Should Employee Involvement be Mandatory for Firms? Evidence from the U.S. Automotive Supplier Industry

Robert W Drago () and Robert S. Lapota
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Robert W Drago: University of Wisconsin - Milwaukee

Working papers from University of Wisconsin - Milwaukee

Abstract: Quality audits initiated by U.S. automobile manufacturers during the 1980's mandated employee involvement (EI) programs in supplier firms. Evidence from a recent survey of 155 automotive supplier firms shows that more stringent EI mandates lead to a significantly higher incidence of substantive and successful EI programs. These results are consistent with the notion that government policies to promote EI would have beneficial effects.

Date: 1995-04
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