international business research past present and future the editors of the journal of international business studies jibs always try to publish the best international business research unfortunately there will probably never be a simple response to the question what constitutes excellent international business research we might make some progress however if we first attempt to define international business research and then identify several noteworthy examples

the contingent governance of teams analysis of institutional complementarity the first purpose of this paper is to design a model of governance structure called the contingent governance which can control the free riding problem in teams in the second best manner the second is to show by a new method of comparative static analysis that the effectiveness of the contingent governance may be enhanced by complementary institutional arrangements of the imperfect labor market and bank centered financial system the paper discusses the implications of such institutional complementarity for the dynamic change of the japanese main bank system and financial system design of transitional economies copyright 1994 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

female labour supply and marital status decisions a life cycle model this paper studies the interdependence between and the determinants of life cycle marital status and labour force participation decisions of women a dynamic utility maximization model is presented and estimated using longitudinal data on women from the panel study of income dynamics the mle method employed involves solving a dynamic programming problem further a minimum distance estimator is proposed which allows for the incorporation of wage data in a computationally simple way the estimates are used to predict changes in the life cycle patterns of employment marriage and divorce due to differences in education race the female s earnings and her potential husband s earnings the estimation results indicate that the utility gains to marriage are decreasing in the female s wage rate and increasing in her potential husband s earnings while the opposite is found for gains to working ignoring the endogeneity of marital status decisions is shown to lead to an underestimation of own and husband s wage effects on female labour supply

parenthood and the gender gap in pay we compare the income and wage trajectories of women to those of their male partners before and after parenthood focusing on the within couple gap allows us to control for both observed and unobserved attributes of the spouse and to estimate both short and long term effects of entering parenthood we find that 15 years after the first child has been born the male female gender gaps in income and wages have increased by 32 and 10 percentage points respectively in line with a collective labor supply model the magnitude of these effects depends on counterfactual relative incomes or wages within the family

the socioeconomic consequences of teen childbearing reconsidered we present new estimates of the consequences of teen childbearing that take into account observed and unobserved family background heterogeneity comparing sisters who have timed their first births at different ages the estimation is conducted using data from the u s national longitudinal survey of young women excerpt

does marriage really make men more productive this paper presents new descriptive evidence regarding marital pay premiums earned by white males longitudinal data indicate that wages rise after marriage and that cross sectional marriage premiums appear to result from a steepening of the earnings profile data from a company personnelfile that includes information on job grades and supervisor performance ratings reveal large marital status pay differences within a narrow range of occupations managers and professionals and environments a single firm married workers tend to be located in higher paying job grades there are very small pay differentials within grades married men receive higher performance ratings than single men as a result they are much more likely to be promoted controlling for rated performance however eliminates the promotion differential sanders korenman is an assistant professor of economics and public affairs at princeton university and is a faculty associate of the office of population research at princeton university and a research affiliate of the national bureau of economic research nber david neumark is an assistant professor of economics at the university of pennsylvania and a research affiliate of the nber korenman wishes to acknowledge the hewlett foundation and the harvard university center for population studies for financial support the authors are grateful to james medofffor making available an extract from the company personnelfile questions regarding data availability should be directed to professor james

job change patterns and the wages of young men this study uses data from the national longitudinal survey of youth to distinguish empirically between mover stayer search good and experience good models of job mobility we estimate wage models in which the pattern of overall job mobility affects both the level and tenure slope of the log wage path after controlling for the correlation between mobility patterns and time constant person and job specific unobservables we find that workers who undergo persistent mobility have lower log wage paths than less mobile workers this finding is consistent with models in which job mobility is driven by time varying unobservables such as experience good models where changes in perceived match quality cause turnover

governments as owners state owned multinational companies the globalization of state owned multinational companies somncs has become an important phenomenon in international business ib yet it has received scant attention in the literature we explain how the analysis of somncs can help advance the literature by extending our understanding of state owned firms soes and multinational companies mncs in at least two ways first we cross fertilize the ib and soes literatures in their analysis of foreign investment behavior and introduce two arguments the extraterritoriality argument which helps explain how the mnc dimension of somncs extends the soe literature and the non business internationalization argument which helps explain how the soe dimension of somncs extends the mnc literature second we analyze how the study of somncs can help develop new insights of theories of firm behavior in this respect we introduce five arguments the triple agency conflict argument in agency theory the owner risk argument in transaction costs economics the advantage and disadvantage of ownership argument in the resource based view rbv the power escape argument in resource dependence theory and the illegitimate ownership argument in neo institutional theory after our analysis we introduce the papers in the special issue that collectively reflect diverse and sophisticated research interest in the topic of somncs

comparing capitalisms and taking institutional context seriously a major limitation of existing international business ib research remains the rather thin view of institutional context in this retrospective we reflect upon and highlight different strategies for overcoming de contextualized perspectives and developing thicker conceptions of institutions drawing on comparative research institutions shape firm behavior not only through their direct or additive effects but have more complex influences by moderating relationships between firm level variables or having interactive or configurational effects related to wider sets of institutions these views can each be extended by adopting a dynamic perspective examining how multinational enterprise mne agency contributes to processes of institutional change ultimately a large gap remains in taking institutions seriously that ib scholars could fill by developing middle range theories that link and compare how particular kinds of institutions or institutional configurations influence particular kinds of mne activities

incentive effects of the u s welfare system a review the author would like to acknowledge support for prior work on this topic from the u s department of health and human services and helpful comments from three anonymous referees rebecca blank howard chernick john fitzgerald irwin garfinkel peter gottschalk edward gramlich david greenberg judith gueron james heckman v joseph hotz robert hutchens michael keane frank levy larry mead michael murray robert plotnick anuradha rangarajan philip robins howard rolston jeffrey smith and daniel weinberg all opinions and errors are those of the author alone

understanding the family gap in pay for women with children as the gender gap in pay between women and men has been narrowing the family gap in pay between mothers and nonmothers has been widening one reason may be the institutional structure in the united states which has emphasized equal pay and opportunity policies but not family policies in contrast to other countries that have implemented both the authors now have evidence on the links between one such family policy and women s pay recent research suggests that maternity leave coverage by raising women s retention after childbirth also raises women s levels of work experience job tenure and pay

state capitalism and performance persistence of business group affiliated firms a comparative study of china and india business groups emerged in developing economies through direct or indirect support from the state in order to overcome a variety of institutional voids and or to further state objectives of economic growth however the efficacy of this organizational form and its associated governance structures have been debated given the dual possibility of business groups to allocate resources among its affiliates for cross subsidization or winner picking we argue that elements of the institutional environment comprising of the state s approach to organizations and the political context of these interactions vary across countries thereby influencing business groups resource allocation strategies and affecting the persistence of affiliated firms superior performance contrasting the types of state capitalism in china and india we develop and test our hypotheses we find that the effect of business group affiliation on firms superior performance persistence is stronger in a state led system of state capitalism e g china than in a co governed system e g india and that this divergence of the business group effect is weakened as affiliated firms internationalize our findings have implications for understanding business groups across institutional contexts and the influence of diversity in the types of state capitalism on organizational strategies

when labor s lost health family life incarceration and education in a time of declining economic opportunity for low skilled men the economic progress of us men has stagnated in recent decades the labor force participation rate of men ages 25 54 peaked in the mid 1960s and has declined since then according to the bureau of labor statistics while men s real median earnings have been flat since the early 1970s these population averages mask considerably larger declines in participation among less educated and non white men as well as substantial increases in wage inequality in this paper we seek to illuminate the broader context in which prime age men are experiencing economic stagnation we explore changes for prime age men over time in education mortality morbidity disability program receipt family structure and incarceration rates we focus on prime age men namely those ages 25 54 and on the years 1980 2016 or 2017 when possible encompassing much of the period of reduced economic progress for low skilled men

adherence to cultural norms and economic incentives evidence from fertility timing decisions abstract i analyze the interplay between culture and economic incentives in decision making to this end i study fertility timing decisions of second generation migrant women to france and the us while i confirm that originating from a high fertility country correlates to having larger families i also find that it does not predict earlier entry into motherhood i propose a model that rationalizes these findings in which decisions are the result of a trade off between an economic cost benefit analysis and a cultural norm the model predicts that decisions with a higher cost of deviation from the economic optimum should be less prone to cultural influence this is consistent with substantial evidence showing that the timing of the first birth bears much larger costs for mothers in terms of labor market outcomes than that of subsequent births

the choice between joint venture and wholly owned subsidiary an institutional perspective the study of foreign entry mode choice has been based almost exclusively on transaction cost theory this theory focuses mainly on the impacts of firm and industry specific factors on the choice of entry mode taking the effects of country specific contextual factors as constant or less important in contrast the institutional perspective emphasizes the importance of the influence of both institutional forces embedded in national environments and decision makers cognitive constraints on the founding conditions of new ventures still this theoretical perspective has yet to provide insights into how institutional factors influence the choice of foreign entry mode the primary goal of the present study is to provide a unifying theoretical framework to examine this relationship we synthesize transaction cost and institutional perspectives to analyze a sample of 364 japanese overseas subsidiaries our results support the notion that institutional theory provides incremental explanatory power of foreign entry mode choice in addition to transaction cost theory in particular we found that multinational enterprises tend to conform to the regulative settings of the host country environment the normative pressures imposed by the local people and the cognitive mindsets as bounded by counterparts and multinational enterprises own entry patterns when making foreign entry mode choices

the internationalization of entrepreneurship our article that has been awarded the 2004 journal of international business studies decade award toward a theory of international new ventures represents an integration of international business entrepreneurship and strategic management scholarship this retrospective article explains the intellectual and personal origins of the work in addition it highlights the definitions of international new ventures and international entrepreneurship finally in response to recent concerns about the importance of international business scholarship the research discussed here stands as an example of the successful exportation of international business scholarship into adjacent disciplines

the effects of sons and daughters on men s labor supply and wages in this paper we estimate the effects of children and the differential effects of sons and daughters on men s labor supply and hourly wage rates the responses to fatherhood of two cohorts of men from the psid sample are examined separately and we use fixed effects estimation to control for unobserved heterogeneity we find that fatherhood significantly increases the hourly wage rates and annual hours of work for men from both cohorts most notably men s labor supply and wage rates increase more in response to the births of sons than to the births of daughters

varieties in state capitalism outward fdi strategies of central and local state owned enterprises from emerging economy countries institutional diversity characterizing state owned enterprises soes from emerging economies holds critical but under examined implications for their internationalization activities different types of soes can exhibit distinct motivations strategic resources and adaptive capabilities for penetrating foreign markets to understand how such idiosyncratic differences emerge we conceptualize the heterogeneity of soes as an outcome of multiple institutional reform processes administrative and fiscal decentralization industrial restructuring and market liberalization which create diversity between soes affiliated with central and local levels of government building on the idea of institutions as configurations we elucidate how such reforms reconfigure soes constellation of resources capabilities and priorities which shape the parameters of their ability to negotiate for home and host country institutional legitimacy specifically we propose that the restructuring of central soes into national champions exposes them to stronger institutional pressures from home and host country governments while local soes which have fewer obligations to serve national strategic prerogatives display greater managerial autonomy and market orientation but lower levels of monopolistic behavior we discuss how such contrasting attributes contribute to variations in soes international business diversification patterns foreign subsidiary establishment and ownership modes and overseas location preferences recognition of soes organizational diversity holds important implications for theories on state owned multinationals

china s transition and its implications for international business this paper focuses on institutional change as the central and most consequential contextual aspect of china s transition identification of key characteristics of china s emergent institutions leads to propositions on their relevance for international business practice china s transition also raises issues for theory development including the way that transition is modeled the need to draw upon multiple perspectives and the concomitants of a contextual approach

overcoming distrust how state owned enterprises adapt their foreign entries to institutional pressures abroad state owned so enterprises are subject to more complex institutional pressures in host countries than private firms these institutional pressures arise from a weak legitimacy of state ownership in some countries which arises from a combination of ideological conflicts perceived threats to national security and claimed unfair competitive advantage due to support by the home country government these institutional pressures directed specifically at so firms induce them to adapt their foreign entry strategies to reduce potential conflicts and to enhance their legitimacy testing hypotheses derived from this theoretical argument for subsidiaries of listed chinese firms we find that so firms adapt mode and control decisions differently from private firms to the conditions in host countries and these differences are larger where pressures for legitimacy on so firms are stronger these findings not only extend institutional theory to better explain differential effects on different entrants to an organizational field but demonstrate how foreign investors of idiosyncratic origins may proactively build legitimacy in host societies

the returns to mobility and job search by gender using data from the national longitudinal survey of youth the authors estimate the returns to job search mobility and the interaction of search and mobility for young men and women they find st

international expansion of emerging market enterprises a springboard perspective in this article we present a springboard perspective to describe the internationalization of emerging market multinational corporations em mnes em mnes use international expansion as a springboard to acquire strategic resources and reduce their institutional and market constraints at home in so doing they overcome their latecomer disadvantage in the global stage via a series of aggressive risk taking measures by aggressively acquiring or buying critical assets from mature mnes to compensate for their competitive weaknesses we discuss unique traits that characterize the international expansion of em mnes and the unique motivations that steer them toward internationalization we further delineate peculiar strategies and activities undertaken by these firms in pursuit of international expansion as well as internal and external forces that might compel or facilitate their propulsion into the global scene we finally explain the risks and remedies associated with this international springboarding strategy and highlight major issues meriting further investigation

an anatomy of state control in the globalization of state owned enterprises integrating agency theory with institutional analysis in international business we propose a state control perspective to analyze government control mechanisms in emerging economies globalization of state owned enterprises soes we identify two types of state control that influence soes globalization decisions and the degree of globalization dog state ownership control and executives political connections both of which are contingent upon the home country s evolving institutional environments using a two step corporate globalization decision model and 17 272 firm year observations of non financial chinese listed companies we find a strong impact of both types of state control on soes globalization although the impacts differ between the periods before and after domestic governance reform and across different globalization decision steps the diminishing impact of executives political connections and the increasing impact of state ownership control on firms dog demonstrate the evolving relationship between the state and the managers as well as the dynamics of state control in globalizing soes

the economic consequences of unwed motherhood using twin births as a natural experiment social scientists have long concluded that premarital childbearing exacerbates problems of both poverty and family instability out of wedlock and adolescent childbearing may reduce a mothers educational attainment lower the probability of her eventual marriage increase her probability of welfare recipiency and decrease family income the authors use an exogenous fertility event the birth of twins to estimate the economic effects of unplanned births the approach compares the economic outcomes of women experiencing premarital twin first births to those experiencing premarital single first births in the attempt to identify the consequences of an unplanned birth upon womens future fertility and marital decisions education labor force participation labor earnings welfare receipt and poverty status 1970 and 1980 us census micro data are used to identify twin births to unmarried women analysis found large short term effects of unplanned births on labor force participation poverty and welfare recipiency among unwed mothers but not among married mothers furthermore most adverse economic effects of unplanned motherhood dissipate over time for whites but larger and more persistent negative effects weigh upon black unwed mothers

the international entrepreneurial dynamics of accelerated internationalisation the initial stages of internationalisation prior to firms having established their definitive sources of advantage remain the relatively unexplored area of the international business ib literature at these early stages where firms are seeking to establish themselves and new multinational firms are appearing to exploit new opportunities created by globalisation the entrepreneurial aspects of internationalisation come to the fore in this paper we aim to delineate an emerging field of ib scholarship we use the appearance of international new ventures and the phenomenon of accelerated internationalisation that they feature to identify a set of issues that has slipped through the net of some of the existing ib frameworks we propose that the salient features of accelerated and early internationalisation by the newly internationalising firm are best captured in a framework that is found at the intersection of entrepreneurial and internationalisation perspectives which we propose be known as international entrepreneurial dynamics we discuss such a framework in terms of entry points and pathways mapped by firms as they probe the ib arena and the key factors that impinge on behaviour and strategic choices in line with recent developments in the entrepreneurship literature these are grouped into three milestones of entrepreneurial processes that extend across national boundaries 1 the discovery of new opportunities 2 the deployment of resources in the exploitation of these opportunities and 3 the engagement with competitors implications for mne and internationalisation theory are discussed

unobservable individual effects marriage and the earnings of young men i introduction married men earn more than unmarried men this fact is unassailable and is robust across data sets and over time two common explanations of the married male wage premium are i the division of labor in a married household which allocates more of the man s time to the market and ii lower cost human capital acquisition for married men both of these stories view marriage as productivity enhancing kenny 1983 provides some evidence that marriage facilitates human capital acquisition however the potential endogeneity of marital status is ignored furthermore the argument that marriage makes it cheaper to accumulate human capital is difficult to reconcile with the fact that individuals who acquire more formal education tend to marry later than those who acquire less bergstrom and schoeni 1992 an alternative explanation for the marriage premium is that marriage signals certain unobservable individual characteristics such as ability honesty loyalty dependability and determination that are valued in both the labor and marriage markets l although i and ii are quite different in terms of their behavioral content they do share a common thread whether marriage per se increases productivity or high productivity men are more likely to be married marital status should not be treated as an exogenous determinant of the wage rate nevertheless in most wage regressions that control for marital status it is assumed to be exogenous resulting in an estimated marriage premium that is biased upward two exceptions are nakosteen and zimmer 1987 and korenman and neumark 1991 although both papers base their empirics on samples of young men they come to very different conclusions regarding the size and source of the marriage premium nakosteen and zimmer find the marriage premium to be insignificantly different from zero and claim that marriage does not make men more productive korenman and neumark kn present evidence that the marriage premium is at least 15 and rises with years married indicating that marriage may be productivity enhancing in this paper we reexamine the empirical relationship between marriage and wages using a sample drawn from the 1971 1976 1978 and 1980 waves of the national longitudinal survey of young men nlsym our data set is an extension of the one used by kn whose empirical work is based on the 1976 1978 and 1980 waves of the nlsym 2 our results may be summarized as follows estimates of the marriage premium derived from fixed effects models which control for unobserved heterogeneity are uniformly smaller than those obtained from random effects models and other cross section approaches that do not specification tests reject the latter and suggest that the individual effects are positively correlated with both marriage and wages conditional on labor market experience job tenure and year effects time spent in marriage has no significant effect on wages this stands as evidence against any dynamic productivity enhancing effect of marriage we conclude that whatever the source the marriage premium is a pure intercept shift and no more than 5 to 7 further support for this conclusion comes from the relationship between prospective marriage and wages using our longer panel we construct a to be married variable which identifies men who marry sometime during the sample period men who are not married in 1971 but who will be earn at least as much as those who are already married finally an interesting related result is the robust and significant effect of children on wages conditional on marital status and years married the presence of children raises wages about 5 regardless of the estimator employed we interpret the effects of marriage and children on wages similarly as structural breaks in the wage generating process involving adjustments in market work and homework among other things

tied wage hours offers and the endogeneity of wages in the standard model of labor supply each worker is a price taker where the relevant price is an hourly wage rate which is fixed in the short run and which does not depend upon the number of hours supplied with this basic assumption the wage can be regarded as exogenous for the purpose of estimating a labor supply function this paper proposes and implements a pair of tests for the exogeneity of wages in a longitudinal labor supply model and for the particular failure of exogeneity associated with jobs that offer wage hour packages the first test is very simple it amounts to a test of whether hours granger cause wages at the individual level the second test involves a simultaneous estimation of labor supply and wage offer equations both tests indicate that the offered wage is related to hours worked though the offer locus is for this sample very flat the principal conclusion is that labor supply equations cannot properly be estimated in isolation from the process generating wages even when long time series are available on a sample of individuals this abstract was borrowed from another version of this item

social capital structural holes and the formation of an industry network the formation of a network is determined by the opposition of two forces the first is the reproduction of network structure as a general social resource for network members the second is the alteration of network structure by entrepreneurs for their own benefit the idea of reproduction is a conventional one in organizational sociology but has taken on increased importance due to the work of bourdieu and coleman in contrast burt stresses the entrepreneurship of individual agents in exploiting structural holes that lie between constrained positions though complementary the theories of social capital and structural holes have fundamentally different implications for network formation this paper investigates these theories by examining empirically the formation of the interorganizational network among biotechnology firms we propose that network structure determines the frequency with which a new biotechnology firm or startup establishes new relationships network structure indicates both where soci

lancaster s principle of efficient choice an empirical note abstract lancaster s principle of efficient choice is submitted to an empirical examination using data from consumer reports the results give only moderate support for that principle

intra and inter organizational imitative behavior institutional influences on japanese firms entry mode choice this paper compares the predictions of transaction cost and institutional theories in an empirical study of the entry mode choice for 1 194 japanese foreign subsidiaries the findings indicate the institutional model adds significant explanatory power over and above the predictions of the transaction cost model using the concepts of frequency based trait based and outcome based imitation i find support for institutional isomorphism as later entrants tended to follow the entry mode patterns established by earlier entrants isomorphic behavior was also present within a firm as firms exhibited consistency in entry mode choices across time further a firm s investment experience moderated institutional influences on entry mode choice

a reconsideration of the fatherhood premium marriage coresidence biology and fathers wages past research that asserts a fatherhood wage premium often ignores the heterogeneity of fathering contexts i expect fatherhood to produce wage gains for men if it prompts them to alter their behavior in ways that increase labor market productivity identity theory predicts a larger productivity based fatherhood premium when ties of biology coresidence with the child and marriage to the child s mother reinforce one another making fatherhood and the role of financial provider in particular salient high in commitment and clear employer discrimination against fathers in less normative family structures may also contribute to variation in the fatherhood premium using fixed effects models and data from the 1979 cohort of the national longitudinal survey of youth nlsy79 i find that married residential biological fatherhood is associated with wage gains of about 4 percent but unmarried residential fathers nonresidential fathers and stepfathers do not receive a fatherhood premium married residen

international versus domestic entrepreneurship new venture strategic behavior and industry structure abstract international entrepreneurship is defined in this study as the development of international new ventures or start ups that from their inception engage in international business thus viewing their operating domain as international from the initial stages of the firm s operation one hundred and eighty eight new venture firms in the computer and communications equipment manufacturing industries are classified according to the percentage of their sales in the international market ventures with no sales derived from international activities are considered domestic new ventures and ventures with sales from international activities comprising greater than 5 of total sales are considered international new ventures the strategy and industry structure profiles of international new ventures are significantly different from domestic new ventures the internationals pursue much broader market based strategies seeking a strategy of broad market coverage through developing and controlling numerous distribution channels serving numerous customers in diverse market segments and developing high market or product visibility the internationals also emphasize a more aggressive entry strategy building on outside financial and production resources to enter numerous geographical markets on a large scale securing patent technology is also an important component of their strategy this suggests that the internationals compete by entering the industry on a large scale seeking to penetrate multiple markets with the recognition that external resources are necessary to support such an entry whereas both the domestics and the internationals characterize domestic competition as being relatively intense the international new ventures compete in industries with higher levels of international competition it is not clear from this research whether the new venture selects an industry with a high degree of international competition and therefore responds with an international orientation or because the new venture has an international orientation it perceives or recognizes a higher degree of international competition another industry structure difference is the internationals perceived higher degree of restrictiveness due to government regulation it is unclear whether this restrictiveness motivates new ventures to seek less regulated international environments or if it indicates that when competing internationally the new venture is confronted with increased regulatory requirements domestic new ventures are distinguished by their emphasis on a production expansion strategy and customer specialization strategy the production specialization strategy consists of focusing on limited geographical markets maintaining excess capacity and pursuing forward integration the customer specialization strategy incorporates the production of a specialty product that is purchased infrequently thus for both of the domestic strategies a consistent closeness between the producer and consumer is implied this may be an important basis underlining the new venture s decision to compete in an exclusive domestic context this study offers initial support for the notion of international entrepreneurship by its findings that there are significant differences between new venture firms competing domestically and new ventures choosing to also enter international markets

state ownership effect on firms fdi ownership decisions under institutional pressure a study of chinese outward investing firms this study investigates the effect of state ownership on chinese firms foreign direct investment fdi ownership decisions it adopts a political perspective to extend the application of institutional theory in international business research specifically it examines firms heterogeneous responses to external institutional processes during foreign market entry while taking into consideration the political affiliation of firms with the external institutions we argue that state ownership creates the political affiliation of a firm with its home country government which increases the firm s resource dependence on home country institutions while at the same time influencing its image as perceived by host country institutional constituents such resource dependence and political perception increase firms tendency to conform to rather than resist isomorphic institutional pressures we tested our hypotheses using primary data for 132 fdi entries made by chinese firms during 2000 2006 and we found that the effects of home regulatory host regulatory and host normative pressures on a firm to choose a joint ownership structure were stronger when the share of equity held by state entities in the firm was high

youth labor markets in the united states shopping around vs staying put the need for school to work programs or other means of increasing early job market stability is predicated on the view that the chaotic nature of youth labor markets in the united states is costly because workers drift from one job to another without developing skills behavior or other characteristics that in turn lead to higher adult earnings however there is also ample evidence that workers receive positive returns to job shopping this paper asks whether youths in unstable jobs early in their careers suffer adverse labor market consequences as adults its specific contribution is to account for the endogenous determination of early job stability and adult wages as outcomes of a job search job shopping process labor market conditions in the early years in the labor market are used as instrumental variables for the job stability experienced during those years the instrumental variables estimates generally point to substantial positive effects of early job stability on adult wages in contrast to

foreign direct investment and host country productivity the american automotive component industry in the 1980s although several studies have shown that inward foreign direct investment fdi often leads to greater host country productivity researchers have yet to determine the relative importance of direct technology transfer and competitive pressure to assess the relative importance of the two channels we examine the us auto component industry between 1979 and 1991 during this period japanese automobile assemblers began to produce vehicles in north america and began to purchase inputs from us auto component manufacturers those us manufacturers that sold components to japanese transplants would be the direct recipients of any technologies transferred from the japanese although we find that the direct investment by japanese assemblers was associated with overall productivity improvement in the us auto component industry we find little evidence of direct technology transfer the productivity growth of us suppliers affiliated with japanese assemblers was no greater than that of other non affiliated us suppliers further we find that the japanese assemblers tended to purchase components from less productive us suppliers and moreover that low productivity suppliers that sold goods to japanese assemblers had a higher survival rate than low productivity suppliers that did not sell to japanese firms the results suggest that increased competitive pressure in the auto sector was the main cause of overall productivity improvement at least during the initial stages of fdi of the 1980s

comparing capitalisms understanding institutional diversity and its implications for international business this paper examines the role of institutional analysis within the field of international business ib studies within ib institutions matter but the view of institutions tends to be thin utilizing summary indicators rather than detailed description and thus approaches institutions as unidimensional variables that impact on particular facets of business activity this paper argues that ib research would be usefully advanced by greater attention to comparing the topography of institutional landscapes and understanding their diversity a number of alternative case based approaches are outlined that draw on a growing comparative capitalisms literature in sociology and political science the paper develops a number of empirical examples to show the utility and limits of these approaches for ib scholars

the dynamic value of mne political embeddedness the case of the chinese automobile industry this paper examines the complex relationship between the embeddedness of multinational enterprises mnes in host country political networks and their long run competitive positions in host emerging markets we report the findings of a longitudinal study of the chinese automobile sector from the early 1980s to the mid 2000s using data from 142 interviews over 11 years and a wide range of secondary sources we explore the process through which the value of political embeddedness changed over time in the face of profound and rapid changes in host country business environments on the basis of this longitudinal study the paper unravels the underlying mechanisms that lead to the declining and even negative value of deep political embeddedness by mnes in a politically stable emerging economy

do marital status and computer usage really change the wage structure this analysis uses several identification strategies and data sources to control for individual ability and determine the causal effect of marital status and computer usage on wages although data from the cps nlsy and a data set of identical twins show that there are large cross sectional effects of these variables new econometric specifications are applied to these data which indicate that marital status and computer usage are not important causal determinants of earnings even after adjustments are made for measurement error and within twin differences in ability

power couples changes in the locational choice of the college educated 1940 1990 college educated couples are increasingly located in large metropolitan areas these areas were home to 32 percent of all college educated couples in 1940 39 percent in 1970 and 50 percent in 1990 we investigate whether this trend can be explained by increasing urbanization of the college educated or the growth of dual career households and the resulting severity of the colocation problem we argue that the latter explanation is the primary one smaller cities may therefore experience reduced inflows of human capital relative to the past and thus become poorer

the knowledge network of international entrepreneurship theory and evidence the knowledge network associated with the young and emerging field of international entrepreneurship is defined through a bolean search progression of key words on the ssci data bases from 1992 to 2000 the knowledge network of an applied field portrays and usually follows the actual developmental path of its corresponding field some 287 articles document the early emergence of international entrepreneureship as a field of scholarly inquiry when a field is young and in need of theoretical foundations the knowledge networks of other fields may provide for those early needs this is the case of international entrepreneurship the rich theoretical foundations of the two fields of international business and entrepreneureship among others have nourished and accelerated the internationalization process of entrepreneurship a detailed analysis of 7 651 citations contained in the contributions of the 287 documents reported here traces international entrepreneurship s rich yet young developmental path this analysis reveals a wealth of information for example the lists of highly cited books articles authors and their affiliated institutions presented here

market liberalization and firm performance during china s economic transition this paper examines the impact of market liberalization on firm performance through institutional changes during the economic reform in china the conceptualization focuses on the decentralization of control ownership restructuring and industrial policy as the primary institutional changes to implement market liberalization in china these institutional changes affect firm performance by shaping managerial incentives affecting transaction and agency costs and making selective resource allocations across and within industries using a large scale data set including 23 577 firms between 1992 and 1996 the study examines how market liberalization affects the profitability and productivity of chinese firms and the relationship between ownership change and the performance of state owned enterprises

an analysis of out of wedlock childbearing in the united states this paper relates the erosion of the custom of shotgun marriage to the legalization of abortion and the increased availability of contraception to unmarried women in the united states the decline in shotgun marriage accounts for a significant fraction of the increase in out of wedlock first births several models illustrate the analogy between women who do not adopt either birth control or abortion and the hand loom weavers both victims of changing technology mechanisms causing female immiseration are modeled and historically described this technology shock hypothesis is an alternative to welfare and job shortage theories of the feminization of poverty excerpt

diplomatic and corporate networks bridges to foreign locations firms and governments operate in broad networks in which the home government and its diplomatic service are a critical node or a referral point between firms and potential partners in foreign locations thus diplomatic relations between countries matter for the choice of foreign investment location using a network perspective we argue that the extent to which good diplomatic relations induce firms to invest in friendly host countries depends on their political connections to home governments those with stronger ties to home governments can better access and leverage intergovernmental diplomatic connections thus benefiting potentially from enhanced access to information reduced political risks and increased legitimacy such ability of politically connected firms is more useful where weak institutional impartiality in the host country inhibits neutral treatment of foreign investors empirically using overseas investment location decisions by chinese firms we find that the types of home government ties i e whether they are organizational or personal and whether those relationships are with central or local goverments and the impartiality of host institutions are both important contingencies affecting firms utilization of diplomatic relations we discuss the implications of our study to research on network theory political ties and internationalization of emerging market firms

the contingent effect of state participation on the dissolution of international joint ventures a resource dependence approach we adopt a resource dependence approach to explain the effect of state participation on the dissolution of international joint ventures ijvs while resource dependence theory rdt has been used to explain the formation of ijvs we propose an extension of the theory to explain their dissolution we do so by highlighting the match between foreign firms resource needs resource hierarchy and the resource provision roles of state controlled vs private local partners resource profiles we further argue that the effect of state participation on the dissolution of ijvs is moderated by foreign firms host country experience and ijv age we test our hypotheses by using data on 623 ijvs in china our results show that state participation reduces the risk of ijv dissolution and that the strength of this effect differs depending on the type of state controlled actor that is involved in an ijv we also find that host country experience and ijv age moderate the effect of state participation on ijv dissolution these findings enhance our understanding of ijv dissolution and contribute to the development of rdt

the fall in men s return to marriage declining productivity effects or changing selection historically one of the most robust findings from human capital wage equations has been that married men earn more than men who never marry however the earnings premium paid to u s married compared with never married men declined by more than 40 percent during the 1980s data from the national longitudinal surveys young men and youth cohorts are used to explore two competing explanations for this decline changes in the selection of high wage men into marriage and changes in the productivity effects of marriage due to declining specialization within households the results suggest that the drop in the marriage wage premium was due largely to a decline in the productivity effects associated with marriage instrumental variables estimation suggests that these declining productivity effects can be explained by a reduction in the average degree of specialization across households coupled with an increase in the wage penalty associated with wives labor market hours excerpt

does market oriented institutional change in an emerging economy make business group affiliated multinationals perform better an institution based view viewing market oriented institutional change as a two staged process we propose that the effects of market oriented institutional change on two organizational forms business group affiliated and independent firms are different depending on the stage of institutional change specifically we examine how the two distinct periods of market oriented institutional change that is institutional friction and institutional convergence affect business group affiliated firms and independent firms in their abilities to profit from international diversification using data on 140 korean manufacturing multinational firms from 1993 to 2003 we find that emerging economy firms face an international diversification discount a negative relationship between international diversification and firm performance we also find that business group affiliation affects the international diversification discount differently during the two periods of market oriented institutional change particularly when firm performance is measured by the market to book value mbv the moderating effect of business group affiliation on the relationship between international diversification and mbv is negative during the institutional frictions period but becomes positive during the institutional convergence period in the later stage of institutional change our findings warn against viewing market oriented institutional change as a discrete event highlighting the importance of recognizing the qualitatively distinctive nature of different periods of market oriented institutional change in future research

waiting for mr right rising inequality and declining marriage rates abstract this paper demonstrates that women search longer for their first or second husband in cities with higher male wage inequality and examines several alternative explanations a causal link is established by controlling for city fixed effects and city specific time trends and by using inequality in the woman s state of birth as a proxy for local male inequality increasing inequality explains about 25 of the marriage rate decline over the last few decades and this is not due to the endogenous moving or labor force decisions of women nor to the marital decisions of men in reaction to changes in their own wages

the conservation and welfare effects of information in a time of day pricing experiment a recurring concern in tod pricing studies has been that short term experimental tod rates may not stimulate as much conservation as would occur if tod rates were implemented on a permanent basis that is how accurately do experimental tod pricing results extend to nonexperimental settings the present paper provides information relevant to this adjustment question we examine a little analyzed component of the tod pricing experiment conducted by the southern california edison sce company wherein a subset of the tod treatment households had a continuous display electricity use monitoring device installed mid way through the experiment the sce experiment was one of 14 tod pricing studies initiated by the u s department of energy doe most analyses of tod pricing have been based on doe initiated studies but this experiment was the only such study to include the monitoring component this abstract was borrowed from another version of this item

identifying the big question in international business research buckley 2002 argues that the international business ib research agenda may be running out of steam because no big research question has currently been identified buckley also asks whether the field needs a big question and if so challenges ib scholars to discover it buckley and ghauri 2004 elaborate on the third question of globalization discussed in buckley 2002 as a possible candidate for the big question in response this article is written to take up buckley s challenge and also to comment on buckley and ghauri s more recent work i agree that ib needs a big question the pursuit of which can serve to unite and energize scholars make scientific progress and enhance the status and prestige of the field toward that end i argue that what determines the international success and failure of firms has always served as a fundamental research question which has permeated ib research in the past and present and is likely to propel its progress in the future therefore i am of the opinion that the ib research agenda is not likely to run out of steam because focusing on this question will leverage ib s comparative advantage and keep the field engaged in generating exciting and disciplined theories and findings in the 21st century

network linkages and location choice in foreign direct investment this paper shows that network linkage is an important determinant of location choice in foreign direct investment fdi network linkages are divided into internal intra firm and external inter firm linkages external linkages are further separated into strategic and relational linkages we found that taiwanese firms are keen on making external linkages but are indifferent to or incapable of making internal linkages through fdi strategic linkages motivate taiwanese fdi in the united states while relational linkages facilitate taiwanese fdi in southeast asia and china small firms are more sensitive to relational linkages than large firms in their choice of fdi location

partial privatization and firm performance most privatization programs begin with a period of partial privatization in which only non controlling shares of firms are sold on the stock market since management control is not transferred to private owners it is widely contended that partial privatization has little impact this perspective ignores the role that the stock market can play in monitoring and rewarding managerial performance even when the government remains the controlling owner using data on indian state owned enterprises we find that partial privatization has a positive impact on profitability productivity and investment widespread privatization in recent decades has generated a large empirical literature concerning the effect of ownership on firm performance most studies find that privatization has a positive impact on the profitability and efficiency of firms see megginson and netter 2001 for a recent survey 1 the firms in these studies have had a majority of their assets privatized and control rights have been transferred from the government to private owners surprisingly little is known about the effect of partial privatization where the government remains the controlling owner this paper seeks to address this gap in the literature by investigating whether the performance of state owned enterprises in india is affected by the sale of non controlling equity stakes on the stock market

small firms as international players in this paper using aggregate data from the u s bureau of economic analysis the author explores the strategies small u s based foreign investing firms follow in their international activities the aggregate study supports the findings of an earlier study of a few small firms with international activities these firms have a lower than expected tendency to form minority owned affiliates abroad an analysis of the industries in which these small foreign investing firms operate supports the notion that these firms follow specific strategies uncovered in the small scale study finally the paper ties the findings to alliance strategies of small firms

adapting and sustaining operations in weak institutional environments a business ecosystem assessment of a chinese mne in central africa multinational enterprises mnes sometimes pursue opportunities in largely uncharted distinctive institutional environments how do these firms sustain operations in such settings we explore how mnes tailor and maintain operations in institutionally weak precarious and challenging host country environments such as those devastated by conflicts we draw on the business ecosystem framework and analyze a qualitative longitudinal case study of a chinese state owned mne that entered and developed its operations in the democratic republic of congo drc in central africa our findings indicate that after entry the mne sustained its operations in the drc by engaging in collective actions and coevolving with key stakeholders within its business ecosystem these stakeholders included the home and host governments state owned enterprises privately owned enterprises and local communities our qualitative data further suggest that the mne s business ecosystem evolved through three stages exploring establishing and embedding and that within this ecosystem the key stakeholders also coevolved with the mne by adopting new roles over time

patterns of convergence and divergence among industrialized nations 1960 1988 increased communication trade and travel between countries act to bring them together in many respects the present study examines similarities in macro environmental characteristics of eighteen industrialized nations over a twenty eight year period contrary to the initial research proposition countries were found to be diverging especially in the latter part of the time period in spite of the increased communications travel and trade between countries physical distance remains an important determinant of macro environmental similarity two measures of national culture power distance and individualism were found to be related to change in macro environmental factors

how much does subnational region matter to foreign subsidiary performance evidence from fortune global 500 corporations investment in china what explains the heterogeneity of foreign subsidiary performance previous studies have emphasized the importance of industry corporate parent and home country effects on the variation of foreign subsidiary performance building on recent international business and economic geography research this study examines the extent to which subnational region effects can also explain such performance variation we empirically decompose the variance of the performance of fortune global 500 corporations subsidiaries in china during 1998 2006 results show that not only are subnational region effects statistically significant in explaining the variation of subsidiary performance but their interactions with industry corporate parent and home country effects are also significant and economically important we further show that subnational region effects tend to be stronger in the period prior to china s wto accession and in the country s less developed subnational regions our findings highlight the importance of considering both the direct and indirect roles of subnational region in shaping firms strategy and performance in international business research

children and their parents labor supply evidence from exogenous variation in family size although theoretical models of labor supply and the family are well developed there are few credible estimates of key empirical relationships in the work family nexus this study uses a new instrumental variable the sex composition of the first two births in families with at least two children to estimate the effect of additional children on parents labor supply in the united states instrumental variables estimates using the sex mix are substantial but smaller than the corresponding ordinary least squares ols estimates moreover unlike the ols estimates the female labor supply effects estimated using sex mix instruments appear to be absent among more educated women and women with high wage husbands we also find that married women who have a third child reduce their labor supply by as much as women in the full sample while there is no relationship between wives child bearing and husbands labor supply excerpt

models of the multinational enterprise flexibility is identified as the hallmark of recent modelling of the multinational enterprise the focus on flexibility is a response to the rationalization and restructuring of international business which has occurred since the end of the golden age of western economic growth flexibility has been south in factor markets intermediate product markets and markets for final products it has been sought by both governments and firms flexible firms are attracted to locations with flexible host governments this article contrasts the modern research agenda based on flexibility with the more traditional research agenda which predominates in the literature reviewed by caves 1996

theoretical foundations of emerging economy business research in probing theoretically into central and eastern europe transactions resources and institutions we outlined the contributions of research in central and eastern europe cee to theoretical debates in business research in this retrospective we reflect upon the evolution of the field over the past decade with the fading impact of cee s distinct shared history we suggest that cee best be analyzed as emerging economies rather than as a distinct geographic entity emerging economy business research is converging on common themes and shared theoretical ideas while identifying critical variations that constrain generalizations among and beyond emerging economies this research thus highlights the need to develop a better understanding of the boundary conditions of scholarly theories of business knowledge over the past decade the institution based view has emerged from distinct intellectual traditions in institutional economics organizational theory and the analysis of business government bargaining research in these converging lines of theorizing places contextual variations at the center of explanations of business phenomena around the world we suggest that the institution based view is evolving toward a paradigm and offer suggestions on how to advance this research agenda further in particular by exploring how firms engage with different sets of potentially conflicting institutions at multiple levels and locations

partnering with leviathan the politics of innovation in foreign host state joint ventures forming international joint ventures ijvs with political institutions in emerging economies involves both benefits and risks for multinational enterprises mnes while political partners can provide ijvs with various resources their political status equips them with a strong position to appropriate rents in ijvs we address this tension by examining how host state ownership affects both innovation inputs and outputs in china based ijvs over 2008 2013 despite the potential government opportunism we find more r d investment innovation inputs made in ijvs with state partners than in those with private ones thus r d investment can be politically motivated and symbolically managed to ensure continued resource exchanges with the host state this political pressure is mitigated when foreign parents directly transfer home country based technology to ijvs when the host market dependence of ijv is weak and when ijvs are located in a deregulated region moreover we find foreign host state jvs deliver fewer innovation outputs measured by patent data than foreign private jvs which implies the failure of state partners to adequately absorb foreign technologies these findings highlight both the state partners powerfulness to boost ijv innovation investment and their limits in shaping ijv innovation outcomes and bear rich implications for the management of mne host government relationships

phase transitions and emergence of entrepreneurship the transformation of chinese soes over time abstract configurational theory has been a key building block of organizational research an understanding of how certain configurations evolve over time especially during discontinuous changes such as economic transition has been largely a missing link in the literature considering economic transition as a process rather than an outcome this study examined strategic adaptations among chinese soes in two phases 1990 and 2002 findings from two surveys and from interviews revealed that environmental characteristics changed significantly over time and that firms responded with more entrepreneurial strategies aimed at firm growth rather than at satisfying state planners such changes were related to improved performance the study closes by offering implications for research and practice

restructuring of firms in transition ownership institutions and openness to trade we develop a theoretical framework for defensive and strategic restructuring and provide estimates of restructuring in privatized firms in an advanced transition economy slovenia our rich data point to both types of restructuring as well credit rationing and bargaining with respect to investment privatized firms display profit maximizing behavior and a firm s export orientation and institutional features such as insider vs outsider privatization employee ownership and employee control do not affect the firm s employment and investment behavior the results suggest that a major exposure to world competition induces similar economic behavior in firms with different structural and institutional characteristics

beliefs and errors in voting choices a restatement of the theory of fiscal illusion this paper reformulates the theory of fiscal illusion to make it more compatible with the median voter model of collective choice it emphasizes the requirement that misperceptions about marginal tax costs and benefits must be permanent to have any significant effect on the level of public expenditures the lancaster becker model of consumer demand is then used to demonstrate the peculiar effects of permanent misperceptions on consumer demand it can be shown for example that other things being the same a republican who underestimates continuously the marginal benefits of public activities may demand more public goods than a democrat who overestimates those same benefits in a permanent fashion

why wait the effect of marriage and childbearing on the wages of men and women we use data from the earlier and later cohorts of the nlsy to estimate the effect of marriage and childbearing on wages our estimates imply that marriage lowers female wages 2 4 percent in the year of marriage marriage also lowers the wage growth of men and women by about two and four percentage points respectively a first birth lowers female wages 2 3 percent but has no effect on wage growth male wages are unaffected by childbearing these findings suggest that early marriage and childbearing can lead to substantial decreases in lifetime earnings

explaining the formation of international new ventures the limits of theories from international business research abstract international new ventures invs represent a growing and important type of start up an inv is defined as a business organization that from inception seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries oviatt and mcdougall 1994 their increasing prevalence and important role in international competition indicates a need for greater understanding of these new ventures oviatt and mcdougall 1994 logitech as described in a case study by alahuhta 1990 is a vivid example of an inv its founders were from two different countries and had a global vision for the company from its inception the venture which produces peripheral devices for personal computers established headquarters in both switzerland and the u s manufacturing and r d were split between the u s and switzerland and then quickly spread to taiwan and ireland the venture s first commercial contract was with a japanese company using 24 case studies of invs we found that their formation process is not explained by existing theories from the field of international business specifically neither monopolistic advantage theory product cycle theory stage theory of internationalization oligopolistic reaction theory nor internalization theory can explain the formation process of invs these theories fail because they assume that firms become international long after they have been formed and they therefore highlight large mature firms they also focus too much on the firm level and largely ignore the individual and small group level of analysis i e the entrepreneur and his or her network of business alliances we propose that an explanation for the formation process of invs must answer three questions 1 who are the founders of invs 2 why do these entrepreneurs choose to compete internationally rather than just in their home countries and 3 what form do their international business activities take who are the founders of invs we argue that founders of invs are individuals who see opportunities from establishing ventures that operate across national borders they are alert to the possibilities of combining resources from different national markets because of the competencies networks knowledge and background that they have developed from their earlier activities following the logic of the resource based view of the firm we argue that the possession of these competencies is not matched by other entrepreneurs only the entrepreneur possessing these competencies is able to combine a particular set of resources across national borders and form a given inv why do these entrepreneurs choose to compete internationally rather than just in their home countries the founders of invs recognize they must create international business competencies from the time of venture formation otherwise the venture may become path dependent on the development of domestic competencies and the entrepreneur will find it difficult to change strategic direction when international expansion eventually becomes necessary as the founder of one inv explained the advantage of starting internationally is that you establish an international spirit from the very beginning mamis 1989 38 what form do their international business activities take founders of invs prefer to use hybrid structures i e strategic alliances and networks for their international activities as a way to overcome the usual poverty of resources at the time of start up this study has important implications for the practice of management in financing decisions relating to invs venture capitalists and other venture financiers should look for entrepreneurs who have a global vision international business competence and an established international network when entrepreneurs start invs they should create hybrid structures to preserve scarce resources finally given the path dependence of competence development founders of new ventures should consider whether establishing a domestic new venture with plans to later internationalize will be as successful a strategy as establishing a new venture that is international from inception

the effect of male wage inequality on female age at first marriage a model in which women search for husbands characterized by their wages predicts increasing within group male wage inequality raises the expected value of continued marital search and so lowers female marriage propensities using 1970 1980 and 1990 census data i test this hypothesis within geographically racially and educationally defined marriage markets the estimates suggest rising male wage inequality accounted for 7 to 18 of the decline in the propensity to marry between 1970 and 1990 for white women and more educated black women growing wage inequality appears to have had little effect on the marriage behavior of less educated black women

institutional cultural and transaction cost influences on entry mode choice and performance in this study we examine foreign market entry mode choice and firm performance for a sample of european union firms examining both financial and non financial performance measures we attempt to determine if firms that select their entry mode based on transaction cost institutional context and cultural context variables perform better than firms that make other mode choices we found that mode choice did matter firms whose mode choice could be predicted by the extended transaction cost model performed significantly better on both financial and non financial measures than did firms whose mode choice could not be predicted by the extended transaction cost model implications for future research are discussed

varieties of capitalism and the internationalization of state owned enterprises this article sheds light on how the internationalization of state owned enterprises is influenced by the state involvement in ownership and by the home country s institutional settings integrating international business literature with the debate on the varieties of capitalism we contend that state dominated enterprises internationalize more less than privately owned enterprises in coordinated liberal market economies whereas they exhibit an inconstant behavior in state influenced market economies our analysis on a sample of enterprises pertaining to 20 oecd countries supports our hypotheses this article adds to studies on the influence of institutions on firms internationalization and has implications for both managers and policymakers

balancing private and state ownership in emerging markets telecommunications infrastructure country industry and firm influences bargaining between host states and investors over the terms of investment in sensitive sectors of the economy generates political and economic tensions in this study we investigate the factors that contribute to the outcomes of those negotiations as measured by the private vs state owned share of newly consummated telecommunications infrastructure projects we find that private ownership is positively associated with overall economic development and investment liberalization in the host country and with greenfield vs divestiture and joint venture vs wholly owned projects private ownership is negatively associated with existing telecommunications infrastructure higher levels of state ownership of foreign investing firms and the technological sophistication of the projects our analysis also shows a curvilinear inverted u shaped relationship between investment policy hazards and private ownership this finding supports the insight from transaction cost economics that potential gains from internalization are greatest at intermediate levels of uncertainty

the uppsala internationalization process model revisited from liability of foreignness to liability of outsidership the uppsala internationalization process model is revisited in the light of changes in business practices and theoretical advances that have been made since 1977 now the business environment is viewed as a web of relationships a network rather than as a neoclassical market with many independent suppliers and customers outsidership in relation to the relevant network more than psychic distance is the root of uncertainty the change mechanisms in the revised model are essentially the same as those in the original version although we add trust building and knowledge creation the latter to recognize the fact that new knowledge is developed in relationships

the accumulation of dis advantage the intersection of gender and race in the long term wage effect of marriage a sizable literature examines whether and why marriage affects men s and women s wages this study advances current research in two ways first whereas most prior studies treat the effect of marri

the motherhood earnings dip evidence from administrative records using spanish social security records we document the channels through which mothers fall onto a lower earnings track such as shifting into part time work accumulating lower experience or transitioning to lower paying jobs and are able to explain 71 percent of the unconditional individual fixed effects motherhood wage gap the earnings trajectories analysis reveals that mothers to be experience important relative earnings increases several years before giving birth but this earnings advantage falls right after birth taking in average nine years to recover heterogeneity matters as most of the motherhood dip is driven by workers with permanent contracts

imperfect knowledge and the new theory of demand in the conventional simple analysis of demand theory a consumer is confronted with the task of maximizing his utility in consuming two or more goods subject to a budget restraint it is usually assumed that the consumer has perfect knowledge concerning the qualities of characteristics of the goods he chooses to purchase when knowledge about one or more goods is lacking the conclusions about consumer welfare must be qualified suppose for example that a consumer maximizes his utility in consuming goods given limited information about the goods if additional information is made available the pattern of his consumption is likely to change and this change in preference can be illustrated by a new indifference map it is not possible however to compare the two sets of indifference maps for the purpose of making a decision about the change in welfare recent developments in the new theory of demand suggest a possible solution to this problem lancaster 1966a 1966b in the new framework emphasis is placed upon the characteristics of the goods which the consumer receives when he purchases goods or services the consumer s utility function is thus based upon these characteristics not the physical goods or services themselves for the purpose of analyzing the effect of changing information on consumer behavior we shall assume that the consumer spends his budget on two goods if and f2 each good possesses two characteristics designated by el and e2 the first characteristic yields positive utility while the second imposes a negative utility 2 the basic model is illustrated in figure 1 the

sources of bias in women s wage equations results using sibling data we use data on sisters to jointly address heterogeneity bias and endogeneity bias in estimates of wage equations for women this analysis yields evidence of biases in ols estimates of wage equations for white and black women some of which are detected only when the two sources of bias are addressed simultaneously for both white and black women there is evidence of upward bias in the estimated returns to schooling bias corrected estimates of the effect of marriage on wages for white women suggest a positive marriage premium we also use the sibling data to identify our models and test a number of other commonly used identifying assumptions as overidentifying restrictions