Firm size and regulatory compliance costs: The case of workers' compensation insurance

This paper examines the relative costs of workers' compensation insurance across firm-size groups, with particular focus on administrative scale economies (“compliance effects”) and biases in rate-setting (“enforcement effects”). Analyzing data on premiums and losses from the insurance industry, the authors find that the costs of insurance per dollar of loss are relatively high for very small firms. These higher costs reflect certain fixed administrative costs insurance companies must bear, but for extremely small firms these higher costs tend to be mitigated by an “enforcement” bias in state rate-setting outcomes. Due to imperfect experience-rating of insurance premiums, middle-sized firms—which have the highest losses—pay less per dollar of loss than either the smallest or largest firms. Indeed, it appears that large firms purchasing commercial workers' compensation insurance subsidize other size groups.     

Workers' compensation and the governance of pain

This article examines the medico-legal systems of workers' compensation. It is divided into three parts, the first taking an historical perspective to locate the first workers' compensation laws, the circumstances which led to their implementation, and their consequences in terms of the shift from individual fault to industrial risk. In the second part, the discursive practices of medico-legal knowledge-power typically found in workers' compensation systems are examined, especially the principles and clinical practices that are deployed to 'police' the boundaries of such schemes and to mitigate costs. Part three then summarizes the effect of neo-liberal governmentality and its underlying economic rationality as it attempts to regulate, by means of the artifice of liberty, the behaviours of firms and workers. Workers' compensation deserves analysis for the special technical and insurantial problems it entails, given its complex triangular insurance relation (involving the insurer, the firm, and the worker), its deployment of medical, economic and actuarial knowledges, and its production of special problems and uncertainties surrounding the governing of a class of persons incapacitated for productive work.     

Sustainable development challenges in a war‐torn country: Perceived danger and psychological well‐being

The laborer's physical and mental health, well‐being, and happiness are among the major indicators for measuring each nation's sustainable development. A conflictive and hostile external environment (war zone) poses considerable difficulty and psychological distress to workers and nonworkers. Therefore, working in such a physically dangerous business environment may hurt worker's well‐being and happiness that in turn may reduce the workers' productivity at the workplace. A high level of laborers' productivity in public and private sectors is essential for achieving sustainable development in the long term. Therefore, this paper examines the effects of perceived danger on employees' psychological well‐being in war‐torn Afghanistan, an issue being addressed for the first time. We tested the moderating role of social support from coworkers on this effect in order to have a broader vision of which individuals are healthier and happier in a physically dangerous working environment. Two survey data sets were collected from 190 employees working in various small private and public businesses in Herat, Afghanistan. Our results reveal the negative impact of perceived danger on employees' psychological well‐being and that employees who receive little or no social support from their peers feel the negative effects of a physically dangerous working condition even more acutely.     

Policy Games and Venue‐Shopping: Working the Stakeholder Interface to Broker Policy Change in Rehabilitation Services

How should bureaucrats engage effectively and ethically with stakeholders to achieve legitimate policy change? This essay draws upon findings from a case study of the introduction of an evidence‐based rehabilitation program for injured workers with soft‐tissue injuries in a workers' compensation jurisdiction in Australia. Despite initial enthusiasm for collaborative policy reform, clinical associations soon withdrew their support. In a classic case of venue‐shopping, a coalition of clinical associations formed in opposition to the foundation principles of the proposed policy, overturning the bureaucrats' preferred consultation strategy: a think‐tank comprising of invited clinical experts. The policy game turned from highly cooperative to fiercely competitive. These policy upheavals are interpreted through the lens of two theoretical perspectives: Sabatier's Advocacy Coalition framework, and Scharpf's Actor‐centred Institutionalism framework. The contrasts in perspectives are melded into propositions for bureaucrats seeking to engage with stakeholders in a contested policy drama.     

Informed Preferences? The Impact of Unions on Workers' Policy Views

Despite declining memberships, labor unions still represent large shares of electorates worldwide. Yet their political clout remains contested. To what extent, and in what way, do unions shape workers' political preferences? We address these questions by combining unique survey data of American workers and a set of inferential strategies that exploit two sources of variation: the legal choice that workers face in joining or opting out of unions and the over‐time reversal of a union's policy position. Focusing on the issue of trade, we offer evidence that unions influence their members' policy preferences in a significant and theoretically predictable manner. In contrast, we find that self‐selection into membership accounts at most for a quarter of the observed “union effect.” The study illuminates the impact of unions in cohering workers' voice and provides insight on the role of information provision in shaping how citizens form policy preferences.     

The boundary conditions for regulation: Welfare systems,state traditions,and the varied governance of work safety in Europe

Studies of the relationship between the welfare and regulatory state have hitherto either focused on the latter displacing the former, or presented regulation as an alternative means for achieving welfare goals. Little is known, however, about their varied mutual interactions. This article addresses that gap by examining the coevolution of workers' compensation and occupational safety regulation in Germany, France, the United Kingdom, and the Netherlands. Drawing on an extensive international analysis of primary documents, secondary literature, and interviews with regulator, insurance, business, and labor representatives, the article identifies strikingly varied but stable national preferences for: (a) the use of financial versus regulatory instruments and (b) the allocation of regulatory responsibilities between state and nonstate actors. The article presents a novel explanation of that variation as dependent on the relative coherence of interactions between the particular cost‐control logics of welfare provision and wider norms and traditions of state action in each country.     

‘An Internal Housekeeping Matter’:1 Whitehall and the BBC Monitoring Service

For over 65 years the BBC Monitoring Service has been providing Whitehall and its diplomatic, intelligence and security communities with a rich seam of ‘open‐source’ information mined from the word's media. However, while the continued importance of this work remains undisputed, in 2003 the future of the Monitoring Service was brought into serious doubt as a result of a proposed major reduction in its government funding. The source of this problem was a decade old dispute between sponsoring government departments over where the burden of responsibility lay for the costs of the service. The ensuing deadlock led the Intelligence and Security Co‐ordinator, Sir David Omand, to commission a Review of BBC Monitoring by Sir Quentin Thomas whose recommendations formed the basis of a new funding and governance regime for the Monitoring Service. This is the story of that dispute and the means used to achieve its eventual resolution.     

Governing kidnap for ransom: Lloyd's as a “private regime”

Kidnap for ransom raises significant governance challenges. In the absence of formal regulation and enforcement, insurers have created an effective private governance regime to facilitate smooth commercial resolutions. Controlling ransoms is paramount: “supernormal” profits for kidnappers create kidnapping booms and undermine the market for insurance. Ransom control requires cooperation, but there are high transactions costs in enforcing a collusive agreement. The Coasean prediction is that a single firm will form to internalize the externalities arising from lax insurance and mismanaged ransom negotiations—or a government must order the market. There is indeed a single source of kidnap insurance: Lloyd's of London. Yet, within the Lloyd's market several insurers compete for business. Lloyd's is a club providing private governance: Its members issue standard contracts, follow the same regime for kidnap resolution, and exchange information to stabilize ransoms. Lloyd's, therefore, combines aspects of Coase's “single firm” and “government” solution to the externalities problem.     

The “baby steps” in mainstreaming sustainable public procurement in Ghana: A “double‐agency” perspective

The emerging literature on public procurement policy suggests that public procurement may be leveraged to advance several public policy agenda. Hence, many countries have reformed their public procurement process towards social and environmental outcomes termed sustainable public procurement. These reforms have often been launched in response to international initiatives such as the global 10‐year framework for action on sustainable consumption and production by the Johannesburg implementation plan in 2002 and the Sustainable Development Goals. Yet, empirical evidence on the drivers and benefits of SPP in developing countries is still scarce. This gap is addressed with a qualitative case study of six public sector institutions in Ghana. On the basis of elite interviews, this paper highlights barriers to mainstreaming SPP in Ghana's public sector. We further advance the scanty principal–agency literature by establishing a double‐agency relationship in the context of SPP, which depicts limited agency cases where principals lack the capacity to defend their own interests.     

Sexual Harassment in the Federal Workplace

What factors influence the likelihood that a federal worker will receive unwanted sexual attention? Who is most likely to be accused of sexual harassment? What factors influence federal workers' perceptions of the effectiveness of agency sexual harassment training? Using the raw data file of the U.S. Merit Systems Protection Board's most recent survey on sexual harassment, the authors find that worker characteristics are the principal influence on the likelihood that a worker will receive unwanted sexual attention and whether an agency's sexual harassment training is perceived favorably. Contextual factors demonstrate lesser influence. Their conclusions lead the authors to believe that a reevaluation of training programs is in order. A one‐size‐fits‐all training approach may no longer be tenable, if it ever was.     

Strategic Considerations and Judicial Review: The Case of Workers' Compensation Laws in the American States

Whether state supreme court justices votesincerely or strategically depends upon:(1) justices' sincere preferences; (2)ideological differences between a justiceand other state actors, which affect the willingness of actors tosanction justices; and (3) institutionalrules and political settings, which affect the ability of otheractors to retaliate against justices forobjectionable decisions. Since institutional rules do notvary for the U.S. Supreme Court but do forthe 50 states, state supreme court cases are thebest site for testing conditions underwhich justices are likely to vote strategically. Moreover,amendment of state constitutions isrelatively easy, which permits systematic examination of theextent to which strategic behavior manifests in judicialreview cases. Using data on docketing anddecisions on workers' compensation laws for1970–1993, this research offers a broaderunderstanding of strategic behavior byjudges.     

Understanding “corruption” in regulatory agencies: The case of food inspection in Saudi Arabia

Corruption is a relatively neglected topic in studies of regulatory agencies. The label is applied to a wide range of deviations from behavioral standards ultimately derived from Weber's account of the ideals of Prussian bureaucracy. This paper draws on a study of the work of Saudi Food Inspectors to argue that it is unhelpful to reduce a complex phenomenon to simple allegations of malpractice that can be managed by disciplinary sanctions. Our data show that irregular behavior by street‐level agents may be deeply embedded in the expectations that members of a society have of one another. It is less a matter of personal gain than of maintaining one's recognition as a fellow citizen. Such behavior is not easily changed through sanctions directed at individual inspectors. Our study does not exclude the possibility that irregular behavior can be motivated by personal gain, and properly managed by criminal or similar penalties. However, it does propose that research should be more sensitive to the contexts within which irregular behavior occurs rather than treating “corruption” as a uniform and homogenous phenomenon.     

People’s Mediation Committees: Bargaining Between Hospitals and Patients

The Chinese government is cautious when it comes to managing bottom-up compensation claims as many collective actions are triggered by failing to address such monetary requests. Thus, the government has delegated the responsibility of dispute resolution and compensation distribution to a bargaining channel called People’s Mediation Committees and its agents, the mediators. However, little systematic evidence exists to explain the rationale for compensation distribution led by the government or the regime’s strategic objectives in pursuing compensation distribution to settle social disputes, especially those disputes between citizens and the government or its agents. Using medical dispute data as a proxy, this article examines the processes and outcomes of mediation in compensation distribution. It finds that People’s Mediation Committees have effectively institutionalized the compensation distribution process, but the outcomes may still be influenced by patients’ tactics and the bargaining power held by hospitals.

     

“Big Tigers,Big Data”: Learning Social Reactions to China's Anticorruption Campaign through Online Feedback

This article examines the effect of campaign‐style anticorruption efforts on political support using the case of China's most recent anticorruption drive, which stands out for its harsh crackdown on high‐ranking officials, known as “big tigers.” An exploratory text analysis of more than 370,000 online comments on the downfall of the first 100 big tigers, from 2012 to 2015, reveals that public support for the top national leader who initiated the anticorruption campaign significantly exceeded that afforded to anticorruption agencies and institutions. Further regression analyses show that support for the leaders with respect to intuitions increased with the tigers' party ranking. Findings suggest that while campaign‐style enforcement can reinforce the central authority and magnify support for individual leaders, it may also marginalize the role of legal institutions crucial to long‐term corruption control.     

Subnational Responses to Fracking in Canada: Explaining Saskatchewan's “Wild West” Regulatory Approach

This article assesses the regulatory response to fracking by Saskatchewan, Canada's second largest oil‐producing province. Public officials and industry representatives claim fracking regulations are “comprehensive” and “robust”; however, there has been no comparative assessment of this claim. To address this gap, we outline the dominant regulatory pathways of U.S. states and Canadian provinces, ranging from applying existing regulations with minimal revisions, to enacting broader revisions or bans. We account for this variation using a framework from Davis ( 2012 ) emphasizing governments’ dependence on the oil sector, the level of support for fracking among elected officials and policy makers, and the influence of key “constituencies.” The article then traces the growth and impact of fracking in Saskatchewan and analyzes new trends in the province's regulation of fracking. Given the province's application of existing regulations with minimal revisions and active weakening of enforcement, we identify Saskatchewan as taking Rabe and Borick's ( 2013 ) “conventional” regulatory approach, typical of Davis's “energy dominant” states.     

“WOMEN'S PRISONS” AND “MEN'S PRISONS”: SHOULD PRISONERS BE CLASSIFIED BY SEX?

What are the differences between “women's prisons” and “men's prisons”? That question is answered in this article, which documents that many institutions “for” women do not provide services designed specially for women, or anyone else. Moreover, some women's prisons provide fewer vocational, recreational, and educational programs than do institutions “for” men. Given the growing literature on the disparity of services and on the relative deprivations faced by many women prisoners, the author questions whether segregation by sex should continue to be used as a major premise of prison classification systems.     

WHAT IS A “GOOD” SOCIAL NETWORK FOR POLICY IMPLEMENTATION? THE FLOW OF KNOW‐HOW FOR ORGANIZATIONAL CHANGE

This study concerns how intraorganizational networks affect the implementation of policies and practices in organizations. In particular, we attend to the role of the informal subgroup or clique in cultivating and distributing locally adapted and integrated knowledge, or know‐how. We develop two hypotheses based on the importance of intraorganizational coordination for an organization's capacity for change. The first emphasizes the importance of distributing know‐how evenly to potential recipient subgroups. The second emphasizes the importance of restricting know‐how to flow from high know‐how subgroups. We test our hypotheses with longitudinal network data in 21 schools, finding stronger support for the second hypothesis than the first. Our findings can help managers cultivate know‐how flows to contribute to organizational change.     

“Robin Hood” and Texas School District Borrowing Costs

The “Robin Hood” system of school financing in Texas takes property tax funds from wealthy school districts and gives them to poorer districts. This paper examines Permanent School Fund‐insured, school district debt and discovers that under the “Robin Hood” system, Texas school districts with either Aa or A1 underlying credit ratings have higher borrowing costs than districts with lower ratings. Also, the borrowing costs of Texas school districts with underlying credit ratings of Aa and A1 are higher than those for non‐Texas, privately insured school districts with the same ratings, while the borrowing costs of A and Baa‐rated Texas school districts are lower.     

The road to economic self‐sufficiency: Job quality and job transition patterns after welfare reform

This paper analyzes the relationships of schooling, the skill content of work experience, and different types of employment patterns with less‐skilled women's job quality outcomes. Survey data from employers and longitudinal data from former and current welfare recipients are used for the period 1997 to early 2002. The analysis of job quality is broadened beyond employment rates and wages measured at a point in time by including non‐wage attributes of compensation and aspects of jobs that affect future earnings potential. This study shows the extent to which lack of employment stability, job skills, and occupation‐specific experience impedes welfare recipients' abilities to obtain a “good job” or to transition into one from a “bad job.” The business cycle downturn has significantly negatively affected the job quality and job transition patterns of former and current recipients. © 2003 by the Association for Public Policy Analysis and Management.