The Productivity Effects of Human Resource Management Practices: Evidence from New Japanese Panel Data
AbstractThis paper uses new Japanese panel data to estimate the impact of various human resource management practices (HRMP's) on productivity efficiency. These include information sharing devices, such as joint labor-management committees (JLMC's) and non-union employee associations (NUEA's), and financial participation schemes, such as profit sharing plans (PSP's) and employee stock ownership plans (ESOP's). By merging data from a new survey concerning HRMP's among publicly-held Japanese firms with two other public data resources, we create for the first time a enterprise-level panel data set for Japanese firms that provides information annually for 1970-85 on both information sharing and financial participation. The data are then used to estimate translog production functions augmented by variables to capture the effects of information sharing and financial participation. The estimations yield the first econometric evidence on the productivity effects of diverse HRMP's in Japan. The key findings include: (i) there are significant productivity-enhancing effects for JLMC's, NUEA's, PSP's and ESOP's; (ii) these productivity gains will change as HRMP's age. For instance, the introduction of a JLMC boosts productivity initially by 9 percent annually. The productivity gains rise over time and reach their highest point (11 percent) 23 years after the introduction of the JLMC. After their highest point, the productivity gains gradually diminish and eventually call for the implementation of a new innovation in information sharing; (iii) there is a significant complementarity between information sharing and PSP's; and (iv) the favorable productivity effects of information sharing are reinforced by the presence of formal trade unions, pointing to a complementarity between information sharing and unions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 9812003.
Length: 41 pages
Date of creation: 02 Dec 1998
Date of revision: 08 Dec 1998
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 41; figures: included
Contact details of provider:
Web page: http://184.108.40.206
Other versions of this item:
- Takao Kato & Motohiro Morishima, 1995. "The Productivity Effects of Human Resource Management Practices: Evidence from New Japanese Panel Data," Economics Working Paper Archive wp_143, Levy Economics Institute, The.
- E - Macroeconomics and Monetary Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-02-15 (All new papers)
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.:
- Freeman, Richard B, 1976. "Individual Mobility and Union Voice in the Labor Market," American Economic Review, American Economic Association, vol. 66(2), pages 361-68, May.
- Tracy, Joseph S, 1986. "An Investigation into the Determinants of U.S. Strike Activity," American Economic Review, American Economic Association, vol. 76(3), pages 423-36, June.
- Richard B. Freeman & Martin L. Weitzman, 1989.
"Bonuses and Employment in Japan,"
NBER Working Papers
1878, National Bureau of Economic Research, Inc.
- Freeman, Richard B. & Weitzman, Martin L., 1987. "Bonuses and employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 1(2), pages 168-194, June.
- Jones, Derek C & Kato, Takao, 1995. "The Productivity Effects of Employee Stock-Ownership Plans and Bonuses: Evidence from Japanese Panel Data," American Economic Review, American Economic Association, vol. 85(3), pages 391-414, June.
- Wadhwani, S. & Wall, M., 1988.
"The Effects Of Profit-Sharing On Employment, Wages, Stock Returns And Productivity: Evidence From Uk Micro-Data,"
311, London School of Economics - Centre for Labour Economics.
- Wadhwani, Sushil & Wall, Martin, 1990. "The Effects of Profit-Sharing on Employment, Wages, Stock Returns and Productivity: Evidence from UK Micro-data," Economic Journal, Royal Economic Society, vol. 100(399), pages 1-17, March.
- Derek C. Jones & Jeffrey Pliskin, 1988. "The Effects of Worker Participation, Employee Ownership and Profit Sharing on Economics Performance: A Partial Review," Economics Working Paper Archive wp_13, Levy Economics Institute, The.
- Masanori Hashimoto, 1990. "The Japanese Labor Market in a Comparative Perspective with the United States," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number jlm, October.
- Ben-Ner, A. & Jones, D., 1992. "An New Conceptual Framework for the Analysis of the Impact of Employees Participation, Profit Sharing and Ownership on Firm Performance," Papers 92-10, Minnesota - Industrial Relations Center.
- Nakamura, Masao & Nakamura, Alice, 1991. "Risk behavior and the determinants of bonus versus regular pay in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 5(2), pages 140-159, June.
- Brunello, G., 1989. "Bonuses, Wages And Performance In Japan: Evidence From Micro Data," Papers 359, London School of Economics - Centre for Labour Economics.
- Casey Ichniowski & Kathryn Shaw & Giovanna Prennushi, 1995. "The Effects of Human Resource Management Practices on Productivity," NBER Working Papers 5333, National Bureau of Economic Research, Inc.
- Kumbhakar, Subal C. & Dunbar, Amy E., 1993. "The elusive ESOP--productivity link : evidence from U.S. firm-level data," Journal of Public Economics, Elsevier, vol. 52(2), pages 273-283, September.
- FitzRoy, Felix R & Kraft, Korenelius, 1987. "Cooperation, Productivity, and Profit Sharing," The Quarterly Journal of Economics, MIT Press, vol. 102(1), pages 23-35, February.
- 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.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.