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Skill biased management: evidence from manufacturing firms

Feng, Andy and Valero, Anna (2020) Skill biased management: evidence from manufacturing firms. The Economic Journal. ISSN 0013-0133 (In Press)

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Abstract

This paper investigates the link between management practices and workforce skills in manufacturing firms, exploiting geographical variation in the supply of human capital. Skills measures are constructed using newly compiled data on universities and regional labour markets across 19 countries. Consistent with management practices being complementary with skills, we show that firms further away from universities employ fewer skilled workers and are worse managed, even after controlling for a rich set of observables and fixed effects. Analysis using regional skill premia suggests that variation in the price of skill drives these relationships.

Item Type: Article
Official URL: https://www.res.org.uk/journals/the-economic-journ...
Additional Information: © 2020 Royal Economic Society
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
L Education > L Education (General)
H Social Sciences > HC Economic History and Conditions
JEL classification: I - Health, Education, and Welfare > I2 - Education > I23 - Higher Education Research Institutions
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M20 - General
Date Deposited: 17 Jan 2020 11:09
Last Modified: 27 Feb 2020 00:18
URI: http://eprints.lse.ac.uk/id/eprint/103094

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