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Employee Involvement and Pay at U.S. and Canadian Auto Suppliers

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  • Helper, Susan
  • Levine, David I.
  • Bendoly, Elliott

Abstract

Using both survey data and field research, we investigate the effects of employee involvement practices on outcomes for blue-collar workers in the auto supply industry. wages by 3-5%. The causal mechanism linking involvement and wages appears most consistent with efficiency wage theories, and least consistent with compensating differences. With respect to employment stability, we find that employee involvement has a knife-edge character. Plants with intensive programs have larger employment gains, but are also slightly more likely to go out of business. These results are consistent with employee involvement raising quality and productivity, but also increasing fixed costs for liquidity-constrained firms.

Suggested Citation

  • Helper, Susan & Levine, David I. & Bendoly, Elliott, 2000. "Employee Involvement and Pay at U.S. and Canadian Auto Suppliers," Institute for Research on Labor and Employment, Working Paper Series qt8t51741b, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt8t51741b
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    Cited by:

    1. Ann P. Bartel, 2000. "Human Resource Management and Performance in the Service Sector: The Case of Bank Branches," NBER Working Papers 7467, National Bureau of Economic Research, Inc.

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