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Does high involvement management lead to higher pay?

Böckerman, Petri, Bryson, Alex and Ilmakunnas, Pekka (2013) Does high involvement management lead to higher pay? Journal of the Royal Statistical Society. Series A: Statistics in Society, 176 (4). pp. 861-855. ISSN 0964-1998

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Identification Number: 10.1111/j.1467-985X.2012.01075.x


Using nationally representative survey data for Finnish employees linked to register data on their wages and work histories we find that wage effects of high involvement management (HIM) practices are generally positive and significant. However, employees with better wage and work histories are more likely to enter HIM jobs. The wage premium falls substantially having accounted for employees’ work histories, which suggests that existing studies’ estimates are upwardly biased owing to positive selection into HIM. Results using standard regression techniques are robust to propensity score matching and instrumental variables estimation. The premium also rises with the number of HIM practices and differs markedly across different types of HIM practice.

Item Type: Article
Official URL:
Additional Information: © 2012 Royal Statistical Society
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 28 Aug 2012 15:24
Last Modified: 20 Sep 2021 02:49
Projects: 108294, 114827, ES/I035846/1
Funders: Finnish Work Environment Fund, Academy of Finland, Economic and Social Research Council

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