November 2012

IZA DP No. 6984: High-Performance Management Practices and Employee Outcomes in Denmark

published in: Scottish Journal of Political Economy, 2013, 60 (3), 232-266 (lead article)

High-performance work practices are frequently considered to have positive effects on corporate performance, but what do they do for employees? After assessing the correlation between organizational innovation and firm performance, this article investigates whether high-involvement work practices affect workers in terms of wages, wage inequality and workforce composition. The analysis is based on a survey directed at Danish firms matched with linked employer-employee data and also examines whether the relationship between high-involvement work practices and employee outcomes is affected by the industrial relations context.