wagetenure profile and productivity-tenure profile intersect twice. The wage is higher than the productivity in junior years, then surpassed by the productivity in middle age, and becomes higher again in late career. The results are consistent with both of Becker's firm sponsored training model and Lazear's deferred compensation model

Gender difference in the probability of success in starting business turns negligible when controlling for the managerial experience

This study analyses the difference in the probability of success in starting a business between male and female entrepreneurs. The novel data set of the participants of business start-up seminars enables us to control for entrepreneurial drive, educational level and managerial experience. In contrast to the existing literature, the gender difference proves to be negligible after controlling for the managerial experience. Our finding implies that the training programmes for women to improve their management skill will reduce the gender gap in starting a business.

Employee Discrimination against Female Executives

The theory of employee discrimination gives a possible explanation for the scarcity of female executive officers. This paper tests the employee discrimination hypothesis by measuring the wage premium received by employees working with female executives against their tastes for discrimination. Using a fixed effects analysis of establishment-level panel data on Japanese employees, we separate the discrimination premiums that would otherwise cause a bias from the establishment-level unobserved productivity and unobserved employee characteristics by gender of executives. Our findings reveal that both male and female employees receive small but significant wage premiums (0.6-0.9 percent) when working for female executives

Reallocation and productivity growth in Japan: revisiting the lost decade of the 1990s

Productivity growth, Reallocation, Japan, D21, D24, O40,