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Insider Econometrics: Empirical Studies of How Management Matters

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  • Casey Ichniowski
  • Kathryn L. Shaw

Abstract

This paper describes an approach for conducting empirical research into three interrelated questions that are fundamental to the field of organizational economics: 1. Why do firms in the same industry adopt different management practices? 2. Does the adoption of a new management practice raise productivity? 3. If so, why does the new management practice raise productivity? This research approach, which we term insider econometrics, addresses these questions by combining insights from industry insiders with rigorous econometric tests about the adoption and productivity effects of new management practices using rich industry-specific data. Understanding the selectivity in the adoption and coverage of different management practices within a single industry is central to this empirical research methodology. The paper considers a number of studies to illustrate persuasive features of insider econometric research and summarizes a number of themes emerging from this line of research.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15618.

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Date of creation: Dec 2009
Date of revision:
Handle: RePEc:nbr:nberwo:15618

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Cited by:
  1. Wagner, Joachim, 2010. "From Estimation Results to Stylized Facts: Twelve Recommendations for Empirical Research in International Activities of Heterogeneous Firms," IZA Discussion Papers 5175, Institute for the Study of Labor (IZA).
  2. Böckerman, Petri & Bryson, Alex & Ilmakunnas, Pekka, 2012. "Does high involvement management improve worker wellbeing?," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 660-680.
  3. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
  4. de Grip, Andries & Sauermann, Jan, 2011. "The Effects of Training on Own and Co-Worker Productivity: Evidence from a Field Experiment," IZA Discussion Papers 5976, Institute for the Study of Labor (IZA).
  5. Lucifora, Claudio & Origo, Federica, 2012. "Performance Related Pay and Firm Productivity: New Evidence from a Quasi-Natural Experiment in Italy," IZA Discussion Papers 6483, Institute for the Study of Labor (IZA).

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