Institutional changes, firm size and wages in the telecommunications sector

Majumdar, Sumit K.

doi:10.1016/j.infoecopol.2009.11.002

Cited by 13 publications

(13 citation statements)

References 110 publications

(121 reference statements)

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“…First, substantially adapted from prior work (Majumdar ) on the topic, the institutional environment is described. Many of these facts are now very well known.…”

Section: Discussionmentioning

confidence: 99%

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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“…First, substantially adapted from prior work (Majumdar ) on the topic, the institutional environment is described. Many of these facts are now very well known.…”

Section: Discussionmentioning

confidence: 99%

Regulations and Technology Diffusion: Cross Subsidies and Digital Infrastructure Creation

Chang

2013

Ann Public Coop Econ

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“…The size variable is important in the wage determination literature (Oi and Idson 1999; Moore 1911; Lester 1967). The issue of firm size and wages in the telecommunications sector has just been touched on (Majumdar 2010a) and is an area of work where, again, much needs to be done since the field of telecommunications has generated a great deal of new firms, small and large, as well as jobs. The theoretical speculations (see Majumdar 2010a for more details) on the firm size and wages relationship in regulated industry contexts are as follows.…”

Section: Empirical Analysismentioning

confidence: 99%

“…Little is known on the issue in spite of the overwhelming importance of the question. Work (see Majumdar 2010a) is just starting on the broad topics of regulation, change in these and their impact on firms’ human capital. Assessment of the wages and regulations relationships is vital.…”

Section: Introductionmentioning

confidence: 99%

Cross Subsidization and Telecommunications Sector Wages

Majumdar

2011

Annals of Public and Cooperative Economics

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ABSTRACT**: This study has examined wage determination in the presence of cross‐subsidization of firms in the telecommunications industry. How variations in cross subsidies received, via the separations mechanism used in the industry, influence some firms to pay a greater level of wages is assessed. The firms studied have been almost the entire population of local exchange carriers in the US telecommunications industry between 1995 and 2000. The analysis has established that firms which are able to obtain greater cross‐subsidies, on average, in fact pay higher wages and the elasticity of the relationship is quite high. The study is the first of its kind assessing the relationship between an important regulatory variable that measures a ubiquitous process, such as cross subsidization, and the impact on employee wages.

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“…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%

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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Institutional changes, firm size and wages in the telecommunications sector

Cited by 13 publications

References 110 publications

Regulations and Technology Diffusion: Cross Subsidies and Digital Infrastructure Creation

Regulations and Technology Diffusion: Cross Subsidies and Digital Infrastructure Creation

Cross Subsidization and Telecommunications Sector Wages

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

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