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Is There a Wage Payoff to Innovative Work Practices?

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  • Michael J. Handel
  • Maury Gittleman

Abstract

During the 1980s, wage inequality increased dramatically and the American economy lost many high wage, low- to medium-skill jobs, which had provided middle class incomes to less skilled workers. Increasingly, less skilled workers seemed restricted to low wage jobs lacking union or other institutional protections. Although "good" jobs for less skilled workers are unlikely to return in their previous form, a number of sociologists, economists, and industrial relations scholars have suggested that a new paradigm of work, often called "high performance," is emerging, which offers such workers more skilled jobs and higher wages. Using a unique national data set we find little evidence that high performance work systems are associated with higher wages.

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Bibliographic Info

Paper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_288.

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Date of creation: Nov 1999
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Handle: RePEc:lev:wrkpap:wp_288

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Web page: http://www.levyinstitute.org

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References

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  1. Gary W. Loveman & Chris Tilly, 1988. "Good jobs or bad jobs: what does the evidence say?," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 46-65.
  2. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  3. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  4. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
  5. Maury B. Gittleman & David R. Howell, 1995. "Changes in the structure and quality of jobs in the United States: Effects by race and gender, 1973û1990," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(3), pages 420-440, April.
  6. Piore, M.J., 1989. "Corporate Reform In American Manufacturing And The Challenge To Economic Theory," Working papers 533, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Kochan, Thomas A., 1996. "What works at work : overview and assessment," Working papers 3886-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  8. Harley Frazis & Maury Gittleman & Mary Joyce, 2000. "Correlates of training: An analysis using both employer and employee characteristics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 443-462, April.
  9. Peter Cappelli, 1996. "Technology and skill requirements: implications for establishment wage structures," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 139-156.
  10. 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.
  11. Kruse, Douglas L, 1992. "Profit Sharing and Productivity: Microeconomic Evidence from the United States," Economic Journal, Royal Economic Society, vol. 102(410), pages 24-36, January.
  12. Maury Gittleman & Michael Horrigan & Mary Joyce, 1998. "Flexible workplace practices: Evidence from a nationally representative survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 99-115, October.
  13. John MacDuffie, 1995. "Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
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Cited by:
  1. Andries de Grip & Inge Sieben, 2005. "The effects of human resource management on small firms' productivity and employees' wages," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1047-1054.
  2. Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute for the Study of Labor (IZA).
  3. Joseph R. Blasi & Douglas L. Kruse & Richard B. Freeman, 2010. "Epilogue (and Prologue)," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 377-386 National Bureau of Economic Research, Inc.
  4. Richard J. Long & Tony Fang, 2012. "Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 65(4), pages 899-927, October.
  5. Pugno Maurizio & Depedri Sara, 2010. "Job Performance and Job Satisfaction: An Integrated Survey," Economia politica, Società editrice il Mulino, issue 1, pages 175-210.
  6. Tushar Kanti Nandi, 2006. "Employee Participation and Wages: An Empirical Investigation with Selectivity Correction," Department of Economics University of Siena 483, Department of Economics, University of Siena.
  7. Douglas Kruse & Richard Freeman & Joseph Blasi, 2008. "Do Workers Gain by Sharing? Employee Outcomes under Employee Ownership, Profit Sharing, and Broad-based Stock Options," NBER Working Papers 14233, National Bureau of Economic Research, Inc.
  8. 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.
  9. Peter Skott & Frederick Guy, 2005. "Power-Biased Technological Change and the Rise in Earnings Inequality," UMASS Amherst Economics Working Papers 2005-17, University of Massachusetts Amherst, Department of Economics.
  10. Bellmann, Lutz & Cornelißen, Thomas & Hübler, Olaf & Pahnke, André, 2008. "Betriebliche Reorganisation, Entlohnung und Beschäftigungsstabilität (Organisational change, wages and job stability)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 259-285.
  11. Ferreira, Pedro & Porto, Nelida & Portela, Marta, 2010. "Women's participation in high performance work practices: a comparative analysis of Portugal and Spain," MPRA Paper 36404, University Library of Munich, Germany, revised 2010.
  12. Derek C. Jones & Srecko Goic, 2010. "Do Innovative Workplace Practices Foster Mutual Gains? Evidence From Croatia," William Davidson Institute Working Papers Series wp993, William Davidson Institute at the University of Michigan.
  13. Douglas L. Kruse & Joseph R. Blasi & Richard B. Freeman, 2012. "Does Linking Worker Pay to Firm Performance Help the Best Firms Do Even Better?," NBER Working Papers 17745, National Bureau of Economic Research, Inc.
  14. Suzanne Konzelmann & Neil Conway & Linda Trenberth & Frank Wilkinson, 2005. "Corporate governance, stake-holding and the nature of employment relations within the firm," ESRC Centre for Business Research - Working Papers wp313, ESRC Centre for Business Research.
  15. Douglas L. Kruse & Richard B. Freeman & Joseph R. Blasi, 2010. "Do Workers Gain by Sharing? Employee Outcomes under Employee Ownership, Profit Sharing, and Broad-Based Stock Options," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 257-289 National Bureau of Economic Research, Inc.
  16. repec:iab:iabzaf:v:41:i:2/3:p:259-285 is not listed on IDEAS

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