Does high involvement management lead to higher pay?
Pub. Date
18 April, 2011
Pub. Type
Authors
External Authors
Using nationally representative survey data for Finnish employees linked to register
data on their wages and work histories we find that 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, which suggests that existing studies’ estimates
are upwardly biased owing 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.
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