Many authors have discussed an apparent shift to a new employment contract characterized by less commitment between employer and employee coupled with closer ties between wages within the enterprise and those in the external labor market. We study the issue of when people in the U.S. and Canada...

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 are grateful to Nick Argyres, Bob Cole, Ray Horton, Rita McGrath, Atul Nerkar, Toshi Nishiguchi, Joanne Oxley, Hugh Patrick, Eleanor Westney, and Oliver Williamson for helpful comments. We also acknowledge useful feedback from members of the Sloan Corporate Governance Project at Columbia Law...