Search Results (38)

Artificial intelligence (AI) is profoundly reshaping labor market structures and occupational value evaluation systems. As a core group about to enter the workplace, university students’ perceptions of occupational social status are crucial for their career development and the alignment between education and the labor market. Study 1 explores how layoff risks and AI as a threat shape status evaluation. Study 2 investigates how AI’s role in jobs alters perceptions of status indicators and cognitive work type. The results show that students primarily attribute occupational social status to personal ability and organizational hierarchy rather than AI; A more positive attitude toward AI is associated with a greater propensity for pursuing routine cognitive occupations in the future; AI exerts an inverted U-shaped influence on occupational status indicators, with non-routine cognitive occupations experiencing an earlier decline in status but still maintaining higher ratings than routine cognitive occupations. These findings indicate that university students hold an overall positive yet contradictory attitude toward AI’s impact on occupational social status, which is inconsistent with actual employment trends. Therefore, researchers and policymakers should provide more comprehensive guidance to help students understand and adapt to AI-driven changes. Full article

Nowadays, the European economy faces significant global challenges that threaten the continuity of economic growth, especially in the German manufacturing sector, which is under strain from financial turmoil, resulting in numerous layoffs and firm closures. In this respect, FinTech significantly contributes to addressing these issues by providing data-driven analytical tools that improve the assessment and monitoring of firms’ financial position. However, in the literature, we have not found any paper that uses machine learning (ML) algorithms to assess the financial distress of German manufacturing firms, highlighting methodological and sectoral gaps that need to be bridged. Therefore, this study aims to develop an econometric and ML-based financial distress scoring model for German manufacturing firms by estimating contemporaneous Altman Z-scores that provide better insights into the financial distress determinants, enabling better financial management. The econometric findings revealed that the regression model has an adjusted R-squared value of 86%, confirming that the selected firm-specific and macroeconomic factors play a substantial role in explaining financial distress. The findings recommend that German manufacturing businesses retain more earnings rather than distributing them as dividends, while reducing their debt in capital structures to enhance financial stability. Moreover, the ML results found that Gradient Boosting and Random Forest have the highest accuracy scores among the ML methods, suggesting that these models provide strong capability for assessing financial distress and supporting more effective financial risk management, allowing firms to effectively respond to the threats of a dynamic environment and thereby better support the growth of the German and European economies. Full article

Workforce adjustments, such as mass layoffs, are significant corporate events that can influence stock returns and volatility, yet their broader asset-pricing implications remain underexplored. We examine the impact of such workforce shocks on stock performance from an asset-pricing perspective. Grounded in production-based asset-pricing theory, incorporating labor adjustment costs and search-and-matching frictions, our study posits that disruptions in the labor force significantly affect firm risk and value. This focus addresses a clear gap. Previous research has not comprehensively evaluated workforce shocks as systematic risk factors in a cross-sectional asset-pricing model. Using an extensive dataset spanning 1990–2023 and covering thousands of layoff events, we construct a novel “workforce shock” factor and conduct the first large-scale empirical tests of its pricing relevance. Our analysis reveals that workforce shocks lead to lower stock returns and heightened volatility, effects especially pronounced in labor-intensive firms. Moreover, exposure to workforce shock risk carries a significant premium, indicating that these disruptions act as a systematic risk factor priced in the cross-section of equity returns. Overall, our study provides the first comprehensive evidence linking labor force disturbances to equity risk premia, underscoring the importance of incorporating labor market considerations into asset-pricing models. Full article

The COVID-19 pandemic severely affected Japan’s tourism-related industries, leading to significant revenue losses in the accommodation, restaurant, and tourist facility sectors. Many businesses experienced difficult situations, resulting in closures and layoffs as a result of the prolonged decline in tourism demand. Focusing on the first half of the pandemic (2020–2021), this study analyzes the loss of sales and the influencing factors among tourism-related businesses in the Nishimikawa region of Aichi Prefecture. A questionnaire survey was conducted in November 2021, and changes in sales from April 2020 to September 2021 were estimated to assess the economic impact across different sectors. A quantitative analysis was also performed to examine the relationship between sales and the state of emergency, the domestic travel subsidy program Go To Travel campaign, and business attributes. The results indicate that COVID-19 severely impacted business sales, especially in the accommodation and food service sectors, while the tourism facility and retail sectors were less affected. In the Nishimikawa region, popular for day trips from nearby areas, the Go To Travel campaign had a limited effect, highlighting the need for region-specific support measures. Full article

Background/Objectives: This study aims to explore family dynamics and the economic hardships experienced by families during the COVID-19 pandemic and their associations with adolescents’ health risk behaviours (HRBs). Methods: Based on a representative study of adolescents aged 11–16 conducted in Bulgaria during the COVID-19 pandemic and HBSC data from the pre-pandemic period, logistic regression models were applied, assessing cigarette smoking, vaping, alcohol use, drunkenness, and cannabis use. The independent variables included demographics, Family Affluence Scale (FAS III), family structure, ease of communication with parents, and the authors’ developed questions on parents’ income and economic status change, family conflicts, and missing contact with extended family due to the pandemic. Results: Material status of the family showed increasing differentials in adolescents’ HRBs during the pandemic. Parental unemployment, income reduction, and temporary lay-offs were associated with a higher risk of substance use. Family conflicts, missing contact with extended family, and difficulties in communication with the mother were related to a higher risk of substance use. Communication with the father was significantly associated with alcohol use and drunkenness. Boys had lower odds of vaping and higher odds of alcohol use, drunkenness, and cannabis use. Higher age and minority status were associated with an increase in adolescents’ HRBs. Conclusions: This study highlights the need for special family-focused interventions in times of health and economic crises. Full article

This study explores the impact of COVID-19 on informal learning institutions, primarily science museums, through the lens of an activity kit co-created by CELL-MET—a cross-university, engineering research center—and museum partners. While formal learning organizations, like K-12 schools, play a critical role in the education process through standardized teaching, informal learning organizations also make important contributions to the engineering education ecosystem, such as by fostering engineering identity development, especially for learners and their families. This is particularly valuable for young learners from underrepresented and under-resourced communities. In this study, two questions are addressed: (1) How were museums impacted by COVID-19 and the resulting disruptions to their operations, and how did they respond? (2) To what extent were museums able to implement and adapt EEK! to reach under-served youth in the face of social disruption? When the world was experiencing social disruption from the spread of COVID-19, the authors realized they had an opportunity to test the utility and adaptability of their model of engineering activity co-creation. Approximately six months into the launch of both EEK! and the global pandemic, a 29-item survey was distributed to EEK! recipient institutions. Of the museum respondents, 97% reported experiencing full closures and 73% reported layoffs and furloughs. Despite these challenges, 78% implemented EEK!, with 70% of the institutions creating new virtual programming, and 38% adapting EEK! for remote facilitation, including real-time virtual events, self-guided activities, and at-home activity kits. Museums were equally impacted by COVID-19 policies and closures, but have not received the public attention and support that K-12 schools have received. Nonetheless, they have responded with ingenuity in using and adapting EEK!. Given their K-12 partnerships, flexibility, and ability to engage learners, museums are undervalued collaborators for universities trying to impact the K-12 engineering education ecosystem. Full article

This study explores the impact of COVID-19 layoffs on surviving employees’ perceptions at Airbnb, a key player in the hospitality industry, during the global pandemic. The crisis brought organizational justice into sharp focus, raising questions about fairness, employee satisfaction, and trust in management. Utilizing an interpretivist approach, we conducted fifteen semi-structured interviews with Airbnb employees who survived the layoffs. Accompanied by a comprehensive literature review, our analysis delved into the challenges these employees encountered. The thematic analysis uncovered insights into organizational justice dimensions—distributive, procedural, interactive, and informational—and their role in shaping fairness perceptions and employee outcomes. Findings reveal that despite challenging circumstances, empathetic and proactive practices like regular check-ins and transparent communication significantly helped maintain fairness perceptions among survivors. This counters the common belief that layoffs invariably diminish justice perceptions. Our study demonstrates that negative impacts can be effectively mitigated through thoughtful organizational practices. In conclusion, the research underscores the importance of organizational justice during crisis-induced layoffs. It advocates for maintaining fairness and transparency to preserve employee trust and satisfaction, which are vital for organizational resilience and sustainability. This study enriches the literature on organizational justice and crisis management, providing valuable insights for businesses in similar situations. Full article

This study examined the factors affecting the fear of job loss, which is characteristic of various phases of an economic crisis. We used a representative sample of data from the Russia Longitudinal Monitoring Survey-Higher School of Economics for 2007, 2009, 2013, 2015, 2019, and 2021. It was assumed that the factors that determine the level of layoff anxiety are dynamic. The current economic conditions caused by both the COVID-19 pandemic and the growing prerequisites of a new economic crisis in Russia have promoted increased interest in this area. Method: Binary choice models were estimated using the maximum likelihood method with the calculation of average marginal effects. State ownership in the capital of an organization, a high income, job satisfaction, good qualifications, and a positive assessment of one’s health reduce layoff anxiety. The fear of job loss was found to peak at 45 years of age. The factors associated with job insecurity can be permanent or temporary, depending on the phase of the economic cycle. The conclusions of this study may be of interest to the management of organizations interested in increasing the efficiency of labor and production. Full article

During the COVID-19 lockdown period, several employers used furloughs, that is, temporary layoffs or unpaid leave, to sustain their businesses and retain their employees. While furloughs allow employers to reduce payroll costs, they are challenging for employees and increase voluntary turnover. This study uses a two-wave model (Time 1: n = 639/Time 2: n = 379) and confirms that furloughed employees’ perceived justice in furlough management and job insecurity (measured at Time 1) explain their decision to quit their employer (measured at Time 2). In addition, our results confirm that furloughed employees’ job embeddedness (measured at Time 1) has a positive mediator effect on the relationship between their perceived procedural justice in furlough management (measured at Time 1) and their turnover decision (Time 2). We discuss the contribution of this study to the fields of knowledge and practice related to turnover and furlough management to reduce their financial, human, and social costs. Full article

The COVID-19 pandemic has negatively affected the tourism and services sector. Using the example of Airbnb’s recent layoff of 25% of its workforce, we focused on the role of organizational justice in mitigating the negative psychological impacts of layoffs. Based on a unique survey of Airbnb employees who survived the layoffs, as well as those who left, we employed an ordinary least squares regression to show that employees’ perceptions of organizational justice were positively related to their job satisfaction and trust in management, while being negatively related to their emotional exhaustion and cynicism. We discovered the crucial importance of interactional justice (i.e., interpersonal and informational justice). The respect, dignity, and politeness shown by management (i.e., interpersonal justice), as well as truthful and adequate communication about the procedure (i.e., informational justice) were pivotal to successfully conducting layoffs, especially during unprecedented economic uncertainty. Full article

In the light of social exchange theory, our study aimed to explore the impact of psychological contract violation on survivors’ turnover intention, specifically in a downsizing context. We put forth a moderated mediation model to uncover the mediating role of organizational commitment, as well as the boundary conditions of organizational support and emotional susceptibility as a moderating mechanism. To test our hypotheses, we surveyed 202 out of 271 layoff survivors belonging to the stores of an established manufacturing and retail footwear business in the southwest region of China. The study found a positive relationship between psychological contract violation and the survivors’ turnover intention. In addition, organizational commitment has been identified as a powerful mediator between psychological contract violation and turnover intention. This study, however, only explores how organizational support significantly moderates the mediating effect of organizational commitment in regard to psychological contract violation and turnover intention. This study helps organizational practitioners to ensure sound management practices for employees, in order to get rid of adverse consequences evinced through individuals’ negative emotions. Full article

The COVID-19 pandemic caused an increasing number of corporate layoffs and downsizing, as well as causing many employees to be absent due to illness, with inevitable consequences on the health of active workers both from a physical point of view, due to the need to make up for staff and organizational shortages, and from a mental point of view, due to the inevitable consequences related to the uncertainty of the social context. This context has certainly caused an increase in work-related stress, which is the pathological outcome of a process that affects workers who are subjected to excessive (emotional-relational or high or low or inadequate activity) or improper work loads. The purpose of this paper is to evaluate the main aspects of this issue, through the analysis proposed by two case reports, both of which occurred during the COVID-19 pandemic, in which occupational stress emerged as an etiological agent in the determinism of death. Full article

In contrast with many other sectors of the Russian economy, there is low market concentration in the forest industry and, consequently, a large number of relatively small enterprises scattered throughout the world’s largest country. In many cases, logging or woodworking companies are the only or key employers in sparsely populated areas, making them important sources of the social and economic stability of small towns and rural settlements. In 2022, Russian forest companies faced dramatic barriers to international trade, which led to the suspension of production with the risk of further layoffs. Thus, the issue of social and economic importance of the forest business in Russia has gained additional sounding. This paper aims to estimate the decline in revenues and the number of employees in forestry companies in Asian Russia because of sanctions. Based on corporate accounting reports, we have generated a dataset covering 4675 forest industry companies in Asian Russia. We use quantile regression to estimate the impact of the number of employees on revenue. All companies were divided into quartiles by revenue and into 6 groups by type of economic activity. A significant differentiation of the return on the number of employees depending on the type of activity and the volume of firms’ revenues was found. Estimates of potential losses of companies during labor force reduction were obtained, which would be 1.2%–3.6% of revenue for a company from Q1, 2.2%–6.6% of revenue for Q2 and 2.7%–8.1% of revenue for Q3. The results clearly demonstrate that forest companies might be very interested in retaining a workforce, even if an opportunistic drop in product demand creates a financial shortfall. Policy makers should take this into account when shaping instruments to support the industry. Full article

In times of uncertainty, such as during COVID-19, many organizations experience profit decline, and employees develop a fear of external threats, such as organizational layoffs. However, most of the literature focuses on how people’s fear influences their well-being. Less is known about how employees’ fear of external threats influences their workplace behaviors. The current study proposes that supervisors’ fear of external threats stimulates those who are high in trait anger to behave in a more abusive way. Simultaneously, subordinates’ fear of external threats would strengthen the positive relationship between abusive supervision and their burnout and compulsory citizenship behaviors (CCB), as fear of external threats constrains their response options to abusive supervision. We tested the hypotheses with a multiwave and multisource survey study (N = 322 dyads) in China, and the results showed that supervisors’ fear of external threats strengthened the positive effect of trait anger on abusive supervision. Subordinates’ fear of external threats strengthens the positive relationships of abusive supervision with CCB and the mediating effect of abusive supervision in the relationship of supervisors’ trait anger with subordinates’ CCB. Our study enriches people’s understanding of how supervisors’ and subordinates’ fear of external threats may play roles in workplace behaviors. Full article

This study aims to examine how perceived justice affects downsizing survivors’ attitudes, from the psychological contract perspective. By using data collected through surveys from employees of the Industrial and Commercial Bank of China (ICBC) who have recently survived layoffs, we examine the relationships between perceived justice, the survivors’ psychological status, and their attitudes after downsizing. The hypothesis was verified through path analysis using SPSS 26.0 and Amos 23.0. Our findings are as follows. Perceived justice has a negative effect on psychological contract violation and a positive effect on trust. Psychological contract violation influences affective commitment negatively and influences turnover intention positively. Trust is positively related to affective commitment and negatively related to turnover intention. We hope that this study will be a useful piece of data that can provide guidelines for inducing positive behavior of members in downsized organizations. Full article