Parametric and Semiparametric Estimation of the Adoption of Work Teams

This paper is concerned about the adoption of work teams and the factors that facilitate team adoption. It focuses on four factors - trade union, technological change, training of the workforce and shared mode of compensation. Both parametric and semiparametric estimation methods are used to estimate the association of these factors with team adoption. A nonparametric confidence band test is used to test the parametric specification of probit model. The test rejects the distributional assumption of the parametric probit model. The semiparametric estimates show that trade union density is not associated with team adoption while prodit sharing, new technology and training provisions for more employees facilitate the adoption of work teams