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Adoption and Termination of Employee Involvement Programs

  • Wei Chi
  • Richard B. Freeman
  • Morris M. Kleiner

This study uses a 10-year longitudinal database on U.S. manufacturing establishments to analyze the dynamics of the adoption and termination of employee involvement programs (EI). We show that firms' use of EI has not grown continuously, but rather introduce and terminate EI policies in ways that imply that the policies are complementary with each other and with other advanced human resource practices, seemingly moving toward an equilibrium distribution of EI policies. Using a Markov model, we estimate the long-run distribution of the number of EI programs in firms and find that adjustment to the steady-state distribution takes about 20 years.

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File URL: http://www.nber.org/papers/w12878.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12878.

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Date of creation: Jan 2007
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Publication status: published as Chi, Wei, Richard Freeman, and Morris Kleiner. “Adoption and Termination of Employee Involvement Programs." Labour 25, 1 (2011): 45-62.
Handle: RePEc:nbr:nberwo:12878
Note: IO LS PR
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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  1. Larry W. Hunter & John Paul MacDuffie & Lorna Doucet, 2002. "What Makes Teams Take? Employee Reactions to Work Reforms," ILR Review, Cornell University, ILR School, vol. 55(3), pages 448-472, April.
  2. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters, in: Measuring Capital in the New Economy, pages 205-236 National Bureau of Economic Research, Inc.
  3. John Godard, 2004. "A Critical Assessment of the High-Performance Paradigm," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 349-378, 06.
  4. Adrienne E. Eaton, 1994. "The Survival of Employee Participation Programs in Unionized Settings," ILR Review, Cornell University, ILR School, vol. 47(3), pages 371-389, April.
  5. Morris M. Kleiner & Richard B. Freeman, 2000. "Who Benefits Most from Employee Involvement: Firms or Workers?," American Economic Review, American Economic Association, vol. 90(2), pages 219-223, May.
  6. David Neumark & Peter Cappelli, 1999. "Do "High Performance" Work Practices Improve Establishment-Level Outcomes?," NBER Working Papers 7374, National Bureau of Economic Research, Inc.
  7. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee voice, human resource practices, and quit rates: Evidence from the telecommunications industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 573-594, July.
  8. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee Voice, Human Resource Practices, and Quit Rates: Evidence from the Telecommunications Industry," ILR Review, Cornell University, ILR School, vol. 55(4), pages 573-594, July.
  9. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, 06.
  10. Larry W. Hunter & John Paul Macduffie & Lorna Doucet, 2002. "What makes teams take? Employee reactions to work reforms," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 448-472, April.
  11. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
  12. Adrienne E. Eaton, 1994. "The survival of employee participation programs in unionized settings," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 371-389, April.
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