EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/20637
  
Title:Flexible Workplace Practices and Labor Productivity PDF Logo
Authors:Bauer, Thomas K.
Issue Date:2003
Series/Report no.:IZA Discussion paper series 700
Abstract:Using a German employer-employee matched panel data set this paper examines the effects of High Performance Workplace Systems (HPWSs) on labor productivity (defined as sales per worker) and labor efficiency (defined as the inverse of unit labor costs). The estimation results indicate that simple cross-sectional estimates of the effects of implementing HPWSs on labor productivity are biased downward due to unobserved time-invariant establishment effects and the endogeneity of the used measure for innovative workplace practices. The latter bias appears to be quantitatively more important. Results from estimating a correlated random coefficient model further suggest that a potential bias in the 2SLS-estimates due to self-selection seems to be negligible. The estimated effects of HPWSs on labor productivity are economically important and rising over time. However, corresponding positive effects of HPWSs on labor efficiency occur only in the long run. Finally, due to rising wages associated with the adoption of HPWSs, the effects of these systems on labor efficiency are smaller than the corresponding effects on labor productivity.
Subjects:linked-employer-employee data set
high performance workplace organization
instrumental variables
correlated random coefficient model
JEL:M11
L23
J5
J24
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
dp700.pdf539.4 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/20637

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.