Richard Duhautois, Fabrice Gilles and Héloïse Petit
Applied research shows higher wages are associated with lower mobility at the establishment level. A usual interpretation is that high pay decreases labour turnover. The purpose…
Abstract
Purpose
Applied research shows higher wages are associated with lower mobility at the establishment level. A usual interpretation is that high pay decreases labour turnover. The purpose of this paper is to test if such relationship holds for every type of worker in every type of firm.
Design/methodology/approach
The analysis is based on a linked employer-employee panel dataset covering the French private sector from 2002 to 2005. The authors compute establishment wage effects and use them as explanatory variables in labour mobility equations (for churning rate and quit rate). Using spline regression models enables to investigate for potential non-linearities.
Findings
The authors show that the relationship between churning rate and wage is non-linear and has the shape of an inverted J: the relation is negative and intense for establishments with low wage effect, weaker for average paying establishments and even becomes positive for very high-paying ones. This is true whatever the skill group of workers. It is also true for large establishments while the relationship is still negative but linear for small ones. The relationship between wages and quit rates has a strikingly similar pattern. This suggests that the link between churning and establishment wage effect is strongly related to quit decisions.
Practical implications
A possible interpretation of our results is that paying higher wages may be an effective stabilizing tool especially for employers in small establishments and when starting wages are relatively low.
Originality/value
The paper is the first to decompose the relationship between wage and mobility. It shows the relationship differs across establishment size and is not linear. The paper also shows quits play a role in this relationship.
Details
Keywords
Yann Carin, Cyprien Desquennes, Lukas Jaworski and Wladimir Andreff
The purpose of this paper is to analyse the economic effects of Covid-19 on French men's professional basketball club championships. Three research questions are raised: What are…
Abstract
Purpose
The purpose of this paper is to analyse the economic effects of Covid-19 on French men's professional basketball club championships. Three research questions are raised: What are the characteristics of the economic model of French men's professional basketball? Has this economic model changed over the 2008/2009 to 2018/2019 period? What are the economic effects of the Covid-19 crisis on the finance of French men's professional basketball clubs?
Design/methodology/approach
Relying on a privileged access to the financial data of professional clubs in the two top-tier divisions (456 observations: 222 in Pro A/Jeep Elite and 234 in Pro B), this research focuses on economic models of French men's professional basketball clubs. The breakdown of revenues, expenses and financial performance is examined over the 2008/2009 to 2018/2019 period. The short-term economic effects of Covid-19 are measured over the 2019/2020 and 2020/2021 seasons.
Findings
The Covid-19 crisis, at least in the short term (2019/2020 season), has affected revenues and expenses. With the closedown of the championship, two out of three main revenue sources have significantly decreased, while two main expense sources have decreased as well. The net incomes of Jeep Elite and Pro B clubs are in the black contrasting with the 2018/2019 season (pre-Covid) owing to clubs having benefited from governmental and federal measures and a stronger support from local authorities and their shareholders.
Practical implications
Given the financial difficulties that clubs would have faced without governmental support, the federation and leagues would be well advised to develop a real crisis management competence within professional clubs. Owners of French professional men’s basketball clubs must increasingly adopt product diversification strategies to be better prepared for future crises.
Originality/value
Recent research on the economic effects of Covid-19 has focused on professional and amateur football. To the best of our knowledge, one does not avail detailed research on the potential effects of a health crisis fought with containment measures on professional basketball clubs. French professional basketball deserves to be studied because it has the third largest professional league revenue (behind football and rugby) and it is the second most practiced sport in France. Its sources of finance, which are different from those witnessed in football and rugby, also make it an appropriate subject for study.