Management Practices, Workforce Selection, and Productivity
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694107.pdf
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782.47 KB
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Author(s)
Bender, Stefan
Card, David
Wolter, Stefanie
Bloom, Nicholas
Van Reenen, John Michael
Date Issued
January 2018
Journal
Journal of Labor Economics
Publisher
University of Chicago Press
Citation
Bender, Stefan, Nicholas Bloom, David Card, John Van Reenen, and Stefanie Wolter. “Management Practices, Workforce Selection, and Productivity.” Journal of Labor Economics 36, no. S1 (January 2, 2018): S371–S409.
Version
Final published version
Abstract
We study the relationship among productivity, management practices, and employee ability using German data combining management practices surveys with employees’ longitudinal earnings records. Including human capital reduces the association between productivity and management practices by 30% – 50%. Only a small fraction is accounted for by the higher human capital of the average employee at better-managed firms. A larger share is attributable to the human capital of the highest-paid workers, that is, the managers. A similar share is mediated through the pay premiums offered by better-managed firms. We find that better-managed firms recruit and retain workers with higher average human capital.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1086/694107
