Measuring the Effect of Labor-Management Complementarities on Production and Efficiency

47 Pages Posted: 21 Sep 2015 Last revised: 4 Jul 2016

See all articles by Kelly Carter

Kelly Carter

Morgan State University - Department of Accounting and Finance

Date Written: July 3, 2016

Abstract

Existing studies find that labor-management complementarities (LMCs) exist. This paper adds to that literature by quantifying the effect of LMCs on levels of, and differences in, production and efficiency. I find that levels of LMCs are sometimes positively but other times negatively related to levels of production and efficiency. However, differences in LMCs are strictly positively associated with differences in production and efficiency, implying that relatively stronger LMCs are associated with relatively greater production and efficiency. Overall, the results of this study suggest that LMCs are important to firms, particularly when outperforming their competitors.

Keywords: Labor Management Complementarities, Team Production

JEL Classification: J24, L83

Suggested Citation

Carter, Kelly, Measuring the Effect of Labor-Management Complementarities on Production and Efficiency (July 3, 2016). Available at SSRN: https://ssrn.com/abstract=2662608 or http://dx.doi.org/10.2139/ssrn.2662608

Kelly Carter (Contact Author)

Morgan State University - Department of Accounting and Finance ( email )

Baltimore, MD 21251
United States
(443) 885-4472 (Phone)
(443) 885-8251 (Fax)

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