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Self-managed working time and firm performance: Microeconometric evidence

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  • Beckmann, Michael

    (University of Basel)

Abstract

This paper empirically examines the impact of self-managed working time (SMWT) on firm per-formance using panel data from German establishments. As a policy for the decentralization of decision rights, SMWT provides employees with extensive control over scheduling individual working time. From a theoretical viewpoint, SMWT has ambiguous effects on both worker productivity and wages. Based on the construction of a quasi-natural experiment and the combination of a differences-in-differences approach with propensity score matching as an identification strategy, the empirical analysis shows that up to five years after introduction, SMWT increases firm productivity by about 9% and wage costs by about 8.5%. This implies that SMWT improves both individual and firm productivity, and supplemental evidence shows that these productivity enhancements can primarily be explained by incentive effects associated with decentralization policies in general.

Suggested Citation

  • Beckmann, Michael, 2016. "Self-managed working time and firm performance: Microeconometric evidence," Working papers 2016/01, Faculty of Business and Economics - University of Basel.
  • Handle: RePEc:bsl:wpaper:2016/01
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    References listed on IDEAS

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    Cited by:

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    3. Viete, Steffen & Erdsiek, Daniel, 2018. "Trust-based work time and the productivity effects of mobile information technologies in the workplace," ZEW Discussion Papers 18-013, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Self-managed working time; job autonomy; firm performance; treatment effect; quasi-natural experiment;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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