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Adoption and Termination of Employee Involvement Programs

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  • Wei Chi
  • Richard B. Freeman
  • Morris M. Kleiner

Abstract

This study uses a 10-year longitudinal database on U.S. manufacturing establishments to analyze the dynamics of the adoption and termination of employee involvement programs (EI). We show that firms' use of EI has not grown continuously, but rather introduce and terminate EI policies in ways that imply that the policies are complementary with each other and with other advanced human resource practices, seemingly moving toward an equilibrium distribution of EI policies. Using a Markov model, we estimate the long-run distribution of the number of EI programs in firms and find that adjustment to the steady-state distribution takes about 20 years.

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File URL: http://hdl.handle.net/10.1111/j.1467-9914.2010.00510.x
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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 25 (2011)
Issue (Month): 1 (03)
Pages: 45-62

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Handle: RePEc:bla:labour:v:25:y:2011:i:1:p:45-62

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References

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  1. John Godard, 2004. "A Critical Assessment of the High-Performance Paradigm," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 349-378, 06.
  2. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters, in: Measuring Capital in the New Economy, pages 205-236 National Bureau of Economic Research, Inc.
  3. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, 06.
  4. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  5. Larry W. Hunter & John Paul Macduffie & Lorna Doucet, 2002. "What makes teams take? Employee reactions to work reforms," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 448-472, April.
  6. Morris M. Kleiner & Richard B. Freeman, 2000. "Who Benefits Most from Employee Involvement: Firms or Workers?," American Economic Review, American Economic Association, vol. 90(2), pages 219-223, May.
  7. Peter Cappelli & David Neumark, 2001. "Do "high-performance" work practices improve establishment-level outcomes?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 737-775, July.
  8. Adrienne E. Eaton, 1994. "The survival of employee participation programs in unionized settings," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 371-389, April.
  9. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee voice, human resource practices, and quit rates: Evidence from the telecommunications industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 573-594, July.
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Cited by:
  1. Lisa Lynch, 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," Working Papers 07-18, Center for Economic Studies, U.S. Census Bureau.
  2. Susan Helper & Morris M. Kleiner, 2007. "International Differences in Lean Production, Productivity and Employee Attitudes," NBER Working Papers 13015, National Bureau of Economic Research, Inc.
  3. Ollo-López, Andrea & Bayo-Moriones, Alberto & Larraza-Kintana, Martín, 2011. "The impact of country-level factors on the use of new work practices," Journal of World Business, Elsevier, vol. 46(3), pages 394-403, July.
  4. Kato, Takao & Owan, Hideo, 2011. "Market characteristics, intra-firm coordination, and the choice of human resource management systems: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 375-396.

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