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Employee Involvement And Pay At Us And Canadian Auto Suppliers

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  • Susan Helper
  • David I. Levine
  • Elliot Bendoly

Abstract

We use survey data and field research to investigate the effects of employee involvement practices on outcomes for blue-collar workers in the auto-supply industry. We find these practices raise wages by 3-5%. The causal mechanism linking involvement and wages appears to be most consistent with efficiency-wage theories, and least consistent with compensating differences. We find no evidence that employee involvement affects plants' survival or employment growth. Copyright (c) 2002 Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 11 (2002)
Issue (Month): 2 (06)
Pages: 329-377

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Handle: RePEc:bla:jemstr:v:11:y:2002:i:2:p:329-377

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References

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  1. Lisa M Lynch & Sandra E Black, 2002. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," Working Papers 02-04, Center for Economic Studies, U.S. Census Bureau.
  2. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
  3. Lindbeck, Assar & Snower, Dennis J., 1997. "Reorganization of Firms and Labor Market Inequality," Seminar Papers 605, Stockholm University, Institute for International Economic Studies.
  4. William T. Dickens, 1986. "Wages, Employment and the Threat of Collective Action by Workers," NBER Working Papers 1856, National Bureau of Economic Research, Inc.
  5. Lindbeck, Assar & Snower, Dennis J, 1986. "Wage Setting, Unemployment, and Insider-Outsider Relations," American Economic Review, American Economic Association, vol. 76(2), pages 235-39, May.
  6. Levine, David I. & Parkin, Richard J., 1994. "Work organization, employment security, and macroeconomic stability," Journal of Economic Behavior & Organization, Elsevier, vol. 24(3), pages 251-271, August.
  7. Dow, Gregory K, 1993. "Why Capital Hires Labor: A Bargaining Perspective," American Economic Review, American Economic Association, vol. 83(1), pages 118-34, March.
  8. Susan Helper, 1997. "Complementarity and Cost Reduction: Evidence from the Auto Supply Industry," NBER Working Papers 6033, National Bureau of Economic Research, Inc.
  9. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
  10. Bearse, Peter M & Bozdogan, Hamparsum & Schlottmann, Alan M, 1997. "Empirical Econometric Modelling of Food Consumption Using a New Informational Complexity Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(5), pages 563-86, Sept.-Oct.
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Cited by:
  1. Dr Alex Bryson, 2011. "Does High Involvement Managment Lead to Higher Pay?," NIESR Discussion Papers 2908, National Institute of Economic and Social Research.
  2. Czarnitzki, Dirk & Kraft, Kornelius, 2008. "Mitarbeiteranreizsysteme und Innovationserfolg (Employee suggestion schemes and innovation success)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 245-258.
  3. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra-Firm Wage Dispersion Among Blue-Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, 09.
  4. Ann P. Bartel, 2000. "Human Resource Management and Performance in the Service Sector: The Case of Bank Branches," NBER Working Papers 7467, National Bureau of Economic Research, Inc.
  5. David I. Levine & Michael W. Toffel, 2010. "Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers," Management Science, INFORMS, vol. 56(6), pages 978-996, June.
  6. Stephanie Lluis, . "Human Resource Management Practices and Wage Dispersion in U.S. Establishments," Working Papers 0603, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
  7. repec:iab:iabzaf:v:41:i:2/3:p:245-258 is not listed on IDEAS

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