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The Value of Bosses

Listed author(s):
  • Edward P. Lazear
  • Kathryn L. Shaw
  • Christopher T. Stanton
Registered author(s):

    How and by how much do supervisors enhance worker productivity? Using a company-based data set on the productivity of technology-based services workers, supervisor effects are estimated and found to be large. Replacing a boss who is in the lower 10% of boss quality with one who is in the upper 10% of boss quality increases a team's total output by more than would adding one worker to a nine member team. Workers assigned to better bosses are less likely to leave the firm. A separate normalization implies that the average boss is about 1.75 times as productive as the average worker.

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    File URL: http://cep.lse.ac.uk/pubs/download/dp1318.pdf
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    Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1318.

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    Date of creation: Dec 2014
    Handle: RePEc:cep:cepdps:dp1318
    Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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