The Trade-Off Between Supervision Cost and Performance-Based Pay: Does it Matter?

The study adds to the literature by providing new empirical evidence consistent with efficiency wage theory, and by providing estimates of the average cost of supervising a worker by industry. This research uses the 1996 wave of the NLSY and incorporates estimates of supervision cost computed from industry classifications. We further detect presence of no gender differences neither in risk-averseness nor in productivity gains associated with cost of Supervision and performance-based pay.

Union-Nonunion Wage Differentials and Macroeconomic Activity

This research is concerned with identifying the differing responses of union and nonunion wages to shocks to real output growth, inflation, and the stance of monetary policy. Aggregate measures of union and nonunion wages and salaries are used to construct a time series of the wage differential for several major industrial sectors over the 1976-2001 period. The literature documents the existence of a union wage premium; however, previously the focus has primarily been at the micro-level, and on whether or not a union worker receives greater compensation than an otherwise comparable nonunion worker [e.g., Wunnava and Ewing (1999, 2000)]. Research also links the wage differential to the stage of the business cycle [Wunnava and Okunade 1996] and to the industrial sector [Okunade, Wunnava, and Robinson (1992)]. Theoretical macroeconomic models imply that wages will respond in certain ways to unanticipated changes in aggregate measures of economic activity [e.g., Romer (1996)]. Given the differences in compensation level of union and nonunion workers, and the link to the stage of the business cycle and industry, it is expected that the aggregate wage differentials both for the entire private sector and by industry will respond to macroeconomic shocks in a predictable manner. The relationship among these wage differentials and the macroeconomy is examined in the context of a vector autoregression. In addition, the paper employs the newly developed technique of generalized impulse response analysis [Koop, et al. (1996), Pesaran and Shin (1998)], a method that does not impose a priori restrictions on the relative importance that each of the macroeconomic variables may play in the transmission process. The results show the extent and the magnitude of the relationship between the union-nonunion wage differentials and several key macroeconomic factors. Finally, the paper documents how the responses of these wage differentials vary by industrial sector.

Application of protection motivation theory to study the factors that influence disaster recovery planning: An empirical investigation

In today\u27s information intensive and networked world, Disaster Recovery Planning (DRP) is a critical and significant activity. However, DRP does not always receive the attention it deserves. Therefore, it is critical to examine the factors that influence the undertaking of disaster recovery planning. A model on disaster recovery planning was developed using the theoretical lens of Protection Motivation Theory (PMT). Drawing from PMT literature and using the information technology disaster recovery planning (ITDRP) construct developed by Shropshire and Kadlec (2009), a research model was developed in which perceived severity, perceived vulnerability, intrinsic rewards, extrinsic rewards, fear, response efficacy, self-efficacy, and response costs are the determinants of ITDRP. The results of an Exploratory Factor Analysis (EFA) indicated issues of conceptual overlap of items of perceived severity with other factors and therefore, the variable perceived severity was dropped from the model. Based on a Principal Components Analysis (PCA), the items of ITDRP were consolidated into three factors: (1) identification, recovery, and back-up procedures; (2) procedures for the DRP plan, human resources, and physical facilities; and (3) offsite storage. Three regression models were formed with these three factors as the dependent variables. The regression results showed that self-efficacy and response costs were significant and consistent predictors of ITDRP. These results are consistent with previous studies that used PMT in other contexts

Alumni Giving of Business Executives to the Alma Mater: Panel Data Evidence at a Large Metropolitan Research University

Charitable giving to public and private institutions of higher learning in the US is a growing major source of financing academic and support programs. The novel contribution of this research is the estimation of an econometric model of gift-giving alumni business executives of a large public urban university using 10,192 individual donor observations [that is, a panel of 392 donors for 26 years]. Our theoretically consistent empirical results reinforce the earlier research findings that male alumni in Greek social organizations gave significantly more. New insights unique to this study are that alumni individuals with the higher-order executive job titles (proxy for permanent income) of a Chief Executive Officer or President (relative to the lesser ranks) are significantly more charitable, and that the number of other gift-giving alumni and friends known to donors, and national athletic conference (basketball and football) championship wins are also highly statistically significant positive drivers of alumni annual giving to the comprehensive metropolitan research university. The resulting profile of gift-giving alumni business executives can be profitably used to more effectively target likely donors and raise cost-effectiveness of fundraising efforts in these times of fiscal austerity in higher education.educational economics, educational finance, charitable donations, alumni giving of business executives

Testing Mundell’s Intuition of Endogenous OCA Theory

This paper presents an empirical assessment of the endogenous optimum currency area theory. Frankel and Rose (1998) study the endogeneity of a currency union through the lens of international trade flows. Our study extends Frankel and Rose's model by using FDI flows to test the original theory developed by Mundell in 1973. A gravity model is used to empirically assess the effectiveness of the convergence criteria by examining location specific advantages that guide multinational investment within the European Union. A fixed effects model based on a panel data of foreign direct investment (FDI) flows within the EU-15 shows that horizontal investment promotes the diffusion of the production process across the national border. Specifically, our results suggest that economic convergence ensured by belonging to the common currency area helps double FDI flows.economic integration, gravity model, endogenous optimum currency area

Determinants of Inter-Country Internet Diffusion Rates

This paper employs cross-sectional data from 100 countries to analyze the main determinants of inter-country Internet diffusion rates. We set up an empirical model based on strong theoretical foundations, in which we regress Internet usage on variables that capture social, economic and political differences between these countries. Our results support past findings that economic strength, infrastructure and knowledge of the English language positively affect Internet connectivity. In addition to these indicators, the openness of a country, tertiary enrollment, and income equality are found to also have a significant positive effect on Internet diffusion.internet, technological diffusion, inequality, education, English proficiency

Financial Liberalization and the Brain Drain: A Panel Data Analysis

This paper explores the impact of financial liberalization on the migration of high skilled labor from 46 countries to the OECD, taken at five year intervals over the period 1985-2000. Using an exploratory factor analysis, we are able to distinguish between two dimensions of financial liberalization, namely the robustness of the markets and their freedom from direct government control. We find that a standard deviation improvement in the robustness of the source country financial sector magnifies the extent of brain drain by a factor of about four percentage points on the average. However, a corresponding increase in the freedom of the source country financial sector from government control has a modest negative impact on the emigration of high skilled labor and the effect is not statistically significant. Further, the impact of improved financial sector robustness on selection is more pronounced for non-OECD economies than for OECD nations, which experience virtually no impact on skilled emigration.immigration, financial liberalization, brain drain, institutions

IT Capability: A Moderator Model of Competitive Advantage

Although, the resource based theory mentions both resources and capabilities to be sources of competitive advantage, not much distinction between the two has been made in research on competitive advantage. Therefore, this proposal presents a literature review of the research on information technology (IT) and organizational capability, and then puts forth a model of IT capability as a moderator in the relationship between IT resources (as indicated by the IT investment announcements) and competitive advantage (as indicated by the firm’s stock performance)

Southern African Economic Integration: Evidence from an Augmented Gravity Model

This paper investigates the feasibility of creating a common-currency union consisting of 16 countries in Southern Africa. We estimate an augmented-gravity model that includes public deficit, public debt, public expenditure, inflation, and the foreign reserves position. We also integrate Africa-specific variables such as existing economic blocs in the region, colonial heritage, and the convergence of living standards. Our analysis shows that the prospect for further integration in Southern Africa is promising, but many challenges still persist. The existing economic blocs can provide a first stepping stone to a larger currency union, but countries continuously have to cultivate good governance and fiscal discipline.optimum currency area, gravity model, Southern African integration, endogenous optimum currency area theory

Disaster Recovery Planning: A PMT-based Conceptual Model

In today\u27s information intensive and networked world, Disaster Recovery Planning (DRP) is a critical and significant activity. Yet, it does not always receive the attention it deserves. Therefore, it is critical to examine the factors that influence the undertaking of disaster recovery planning under the lens of the Protection Motivation Theory (PMT). Additionally, it is important to note that even if there is enough motivation to undertake disaster recovery planning, whether it is actually undertaken or not is largely dependent on the influence the Information Technology (IT) Professional is able to exert as an opinion leader within the organization. A model on disaster recovery planning is proposed suggesting threat and coping appraisals as the determinants and opinion leadership of the IT Professional as the moderator variable