Working Paper: NBER ID: w9569
Authors: Sandra E. Black; Lisa M. Lynch; Anya Krivelyova
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: high performance workplace practices; wage inequality; organizational change
JEL Codes: J3; J5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| HPW practices (I11) | higher wages for workers (J38) |
| HPW practices (I11) | higher wages for managers, supervisors, and technical workers in unionized establishments (J31) |
| HPW practices (I11) | greater wage inequality within establishments (J31) |
| HPW practices (I11) | relative wages of non-production workers increase compared to production workers (J39) |
| self-managed teams (M54) | greater employment reductions (J63) |
| job rotation (J62) | lower employment reductions (J65) |