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Does High Involvement Management Lead to Higher Pay?

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  • Alex Bryson
  • Petri Böckerman
  • Pekka Ilmakunnas

Abstract

Using nationally representative survey data for Finnish employees linked to register data on their wages and work histories we find wage effects of high involvement management (HIM) practices are generally positive and significant. However, employees with better wage and work histories are more likely to enter HIM jobs. The wage premium falls substantially having accounted for employees' work histories suggesting that existing studies' estimates are upwardly biased due to positive selection into HIM. Results do not differ significantly when using propensity score matching as opposed to standard regression techniques. The premium rises with the number of HIM practices and differs markedly across different types of HIM practice.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1046.

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Date of creation: Feb 2011
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Handle: RePEc:cep:cepdps:dp1046

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: wages; high involvement management; high performance work system; incentivepay; training; team working; information sharing; propensity score matching;

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