Does High Involvement Management Lead to Higher Pay?
AbstractUsing 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1046.
Date of creation: Feb 2011
Date of revision:
Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
wages; high involvement management; high performance work system; incentivepay; training; team working; information sharing; propensity score matching;
Other versions of this item:
- 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.
- Böckerman, Petri & Bryson, Alex & Ilmakunnas, Pekka, 2011. "Does high involvement management lead to higher pay?," MPRA Paper 28711, University Library of Munich, Germany.
- Petri Böckerman & Alex Bryson & Pekka Ilmakunnas, 2011. "Does high involvement management lead to higher pay?," LSE Research Online Documents on Economics 38575, London School of Economics and Political Science, LSE Library.
- Dr Alex Bryson, 2011. "Does High Involvement Managment Lead to Higher Pay?," NIESR Discussion Papers 2908, National Institute of Economic and Social Research.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
- M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- M53 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Training
- M54 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Labor Management
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-12 (All new papers)
- NEP-BEC-2011-03-12 (Business Economics)
- NEP-HRM-2011-03-12 (Human Capital & Human Resource Management)
- NEP-LAB-2011-03-12 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Markus Frölich, 2004. "Finite-Sample Properties of Propensity-Score Matching and Weighting Estimators," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 77-90, February.
- Edward P. Lazear, 2000.
"Performance Pay and Productivity,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1346-1361, December.
- Abadie, Alberto & Imbens, Guido W., 2011. "Bias-Corrected Matching Estimators for Average Treatment Effects," Journal of Business & Economic Statistics, American Statistical Association, vol. 29(1), pages 1-11.
- Paul Osterman, 2006. "Wage effects of high performance work organization in manufacturing," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(2), pages 187-204, January.
- Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High-Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
- Douglas L. Kruse & Richard B. Freeman & Joseph R. Blasi, 2010. "Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options," NBER Books, National Bureau of Economic Research, Inc, number krus08-1, May.
- Helper, Susan & Levine, David I. & Bendoly, Elliott, 2000.
"Employee Involvement and Pay at U.S. and Canadian Auto Suppliers,"
Institute for Research on Labor and Employment, Working Paper Series
qt8t51741b, Institute of Industrial Relations, UC Berkeley.
- Susan Helper & David I. Levine & Elliot Bendoly, 2002. "Employee Involvement And Pay At Us And Canadian Auto Suppliers," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(2), pages 329-377, 06.
- Helper, S. & Levine, D.I. & Bendoly, E., 1999. "Employee Involvment and Pay at U.S. and Canadian Auto Suppliers," Papers 71, California Berkeley - Institute of Industrial Relations.
- Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
- John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
- Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
- Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
- Alex Bryson & Rafael Gomez & Tobias Kretschmer & Paul Willman, 2007. "The diffusion of workplace voice and high-commitment human resource management practices in Britain, 1984–1998," Industrial and Corporate Change, Oxford University Press, vol. 16(3), pages 395-426, June.
- Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.