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The value of bosses

Author

Listed:
  • Lazear, Edward P.
  • Shaw, Kathryn L.

Abstract

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.

Suggested Citation

  • Lazear, Edward P. & Shaw, Kathryn L., 2014. "The value of bosses," LSE Research Online Documents on Economics 60611, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:60611
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    File URL: http://eprints.lse.ac.uk/60611/
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    References listed on IDEAS

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    Cited by:

    1. Christian Grund & Johannes Martin, 2017. "Monetary Reference Points of Managers – Empirical Evidence of Status Quo Preferences and Social Comparisons," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(1), pages 70-87, February.

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    More about this item

    Keywords

    Bosses; supervisors; productivity;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D20 - Microeconomics - - Production and Organizations - - - General
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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