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Is there a Wage Payoff to Innovative Work Practices?

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Author Info
Michael J. Handel (The Jerome Levy Economics Institute)
Maury Gittleman (OECD and U.S. Bureau of Labor Statistics)

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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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Paper provided by EconWPA in its series Macroeconomics with number 0004032.

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Length: 33 pages
Date of creation: 11 Oct 2000
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Handle: RePEc:wpa:wuwpma:0004032

Note: Type of Document - Adobe Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 33; figures: included
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E - Macroeconomics and Monetary Economics

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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. 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)
  2. Maury Gittleman & Michael Horrigan & Mary Joyce, 1998. "Flexible workplace practices: Evidence from a nationally representative survey," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(1), pages 99-115, October.
  3. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(2), pages 173-188, January.
  4. 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, ILR School, Cornell University, vol. 48(2), pages 197-221, January.
  5. 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.
  6. 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, ILR School, Cornell University, vol. 53(3), pages 443-462, April.
  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. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
  9. 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.
  10. 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. [Downloadable!] (restricted)
  11. 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. [Downloadable!]
  12. 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. [Downloadable!] (restricted)
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Cited by:
(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. 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. [Downloadable!] (restricted)
  2. Peter Skott & Frederick Guy, 2005. "Power-Biased Technological Change and the Rise in Earnings Inequality," Working Papers 2005-17, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
    Other versions:
  3. 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), revised Jul 2002. [Downloadable!]
  4. Maurizio Pugno & Sara Depedri, 2009. "Job performance and job satisfaction: an integrated survey," Department of Economics Working Papers 0904, Department of Economics, University of Trento, Italia. [Downloadable!]
  5. 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. [Downloadable!]
  6. Andries de Grip & Inge Sieben, 2005. "The effects of human resource management on small firms’ productivity and employees’ wages," Applied Economics, Taylor and Francis Journals, vol. 37(9), pages 1047-1054, May. [Downloadable!] (restricted)
  7. 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. [Downloadable!]
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