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The Effect of High-Performance Work Practices on Employee Earnings in the Steel, Apparel, and Medical Electronics and Imaging Industries

Author

Listed:
  • Thomas Bailey
  • Peter Berg
  • Carola Sandy

Abstract

Using interview and survey data they gathered in 1995–97 from managers and employees in 45 establishments, the authors investigate how high-performance work practices, such as self-directed teams and offline teams, affected workers' earnings in the apparel, steel, and medical electronics industries. An analysis with extensive controls for personal characteristics and other variables shows a positive relationship between high-performance practices and earnings in the apparel and steel industries. In medical electronics and imaging, the same statistically significant association disappears when a control variable for education is added, suggesting that there is a strong relationship between formal education and high-performance systems in that industry.

Suggested Citation

  • Thomas Bailey & Peter Berg & Carola Sandy, 2001. "The Effect of High-Performance Work Practices on Employee Earnings in the Steel, Apparel, and Medical Electronics and Imaging Industries," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 525-543, March.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2a:p:525-543
    DOI: 10.1177/001979390105400228
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    References listed on IDEAS

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    Cited by:

    1. Ariel C. Avgar & Niti Pandey & Kiwook Kwon, 2012. "Discretion in Context: A Moderated Mediation Model of the Relationship between Discretion and Turnover Intentions," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(1), pages 106-128, January.
    2. Ravi Dhar & Ning Zhu, 2006. "Up Close and Personal: Investor Sophistication and the Disposition Effect," Management Science, INFORMS, vol. 52(5), pages 726-740, May.
    3. Nadeem, Sadia & Raza, Mishal & Kayani, Neelab & Aziz, Amna & Nayab, Dure, 2018. "Examining cross-cultural compatibility of high performance work practices," International Business Review, Elsevier, vol. 27(3), pages 563-583.
    4. John Godard, 2007. "Unions, Work Practices, and Wages under Different Institutional Environments: The Case of Canada and England," ILR Review, Cornell University, ILR School, vol. 60(4), pages 457-476, July.
    5. Neil Conway & Simon Deakin & Suzanne Konzelmann & Héloïse Petit & Antoine Rebérioux & Frank Wilkinson, 2008. "The Influence of Stock Market Listing on Human Resource Management: Evidence for France and Britain," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 631-673, December.
    6. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra‐Firm Wage Dispersion Among Blue‐Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, September.
    7. Jody Hoffer Gittell & Rob Seidner & Julian Wimbush, 2010. "A Relational Model of How High-Performance Work Systems Work," Organization Science, INFORMS, vol. 21(2), pages 490-506, April.
    8. John Godard, 2004. "A Critical Assessment of the High‐Performance Paradigm," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 349-378, June.
    9. Lollo, Niklas & O’Rourke, Dara, 2018. "Productivity, Profits, and Pay: A Field Experiment Analyzing the Impacts of Compensation Systems in an Apparel Factory," Institute for Research on Labor and Employment, Working Paper Series qt31c4j2hz, Institute of Industrial Relations, UC Berkeley.
    10. Wenchuan Liu & James P. Guthrie & Patrick C. Flood & Sarah Maccurtain, 2009. "Unions and the Adoption of High Performance Work Systems: Does Employment Security Play a Role?," ILR Review, Cornell University, ILR School, vol. 63(1), pages 109-127, October.
    11. Rosemary Batt & Hiroatsu Nohara & Hyunji Kwon, 2010. "Employer Strategies and Wages in New Service Activities: A Comparison of Co‐ordinated and Liberal Market Economies," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 400-435, June.
    12. A. Arrighetti & L. Cattani & F. Landini & A. Lasagni, 2019. "Work Flexibility and Firm Growth," Economics Department Working Papers 2019-EP04, Department of Economics, Parma University (Italy).

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