Economists have often argued that "pay for performance" is the optimal compensation scheme. However, use of the simplest form of pay for performance, the piece rate, has been in decline in manufacturing in recent decades. We show both theoretically and empirically that these changes are due to...

The study examines US-European productivity and worker attitude differences, focusing on changes in incentive structures. We analyze productivity and worker attitudes in five plants in the UK and US belonging to the same multinational producer of automotive sensors and actuators. We examine the...

Using both survey data and field research, we investigate the effects of employee involvement practices on outcomes for blue-collar workers in the auto supply industry. Using a variety of measures, we find consistent evidence that these practices raise wages by 3-5%. The causal mechanism linking...

We use census data to examine the impact of industrialization on children’s education in Mexico. We find no evidence of reverse causality in this case. We find small positive effects of industrialization on primary education, effects which are larger for domestic manufacturing than for...

We use census data to examine the impact of industrialization on children’s education in Mexico. We find no evidence of reverse causality in this case. We find small positive effects of industrialization on primary education, effects which are larger for domestic manufacturing than for...

General Motors was once regarded as the best-managed and most successful firm in the world. However, between 1980 and 2009, GM's US market share fell from 46 to 20 percent, and in 2009 the firm went bankrupt. We argue that the conventional explanation for this decline?namely high legacy labor...

Using both survey data and field research, we investigate the effects of employee involvement practices on outcomes for blue-collar workers in the auto supply industry. wages by 3-5%. The causal mechanism linking involvement and wages appears most consistent with efficiency wage theories, and...

General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the US market fell from 62.6 to 19.8 percent, and in 2009 the firm went bankrupt. In this paper we argue that the conventional explanation for this decline -...

This paper describes Total Quality Management (TQM) and its benefits. It then outlines a three-point proposal for a national quality policy: (i) implementing TQM throughout the U.S. government, (ii) creating a set of nationally recognized certifications for employees' quality skills, (Hi)...