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Trust and management: Explaining cross-national differences in work autonomy

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  • Hoorn, André van

    (Groningen University)

Abstract

We open the black box of what goes on in firms in terms of management of their operations. Work autonomy is a key aspect of firm organization and we test the hypothesis that societal trust affects the level of autonomy that firms grant to their employees. Analysis of up to 189,213 individuals from 30 countries shows that trust is indeed highly conducive to work autonomy. This result is robust to controlling for a wide range of other features of countries? institutional environment, including measures of labor regulations and institutional quality. Our findings highlight the importance of informal institutions such as societal trust in shaping economic activity.

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File URL: http://irs.ub.rug.nl/ppn/36949024X
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Bibliographic Info

Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 13015-GEM.

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Date of creation: 2013
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Handle: RePEc:dgr:rugsom:13015-gem

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  1. Bloom, Nicholas & Sadun, Raffaella & Van Reenen, John, 2009. "The Organization of Firms Across Countries," CEPR Discussion Papers 7338, C.E.P.R. Discussion Papers.
  2. Nick Bloom & John Van Reenen, 2006. "Measuring and explaining management practices across firms and countries," LSE Research Online Documents on Economics 733, London School of Economics and Political Science, LSE Library.
  3. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-92, December.
  4. Nathan Nunn & Leonard Wantchekon, 2009. "The Slave Trade and the Origins of Mistrust in Africa," NBER Working Papers 14783, National Bureau of Economic Research, Inc.
  5. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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