Found 71 article(s) for author 'Labor'

Human Capital and the Future of Work: Implications for Investors and ESG integration

Human Capital and the Future of Work: Implications for Investors and ESG integration. George Serafeim, 2019, Paper, “Human capital development (HCD) is a key consideration for most companies, but only recently investors have focused on understanding the risks and opportunities related to human capital with the emergence of environmental, social and governance (ESG) investment frameworks and impact investing. We argue that the importance of human capital is likely to be magnified in an environment of rapid technological change where the future of work is uncertain and that existing frameworks to measure and evaluate human capital development might not be fit for purpose. Against this backdrop, we derive a human capital development metric that focuses on outcomes rather than inputs; show that even in the current disclosure landscape one could measure with reasonable accuracy this human capital development metric for thousands of companies; and provide exploratory evidence on its relationship with employee productivity. Moreover, we develop an estimate of probability of automation of job tasks for each sub-industry and show the relation of this probability to elements of our HCD metric and other human capital characteristics. Finally, we outline an investor engagement framework to improve the disclosure landscape related to HCD and to empower effective investment stewardship.Link

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Recent Employment Growth in Cities, Suburbs, and Rural Communities

Recent Employment Growth in Cities, Suburbs, and Rural Communities. Christopher Foote, September 18, 2019, Paper, “This paper uses a comprehensive source of yearly data to study private-sector labor demand across US counties during the past five decades. Our focus is on how employment levels and earnings relate to population density—that is, how labor markets in rural areas, suburbs, and urban areas have fared relative to one another. Three broad lessons emerge. First, the longstanding suburbanization of employment and population in cities with very dense urban cores essentially stopped in the first decade of the 21st century. For cities with less dense cores, however, the decentralization of employment continues, even as population patterns mimic those of denser areas. Second, a dataset that begins in 1964 shows clearly the decentralization of manufacturing employment away from inner cities that has long been a focus of the urban sociological literature. Starting in the 1990s, however, manufacturing employment fell sharply not just in cities but also in rural areas, which had experienced less-intense deindustrialization before then.Link

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Can Capitalism Be Made Better By Corporate Social Responsibility?

Can Capitalism Be Made Better By Corporate Social Responsibility? Nancy Koehn, August 23, 2019, Audio, “This week, nearly 200 CEOs pledged to discard a foundational tenet of business: that corporations exist only to serve their shareholders.  Chief executives from the Business Roundtable — including leaders of Apple, JP Morgan Chase, and Amazon, argued this week that the purpose of a corporation is to promote “an economy that serves all Americans.” Nancy Koehn, historian at Harvard Business School, said this declaration is a direct response to the public’s growing voice in holding corporations accountable.Link

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Corporate Purpose and Firm Ownership

Corporate Purpose and Firm Ownership. George Serafeim, August 2019, Paper, “Analyzing data from approximately two million employees in a sample of more than 1,000 established public and private US companies, we find that corporate purpose is lower among employees of public companies. This result is driven by weaker beliefs held by employees in the salaried middle ranks and hourly workers, and not by senior executives. Among public companies, purpose is progressively lower in companies with more concentrated shareholders, suggesting that shareholder power is associated with a lower sense of purpose among employees. A substantial portion of these patterns can be explained by differences in CEO backgrounds and CEO-employee pay gap. Public firms, particularly those with strong shareholders, choose outsider CEOs at a higher rate and pay them more relative to their employees. Altogether, this study finds that the strength of corporate purpose varies substantially across companies, and is related to the identity of the firm owners, and the choices they make.Link

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Race, Work, and Leadership: New Perspectives on the Black Experience

Race, Work, and Leadership: New Perspectives on the Black Experience. Anthony Mayo, David Thomas, , “Work, and Leadership is a rare and important compilation of essays that examines how race matters in people’s experience of work and leadership. What does it mean to be black in corporate America today? How are racial dynamics in organizations changing? How do we build inclusive organizations? Inspired by and developed in conjunction with the research and programming for Harvard Business School’s celebration of the 50th anniversary of the founding of the HBS African American Student Union, this groundbreaking book shines new light on these and other timely questions and illuminates the present-day dynamics of race in the workplace. Contributions from top scholars, researchers, and practitioners in leadership, organizational behavior, psychology, sociology, and education test the relevance of long-held assumptions and reconsider the research approaches and interventions needed to understand and advance African Americans in work settings and leadership roles. At a time when there are fewer African American men and women in corporate leadership roles, Race, Work, and Leadership will stimulate new scholarship and dialogue on the organizational and leadership challenges of African Americans and become the indispensable reference for anyone committed to understanding, studying, and acting on the challenges facing leaders who are building inclusive organizations.Link

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Rethinking the Regulation of Employment Discharge: The Design of a Monetary Resolution System

Rethinking the Regulation of Employment Discharge: The Design of a Monetary Resolution System. J. Mark Ramseyer, July 4, 2019, Paper, “Should a firm try to discharge an employee, Japanese judges swat it hard. They have been swatting firms hard since the early 1950s. Before the war, most workers and firms had used at-will contracts, and judges had enforced them: workers could quit when they wanted, and firms could discharge them when they wanted. After the war, the Supreme Command for the Allied Powers (SCAP) freed the socialists and communists from prison, and both groups quickly started unionizing the work force. When firms now tried to discharge workers, the unions struck. They could strike violently: When the national railway tried to slash its work force, someone ran an unmanned train into…” Link

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The Wage Penalty to Undocumented Immigration

The Wage Penalty to Undocumented Immigration. George Borjas, May 2019, Paper, “This paper examines the determinants of the wage penalty experienced by undocumented workers, defined as the wage gap between observationally equivalent legal and undocumented immigrants. Using recently developed methods that impute undocumented status for foreign-born persons sampled in microdata surveys, the study documents a number of empirical findings. Although the unadjusted gap in the log hourly wage between the average undocumented and legal immigrant is very large (over 35 percent), almost all of this gap disappears once the calculation adjusts for differences in observable socioeconomic characteristics. The wage penalty to undocumented immigration for men was only about 4 percent in 2016.Link

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Immigration and Economic Growth

Immigration and Economic Growth. George Borjas, May 2019, Paper, “Immigration is sometimes claimed to be a key contributor to economic growth. Few academic studies, however, examine the direct link between immigration and growth. And the evidence on the outcomes that the literature does examine (such as the impact on wages or government receipts and expenditures) is far too mixed to allow unequivocal inferences. This paper surveys what we know about the relationship between immigration and growth. The canonical Solow model implies that a one-time supply shock will not have any impact on steady-state per-capita income, while a continuous supply shock will permanently reduce per-capita income. The observed relationship between immigration and growth obviously depends on many variables, including the skill composition of immigrants, the rate of assimilation, the distributional labor market consequences, the size of the immigration surplus, the potential human capital externalities, and the long-term fiscal impact. Despite the methodological disagreements about how to measure all of these effects, there is a consensus on one important point: Immigration has a more beneficial impact on growth when the immigrant flow is composed of high-skill workers.Link

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Equal Pay Day: closing the gender wage gap

Equal Pay Day: closing the gender wage gap. Hannah Riley Bowles, April 1, 2019, Audio, “Today is Equal Pay Day so we’re going to spend the hour looking at the gender pay gap. Studies show that women working full-time make around 82 cents for every $1 that their male colleagues make. For women of color that divide is even larger. This hour, we’ll discuss why men continue to be paid more than women in the workplace, what role career choices and sex discrimination play in the disparity, and what can be done to shrink the gap. We’ll also talk about legislation that recently passed in the U.S. House of Representatives that would ensure equal wages for men and women. Our guests are JOCELYN FRYE, a senior fellow at the Center for American Progress, and HANNAH RILEY BOWLES, senior lecturer at Harvard Kennedy School.Link

 

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