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The Effect of High-Performance Work Practices on Employee Earnings in the Steel, Apparel, and Medical Electronics and Imaging Industries

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  • Thomas Bailey
  • Peter Berg
  • Carola Sandy

Abstract

Using interview and survey data they gathered in 1995–97 from managers and employees in 45 establishments, the authors investigate how high-performance work practices, such as self-directed teams and offline teams, affected workers' earnings in the apparel, steel, and medical electronics industries. An analysis with extensive controls for personal characteristics and other variables shows a positive relationship between high-performance practices and earnings in the apparel and steel industries. In medical electronics and imaging, the same statistically significant association disappears when a control variable for education is added, suggesting that there is a strong relationship between formal education and high-performance systems in that industry.

Suggested Citation

  • Thomas Bailey & Peter Berg & Carola Sandy, 2001. "The Effect of High-Performance Work Practices on Employee Earnings in the Steel, Apparel, and Medical Electronics and Imaging Industries," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 525-543, March.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2a:p:525-543
    DOI: 10.1177/001979390105400228
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Ariel C. Avgar & Niti Pandey & Kiwook Kwon, 2012. "Discretion in Context: A Moderated Mediation Model of the Relationship between Discretion and Turnover Intentions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(1), pages 106-128, January.
    2. Neil Conway & Simon Deakin & Suzanne Konzelmann & Héloïse Petit & Antoine Rebérioux & Frank Wilkinson, 2008. "The Influence of Stock Market Listing on Human Resource Management: Evidence for France and Britain," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 631-673, December.
    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, September.
    4. Jody Hoffer Gittell & Rob Seidner & Julian Wimbush, 2010. "A Relational Model of How High-Performance Work Systems Work," Organization Science, INFORMS, vol. 21(2), pages 490-506, April.
    5. Rosemary Batt & Hiroatsu Nohara & Hyunji Kwon, 2010. "Employer Strategies and Wages in New Service Activities: A Comparison of Co‐ordinated and Liberal Market Economies," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 400-435, June.
    6. A. Arrighetti & L. Cattani & F. Landini & A. Lasagni, 2019. "Work Flexibility and Firm Growth," Economics Department Working Papers 2019-EP04, Department of Economics, Parma University (Italy).
    7. Ravi Dhar & Ning Zhu, 2006. "Up Close and Personal: Investor Sophistication and the Disposition Effect," Management Science, INFORMS, vol. 52(5), pages 726-740, May.
    8. Nadeem, Sadia & Raza, Mishal & Kayani, Neelab & Aziz, Amna & Nayab, Dure, 2018. "Examining cross-cultural compatibility of high performance work practices," International Business Review, Elsevier, vol. 27(3), pages 563-583.
    9. 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, June.
    10. Lollo, Niklas & O’Rourke, Dara, 2018. "Productivity, Profits, and Pay: A Field Experiment Analyzing the Impacts of Compensation Systems in an Apparel Factory," Institute for Research on Labor and Employment, Working Paper Series qt31c4j2hz, Institute of Industrial Relations, UC Berkeley.

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