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The Effects of Human Resource Management on Workers' Wages and Firm Productivity

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Author Info
Grip,Andries,de
Sieben,Inge (ROA rm)

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Abstract

We analyze whether the effects of human resource practices on workers’ wages and firm productivity are similar or different. We find that firms’ wage policies overestimate the relevance of sector-specific skills and underestimate the productivity enhancing effect of computer skills. Moreover, only the firm benefits from performance related pay, whereas only the workers benefit from performance evaluation interviews. Finally, our estimation results show that in small firms a more advanced HRM system may not result in a convergence of interests between workers and the firm.

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Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 001.

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Date of creation: 2004
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Handle: RePEc:dgr:umaror:2004001

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Keywords: education; training and the labour market;

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    Other versions:
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  11. John Haltiwanger & Marilyn E. Manser & Robert Topel, 1998. "Labor Statistics Measurement Issues," NBER Books, National Bureau of Economic Research, Inc, number halt98-1, September.
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  13. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-62, October. [Downloadable!] (restricted)
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    Other versions:
  15. Dearden, Lorraine & Reed, Howard & Van Reenen, John, 2000. "Who Gains when Workers Train? Training and Corporate Productivity in a Panel of British Industries," CEPR Discussion Papers 2486, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  16. Medoff, James L & Abraham, Katharine G, 1980. "Experience, Performance, and Earnings," The Quarterly Journal of Economics, MIT Press, vol. 95(4), pages 703-36, December. [Downloadable!] (restricted)
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  22. Peter Cappelli & David Neumark, 2001. "Do "high-performance" work practices improve establishment-level outcomes?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(4), pages 737-775, July.
    Other versions:
  23. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
    Other versions:
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