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Is there a Wage Payoff to Innovative Work Practices?

  • Michael J. Handel

    (The Jerome Levy Economics Institute)

  • Maury Gittleman

    (OECD and U.S. Bureau of Labor Statistics)

During the 1980s, wage inequality increased dramatically and the American economy lost many high wage, low- to medium-skill jobs, which had provided middle class incomes to less skilled workers. Increasingly, less skilled workers seemed restricted to low wage jobs lacking union or other institutional protections. Although "good" jobs for less skilled workers are unlikely to return in their previous form, a number of sociologists, economists, and industrial relations scholars have suggested that a new paradigm of work, often called "high performance," is emerging, which offers such workers more skilled jobs and higher wages. Using a unique national data set we find little evidence that high performance work systems are associated with higher wages.

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File URL: http://128.118.178.162/eps/mac/papers/0004/0004032.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0004032.

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Length: 33 pages
Date of creation: 11 Oct 2000
Date of revision:
Handle: RePEc:wpa:wuwpma:0004032
Note: Type of Document - Adobe Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 33; figures: included
Contact details of provider: Web page: http://128.118.178.162

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  1. Maury B. Gittleman & David R. Howell, 1995. "Changes in the structure and quality of jobs in the United States: Effects by race and gender, 1973รป1990," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(3), pages 420-440, April.
  2. Maury Gittleman & Michael Horrigan & Mary Joyce, 1998. "Flexible workplace practices: Evidence from a nationally representative survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 99-115, October.
  3. Paul Osterman, 1994. "How Common is Workplace Transformation and Who Adopts it?," ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
  4. Kruse, Douglas L, 1992. "Profit Sharing and Productivity: Microeconomic Evidence from the United States," Economic Journal, Royal Economic Society, vol. 102(410), pages 24-36, January.
  5. Gary W. Loveman & Chris Tilly, 1988. "Good jobs or bad jobs: what does the evidence say?," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 46-65.
  6. John MacDuffie, 1995. "Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
  7. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
  8. 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.
  9. Piore, M.J., 1989. "Corporate Reform In American Manufacturing And The Challenge To Economic Theory," Working papers 533, Massachusetts Institute of Technology (MIT), Department of Economics.
  10. John Paul Macduffie, 1995. "Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry," ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
  11. Peter Cappelli, 1996. "Technology and skill requirements: implications for establishment wage structures," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 139-156.
  12. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
  13. Kochan, Thomas A., 1996. "What works at work : overview and assessment," Working papers 3886-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  14. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  15. Harley Frazis & Maury Gittleman & Mary Joyce, 2000. "Correlates of training: An analysis using both employer and employee characteristics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 443-462, April.
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