Effect of poverty in cities and organizational size on the employment relationship: an empirical analysis
DOI:
https://doi.org/10.51302/rtss.2022.3329Keywords:
norm of reciprocity, employment relationship, social poverty, organizational size, business and society, human resource investment, labor productivityAbstract
The importance of understanding the nature of the employment relationship, defined as a dynamic process of social exchange between employers and employees, is widely accepted. It is also argued that this bond of reciprocity can be modified by various contextual factors. Paradoxically, there is a lack of empirical studies that delimit this relationship and examine its dependence on other elements. This research aims to fill these gaps. Drawing on the social exchange theory and using a large sample of 35,911 Spanish companies during the period 2015-2019,
a longitudinal structural equation model is designed in which a bidirectional relationship is configured between the incentive and the compensation received by employers and employees, respectively. Likewise, this employment relationship is examined according to municipal poverty and organizational size. Results confirm the presence of a relative reciprocity in Spanish companies, which is more intense in medium and large companies located in municipalities with low poverty, although only equitable in small companies located in municipalities with high poverty. Generally, the norm of reciprocity applies more to employees. The theoretical and practical implications of this study are presented.
Supporting Agencies
- Esta investigación fue posible gracias a la colaboración e inestimable ayuda de los técnicos del INE y de la empresa Informa D&B (Marta de la Fuente y Javier Heras), y fue financiada por el Programa Estatal de Generación de Conocimiento del Ministerio de Ciencia, Innovación y Universidades (PGC2018-099040-B-l00 [MCIU/AEI/FEDER, UE])
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