Does High Involvement Management Improve Worker Wellbeing?

NIESR Discussion Paper No. 380

37 Pages Posted: 30 Jul 2013

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Alex Bryson

UCL ; National Institute of Economic and Social Research (NIESR)

Pekka Ilmakunnas

Aalto University School of Business

Date Written: October 3, 2011

Abstract

Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than 'like' employees not exposed to HIM. These results are robust to extensive work, wage and sickness absence history controls. We present a model which highlights the possibility of higher short-term absence in the presence of HIM because it is more demanding than standard production and because multi-skilled HIM workers cover for one another’s short absences thus reducing the cost of replacement labor faced by the employer. We find direct empirical support for the assumptions in the model. Consistent with the model, because long-term absences entail replacement labor costs for HIM and non-HIM employers alike, long-term absences are independent of exposure to HIM.

Keywords: health, subjective wellbeing, sickness absence, job satisfaction, high involvement management, high performance work system

JEL Classification: I10, J28, J81, M52, M53, M54

Suggested Citation

Bockerman, Petri and Bryson, Alex and Ilmakunnas, Pekka, Does High Involvement Management Improve Worker Wellbeing? (October 3, 2011). NIESR Discussion Paper No. 380, Available at SSRN: https://ssrn.com/abstract=1937490 or http://dx.doi.org/10.2139/ssrn.1937490

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Alex Bryson

UCL ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

HOME PAGE: http://https://iris.ucl.ac.uk/iris/browse/profile?upi=ABRYS65

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

HOME PAGE: http://www.niesr.ac.uk/staff/staffdetail.php?StaffID=307

Pekka Ilmakunnas

Aalto University School of Business ( email )

PO Box 21240
FI-00076 Aalto, Helsinki
Finland
+358 40 5815390 (Phone)

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