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IZA Discussion Paper No. 17848
April 2025
From Followers to Leaders: The Career Impact of High-Quality Managers
Yuyu Chen, Lukas Hensel, Xinjue Yao

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.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Netzwerkkoordination
Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

Über das IZA@LISER Network
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