Working Paper

How workers fare when employers innovate

Abstract: Complementing existing work on firm organizational structure and productivity, this paper examines the impact of organizational change on workers. We find evidence that employers do appear to compensate at least some of their workers for engaging in high performance workplace practices. We also find a significant association between high performance workplace practices and increased wage inequality. Finally, we examine the relationship between organizational structure and employment changes and find that some practices, such as self-managed teams, are associated with greater employment reductions, while other practices, such as the percentage of workers involved in job rotation, are associated with lower employment reductions.

Keywords: Productivity; Employment (Economic theory);

Status: Published in Industrial Relations: a Journal of Economy and Society, Vol. 43, No. 1, pp. 44-66, January 2004

Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: Working Paper Series

Publication Date: 2003

Number: 2003-22