RICHARD DEITZ, Federal Reserve Bank of New York - Research Group
Email: richard.deitz@ny.frb.org
JAISON R. ABEL, Federal Reserve Bank of New York
Email: jaison.abel@ny.frb.org

We analyze patterns of compensating differentials to determine whether a region's bundle of site characteristics has a greater net effect on household location decisions relative to firm location decisions in U.S. metropolitan areas over time. We estimate skill-adjusted wages and attribute-adjusted rents using hedonic regressions for 238 metropolitan areas in 1990 and 2000. Within the framework of the standard Roback model, we classify each metropolitan area based on whether amenities or firm productivity advantages dominate and analyze the extent to which these classifications change between 1990 and 2000. We then decompose compensating differentials into amenity and firm productivity advantage components and examine how these components change. Empirical results suggest that while the relative importance of amenities appears to have increased slightly between 1990 and 2000, firm productivity advantages continued to dominate amenities in the vast majority of metropolitan areas during this decade.

ANDERS FREDERIKSEN, Aarhus School of Business - Department of Economics, Hoover Institution, Institute for the Study of Labor (IZA)
Email: AFR@ASB.DK
ODILE M. POULSEN, University of East Anglia - School of Economic and Social Studies
Email: o.poulsen@uea.ac.uk

In recent decades, most developed countries have experienced a simultaneous increase in income inequality and management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a general equilibrium model. Empirical estimation, of the model's key parameters show that the rising management premium is indeed the main driving force behind the observed increase in income inequality. This is the case even when other potential sources such as technological progress and skill-biased technological change are taken into account. We also show that a rising management premium produces income distribution dynamics at the firm level which are similar to those observed at the market level, i.e. rising income inequality overall as well as within and between education groups.

MELANIE K. JONES, University of Wales Swansea
Email: M.K.Jones@swan.ac.uk
RICHARD J. JONES, University of Wales, Swansea
Email: richard.j.jones@swansea.ac.uk
PAUL L. LATREILLE, University of Wales, Swansea
Email: p.l.latreille@swan.ac.uk
PETER J. SLOANE, University of Wales, Swansea, Institute for the Study of Labor (IZA)
Email: p.j.sloane@swan.ac.uk

This paper analyses the relationship between training, job satisfaction and workplace performance using the British 2004 Workplace Employee Relations Survey (WERS). Several measures of performance are analysed including absence, quits, financial performance, labour productivity and product quality. While there is clear evidence that training is positively associated with job satisfaction, and job satisfaction in turn is positively associated with most measures of performance, the relationship between training and performance is complex, depending on both the particular measures of training and of performance used in the analysis.

MONICA YANEZ-PAGANS, affiliation not provided to SSRN

This paper uses a policy quasi-experiment created by the introduction of an old-age unconditional cash transfer program in Bolivia to study the intra-household income allocation process towards children's educational expenditure by ethnicity and gender of the recipient. Taking advantage of a sharp discontinuity created by the program assignment mechanism, I investigate the heterogeneity in the patterns of allocation within indigenous, multiethnic, and non-indigenous families, conditional on having one elder and one school-age child living in the household. I find that cultural factors (proxied by ethnicity) count in the decision making process of human capital investments. In particular, the allocation of resources within indigenous families follows rules closely related to patriarchal family structures (in which women have limited decision-making power) and is consistent with unitary, dictatorial, and common preferences theoretical household models. Conversely, non-indigenous families follow decision rules more closely related to collective and bargaining behavior models.

HANS BLOEMEN, Free University of Amsterdam, Institute for the Study of Labor (IZA)
Email: hbloemen@feweb.vu.nl
ELENA G.F. STANCANELLI, THEMA
Email: elena.stancanelli@free.fr

This paper focuses on the time allocation of spouses and the impact of economic variables. We present a stylized model of the time allocation of spouses to illustrate the expected impact of wages and non-labour income. The empirical model simultaneously specifies three time-use choices - paid work, childcare, and housework - and wage and employment equations for each spouse, allowing for correlation across the errors of the ten equations. We exploit the rich information in the French time-use survey 1998-99 to estimate the model. The predictions of the theoretical model are mostly validated with the main exception of the standard hypothesis that performing housework does not bring utility. Parents' market time responds positively to changes in own wage. The own-wage elasticity of housework is negative while childcare does not react to changes in own wage. Women's non-market time is independent of their husband's wage; but both housework and childcare of fathers react positively to an increase in their wife's wage. Non-labour income reduces paid work by parents and increases their non-market time. Higher-educated and older parents spend more time with their children. There are significant and positive correlations across the errors of the spousal equations.

ISABEL GRILO, Catholic University of Louvain
Email: GRILO@CORE.UCL.AC.BE
A. ROY THURIK, Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC), Erasmus Research Institute of Management (ERIM) - Joint Research Institute of Rotterdam School of Management (RSM) and Erasmus School of Economics(ESE), EUR, EIM Netherlands - Business and Policy Research
Email: thurik@few.eur.nl
I. VERHEUL, Erasmus University Rotterdam (EUR) - Erasmus School of Economics, Erasmus Research Institute of Management (ERIM) - Joint Research Institute of Rotterdam School of Management (RSM) and Erasmus School of Economics(ESE), EUR
Email: verheul@few.eur.nl
PETER VAN DER ZWAN, Erasmus University Rotterdam (EUR) - Erasmus School of Economics
Email: vanderzwan@few.eur.nl

We investigate whether women and men differ with respect to the steps they take in the entrepreneurial process, distinguishing between five successive steps described by the following positions: (1) "never thought about it"; (2) "thinking about starting up a business"; (3) "taking steps to start a business"; (4) "running a business for less than three years"; (5) "running a business for more than three years". This paper provides insights into the manner in which women and men climb the entrepreneurial ladder and the factors that influence their position on the ladder. We use data from the 2006 "Flash Eurobarometer survey on Entrepreneurship" consisting of more than 10,000 observations for 25 member states of the European Union, Norway, Iceland and the United States. Findings suggest that for men it is easier to climb the ladder and that this may be attributed partly to their higher tolerance of risk.

S. K. MISHRA, North-Eastern Hill University (NEHU)
Email: mishrasknehu@hotmail.com

The IDEAS publishes every month the rankings of economists (and departments of economics including research institutions working in the related areas) in different countries. These rankings are based on a large number of measures. It is observed that economists of some countries participate more vigorously in academic and professional activities. This paper investigates into the factors responsible for variations in participation of economists of different countries in academic and professional activities reflected in their intellectual output.

VÉRONIQUE BOULOCHER, EDHEC Business School
Email: veronique.boulocher@edhec.edu
VALERIE PETIT, EDHEC Business School
Email: valerie.petit@edhec.edu

The paper argues in favor of the use of Social Representations Theory within research in management. We present the main concepts and methods in the study of social representations. We illustrate, formulate and discuss propositions on how social representations offer an invaluable tool for researchers to develop explanatory frameworks for practices observed, to review the knowledge produced by their discipline, and finally to develop their scientific objectivity.

JOHN R. GRAHAM, Duke University - Fuqua School of Business, National Bureau of Economic Research (NBER)
Email: john.graham@duke.edu
SI LI, Wilfrid Laurier University - School of Business and Economics
Email: sli@wlu.ca
JIAPING QIU, McMaster University - Michael G. DeGroote School of Business
Email: qiu@mcmaster.ca

We study the role of latent managerial ability in determining executive compensation. We decompose the variation of executive compensation into time variant and invariant firm and manager components and find that the time invariant manager fixed effect, a proxy for latent (i.e. unobservable) managerial human capital, explains a majority of the variation in executive pay. In addition, we show that including manager fixed effects alters coefficients and interpretations of other variables. We also find that firm performance improves after CEOs with larger compensation fixed effects are hired, which is consistent with the fixed effect being associated with innate managerial ability or social capital, which in turn leads to better performance. We further derive managers' excess compensation by purging time variant effects and firm, manager, and year fixed effects, and show that firms with over-paid managers use less debt, consistent with theoretical predictions.

PIERRE LEFEBVRE, University of Quebec at Montreal (UQAM) - Department of Economics
Email: lefebvre.pierre@uqam.ca
PHIL MERRIGAN, University of Quebec at Montreal (UQAM)
Email: merrigan.philip@uqam.ca
MATTHIEU VERSTRAETE, University of Quebec at Montreal (UQAM)
Email: verstraete.matthieu@courrier.uqam.ca

This paper tries to disentangle the relative importance of family and school inputs on a child's cognitive achievement as measured by her percentile score on a mathematics test. We replicate a study by Todd and Wolpin (2007) in the United States with Canadian data. In contrast to their work that uses state-level indicators of school quality, we estimate our model with data from Statistics Canada's National Longitudinal Survey of Children and Youth (NLSCY) which provides micro-level information on the family and school history of the child. The sample used for the analysis is based on the 7- to 15-year old longitudinal children who have completed at least two consecutive math tests. As in Todd and Wolpin, we conclude that cognitive outcomes are determined by current and past family inputs. Contrary to them, who find no impact of school inputs, we find that the quality of schools has a positive impact on achievement in mathematics.

JUAN JAVIER SAAVEDRA, Universidad del Rosario
Email: juan.saavedra49@urosario.edu.co

This article presents the demands that Colombian society formulates to the institutions that offer management education and, especially, to the programs of business administration. The interest arises of noticing the absence of works about the pertinence of management formation in our context, and that an important part of the potential that the managers can develop to contribute to the solution of the most relevant Colombian problems, arises of the capability of the institutions to identify these problems and to articulate coherent forms to solve them from their own fields of performance. The document tries to identify such social problems, as well as the form like the institutions of higher education can transform them into demands, so they can contribute to their solution.

JENNY NYKVIST, Research Institute of Industrial Economics (IFN)
Email: jenny.nykvist@ifn.se

A large literature has studied the effect of displacement on labor market outcomes in general, but none has evaluated how the displaced manage as self-employed. This paper studies how the survival of the business is affected by displacement in connection to entry, using a discrete-time proportional hazard model on a matched sample of displaced and non-displaced individuals. The main result of the paper is that, as a consequence of previous displacement, the probability of switching from self-employment to paid employment decreases and the probability of switching to unemployment is unaffected.