|Bartling, Björn; Fehr, Ernst; Schmidt, Klaus M. (July 2012): Discretion, Productivity, and Work Satisfaction. Discussion Papers in Economics 2012-28|
In Bartling, Fehr and Schmidt (2012) we show theoretically and experimentally that it is optimal to grant discretion to workers if (i) discretion increases productivity, (ii) workers can be screened by past performance, (iii) some workers reciprocate high wages with high effort and (iv) employers pay high wages leaving rents to their workers. In this paper we show experimentally that the productivity increase due to discretion is not only sufficient but also necessary for the optimality of granting discretion to workers. Furthermore, we report representative survey evidence on the impact of discretion on workers’ welfare, confirming that workers earn rents.
|Item Type:||Paper (Discussion Paper)|
Economics > Munich Discussion Papers in Economics
Economics > Chairs > Seminar for Economic Theory
|Subjects:||300 Social sciences > 300 Social sciences, sociology and anthropology|
300 Social sciences > 330 Economics
|JEL Classification:||M5, J3|
|Deposited On:||30. Oct 2012 18:47|
|Last Modified:||02. May 2016 07:05|
Appelbaum, Eileen, Thomas Bailey, Peter Berg, and Arne Kalleberg (2000), Manufacturing Advantage: Why High-Performance Work Systems Pay Off, Ithaca, N.Y.
Bartling, Björn, Fehr, Ernst, and Klaus M. Schmidt (2012), “Screening, Competition, and Job Design: Economic Origins of Good Jobs,” American Economic Review, Vol. 102(2), 834-864.
Batt, Rosemary (2004), “Who Benefits from Teams? Comparing Workers, Supervisors, and Managers,” Industrial Relations, Vol. 43(1), 183-212.
Fehr, Ernst, Georg Kirchsteiger, and Arno Riedl (1993), “Does Fairness Prevent Market Clearing? An Experimental Investigation,” Quarterly Journal of Economics, 58, 437-460.
Fischbacher, Urs (2007), “z-Tree: Zurich toolbox for ready-made economic experiments,” Experimental Economics, Vol. 10, 171-78.
Freeman, Richard, and Morris Kleiner (2000), “Who Benefits Most from Employee Involvement: Firms or Workers?” American Economic Review, Vol. 90(2), 219-23.
Handel, Michael, and David Levine (2004), “The Effects of New Work Practices on Workers,” Industrial Relations, Vol. 43(1), 1-43.
Ichniowski, Casey, and Kathryn Shaw (2003), “Beyond Incentive Pay: Insiders' Estimates of the Value of Complementary Human Resource Management Practices,” Journal of Economic Perspectives, Vol. 17(1), 155-80.
Ichniowski, Casey, Kathryn Shaw, and Giovanna Prennushi (1997), “The effects of human resource practices on manufacturing performance: A study of steel finishing lines,” American Economic Review, Vol. 87(3), 291-313.
Lawler, E.E. III, S.A. Mohrman, and G.E. Ledford (1995), Creating High Performance Organizations: Employee Involvement and Total Quality Management, Jossey-Bass, San Francisco, CA.
Osterman, Paul (2004), “The Wage Effects of High Performance Work Organization in Manufacturing,” Industrial and Labor Relations Review, Vol. 59(2), 187-204.
Osterman, Paul (2006), “The Wage Effects of High Performance Work Organization in Manufacturing,” Industrial and Labor Relations Review, Vol. 59(2), 187-204.
Rosen, Sherwin (1987), “The theory of equalizing differences,” in: Ashenfelter & Layard (ed.), Handbook of Labor Economics, Edition 1, Vol. 1, Chapter 12, 641-92, Elsevier.
Walton, Richard E. (1985), “From control to commitment in the workplace,” Harvard Business Review, Vol. 63(2), 77-84.
Available Versions of this Item
Discretion, Productivity and Work Satisfaction. (deposited 10. Jul 2012 13:05)
- Discretion, Productivity, and Work Satisfaction. (deposited 30. Oct 2012 18:47) [Currently Displayed]