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Adoption and Termination of Employee Involvement Programs

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Author Info
Wei Chi
Richard B. Freeman
Morris M. Kleiner

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Abstract

This study uses a 10-year longitudinal database on U.S. manufacturing establishments to analyze the dynamics of the adoption and termination of employee involvement programs (EI). We show that firms' use of EI has not grown continuously, but rather introduce and terminate EI policies in ways that imply that the policies are complementary with each other and with other advanced human resource practices, seemingly moving toward an equilibrium distribution of EI policies. Using a Markov model, we estimate the long-run distribution of the number of EI programs in firms and find that adjustment to the steady-state distribution takes about 20 years.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12878.

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Date of creation: Jan 2007
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Handle: RePEc:nbr:nberwo:12878

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Find related papers by JEL classification:
J0 - Labor and Demographic Economics - - General
J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee voice, human resource practices, and quit rates: Evidence from the telecommunications industry," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 55(4), pages 573-594, July.
  2. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 41(2), pages 291-314, 06. [Downloadable!] (restricted)
  3. Adrienne E. Eaton, 1994. "The survival of employee participation programs in unionized settings," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(3), pages 371-389, April.
  4. Richard B. Freeman & Morris M. Kleiner, 2000. "Who Benefits Most from Employee Involvement: Firms or Workers?," American Economic Review, American Economic Association, vol. 90(2), pages 219-223, May. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters, in: Measuring Capital in the New Economy, pages 205-236 National Bureau of Economic Research, Inc. [Downloadable!]
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  7. Larry W. Hunter & John Paul Macduffie & Lorna Doucet, 2002. "What makes teams take? Employee reactions to work reforms," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 55(3), pages 448-472, April.
  8. Sandra E. Black & Lisa M. Lynch & Anya Krivelyova, 2003. "How workers fare when employers innovate," Working Papers in Applied Economic Theory 2003-22, Federal Reserve Bank of San Francisco. [Downloadable!]
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  9. John Godard, 2004. "A Critical Assessment of the High-Performance Paradigm," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 42(2), pages 349-378, 06. [Downloadable!] (restricted)
  10. 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.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lisa M. Lynch, 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," IZA Discussion Papers 2819, Institute for the Study of Labor (IZA). [Downloadable!]
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