Management, Performance And Pay

Natália Monteiro and Odd Rune Straume

No 05/2023, NIPE Working Papers from NIPE - Universidade do Minho

Abstract: We use rich Portuguese data to analyse the relationship between the use of structured management practices and worker pay in a large representative sample of firms. We find that management practices are significantly associated with both higher average wages and higher within-firm wage dispersion.The positive relationship between management practices and average pay is present throughout the wage distribution and for all occupational skill groups, but is stronger for workers higher up in the wage distribution and in higher-skilled occupations. These results are driven by management practices related to incentives, and are also mainly driven by small and medium-sized firms.

Keywords: Management practices; wages; labour productivity (search for similar items in EconPapers)
JEL-codes: D22 J31 M11 M54 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-bec, nep-eff, nep-hrm and nep-sbm
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