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Examining the link between health measures, management practices and establishment performance

Author

Listed:
  • Broszeit, Sandra
  • Laible, Marie-Christine

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"We examine the relationship between establishment-level health measures, Anglo-Saxon management practices and labor productivity, as well as median wages. Based on the observation that management practices are positively associated with establishment outcomes, we test whether health measures have a distinct effect on their own, or if they are already comprised in management practices. Using representative survey data from the German Management and Organizational Practices Survey, we find a strong increase in the use of health measures from 2008 to 2013, predominantly in large establishments. Fixed effects regressions confirm that management practices significantly increase labor productivity, however, health measures do not. The reverse is true for median wages, such that health measures are positively associated with median wages, but management practices are not." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Broszeit, Sandra & Laible, Marie-Christine, 2017. "Examining the link between health measures, management practices and establishment performance," IAB Discussion Paper 201726, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201726
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    File URL: http://doku.iab.de/discussionpapers/2017/dp2617.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1351-1408.
    2. Göbel, Christian & Zwick, Thomas, 2013. "Are personnel measures effective in increasing productivity of old workers?," Labour Economics, Elsevier, vol. 22(C), pages 80-93.
    3. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    4. Stefan Bender & Nicholas Bloom & David Card & John Van Reenen & Stefanie Wolter, 2018. "Management Practices, Workforce Selection, and Productivity," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 371-409.
    5. Chad Syverson, 2011. "What Determines Productivity?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 326-365, June.
    6. Broszeit, Sandra & Fritsch, Ursula & Görg, Holger & Laible, Marie-Christine, 2016. "Management Practices and Productivity in Germany," IZA Discussion Papers 10370, Institute for the Study of Labor (IZA).
    7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    8. Dale-Olsen, Harald, 2006. "Wages, fringe benefits and worker turnover," Labour Economics, Elsevier, vol. 13(1), pages 87-105, February.
    9. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2015. "Workplace health promotion and labour market performance of employees," Journal of Health Economics, Elsevier, vol. 43(C), pages 170-189.
    10. Christian Belzil & Jörgen Hansen, 2002. "Unobserved Ability and the Return to Schooling," Econometrica, Econometric Society, vol. 70(5), pages 2075-2091, September.
    11. Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 203-224, Winter.
    12. Casey Ichniowski & Kathryn Shaw, 2003. "Beyond Incentive Pay: Insiders' Estimates of the Value of Complementary Human Resource Management Practices," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 155-180, Winter.
    13. Foss, Nicolai J, 2001. "Leadership, Beliefs and Coordination: An Explorative Discussion," Industrial and Corporate Change, Oxford University Press, vol. 10(2), pages 357-388, June.
    14. repec:bla:scandj:v:119:y:2017:i:4:p:1086-1104 is not listed on IDEAS
    15. Nicholas Bloom & Erik Brynjolfsson & Lucia Foster & Ron Jarmin & Itay Saporta-Eksten & John Van Reenen, 2013. "Management in America," Working Papers 13-01, Center for Economic Studies, U.S. Census Bureau.
    16. Yamamoto Isamu & Matsuura Toshiyuki, 2014. "Effect of Work–Life Balance Practices on Firm Productivity: Evidence from Japanese Firm-Level Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1-32, October.
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    More about this item

    Keywords

    betriebliches Gesundheitsmanagement; Lohnhöhe; Arbeitsproduktivität; Unternehmensführung; IAB-Datensatz Management Practices;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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