The impact of workplace conditions on firm performance
AbstractThis paper estimates the impact of work environment health and safety practice on …rm performance, and examines which …rm-characteristic factors are associated with good work conditions. We use Danish longitudinal register matched employer-employee data, merged with …rm business accounts and detailed cross-sectional survey data on workplace conditions. This enables us to address typical econometric problems such as omitted variables bias or endogeneity in estimating i) standard production functions augmented with work environment indicators and aggregate employee characteristics and ii) …rm mean wage regressions on the same explanatory variables. Our …ndings suggest that improvement in some of the physical dimensions of the work health and safety environment (speci…cally, "internal climate" and "repetitive and strenuous activ- ity") strongly impacts the …rm productivity, whereas "internal climate" problems are the only workplace hazards compensated for by higher mean wages.
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Bibliographic InfoPaper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 08-13.
Length: 40 pages
Date of creation: 23 Jun 2008
Date of revision:
Contact details of provider:
Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
Occupational health and safety; Work environment; Production function estimation; Firm performance; Compensating wage differentials;
Other versions of this item:
- Sebastian Buhai & Elena Cottini & Niels Westerg�rd-Nielsen, 2008. "The Impact of Workplace Conditions on Firm Performance," Tinbergen Institute Discussion Papers 08-077/3, Tinbergen Institute.
- J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-09 (All new papers)
- NEP-BEC-2009-05-09 (Business Economics)
- NEP-EFF-2009-05-09 (Efficiency & Productivity)
- NEP-HAP-2009-05-09 (Economics of Happiness)
- NEP-LAB-2009-05-09 (Labour Economics)
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- Petri B?ckerman & Pekka Ilmakunnas, 2012.
"The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 65(2), pages 244-262, April.
- Böckerman, Petri & Ilmakunnas, Pekka, 2010. "The job satisfaction-productivity nexus: A study using matched survey and register data," MPRA Paper 23348, University Library of Munich, Germany.
- Cristini, Annalisa & Eriksson, Tor & Pozzoli, Dario, 2012.
"High-Performance Management Practices and Employee Outcomes in Denmark,"
IZA Discussion Papers
6984, Institute for the Study of Labor (IZA).
- Annalisa Cristini & Tor Eriksson & Dario Pozzoli, 2013. "High-Performance Management Practices and Employee Outcomes in Denmark," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(3), pages 232-266, 07.
- Cristini, Annalise & Eriksson, Tor & Pozzoli, Dario, 2011. "High-Performance Management Practices and Employee Outcomes in Denmark," Working Papers 11-1, University of Aarhus, Aarhus School of Business, Department of Economics.
- Jones, Melanie K. & Latreille, Paul L. & Sloane, Peter J., 2011. "Job Anxiety, Work-Related Psychological Illness and Workplace Performance," IZA Discussion Papers 5809, Institute for the Study of Labor (IZA).
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