Endogenous Separations, Wage Rigidities, and Unemployment Volatility

We show that in microdata, as well as in a search and matching model with flexible wages for new hires, wage rigidities of incumbent workers have substantial effects on separations and unemployment volatility. Allowing for an empirically relevant degree of wage rigidities for incumbent workers drives unemployment volatility as well as the volatility of vacancies and tightness to that in the data. Thus, the degree of wage rigidity for newly hired workers is not a sufficient statistic for determining the effect of wage rigidities on macroeconomic outcomes. This finding affects the interpretation of a large empirical literature on wage rigidities. (JEL E24, J23, J31, J41, J63)

The Cyclical Behavior of Unemployment and Wages under Information Frictions

I propose a new mechanism for sluggish wages based on workers’ noisy information about the state of the economy. Wages do not respond immediately to a positive aggregate shock because workers do not (yet) have enough information to demand higher wages. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment, namely, that wages are flexible for new hires and the flow opportunity cost of employment (FOCE) is pro-cyclicality. The model generates volatility in the labor market as well as wage and FOCE elasticities with respect to productivity, consistent with the data. (JEL E24, E32, J24, J31, J63)

How Sticky Wages in Existing Jobs Can Affect Hiring

We consider a matching model of employment with flexible wages for new hires but sticky wages within matches. Unlike most models of sticky wages, we allow effort to respond if wages are too high or too low. In the Mortensen-Pissarides model, employment is not affected by wage stickiness in existing matches. But it is in our model. If wages of matched workers are stuck too high, firms require more effort, lowering the value of additional labor and reducing hiring. We find that effort’s response can greatly increase wage inertia. (JEL E24, J23, J31, J41, M51)

Contagion and Psychiatric Disorders: The Social Epidemiology of Risk (Comment on “The Epidemic of Mental Disorders in Business”)

In their 2022 paper, Kensbock, Alkærsig, and Lomberg provide compelling evidence of an increased risk in treated depressive, anxiety, and stress-related disorders within workplaces, associated with the introduction of new hires who either have treated disorders themselves or are hired from workplaces with an increased prevalence of treated disorders. The authors interpret these findings as evidence of a “contagion” effect for psychiatric disorders, illustrative of workplace spread of disorder that may affect the mental health of employees. In this commentary, we contextualize these findings through psychiatric epidemiology. The evidence provided by Kensbock and colleagues is consistent with a long history of evidence in psychiatric and social epidemiology illustrating that many health outcomes are affected by those in our social networks and that psychiatric disorders, in particular, evidence spatial and temporal autocorrelation as well as social network spread that can be best conceptualized through well-known infectious disease principles. Thus, there is a large empirical literature that supports the findings of Kensbock, Alkærsig, and Lomberg. That said, the findings should not be overinterpreted; they fit some patterns of previous literature and known facts about psychiatric disorders, but not all. They also must be appropriately situated within the literature on workplace determinants of mental well-being more generally and, in particular, the global movements to situate the rights of workers with mental illness for employment protections and safe working conditions.

Work ethic and information security behavior

Purpose Information security is a growing issue that impacts organizations in virtually all industries, and data breaches impact millions of customers and cost organizations millions of dollars. Within the past several years alone, huge data breaches have been experienced by organizations such as Marriot, Equifax, eBay, JP Morgan Chase, Home Depot, Target and Yahoo, the latter of which impacted three billion users. This study aims to examine the utilization of pre-employment screening to identify potential hires that may require enhanced information security training to avoid such costs. Design/methodology/approach The authors hypothesize that an individual’s work ethic predicts a person’s information security behavior. The authors test this hypothesis using structural equation modeling with bootstrapping techniques. Findings Data analysis suggests that certain dimensions of work ethic do indeed predict information security posture, and thus, simple pre-employment screening techniques (i.e. questionnaires) can aid in identifying potential security threats. Practical implications The findings provide a tool for identifying problematic employee security posture prior to hiring, which may be useful in identifying training needs for new hires. Originality/value The findings provide a tool for identifying problematic employee security posture prior to hiring, which may be useful in identifying training needs for new hires.

Solving a University Course Timetabling Problem Based on AACSB Policies

The purpose of this research is to solve the university course timetabling problem (UCTP) that consists of designing a schedule of the courses to be offered in one academic period based on students’ demand, faculty composition and institutional constraints considering the policies established in the standards of the Association to Advance Collegiate Schools of Business (AACSB) accreditation. These standards involve faculty assignment with high level credentials that have to be fulfilled for business schools on the road to seek recognition and differentiation while providing exceptional learning. A new mathematical model for UCTP is proposed. The model allows the course-section-professor-time slot to be assigned for an academic department strategically using the faculty workload, course overload, and the fulfillment of the AACSB criteria. Further, the courses that will require new hires are classified according to the faculty qualifications stablished by AACSB. A real-world case is described and solved to show the efficiency of the proposed model. An analysis of different strategies derived from institutional policies that impacts the resulting timetabling is also presented. The results show the course overload could be a valuable strategy for helping mitigate the total of new hires needed. The proposed model allows to create the course at the same time the AACSB standards are met.

How Person-Supervisor Fit Influence the Work Engagement of New Hires?

For new hires, receiving support from their supervisor is critical for familiarizing themselves with their job and engaging it as soon as possible. The aim of this paper is to explore the influencing mechanism of person-supervisor fit(PSF) on the work engagement(WE) of new hires as well as the mediating role of person-organization fit(POF) and person-job fit(PJF). Five hundred new hires were selected through cluster sampling, and asked to fill out questionnaires measuring PSF, POF, PJF, and WE. In total, 486 questionnaires were valid. The study found that PSF positively influenced new hires’ WE. This positive impact was fully realized through the two mediation paths of POF and PJF. Therefore, a two-mediation model was established. PSF was highly important to the WE of new hires, but this effect was fully realized through the indirect paths of POF and PJF.