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

Author

Listed:
  • Helper, S.
  • Levine, D.I.
  • Bendoly, E.

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. Using a variety of measures, we find consistent evidence that these practices raise 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, S. & Levine, D.I. & Bendoly, E., 1999. "Employee Involvment and Pay at U.S. and Canadian Auto Suppliers," Papers 71, California Berkeley - Institute of Industrial Relations.
    • Handle: RePEc:fth:calbir:71
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    Cited by:

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    2. Petri Böckerman & Alex Bryson & Pekka Ilmakunnas, 2013. "Does high involvement management lead to higher pay?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(4), pages 861-885, October.
    3. 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.
    4. Wang Yuxin & Muhammad Farooq, 2019. "Conceptual Framework Development for Job Satisfaction in Fujian Banking Industry, China," International Journal of Human Resource Studies, Macrothink Institute, vol. 9(1), pages 253-265, December.
    5. David I. Levine & Michael W. Toffel, 2010. "Quality Management and Job Quality: How the ISO 9001 Standard for Quality Management Systems Affects Employees and Employers," Management Science, INFORMS, vol. 56(6), pages 978-996, June.
    6. 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.
    7. Stephanie Lluis, "undated". "Human Resource Management Practices and Wage Dispersion in U.S. Establishments," Working Papers 0603, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    8. Czarnitzki, Dirk & Kraft, Kornelius, 2008. "Mitarbeiteranreizsysteme und Innovationserfolg (Employee suggestion schemes and innovation success)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 245-258.
    9. Neda Trifkovic, 2015. "Spillover effects of international standards: Work conditions in Vietnamese small and medium enterprises," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    10. Neda Trifković, 2015. "Spillover Effects of International Standards: Work Conditions in Vietnamese Small and Medium Enterprises," WIDER Working Paper Series wp-2015-047, World Institute for Development Economic Research (UNU-WIDER).
    11. Czarnitzki, Dirk & Kraft, Kornelius, 2008. "Mitarbeiteranreizsysteme und Innovationserfolg (Employee suggestion schemes and innovation success)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 245-258.
    12. Jaren Haber, 2016. "Institutionalized Involvement: Teams and Stress in 1990s U.S. Steel," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(4), pages 632-661, October.
    13. Trifković, Neda, 2017. "Spillover Effects of International Standards: Working Conditions in the Vietnamese SMEs," World Development, Elsevier, vol. 97(C), pages 79-101.
    14. Czarnitzki, Dirk & Kraft, Kornelius, 2008. "Mitarbeiteranreizsysteme und Innovationserfolg (Employee suggestion schemes and innovation success)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 245-258.
    15. 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.

    More about this item

    Keywords

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    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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