Stock Options and Employees' Firm-Specific Human Capital Under the Threat of Divesture and Aquisition

Abstract The rise of China's tech companies in the global economy raises an urgent need to understand how China incubates its tech startups. China's tech startup ecosystem presents two puzzling legal arrangements for human capital in light of Silicon Valley's experience, the co-existence of enforceable non-compete agreements and the high-velocity labour market, and the common use of stock options with a buyback norm. This article delves into the peculiarities of China's legal and political institutions to resolve these legal puzzles. This article also speaks to a global policy debate about the replicability of Silicon Valley and the necessity of such replication. The Chinese experience offers opposite examples showing the replication complexity: replication yet with deformed practices, and non-replication yet with similar outcomes. The findings suggest that there is unlikely to be a one-size-fits-all model for creating an innovation economy.

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Change in occupational tasks and its implications: evidence from a task panel from 1973 to 2011 for Western Germany

Quality & Quantity ◽

10.1007/s11135-021-01158-y ◽

2021 ◽

Author(s):

Tobias Maier

Keyword(s):

Human Capital ◽

Institutional Economics ◽

Labor Demand ◽

Sociological Research ◽

Cross Sectional ◽

Data Set ◽

Capital Theory ◽

Task Change ◽

Western Germany ◽

Specific Human Capital

AbstractThe change of tasks in occupations is of interest to economic and sociological research from three perspectives. The task-based technological change approach describes tasks as the link between capital input and labor demand. In human capital theory, tasks are used to distinguish between general and specific human capital. Moreover, in institutional economics or sociology, it is argued that the specificity of occupations influences the marketability of the corresponding skills and tasks. However, data sources that illustrate task change within occupations are rare. The objective of this paper is therefore to introduce a task panel, which is created based on 16 cross-sectional surveys from between 1973 and 2011 of the German microcensus (Labor-Force-Survey), as an additional source to monitor task change. I present and discuss the harmonization method for eleven main activities that are exercised by the incumbents of the occupation within 176 occupational groups. To demonstrate the research potential of this novel data source, I develop an alternative theoretical view on the task-technology framework and classify the harmonized tasks according to their relationship to technological inventions in the third industrial (micro-electronic) revolution (technologically replaceable, technology-accompanying, technology-complementary and technologically neutral). Matching the task panel to an already existing Occupational Panel (OccPan) for Western Germany from 1976 to 2010, I can use fixed-effect regressions to show that changes of tasks within occupations correspond with theoretical expectations regarding the median wage growth of an occupation. The task panel can be matched to any data set containing a German classification of occupations from 1975, 1988 or 1992 to investigate further effects of task change on individual labor market success.

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