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The new PPA video: The impact of Work from Home (WFH) during the pandemic

Jan 29
1 min

The new PPA video: The impact of Work from Home (WFH) during the pandemic

We start 2021 by introducing a new format! In PPA videos, leading professionals from various industries and top researchers in the field of Personnel Economics share their insights about the emerging issues in HR. The first PPA video reflects on one of the widely discussed HR topics in 2020: Work from home. Work from home has been on the minds of many for long, even before the pandemic. However, the share of employees working from home had remained low. The pandemic served

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Jan 25
4 min

How important is diversity for team performance?

by Silvia F. Castro A recent paper by researchers from Stanford and Berkeley, uses a novel measure of diversity to shed light into the relevance of diversity for team work. According to their findings, diversity is indeed associated with better team performance. Yet, this effect is contingent on a project’s timeline: it is positive when a team’s next milestone is distant but may turn negative as the next milestone approaches. Pros and cons of team diversity Non-routine analyt

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Aug 3, 2020
4 min

Hunting for Talent in the Digital Age. Evidence from Research.

Increased digitization of the labor market combined with the changing demand for skill has altered the job-search process. A survey study finds that nearly 18 percent of all employed workers in the US were hired into their present company by the active recruiting effort of their employer. Especially small firms and firms relying on high-skilled labor, are increasingly developing capabilities to better hunt for talent. The study provides relevant implications for both firms an

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Jul 30, 2020
3 min

The Benefits of Over-investment in volatile Market Conditions. Evidence from Research.

A theoretical study shows that over-investment into liquidity-generating capital can increase the value of a company in volatile market conditions by making it easier to motivate the company’s workforce. The findings of the study have implications for the optimal design of incentives and management practices in companies in times of crisis. Over-investment - An Agency Problem A prominent fact in corporate finance is that managers tend to over-invest, i.e. marginal costs excee

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Jun 8, 2020
4 min

How can firms foster cooperation among employees? Evidence from research.

In a recent study, the behavioral economists Marvin Deversi, Martin G. Kocher, and Christiane Schwieren analyze the cooperative culture in a large software firm. They conduct behavioral experiments with employees of the firm to elicit a unique measure of their cooperativeness. Linking data from the experiments with HR data from the firm’s records allows the researchers to study how the firm’s management practices relate to the cooperativeness of employees. Their study is a li

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Apr 9, 2020
3 min

COVID-19 and HR Practices: The Future of Work

For a long Easter weekend, we selected several academic papers and podcasts, which provide evidence on the evolution of work practices and discuss how the COVID-19 may influence the future of work. Home Office during the Corona pandemic: Unused potential for many jobs in Germany Researchers from ZEW Mannheim and the Institute for Employment Research (IAB) analyse data from the Linked Personnel Panel surveys, which target private sector companies with at least 50 employees. Th

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