The purpose of this paper is to describe whether workers in high positions and workers in low positions think differently about status and possible future career advancement…
Abstract
Purpose
The purpose of this paper is to describe whether workers in high positions and workers in low positions think differently about status and possible future career advancement opportunities.
Design/methodology/approach
The paper uses German panel data to examine the effects of relative standing on individual satisfaction with the job, the propensity to change jobs, and intentions to start-up an enterprise in the near future.
Findings
The relationship between relative wage positions and job satisfaction is inversely U-shaped. This is interpreted as evidence that low status translates into low utility while employees with high relative standing seem to be more concerned about the lack of future career prospects in paid employment. Workers who gather utility from status and career advancement opportunities simultaneously are more satisfied with their jobs. The paper also shows that lower satisfaction with the job translates into considerations to leave the job.
Practical implications
The described relationships explain individual determinants of voluntary quits and workforce fluctuations, which are of special interest in debates about possible shortages of skilled labor or tightening labor markets for skilled workers.
Social implications
Individual comparisons with peers affect individual reasoning.
Originality/value
The paper aims to enhance the discussion about nonlinear effects in status considerations as well as future career advancement opportunities. The paper shows that workers in very high and very low positions value these important psychological traits differently.
Details
Keywords
Stefan Schneck and Eva May-Strobl
This chapter utilizes German tax data to present evidence about the direct and indirect effects of new firm formation. Cohort analysis is applied to investigate survival, sales…
Abstract
This chapter utilizes German tax data to present evidence about the direct and indirect effects of new firm formation. Cohort analysis is applied to investigate survival, sales, inputs, and value added of start-up firms. Most dropouts occur in the early years. We show that start-up microenterprises increase economic vitality directly. Sales and value added are in an approximate proportion of 3:1. With respect to the indirect effects of new firms, we find that one Euro of sales induces considerable indirect effects because 66 Cents are used to buy products and services from incumbents. For this reason, new firms substantially promote economic prosperity of incumbents. Sectoral differences are also indicated, with the manufacturing industry generating highest sales and relying most heavily on inputs in the early periods.
Details
Keywords
The positive illiquidity–return relationship (so-called liquidity premium) is a well-established pattern in international developed stock markets. The magnitude of liquidity…
Abstract
Purpose
The positive illiquidity–return relationship (so-called liquidity premium) is a well-established pattern in international developed stock markets. The magnitude of liquidity premium should increase with market illiquidity. Existing studies, however, do not confirm this conjecture with regard to frontier markets. This may result from applying different approaches to the investors' holding period. The paper aims to identify the role of the holding period in shaping the illiquidity–return relationship in emerging and frontier stock markets, which are arguably considered illiquid.
Design/methodology/approach
The authors utilise the data on stocks listed on fourteen exchanges in Central and Eastern Europe. The authors regress stock returns on liquidity measures variously transformed to reflect the clientele effect in a liquidity–return relationship.
Findings
The authors show that the investors' holding period moderates the illiquidity–return relationship in CEE markets and also show that the liquidity premium in these markets is statistically and economically relevant.
Practical implications
The findings may be of great interest to investors, companies and regulators. Investors and companies should take liquidity into account when making decisions; regulators should employ liquidity-enhancing actions to decrease companies' cost of capital and expand firms' investment opportunities, which will improve growth perspectives for the entire economy.
Originality/value
These findings enrich the understanding of the role that the investors' holding period plays in the illiquidity–return relationship in CEE markets. To the best knowledge, this is the first study which investigates the effect of holding period on liquidity premium in emerging and frontier markets.