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Managerial Quality and Productivity Dynamics

Achyuta Adhvaryu (), Anant Nyshadham and Jorge A. Tamayo

No 25852, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Which managerial skills, traits, and practices matter most for productivity? How does the observability of these features affect how appropriately they are priced into wages? Combining two years of daily, line-level production data from a large Indian garment firm with rich survey data on line managers, we find that several key dimensions of managerial quality, like attention, autonomy, and control, are important for learning-by-doing as well as for overall productivity, but are not commensurately rewarded in pay. Counterfactual simulations of our structural model show large gains from screening potential hires via psychometric measurement and training to improve managerial practices.

JEL-codes: D24 L2 M11 M12 (search for similar items in EconPapers)
Date: 2019-05
New Economics Papers: this item is included in nep-bec, nep-eff, nep-hrm and nep-ind
Note: DEV LS PR
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