Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319117 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17848
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
How does manager quality affect subordinates' career progression? We examine the causal effect of manager quality on workers' career outcomes in the context of managerial teams at a large construction firm. We exploit quasi-random variation in worker-manager matching through frequent project reassignments to identify the causal effect of high-quality managers on promotions. Working under a high-quality manager increases workers' subsequent promotion rates by 13 percentage points. We provide evidence in support of managerial human capital transmission as the primary mechanism: effects are concentrated among workers and positions that require most managerial skills and exposed workers earn significantly higher performance-based bonuses.
Subjects: 
skill transmission
promotions
manager quality
JEL: 
M51
J24
Document Type: 
Working Paper

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