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Skill-biased management: evidence from manufacturing firms

Andy Feng and Anna Valero

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This article investigates the link between management practices and workforce skills in manufacturing firms, exploiting geographical variation in the supply of human capital. Skills measures are constructed using newly compiled data on universities and regional labour markets across 19 countries. Consistent with management practices being complementary with skills, we show that firms further away from universities employ fewer skilled workers and are worse managed, even after controlling for a rich set of observables and fixed effects. Analysis using regional skill premia suggests that variation in the price of skill drives these relationships.

Keywords: management practices; human capital; universities; complementaries; ES/M010341/1 (search for similar items in EconPapers)
JEL-codes: I23 J24 L20 L60 M20 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2020-05-01
New Economics Papers: this item is included in nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Published in The Economic Journal, 1, May, 2020, 130(628), pp. 1057 - 1080. ISSN: 0013-0133

Downloads: (external link)
http://eprints.lse.ac.uk/103094/ Open access version. (application/pdf)

Related works:
Journal Article: Skill-Biased Management: Evidence from Manufacturing Firms (2020) Downloads
Working Paper: Skill biased management: evidence from manufacturing firms (2019) Downloads
Working Paper: Skill based management: evidence from manufacturing firms (2019) Downloads
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