IDEAS home Printed from https://ideas.repec.org/p/hhs/aareco/2011_001.html
   My bibliography  Save this paper

High-Performance Management Practices and Employee Outcomes in Denmark

Author

Listed:
  • Cristini, Annalise

    (Department of Economics, University of Bergamo)

  • Eriksson, Tor

    (Department of Economics, Aarhus School of Business)

  • Pozzoli, Dario

    (Department of Economics, Aarhus School of Business)

Abstract

High-performance work practices are frequently considered to have positive e ects on corporate performance, but what do they do for employees? After showing that organizational innovation is indeed positively associated with rm performance, we investigate whether high-involvement work practices are associ- ated with higher wages, changes in wage inequality and workforce composition, using data from a survey directed at Danish private sector rms matched with linked employer-employee data. We also examine whether the relationship be- tween high-involvement work practices and employee outcomes is a ected by the industrial relations context

Suggested Citation

  • Cristini, Annalise & Eriksson, Tor & Pozzoli, Dario, 2011. "High-Performance Management Practices and Employee Outcomes in Denmark," Working Papers 11-1, University of Aarhus, Aarhus School of Business, Department of Economics.
    • Handle: RePEc:hhs:aareco:2011_001
    Note: Original wp-no.: 01-11
    as

    Download full text from publisher

    File URL: http://www.asb.dk/omos/institutter/departmentofeconomics/publications/workingpaperseries/wp2011/
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard B. Freeman & Morris M. Kleiner & Cheri Ostroff, 2000. "The Anatomy of Employee Involvement and Its Effects on Firms and Workers," NBER Working Papers 8050, National Bureau of Economic Research, Inc.
    2. Buhai, Sebastian & Cottini, Elena & Westergaard-Nielsen, Niels, 2008. "The impact of workplace conditions on firm performance," Working Papers 08-13, University of Aarhus, Aarhus School of Business, Department of Economics.
    3. Paul Osterman, 2006. "The Wage Effects of High Performance Work Organization in Manufacturing," ILR Review, Cornell University, ILR School, vol. 59(2), pages 187-204, January.
    4. John Godard, 2007. "Unions, Work Practices, and Wages under Different Institutional Environments: The Case of Canada and England," ILR Review, Cornell University, ILR School, vol. 60(4), pages 457-476, July.
    5. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    6. Stephen Machin & Stephen Wood, 2005. "Human Resource Management as a Substitute for Trade Unions in British Workplaces," ILR Review, Cornell University, ILR School, vol. 58(2), pages 201-218, January.
    7. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    8. Lisa M. Lynch & Sandra E. Black, 1998. "Beyond the Incidence of Employer-Provided Training," ILR Review, Cornell University, ILR School, vol. 52(1), pages 64-81, October.
    9. Michael J. Handel & Maury Gittleman, 1999. "Is There a Wage Payoff to Innovative Work Practices?," Economics Working Paper Archive wp_288, Levy Economics Institute.
    10. Paul Osterman, 2000. "Work Reorganization in an Era of Restructuring: Trends in Diffusion and Effects on Employee Welfare," ILR Review, Cornell University, ILR School, vol. 53(2), pages 179-196, January.
    11. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
    12. Raghuram G. Rajan & Julie Wulf, 2006. "The Flattening Firm: Evidence from Panel Data on the Changing Nature of Corporate Hierarchies," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 759-773, November.
    13. 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.
    14. Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
    15. Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
    16. Eriksson, T., 2001. "How Common Are The New Compensation and Work Organization Practices and Who Adopts Them?," Papers 01-8, Aarhus School of Business - Department of Economics.
    17. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
    18. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    19. Bloom, Nicholas & Van Reenen, John, 2011. "Human Resource Management and Productivity," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 19, pages 1697-1767, Elsevier.
    20. repec:dau:papers:123456789/10091 is not listed on IDEAS
    21. Nathalie Greenan & Jacques Mairesse, 1999. "Organizational Change in French Manufacturing: What Do We Learn From Firm Representatives and From Their Employees?," NBER Working Papers 7285, National Bureau of Economic Research, Inc.
    22. 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.
    23. Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence from A Panel of British and French Establishments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1449-1492.
    24. Peter Cappelli & David Neumark, 2001. "Do “High-Performance†Work Practices Improve Establishment-Level Outcomes?," ILR Review, Cornell University, ILR School, vol. 54(4), pages 737-775, July.
    25. 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, June.
    26. Pierpaolo Parrotta & Dario Pozzoli, 2012. "The effect of learning by hiring on productivity," RAND Journal of Economics, RAND Corporation, vol. 43(1), pages 167-185, March.
    27. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    28. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
    29. Bauer, Thomas K., 2003. "Flexible Workplace Practices and Labor Productivity," IZA Discussion Papers 700, Institute of Labor Economics (IZA).
    30. Nickell, Stephen & Nicolitsas, Daphne & Dryden, Neil, 1997. "What makes firms perform well?," European Economic Review, Elsevier, vol. 41(3-5), pages 783-796, April.
    31. Annalisa Cristini & Alessandro Gaj & Sandrine Labory & Riccardo Leoni, 2003. "Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 313-313.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marisa Ratto, 2013. "Work Practices as Implicit Incentives to Cooperate / Pratiques de travail et coopération entre collègues," Working Papers halshs-00966235, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Riccardo Leoni, 2013. "Organization of work practices and productivity: an assessment of research on world- class manufacturing," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 17, Edward Elgar Publishing.
    2. Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2016. "Organisational change and the productivity effects of green technology adoption," Resource and Energy Economics, Elsevier, vol. 43(C), pages 172-194.
    3. Bloom, Nicholas & Van Reenen, John, 2011. "Human Resource Management and Productivity," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 19, pages 1697-1767, Elsevier.
    4. Dostie Benoit & Jayaraman Rajshri, 2012. "Organizational Redesign, Information Technologies and Workplace Productivity," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-41, February.
    5. Fibla Gasparín, Ma. Teresa, 2010. "Productivity in southern European small firms: When and how work organization complements process innovation," Working Papers 2072/179600, Universitat Rovira i Virgili, Department of Economics.
    6. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March.
    7. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra‐Firm Wage Dispersion Among Blue‐Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, September.
    8. Flores-Fillol, Ricardo & Iranzo, Susana & Mane, Ferran, 2017. "Teamwork and delegation of decisions within the firm," International Journal of Industrial Organization, Elsevier, vol. 52(C), pages 1-29.
    9. Andrea Pozzi & Fabiano Schivardi, 2016. "Demand or productivity: what determines firm growth?," RAND Journal of Economics, RAND Corporation, vol. 47(3), pages 608-630, August.
    10. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2010. "Recent Advances in the Empirics of Organizational Economics," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 105-137, September.
    11. Phillipe Aghion & Nicholas Bloom & John Van Reenen, 2014. "Incomplete Contracts and the Internal Organization of Firms," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 30(suppl_1), pages 37-63.
    12. Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute of Labor Economics (IZA).
    13. Filippo Pusterla, 2020. "The Complementary Effect of Organizational Practices and Workers’ Level of Education," KOF Working papers 20-478, KOF Swiss Economic Institute, ETH Zurich.
    14. Viete, Steffen & Erdsiek, Daniel, 2020. "Mobile Information Technologies and Firm Performance: The Role of Employee Autonomy," Information Economics and Policy, Elsevier, vol. 51(C).
    15. Kathryn Shaw, 2004. "The Human Resources Revolution: Is It a Productivity Driver?," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 69-114, National Bureau of Economic Research, Inc.
    16. Alex Bryson & Lucy Stokes & David Wilkinson, 2023. "Is pupil attainment higher in well-managed schools?," Education Economics, Taylor & Francis Journals, vol. 31(1), pages 129-144, January.
    17. Philippe Askenazy & Eve Caroli, 2006. "Innovative work practices, information technologies and working conditions: evidence for France," EconomiX Working Papers 2006-2, University of Paris Nanterre, EconomiX.
    18. Erik Brynjolfsson & Wang Jin & Kristina McElheran, 2021. "The power of prediction: predictive analytics, workplace complements, and business performance," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(4), pages 217-239, October.
    19. Eric J. Bartelsman & Martin Falk & Eva Hagsten & Michael Polder, 2019. "Productivity, technological innovations and broadband connectivity: firm-level evidence for ten European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 25-48, March.
    20. White, Michael & Bryson, Alex, 2018. "HPWS in the Public Sector: Are There Mutual Gains?," IZA Discussion Papers 11965, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Workplace practices; wage inequality; workforce composition; hierarchy;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2011_001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helle Vinbaek Stenholt (email available below). General contact details of provider: https://edirc.repec.org/data/nihhadk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.