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- 2017
- Working Paper
The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets
By: Brian S. Chen, Samuel G. Hanson and Jeremy C. Stein
Small business lending by the four largest banks fell sharply relative to others in 2008 and remained depressed through 2014. We explore the dynamic adjustment process following this credit supply shock. In counties where the largest banks had a high market share, the... View Details
Keywords: Small Business; Financing and Loans; Banks and Banking; System Shocks; Credit; Labor; United States
Chen, Brian S., Samuel G. Hanson, and Jeremy C. Stein. "The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets." NBER Working Paper Series, No. 23843, September 2017.
- 2017
- Working Paper
Rethinking Measurement of Pay Disparity and its Relation to Firm Performance
By: Ethan Rouen
I develop measures of firm-level pay disparity and examine their relation to firm accounting performance. Using comprehensive compensation data for a large sample of firms, I find no statistically significant relation between the ratio of CEO-to-mean employee... View Details
Keywords: Pay Disparity; Pay Ratio; CEO Pay Ratio; Income Inequality; Executive Compensation; Wages; Equality and Inequality; Business Ventures; Performance
Rouen, Ethan. "Rethinking Measurement of Pay Disparity and its Relation to Firm Performance." Harvard Business School Working Paper, No. 18-007, July 2017.
- May 2017
- Case
Pho Hoa Dorchester
By: Leonard A. Schlesinger, Michael Raiche and Roger Zhu
Pho Hoa is a traditional, family-owned Vietnamese restaurant in Dorchester, Massachusetts that opened in 1992. As he approached retirement in recent years, the founder/owner has scaled down his involvement in the day-to-day operations, leading to a number of... View Details
Keywords: Pho Hoa; Tam Le; Small Business; Restaurants; Dorchester; Business Growth and Maturation; Business Organization; Family Business; Change Management; Transition; Diasporas; Cash Flow; Food; Employment; Wages; Working Conditions; Leading Change; Business Processes; Organizational Culture; Organizational Change and Adaptation; Organizational Structure; Ownership Stake; Franchise Ownership; Family and Family Relationships; Food and Beverage Industry; Viet Nam; Massachusetts; Boston; Eastern United States
Schlesinger, Leonard A., Michael Raiche, and Roger Zhu. "Pho Hoa Dorchester." Harvard Business School Case 317-121, May 2017.
- 2017
- Working Paper
Digital Labor Markets and Global Talent Flows
By: John Horton, William R. Kerr and Christopher Stanton
Digital labor markets are rapidly expanding and connecting companies and contractors on a global basis. We review the environment in which these markets take root, the micro- and macro-level studies of their operations, their ongoing evolution and recent trends, and... View Details
Horton, John, William R. Kerr, and Christopher Stanton. "Digital Labor Markets and Global Talent Flows." Harvard Business School Working Paper, No. 17-096, May 2017.
- May 2017
- Article
Immigration and the Rise of American Ingenuity
By: Ufuk Akcigit, John Grigsby and Tom Nicholas
We build on the analysis in Akcigit, Grigsby, and Nicholas (2017) by using U.S. patent and census data to examine the relationship between immigration and innovation. We construct a measure of foreign born expertise and show that technology areas where immigrant... View Details
Akcigit, Ufuk, John Grigsby, and Tom Nicholas. "Immigration and the Rise of American Ingenuity." American Economic Review: Papers and Proceedings 107, no. 5 (May 2017): 327–331.
- February 2017 (Revised May 2018)
- Case
The Flint, Michigan Sit-Down Strike
By: Tom Nicholas, Christopher T. Stanton and Matthew Preble
For roughly six weeks between late December 1936 and February 1937, a major strike at several critical General Motors (GM) plants in Flint, Michigan, essentially halted the corporation’s U.S. production and resulted in significant gains for the nascent United... View Details
Keywords: Industrial Unionism; Craft Unionism; Welfare Capitalism; General Motors; Labor; Labor Unions; Labor and Management Relations; Wages; Working Conditions; Government Legislation; Business History; Business and Government Relations; Business and Stakeholder Relations; Business and Community Relations; Auto Industry; Manufacturing Industry; Mining Industry; Steel Industry; United States; Michigan
Nicholas, Tom, Christopher T. Stanton, and Matthew Preble. "The Flint, Michigan Sit-Down Strike." Harvard Business School Case 817-005, February 2017. (Revised May 2018.)
- September 2016
- Article
When 3+1>4: Gift Structure and Reciprocity in the Field
By: Duncan S. Gilchrist, Michael Luca and Deepak Malhotra
Do higher wages elicit reciprocity and lead to increased productivity? In a field experiment with 266 employees, we find that paying higher wages, per se, does not have a discernible effect on productivity (in a context with no future employment opportunities).... View Details
Gilchrist, Duncan S., Michael Luca, and Deepak Malhotra. "When 3+1>4: Gift Structure and Reciprocity in the Field." Management Science 62, no. 9 (September 2016): 2639–2650.
- 2016
- Book
Innovation Policy and the Economy, Volume 17
By: Shane Greenstein, Josh Lerner and Scott Stern
The seventeenth volume of the National Bureau of Economic Research’s Innovation Policy and the Economy provides an accessible forum for bringing the work of leading academic researchers to an audience of policymakers and those interested in the interaction... View Details
Greenstein, Shane, Josh Lerner and Scott Stern, eds. Innovation Policy and the Economy, Volume 17. Chicago: University of Chicago Press, 2016.
- 2016
- Working Paper
Operations in the On-Demand Economy: Staffing Services with Self-Scheduling Capacity
By: Itai Gurvich, Martin Lariviere and Antonio Moreno
Motivated by recent innovations in service delivery such as ride-sharing services and work-from-home call centers, we study capacity management when workers self-schedule. Our service provider chooses capacity to maximize its profit (revenue from served customers minus... View Details
Keywords: Strategic Servers; On-demand Economy; Independent Capacity; Distributed Systems; Uber; Service Operations; Performance Capacity
Gurvich, Itai, Martin Lariviere, and Antonio Moreno. "Operations in the On-Demand Economy: Staffing Services with Self-Scheduling Capacity." Working Paper, June 2016.
- Article
Landing the First Job: The Value of Intermediaries in Online Hiring
By: Christopher Stanton and Catherine Thomas
Online markets for remote labor services allow workers and firms to contract with each other directly. Despite this, intermediaries—called outsourcing agencies—have emerged in these markets. This paper shows that agencies signal to employers that inexperienced workers... View Details
Stanton, Christopher, and Catherine Thomas. "Landing the First Job: The Value of Intermediaries in Online Hiring." Review of Economic Studies 83, no. 2 (April 2016): 810–854.
- Article
Tax Aversion in Labor Supply
By: Judd B. Kessler and Michael I. Norton
In a real-effort laboratory experiment, labor supply decreases more with the introduction of a tax than with a financially equivalent drop in wages. This “tax aversion” is large in magnitude: when we decompose the productivity decrease that arises from taxation, we... View Details
Keywords: Taxes; Labor Supply; Productivity; Experiments; Wages; Human Capital; Performance Productivity; Taxation
Kessler, Judd B., and Michael I. Norton. "Tax Aversion in Labor Supply." Special Issue on Taxation, Social Norms and Compliance. Journal of Economic Behavior & Organization 124 (April 2016): 15–28.
- April 2015 (Revised January 2020)
- Case
Japan's Missing Arrow?
By: Laura Alfaro and Hilary White
In late December 2014, Shinzo Abe was elected to another term as the prime minister of Japan. His re-election was largely interpreted as a vote of confidence for his economics policies, collectively referred to as "Abenomics." Comprised of three "arrows," including... View Details
Keywords: Currency; Bonds; Government Bonds; Government Debt; Public Finance; Quantitative Easing; Stimulus; Fiscal Policy; Fiscal Deficits; Debt Management; Debt Reduction; Abenomics; Exchange Rate; Exports; Reform; Economics; Macroeconomics; Policy; Government Legislation; Government and Politics; Asia; Japan
Alfaro, Laura, and Hilary White. "Japan's Missing Arrow?" Harvard Business School Case 715-050, April 2015. (Revised January 2020.)
- Article
How Much (More) Should CEOs Make? A Universal Desire for More Equal Pay
By: Sorapop Kiatpongsan and Michael I. Norton
Do people from different countries and different backgrounds have similar preferences for how much more the rich should earn than the poor? Using survey data from 40 countries (N = 55,238), we compare respondents' estimates of the wages of people in different... View Details
Keywords: Inequality; Justice; Wage; Cross-cultural; Wages; Equality and Inequality; Fairness; Income; Employees; Management Teams; Cross-Cultural and Cross-Border Issues
Kiatpongsan, Sorapop, and Michael I. Norton. "How Much (More) Should CEOs Make? A Universal Desire for More Equal Pay." Perspectives on Psychological Science 9, no. 6 (November 2014): 587–593.
- September 2014
- Article
Income Inequality and Social Preferences for Redistribution and Compensation Differentials
By: William R. Kerr
In cross-sectional studies, countries with greater income inequality typically exhibit less support for government-led redistribution and greater acceptance of wage inequality (e.g., United States versus Western Europe). If individual nations evolve along this pattern,... View Details
Kerr, William R. "Income Inequality and Social Preferences for Redistribution and Compensation Differentials." Journal of Monetary Economics 66 (September 2014): 62–78.
- July 2014
- Article
Diasporas and Outsourcing: Evidence from oDesk and India
By: Ejaz Ghani, William R. Kerr and Christopher Stanton
This study examines the role of the Indian diaspora in the outsourcing of work to India. Our data are taken from oDesk, the world's largest online platform for outsourced contracts, where India is the largest country in terms of contract volume. We use an ethnic name... View Details
Keywords: Diaspora; Outsourcing; oDesk; Networks; Job Cuts and Outsourcing; Diasporas; Internet and the Web; Ethnicity; Service Industry; South Asia; India
Ghani, Ejaz, William R. Kerr, and Christopher Stanton. "Diasporas and Outsourcing: Evidence from oDesk and India." Management Science 60, no. 7 (July 2014): 1677–1697.
- June 2014 (Revised May 2017)
- Case
Southeastern Asset Management Challenges Buyout at Dell
By: Paul Healy, Suraj Srinivasan and Aldo Sesia
In late 2012, Michael Dell wants to take Dell Inc., the company he founded, private. Mr. Dell believes that the successful company's transformation from a personal computer (PC) manufacturer to an enterprise solutions and services provider (ESS) is dependent on going... View Details
Keywords: Leveraged Buyout Transaction; Leveraged Recapitalization; Management Buyout; Dell, Inc.; Hedge Fund; Corporate Governance Theory; Valuation; Valuation Ratios; Valuation Methodologies; Board Of Directors; Boards Of Directors; Carl Icahn; Computer Services Industries; Proxy Contest; Proxy Battles; Proxy Fight; Proxy Advisor; Financial Accounting; Financial Analysis; Financial Ratios; Finance; Corporate Accountability; Corporate Governance; Corporate Finance; Leveraged Buyouts; Computer Industry; United States
Healy, Paul, Suraj Srinivasan, and Aldo Sesia. "Southeastern Asset Management Challenges Buyout at Dell." Harvard Business School Case 114-015, June 2014. (Revised May 2017.)
- February 2014
- Article
'Last-place Aversion': Evidence and Redistributive Implications
By: Ilyana Kuziemko, Ryan W. Buell, Taly Reich and Michael Norton
We present evidence from laboratory experiments showing that individuals are "last-place averse." Participants choose gambles with the potential to move them out of last place that they reject when randomly placed in other parts of the distribution. In... View Details
Kuziemko, Ilyana, Ryan W. Buell, Taly Reich, and Michael Norton. "'Last-place Aversion': Evidence and Redistributive Implications." Quarterly Journal of Economics 129, no. 1 (February 2014): 105–149.
- Article
The Re-Industrialization of the United States?
By: Willy C. Shih
Talk of "re-industrialization" in the United States has been supported by a seeming resurgence in manufacturing, but this is driven more by the end of labor arbitrage and increasing coordination costs of offshore manufacturing. Aggressive restructurings and significant... View Details
Keywords: U.S. Competitiveness; Re-industrialization; Re-shoring; Operations; Production; Supply and Industry; Supply Chain; Supply Chain Management; Geographic Location; Geography; Globalization; Globalized Economies and Regions; Globalized Firms and Management; Globalized Markets and Industries; Labor; Manufacturing Industry; Auto Industry; Electronics Industry; Industrial Products Industry; Consumer Products Industry; United States; China; European Union
Shih, Willy C. "The Re-Industrialization of the United States?" Wirtschaftspolitische Blätter 60, no. 2 (Second Quarter 2013): 297–312.
- December 2012
- Article
Structural Impediments to African Growth? New Evidence from Real Wages in British Africa, 1880–1965
By: Ewout Frankema and Marlous van Waijenburg
Recent literature on the historical determinants of African poverty has emphasized structural impediments to African growth, such as adverse geographical conditions, weak institutions, or ethnic heterogeneity. But has African poverty been a persistent historical... View Details
Keywords: Living Standards; Real Wages; Labor Market; Colonial Institutions; Economic Growth; Wages; History; Africa
Frankema, Ewout, and Marlous van Waijenburg. "Structural Impediments to African Growth? New Evidence from Real Wages in British Africa, 1880–1965." Journal of Economic History 72, no. 4 (December 2012): 895–926. (Awarded Economic History Association's Arthur Cole Prize for best article published in The Journal of Economic History in 2012.)
- Article
Can Wages Buy Honesty?: The Relationship Between Relative Wages and Employee Theft
By: C. X. Chen and Tatiana Sandino
In this study we examine whether, for a sample of retail chains, high levels of employee compensation can deter employee theft, an increasingly common type of fraudulent behavior. Specifically, we examine the extent to which relative wages (i.e., employee wages... View Details
Chen, C. X., and Tatiana Sandino. "Can Wages Buy Honesty? The Relationship Between Relative Wages and Employee Theft." Journal of Accounting Research 50, no. 4 (September 2012): 967–1000.