Does High Involvement Management Lead to Higher Pay?

Petri Böckerman (), Alex Bryson and Pekka Ilmakunnas

No 1285, Working Papers from Tampere University, Faculty of Management and Business, Economics

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 using standard regression techniques are robust to propensity score matching and instrumental variables estimation. The premium also 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 (search for similar items in EconPapers)
JEL-codes: J24 J31 J33 M12 M50 M52 M53 M54 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012-02
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Citations: View citations in EconPapers (26)

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http://urn.fi/urn:isbn:978-951-44-8715-6 First version, 2012 (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? (2011)
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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