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From Followers to Leaders: The Career Impact of High-Quality Managers

Author

Listed:
  • Chen, Yuyu

    (Peking University)

  • Hensel, Lukas

    (Peking University)

  • Yao, Xinjue

    (University of Hong Kong)

Abstract

How does manager quality affect subordinates' career progression? We examine the causal effect of manager quality on workers' career outcomes in the context of managerial teams at a large construction firm. We exploit quasi-random variation in worker-manager matching through frequent project reassignments to identify the causal effect of high-quality managers on promotions. Working under a high-quality manager increases workers' subsequent promotion rates by 13 percentage points. We provide evidence in support of managerial human capital transmission as the primary mechanism: effects are concentrated among workers and positions that require most managerial skills and exposed workers earn significantly higher performance-based bonuses.

Suggested Citation

  • Chen, Yuyu & Hensel, Lukas & Yao, Xinjue, 2025. "From Followers to Leaders: The Career Impact of High-Quality Managers," IZA Discussion Papers 17848, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17848
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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