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The Effects of New Work Practices on Workers

In: America at Work

Author

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  • Michael J. Handel
  • David I. Levine

Abstract

The study of work and employment in the 1970s was shaped by a widely cited report that took stock of the current workplace and proposed broad changes (Work in America 1973). Some of those changes came under the heading of employee involvement (EI) practices. In this chapter we review research on how EI practices affect job quality and assess the extent to which they have delivered on their promise. Overall, we find that new workplace practices increase employee satisfaction and (on average) increase wages by a small amount. Effects on employee injury rates are less clear. It is also unclear if the small and inconsistent findings across many studies reflect variation in the seriousness of implementation (with many workplaces making few real changes), variation in the quality of the studies and measures, or true variation in effects. We conclude with an analysis of some considerations of policy options.

Suggested Citation

  • Michael J. Handel & David I. Levine, 2006. "The Effects of New Work Practices on Workers," Palgrave Macmillan Books, in: Edward E. Lawler & James O’Toole (ed.), America at Work, chapter 5, pages 73-85, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-8359-6_5
    DOI: 10.1057/9781403983596_5
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    Cited by:

    1. Petri Böckerman & Alex Bryson & Pekka Ilmakunnas, 2013. "Does high involvement management lead to higher pay?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 861-885, October.
    2. Petri Böckerman & Edvard Johansson & Antti Kauhanen, 2012. "Innovative work practices and sickness absence: what does a nationally representative employee survey tell?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(3), pages 587-613, June.
    3. Böckerman, Petri & Bryson, Alex & Ilmakunnas, Pekka, 2012. "Does high involvement management improve worker wellbeing?," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 660-680.
    4. 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.
    5. Jaren Haber, 2016. "Institutionalized Involvement: Teams and Stress in 1990s U.S. Steel," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(4), pages 632-661, October.
    6. Nicole Nestoriak & John Ruser, 2010. "Emerging Labor Market Trends and Workplace Safety and Health," NBER Chapters, in: Labor in the New Economy, pages 425-453, National Bureau of Economic Research, Inc.
    7. Tushar Kanti Nandi, 2006. "Employee Participation and Wages: An Empirical Investigation with Selectivity Correction," Department of Economics University of Siena 483, Department of Economics, University of Siena.
    8. 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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