Pattern in Regional Labor Market Adjustment: The United States vs. Japan

Montgomery, Edward

doi:10.3386/w4414

Cited by 12 publications

(8 citation statements)

References 23 publications

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“…A more promising approach is to consider higher wages as a compensating differential for unemployment. Several studies have found a positive and significant relationship between these two variables (Hall, 1972;Reza, 1978;Adams, 1985;Roback, 1987;Pissarides and McMaster, 1990;Layard et al, 1991;Groenewold, 1993), though not all (Roback, 1982;Montgomery, 1993). One complication is that the causality in the majority of these studies runs from the unemployment rate to the wage rate.…”

Section: The Amenity Modelmentioning

confidence: 99%

The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations

Elhorst

2003

Journal of Economic Surveys

293

272

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Abstract. This paper provides an integrated overview of theoretical and empirical explanations used in the applied literature on regional unemployment differentials. On the basis of 41 empirical studies, four different model types covering nine theoretical constructs of regional unemployment determination and 13 sets of explanatory variables are identified. The overall conclusion is that theoretical and empirical explanations help to reduce the weaknesses in each other. While theory is found to predict that the regional unemployment rate depends on labour supply factors (a collection of factors which affect natural changes in the labour force, labour force participation, migration and commuting), labour demand factors and wage‐setting factors, it is the empirical studies that provide a more profound understanding of the explanatory variables involved. Conversely, whereas most empirical studies provide clear‐cut explanations for the signs of the explanatory variables, it is theory that shows that some of these explanations might be out of proportion. By grouping many studies together, this paper shows that there are indeed clear‐cut trends.

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Section: The Amenity Modelmentioning

confidence: 99%

The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations

Elhorst

2003

Journal of Economic Surveys

293

272

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“…Moreover, other economists have estimated wage curves for further nations. Montgomery (1993) obtains an unemployment elasticity of pay for Japan of -0.15 or less. Rebick's (1995) Japanese results are similar.…”

Section: Uncovering the Wage Curvementioning

confidence: 99%

An Introduction to the Wage Curve

Blanchflower

Oswald²

1995

Journal of Economic Perspectives

270

145

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Economists and policymakers are interested in understanding the forces that determine the level of unemployment and the level of wages. This paper describes an empirical discovery-made with the help of international microeconometric evidence covering more than a dozen nations-about a link between these two variables. The connection can be portrayed on a graph with the level of unemployment on the horizontal axis and the level of wages on the vertical axis. Then the "wage curve," as shown in Figure 1, is a downwardsloping locus. This relationship tells us that (holding others things constant) if a region has a rise in unemployment in a particular year, those who live there will have a fall in their wages in that year.What does this curve mean? How, in a field where fully controlled experiments are almost impossible, could there be any convincing scientific basis for this wage curve? What is the relationship between the wage curve and a Phillips curve, other than that the curve of Figure 1 looks like a Phillips curve with the vertical axis mislabeled? How does the wage curve fit into existing economic knowledge, and is the empirical finding consistent with competitive theory?

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“…Japan’s prefecture system, which was established in 1871, is derived from the han system, which dates back to 1600s. The central government delegates many functions to the prefectures, but retains the overall right to control them (Montgomery, , p. 102). The distribution of the candidates across the 47 prefectures varies, with the Tokyo prefecture having the most number of candidates in the sample (16.8%).…”

Section: Methodsmentioning

confidence: 99%

Executive succession: The importance of social capital in CEO appointments

Wiersema

Nishimura

Suzuki

2018

Strategic Management Journal

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Research Summary: Firm performance and corporate governance have been shown to influence CEO selection, but our understanding of the role of social capital is more limited. In this study, we seek to provide further insight into the role of social capital by examining the influence of both “bonding” and “bridging” forms of social capital on CEO appointments. We find that candidates who have relational social capital, in terms of overlap with the CEO in organizational tenure, board tenure, and CEO tenure are more likely to be appointed as CEO. We also find that candidates who have external linkages to the CEO in the form of geographic, prestigious university, and prior employment affiliations are more likely to be appointed CEO. Managerial Summary: The appointment of a new CEO has significant and widespread implications for the firm’s future strategic direction and performance, the relationship between the board and CEO, and perceptions by investors, employees, and other key stakeholders. Our study finds that candidates who have shared connections and experiences with the CEO in terms of geographic, prestigious university, or prior employment affiliations as well as overlap in terms of organizational tenure, board tenure, and CEO tenure are more likely to be appointed CEO. Given the enormous impact that executive appointments have on the strategic direction and performance of the company, it is important to recognize that social factors such as shared experiences and connections influence how candidates are perceived, and thus, may affect appointment decisions.

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Pattern in Regional Labor Market Adjustment: The United States vs. Japan

Cited by 12 publications

References 23 publications

The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations

The Mystery of Regional Unemployment Differentials: Theoretical and Empirical Explanations

An Introduction to the Wage Curve

Executive succession: The importance of social capital in CEO appointments

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