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How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity

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  • Sandra E. Black
  • Lisa M. Lynch

Abstract

Using data from a unique nationally representative sample of businesses, we examine the impact of workplace practices, information technology, and human capital investments on productivity. We estimate an augmented Cobb-Douglas production function with both cross section and panel data covering the period of 1987-1993, using both within and GMM estimators. We find that it is not whether an employer adopts a particular work practice but rather how that work practice is actually implemented within the establishment that is associated with higher productivity. Unionized establishments that have adopted human resource practices that promote joint decision making coupled with incentive-based compensation have higher productivity than other similar nonunion plants, whereas unionized businesses that maintain more traditional labor management relations have lower productivity. Finally, plant productivity is higher in businesses with more-educated workers or greater computer usage by nonmanagerial employees. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 83 (2001)
Issue (Month): 3 (August)
Pages: 434-445

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Handle: RePEc:tpr:restat:v:83:y:2001:i:3:p:434-445

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Manuel Arellano recibe el premio Jaime I de Economía.
    by Cives in Politikon on 2012-06-05 17:13:35
  2. Can the government get the productivity policy mix right?
    by David Peetz, Professor of Employment Relations at Griffith University in The Conversation on 2013-07-21 20:09:53
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