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Human Resource Management and Productivity

  • Nicholas Bloom
  • John Van Reenen

In this handbook of labor economics chapter we examine the relationship between Human Resource Management (HRM) and productivity. HRM includes incentive pay (individual and group) as well as many non-pay aspects of the employment relationship such as matching (hiring and firing) and work organization (e.g. teams, autonomy). We place HRM more generally within the literature on management practices and productivity. We start with some facts on levels and trends of both HRM and productivity and the main economic theories of HRM. We look at some of the determinants of HRM - risk, competition, ownership and regulation. The largest section analyses the impact of HRM on productivity emphasizing issues of methodology, data and results (from micro-econometric studies). We conclude briefly with suggestions of avenues for future frontier work.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16019.

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Date of creation: May 2010
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Publication status: published as “Human resource management and productivity” with John Van Reenen, Handbook of Labor Economics , 2011
Handle: RePEc:nbr:nberwo:16019
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