Does High Involvement Management Lead to Higher Pay?

Alex Bryson, Petri Böckerman () and Pekka Ilmakunnas

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Using nationally representative survey data for Finnish employees linked to register data on their wages and work histories we find wage effects of high involvement management (HIM) practices are generally positive and significant. However, employees with better wage and work histories are more likely to enter HIM jobs. The wage premium falls substantially having accounted for employees' work histories suggesting that existing studies' estimates are upwardly biased due to positive selection into HIM. Results do not differ significantly when using propensity score matching as opposed to standard regression techniques. The premium rises with the number of HIM practices and differs markedly across different types of HIM practice.

Keywords: wages; high involvement management; high performance work system; incentive pay; training; team working; information sharing; propensity score matching (search for similar items in EconPapers)
JEL-codes: J24 J31 J33 M12 M50 M52 M53 M54 (search for similar items in EconPapers)
Date: 2011-02
New Economics Papers: this item is included in nep-bec, nep-hrm and nep-lab
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https://cep.lse.ac.uk/pubs/download/dp1046.pdf (application/pdf)

Related works:
Journal Article: Does high involvement management lead to higher pay? (2013)
Working Paper: Does High Involvement Management Lead to Higher Pay? (2012)
Working Paper: Does high involvement management lead to higher pay? (2011)
Working Paper: Does High Involvement Management Lead to Higher Pay? (2011)
Working Paper: Does high involvement management lead to higher pay? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1046

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