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Federal Reserve Bank of San Francisco
Working Paper Series
How workers fare when employers innovate
Sandra E. Black
Lisa M. Lynch
Anya Krivelyova

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.

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Sandra E. Black & Lisa M. Lynch & Anya Krivelyova, How workers fare when employers innovate, Federal Reserve Bank of San Francisco, Working Paper Series 2003-22, 2003.
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Keywords: Productivity ; Employment (Economic theory)
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Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

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