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High-Performance Management Practices and Employee Outcomes in Denmark

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Author Info

  • Cristini, Annalisa

    ()
    (University of Bergamo)

  • Eriksson, Tor

    ()
    (Aarhus School of Business)

  • Pozzoli, Dario

    ()
    (Copenhagen Business School)

Abstract

High-performance work practices are frequently considered to have positive effects on corporate performance, but what do they do for employees? After assessing the correlation between organizational innovation and firm performance, this article investigates whether high-involvement work practices affect workers in terms of wages, wage inequality and workforce composition. The analysis is based on a survey directed at Danish firms matched with linked employer-employee data and also examines whether the relationship between high-involvement work practices and employee outcomes is affected by the industrial relations context.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6984.

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Length: 44 pages
Date of creation: Nov 2012
Date of revision:
Publication status: published in: Scottish Journal of Political Economy, 2013, 60 (3), Lead article.
Handle: RePEc:iza:izadps:dp6984

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Keywords: workforce composition; wage inequality; workplace practices; hierarchy;

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  1. Buhai, Sebastian & Cottini, Elena & Westergaard-Nielsen, Niels, 2008. "The impact of workplace conditions on firm performance," Working Papers, University of Aarhus, Aarhus School of Business, Department of Economics 08-13, University of Aarhus, Aarhus School of Business, Department of Economics.
  2. Raghuram Rajan & Julie Wulf, 2003. "The Flattening Firm: Evidence from Panel Data on the Changing Nature of Corporate Hierarchies," NBER Working Papers 9633, National Bureau of Economic Research, Inc.
  3. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 37(4), pages 1615-1660, December.
  4. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 70(2), pages 317-341, 04.
  5. Michael J. Handel & Maury Gittleman, 1999. "Is There a Wage Payoff to Innovative Work Practices?," Economics Working Paper Archive, Levy Economics Institute wp_288, Levy Economics Institute.
  6. Nathalie Greenan & Jacques Mairesse, 1999. "Organizational Change in French Manufacturing: What Do We Learn From Firm Representatives and From Their Employees?," NBER Working Papers 7285, National Bureau of Economic Research, Inc.
  7. Richard Blundell & Steve Bond, 1999. "GMM estimation with persistent panel data: an application to production functions," IFS Working Papers, Institute for Fiscal Studies W99/04, Institute for Fiscal Studies.
  8. Stephen Machin & Stephen Wood, 2005. "Human resource management as a substitute for trade unions in British workplaces," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(2), pages 201-218, January.
  9. Annalisa CRISTINI & Alessandro GAJ & Sandrine LABORY & Riccardo LEONI, 2003. "Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance," Rivista Italiana degli Economisti, SIE - Societa' Italiana degli Economisti (I), vol. 8(2), pages 313, August.
  10. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, Elsevier, vol. 104(3), pages 112-114, September.
  11. David Neumark & Peter Cappelli, 1999. "Do "High Performance" Work Practices Improve Establishment-Level Outcomes?," NBER Working Papers 7374, National Bureau of Economic Research, Inc.
  12. Cristini Annalisa & Gaj Alessandro & Labory Sandrine & Leoni Riccardo, 2003. "Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 313.
  13. Parrotta, Pierpaolo & Pozzoli, Daio, 2009. "The Effect of Learning by Hiring on Productivity," Working Papers, University of Aarhus, Aarhus School of Business, Department of Economics 09-11, University of Aarhus, Aarhus School of Business, Department of Economics.
  14. John Godard, 2004. "A Critical Assessment of the High-Performance Paradigm," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 42(2), pages 349-378, 06.
  15. Lisa M. Lynch & Sandra E. Black, 1998. "Beyond the incidence of employer-provided training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 64-81, October.
  16. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
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