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The Complementary Effect of Organizational Practices and Workers’ Level of Education

Filippo Pusterla

No 20-478, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

Abstract: This paper investigates how rms' productivity is a ected by the relationship between organiza- tional practices and workers' level of education. Using rm-level panel data covering the period 2002 to 2008, I estimate complementarities among workers' level of education and a large set of organizational practices aggregated into three domains: decentralization, incentive pay, and work design where work design comprises job rotation and teamwork. I consider workers with four lev- els of education: no post-compulsory education, upper-secondary vocational education and train- ing, tertiary vocational education, and tertiary academic education. The results indicate that the complementarity between education and the extent of rms' decentralization is higher for tertiary- educated workers. In contrast, the estimations reveal no complementarity between incentive pay and higher levels of workers' education. Furthermore, complementarity exists between work design and tertiary-educated workers, especially workers with a tertiary vocational education. Finally, the estimations using an aggregate measure of organization suggest complementarities across organiza- tional practices.

Keywords: complementarity; education; organization; productivity (search for similar items in EconPapers)
JEL-codes: J24 L23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2020-05
New Economics Papers: this item is included in nep-eff, nep-eur and nep-hrm
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