Cross Subsidization and Telecommunications Sector Wages

Majumdar, Sumit K.

doi:10.1111/j.1467-8292.2010.00429.x

Cited by 4 publications

(6 citation statements)

References 57 publications

(84 reference statements)

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“…The finding established in this assessment is important as the estimate is significant. It augments some older as well as more recent literature in the area (Majumdar , Majumdar ) dealing with similar concerns, related to the impact of cross subsidies, but is the first analysis to comprehensively evaluate the trends after the passage of landmarks telecommunications legislation in the United States. The finding is of relevance for the competition policy and regulation literatures.…”

Section: Discussionmentioning

confidence: 79%

Regulations and Technology Diffusion: Cross Subsidies and Digital Infrastructure Creation

Chang

2013

Ann Public Coop Econ

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Using contemporary historical data, the analysis has examined the impact of cross‐subsidization on technology diffusion within telecommunications networks for local exchange sector telecommunications firms in the United States for the years 1995 to 2000. Firms obtaining greater cross‐subsidies engage in greater technology diffusion via network modernization using digital technologies. Contingent on the institutional setting, cross subsidies have risen. These amounts have been put to relevant use in the diffusion of technology via deployment of digital infrastructure. The principles of subsidization are considered negatively as they have presumed anti‐competitive consequences. In technology diffusion they have played a positive role, as the evidence shows. From a radical subjectivist perspective, cross subsidies generate financial capital for firms, which permits them to deploy high quality technology investments such as broadband and these investments can be used for entrepreneurial experiments in providing several customer services.

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Section: Discussionmentioning

confidence: 79%

Regulations and Technology Diffusion: Cross Subsidies and Digital Infrastructure Creation

Chang

2013

Ann Public Coop Econ

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“…The background is important to understand the changes occurring and the details of this section are heavily derived from Majumdar (, , b), Majumdar et al () and Majumdar and Chang (). Sector‐related prior work had shown the Bell companies were the dominant US telephone operator by 1885 (Brock , Woroch ).…”

Section: Regulatory Change and Human Resource Deploymentmentioning

confidence: 99%

“…These companies have accounted for approximately ninety nine percent of the telephone lines installed in the USA. The data for these companies have been extensively used for many other analyses (Majumdar , , b, ).…”

Section: Empirical Analysismentioning

confidence: 99%

“…Contemporary research deals with issues of firm behavior and public policy, with firms being subject to numerous regulatory influences (Hahn , Majumdar , , b). The role of political factors and non‐market strategies are important across all domains (Vogel ).…”

Section: Introductionmentioning

confidence: 99%

“…The human resources impact for firms facing institutional changes is sparse. Two studies, by Bertrand and Kramarz () and Wozniak (), have evaluated the impact of deregulation on employment or wages, and recent works (Majumdar , Majumdar , b, 2012, Majumdar et al ) evaluate the impact of institutional and regulatory changes on inter‐firm wage levels in the telecommunications sector.…”

Section: Introductionmentioning

confidence: 99%

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Regulation and Job Creation: An Analysis of Institutional Change and Its Consequences

MAJUMDAR

2014

Ann Public Coop Econ

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The study evaluates the impact of changes in price regulation, an important institutional feature of firms' environments, on average human resource deployment levels among the United States local exchange telecommunications companies using contemporary historical data between 1988 and 2001. The data permit a natural experiment approach for the evaluation. Firms regulated via rate of return approaches have employed significantly less staff. These employment levels have been 15 percent lower than that of firms regulated via incentive regulation. The study is a direct test of a principal dynamic capabilities idea that firms reconfigure resources in the face of environmental changes to retain their competitive advantages. These results signify the importance of designing regulations possessing requisite incentive properties in enhancing firm level employment and support the key premises of the dynamic capabilities perspective. Régulation et création d'emplois: une analyse de changement institutionnel et ses conséquences L'articleévalue l'impact de changements dans la régulation des prix -aspect institutionnel important de l' environnement des entreprises -sur les niveaux moyens de développement des ressources humaines au sein des entreprises de télecommunications en boucles locales auxEtats-Unis. L'article se base sur des données historiques portant sur la période 1988 -2001. Les données autorisent une approche expérimentale naturelle pour l'évaluation. Les entreprises régulées par des approches de taux de rendement ont employé significativement moins de personnel. Ces niveaux d'emploi ont eté inférieurs de 15%à ceux des entreprises régulées par régulation incitative. L'article propose de tester directement l'idée principale de capacités dynamiques qu'ont les firmes confrontéesà des changements environnementaux de reconfigurer leurs ressources pour conserver leurs avantages compétitifs. Ces résultats soulignent l'importance d'élaborer des régulations ayant les propriétés incitatives requises pour augmenter le niveau d'emploi de l'entreprise et soutenir les principes d'une perspective de capacités dynamiques.

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