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    Labour market friction effect on corporate performance : evidence in the global market : a dissertation submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in Finance at Massey University, School of Economics and Finance, Massey University
    (Massey University, 2023-08-31) Bai, Hengyu
    This thesis represents the first academic endeavour to investigate the impact of labour market friction on corporate performance in a global context. In traditional neoclassical economic theory and relevant research, human capital was considered merely an input to generate economic value. Unemployed workers were assumed to fill vacant job positions perfectly, similar to interchangeable machine parts. However, as understanding has evolved, economists now recognise the complexities of filling a job vacancy, which needs to take into account the skills, geographic locations, labour preferences, and various objective factors of the labour force. Consequently, a mismatch often occurs between unemployed workers and vacant jobs, resulting in simultaneous unemployment and job vacancies. This phenomenon is termed labour market friction. This thesis comprises three subprojects, each contributing a distinct essay. The first essay examines the effect of labour market friction on expected stock returns in the Chinese stock market. Utilising the portfolio sorting approach and the Fama-MacBeth regression model, the findings indicate that firms with higher labour friction risk are likely to experience higher stock returns in the subsequent month. This suggests that labour friction risk serves as a significant risk factor in asset pricing. Additionally, the study reveals that the positive effect of labour friction on expected stock returns is more pronounced in firms with either high productivity or poor employee welfare. Furthermore, firms in regions with high levels of development are more likely affected by the labour friction risk. The second essay expands the scope from the Chinese stock market to global stock markets, including North America, Asia-Pacific, and Europe. The results reveal regional variations in the impact of labour market friction on expected stock returns. Specifically, labour friction risk has a negative association with expected stock returns in North American markets, whereas it is positively correlated in Asia-Pacific markets. The significant labour market friction effects are pronounced in different industries due to the varieties of labour market structures, where the North American markets contain a large partial of high technology companies, while the Asia-Pacific markets are dominated by numerous industrial companies. There is no significant relationship between labour friction risk and expected stock returns in European markets. The study also finds that the effect of labour friction is particularly pronounced in markets that are non-immigrant or non-English-speaking, providing higher external labour supply and mobility in such markets, which reduces firms’ recruitment pressures. The third essay centres on Corporate Social Responsibility (CSR) behaviours under the influence of labour market friction in a global setting. The results suggest that firms facing higher labour friction risks are more inclined to engage in CSR activities, even when controlling for year, industry, and region effects in the regression model. This CSR engagement is notably more prominent in markets with a higher demand for labour, characterised by a higher number of new businesses and job vacancies. These findings remain consistent across markets that encourage business creation and expansion through strong investor protection and low labour taxation policies. Markets with higher levels of advanced education have a more significant labour market friction effect on CSR decision-making as they have numerous labour-intensive firms which require a large labour force. Additionally, when labour unions have the strong bargaining power to protect the welfare of employees, firms are less inclined to conduct CSR activities due to the less function in controlling the labour market friction risk. In summary, this thesis contributes to the existing literature by providing empirical evidence of the effects of labour market friction on corporate performance and behaviours across different global markets. It demonstrates that the impact of labour market friction varies due to differing labour market policies and structures and is significantly influenced by the dynamics of labour supply and demand. The insights derived from examining labour market friction across diverse markets have critical implications for both corporate managers and policymakers seeking to mitigate the associated risks.
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    Changing employment under a changing mode of development : with special reference to Palmerston North : a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Geography at Massey University, New Zealand
    (Massey University, 1993) O'Neill, Caroline
    The old Fordist mode of development is being replaced by a Flexible mode of development. A new regime of accumulation, modes of regulation and technologies are being formed giving rise to new ways of organising business. Firms are restructuring to maintain profitability and this is having profound effects on labour and the way we work. Employment is becoming more casualised through increased use of part-time, temporary and sub-contracted labour. New social groups are being brought into the workforce and new productive spaces are being created to complement a flexible business organisation. At a regional level, the experiences are dependent upon historical and geographical conditions which give rise to regional uniqueness. Palmerston North displays regional uniqueness in terms of a high dependence on the Government sector and on service industries. It is aided by its geographical location and amenities such as Massey University. However, because of its place in a capitalist nation and global economy it is subject to similar forces that affect other regions thereby producing similar employment patterns. Such employment patterns include a decline in full-time employment with rises in part-time employment, self-employment and unemployment. Those employed in the service industry are increasing along with those employed in managerial or administrative occupations. Manufacturing employment is decreasing. These trends are reshaping work and regions.
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    Volunteering for a job : converting social capital into paid employment : a thesis presented in partial fulfilment of the requirements for the degree of Master of Philosophy in Sociology at Massey University
    (Massey University, 2005) Davidson, Christopher Mark
    The study explores the extent to which the environment of voluntary associations promotes the development of social capital. Moreover, it asks about the extent to which an individual can convert the social capital they have developed in this environment into economic capital, via the labour market. Social capital is primarily concerned with the resources embedded in social relationships, and how individuals can access and use them. Qualitative and quantitative research methods were used to enquire into the experiences of volunteers affiliated to voluntary associations based in West Auckland. The findings indicate there is no simple causal relationship between an individual's voluntary activities, and the level and value of social capital they can accrue from them. Nevertheless, the findings do suggest that the social capital that is developed through voluntary activity can influence an individual's labour market outcomes. The research reported here indicates that labour market information is not equitably distributed through society. The study suggests that social policy can help bring this information to excluded groups. Targeted government support of the voluntary sector, aimed at providing opportunities for marginalised or minority groups to develop social capital, is one important option available to government to achieve this goal.
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    Social stability and efficiency wages : the case in the context of the Chinese labour market : a thesis submitted in partial fulfillment of the requirements for the degree of Master of Business Studies in Economics at Massey University
    (Massey University, 1999) Wu, Gezie George
    Chinese gradual and piecemeal reform has generated dual labour market sectors: the state sector vs. the non-state sector. One important feature of reforms in the state sector is that balancing the objective of maintaining social stability against that of improving productivity is highlighted. In this thesis I suggest that this trade-off is inherent in the policy of xiagang which allows state owned enterprises to layoff workers but forces them to continue providing some wages and non-wage benefits. The aim of this thesis is to examine the relationship between social stability and a range of variables such as wages, effort levels, employment, output, productivity and profitability. To fulfill it, this thesis builds a theoretical model that extends the Shapiro and Stiglitz no-shirking efficiency wage model to include characteristics of the Chinese context. The most important innovation in this model is the introduction of a social stability parameter that reflects some key features of xiagang such as a low likelihood of workers being laid off. The likelihood of layoffs could be lowered in the interest of social stability. A comparative static analysis is undertaken on this model. It shows that with an increase of this social stability parameter, the overall wages, unskilled worker's effort levels and their employment tend to rise, but the overall profit levels and skilled worker's effort levels tend to decline; Skilled worker's employment, the overall output and productivity may either increase or decrease. This implies that profitability may be improved by lowering the social stability parameter, but that improvement is more likely to be realised through cutting labour costs at an expense of shifting more workers into xiagang rather than through improving the overall productivity.