Found 32 article(s) for author 'Richard Freeman'

Share Capitalism and Worker Wellbeing

Share Capitalism and Worker Wellbeing. Richard Freeman, 2016, Paper, “We show that worker wellbeing is not only related to the amount of compensation workers receive but also how they receive it. While previous theoretical and empirical work has often been pre-occupied with individual performance-related pay, we here demonstrate a robust positive link between the receipt of a range of group performance schemes (profit shares, group bonuses and share ownership) and job satisfaction. Critically, this relationship remains after conditioning on wage levels, which suggests these pay methods provide utility to workers in addition to that through higher wages. These findings survive a variety of methods aimed at accounting for unobserved
individual and job-specific characteristics.Link 

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Shared Capitalism: What is it and What Does it Do?

Shared Capitalism: What is it and What Does it Do? Richard Freeman, December 2016, Paper, “We all know that people respond to incentives. Economics 101 teaches that workers put forth greater effort when these efforts are rewarded financially, and top talent tends to gravitate toward jobs and firms where rewards are geared to performance. For the most part, however, the research that’s led us to these conclusions has focused on performance incentives for individual workers, such as piece rates, merit pay, individual commissions, or bonuses.Link

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Augmenting the Human Capital Earnings Equation with Measures of Where People Work

Augmenting the Human Capital Earnings Equation with Measures of Where People Work. Richard Freeman, August 2016, Paper, “We augment standard log earnings equations for workers in US manufacturing with variables reflecting measured and unmeasured attributes of their employer. Using panel employee-establishment data, we find that establishment-level employment, education of coworkers, capital equipment per worker, and firm-level R&D intensity affects earnings substantially. Unobserved characteristics of employers captured by employer fixed effects also contribute to the variance of log earnings, although less than unobserved characteristics of individuals captured by individual fixed effects. The observed and unobserved measures of employers mediate the effects of individual characteristics on earnings and increase earnings inequality through sorting of workers among establishments.Link

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Weathering the Great Recession: Variation in Employment Responses by Establishments and Countries

Weathering the Great Recession: Variation in Employment Responses by Establishments and Countries. Richard Freeman, July 2016, Paper, “This paper finds that US employment changed differently relative to output in the Great Recession and recovery than in most other advanced countries or in the US in earlier recessions. Instead of hoarding labor, US firms reduced employment proportionately more than output in the Great Recession, with establishments that survived the downturn contracting jobs massively. Diverging from the aggregate pattern, US manufacturers reduced employment less than output while the elasticity of employment to gross output varied widely among establishments. In the recovery, growth of employment was dominated by job creation in new establishments. The variegated responses of employment to output challenges extant models of how enterprises adjust employment over the business cycle.” Link

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Filling the Advice Gap

Filling the Advice Gap. Richard Freeman, October 29, 2015, Opinion, “The Financial Advice Market Review will rely on advisers’ views, most notably on remedying the ‘advice gap’.  Earlier this month, the Treasury and FCA published their ‘call for input’ into the Financial Advice Market Review.  Pioneered by the financial secretary to the Treasury, Harriet Baldwin, the review has set out with the admirable objective of improving consumer access to financial advice. The government has issued an open invitation to advisers to submit opinion and evidence by 22 December which will inform any policy output for the review.Link

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How Does Declining Unionism Affect the American Middle Class and Intergenerational Mobility?

How Does Declining Unionism Affect the American Middle Class and Intergenerational Mobility? Richard Freeman, October 2015, Paper. “This paper examines unionism’s relationship to the size of the middle class and its relationship to intergenerational mobility. We use the PSID 1985 and 2011 files to examine the change in the share of workers in a middle-income group (defined by persons having incomes within 50% of the median) and use a shift-share decomposition to explore how the decline of unionism contributes to the shrinking middle class. We also use the files to investigate the correlation between parents’ union status…Link

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Knowledge, Knowledge… Knowledge for My Economy

Knowledge, Knowledge… Knowledge for My Economy. Richard Freeman, 2015, Book Chapter. “The creation of S&T knowledge and development of S&T- based innovation has spread worldwide from traditionally advanced countries to traditionally developing countries, often under the direction of governments. Korea is an exemplar in this new locus. Korea’s burst in Science and Technology during the last three decades has made Korea a substantive player in the global production of S&T knowledge and its application to business. Although Korea still trails the US and other top countries in the quality of research, it has leaped...” Link

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Capitalism for the Rest of Us

Capitalism for the Rest of Us. Richard Freeman, July 17, 2015, Opinion. “In her most detailed economic policy address so far, Hillary Rodham Clinton said Monday that she wanted “to give workers the chance to share in the profits they help produce” through a two-year tax credit that would encourage profit-sharing. As social scientists who have studied the issue for years, we were glad to see it get attention. The stagnation of earnings for most Americans, despite rising productivity, and the shrinkage of the middle class, because of soaring inequality, are without precedent in our economic history. Capital’s share of national income has risen…” Link

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R&D Spillovers and Scientist and Engineer Labor Mobility

R&D Spillovers and Scientist and Engineer Labor Mobility. Richard Freeman, June 2015, Paper. “Using Census data that link U.S. workers to their workplaces we estimate how much past employment in R&D-performing firms raises scientists’ and engineers’ (S&E) wages and thus their marginal product at new employers. We find that S&E workers who arrive at a new firm that is R&D active having been exposed to R&D in previous employment are more productive. We then use Census data to estimate establishment-level production functions showing that both the establishment’s own R&D and R&D activities by other firms…Link

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