Labor Market

Under Chile's Pension Savings Account (PSA) system, what determines a worker's pension level is the amount of money he accumulates during his working years. Neither the worker nor the employer pays a social security tax to the state. Nor does the worker col­lect a government-funded pension. Instead, during his working life, he automatically has 10 percent of his wages deposited by his employer each month in his own, individual PSA.
Executive Salaries: Why is it a bad idea to limit them?" reviews the academic literature in Israel and abroad on executive pay, and determines that executive pay is strongly correlated with firm performance. Furthermore, the paper shows that the sharp rise in executive pay in recent decades can be fully explained by market­driven reasons.

The Ministry of Industry allocates over NIS 600 million annually for training programs whose efficiency has never been truly examined. The paper shows that most of the graduates of these state courses do not work in the professions for which they received training. Nearly a third do not work at all.  A year and a half after the course only 44.7% of graduates work in the profession in which they were trained. In some professions, the percent is less than a third. About 30% do not work at all. 

Approximately  30  percent  of  senior  citizens  in  Israel  who  are  not  working  are  healthy  and  fit  to  work.  Their  net  total  employment  would  be  worth  NIS  6.4  billion  in  income. The  agenda  in  Israel  is focused  on  raising  the  employment  rate  in  the  Ultra-Orthodox  and  Arab  sectors  but  senior  citizens  are  ignored,  though  many  of  them  want  to  work  and  indeed  work  until  they  were  forced  or  encouraged  not  to  by  the  laws  of  mandatory  retirement.
"Mandatory Labor Arbitration" argues that the recent succession of pub­lic sector strikes and labor disputes (of which teachers, university workers, foreign ministry personnel, lawyers, social workers, railway and port em­ployees form only a partial list) causes severe damage to the Israeli econo­my. In 2010, the economy lost some 168,000 working days due to strikes, nearly 70 percent of them in the public sector. Based on IPSOD results 43%
of the public believes labor unions are too powerful. It is therefore worthwhile to consider alternative ways to address public sector labor disputes.
Of the 275,000 foreigners working in Israel, about half are here illegally and over 100,000 entered Israel as tourists. In this JIMS Position Paper, analyst Boaz Arad critiques the government efforts to pay Israelis to take their jobs and suggests a reform in the method used to bring them to Israel. The paper also argues that foreign workers are good for Israel's and that reducing their numbers will harm the local economy.
The Wisconsin Program" currently called Orot Letasuka (Lights for Employment) in Israel was intended to assist the recipients of welfare grants to integrate in the labor market and reduce the extent of welfare grants that constitute a burden on the state treasury. According to the Ministry of Economy,  in the regions where the program is currently operating the number of those who receive income supplements has declined by 52% as opposed to a decline of only 7.2% in those regions where only the State Employment service is functioning.
Abstract: This essay was written in response to the theme of this years Academy of Management Meeting, Green Management Matters. I assert that firms should adopt green management practices only if such activities complement the organizations business and corporate-level strategies and ultimately, enhance profitability or shareholder wealth. 

Abstract: There has been little direct, systematic empirical analysis of the role that universities play in enhancing the success of entrepreneurial ventures. We attempt to fill this gap by analyzing data from the SBIR program, a set-aside program that requires key federal agencies (e.g., Department of Defense) to allocate 2.5 percent of their research budget to small firms that attempt to commercialize new technologies. 

Abstract: We conjecture that the mobility of academic scientists increases the propensity of such agents to engage in academic entrepreneurship. Our empirical analysis is based on a survey of researchers at the Max Planck Society in Germany. We find that mobile scientists are more likely to become nascent entrepreneurs. Citizenship and foreign-education are important determinants of the early stages of academic entrepreneurship.

The unit of analysis in empirical studies of the employment and wage effects of mergers and acquisitions is typically the plant or firm. In contrast, the unit of observation in this study is the individual worker, which allows us to provide direct, systematic empirical evidence on the effects of different types of mergers and acquisitions on employees. 

Re-licensing requirements for professionals that move across borders are widespread. In this paper, we measure the returns to an occupational license using novel data on Soviet trained physicians that immigrated to Israel. An immigrant re-training assignment rule used by the Israel Ministry of Health provides an exogenous source of variation in re-licensing outcomes.