Human Resource Management Practices and Wage Dispersion in U.S. Establishments



Table 3: Systems of Employee Involvement Practices and Wage Dispersiona, NES 1996

Specification b

I

Coef.

χ2-test

si = si~1

II

Coef.

χ2-test

si = si~1

III

Coef.

χ2-test

si = si~1

IV

Coef.

χ2-test

si = si~1

V

Coef.

χ2-test

si = si~1

Firm Technology

Workplace

Stock Option/ Profit Sharing

System Sq (no Employee Involvement Practices)

No
No
No

0.334**

(0.141)

Yes

No

No

Manufacturing

0.437**

(0.180)

Yes

Yes

No

Sector

0.396**

(0.191)

Yes

Yes

No

0.379***

(0.193)

Yes

Yes

Yes

0.385**

(0.192)

System S1 (Meetings or Job Rotation, or Teamwork

0.510***

5.99

0.617***

5.06

0.568***

4.61

0.585***

6.44

0.592***

6.59

used as individual practices or in pairs)

(0.117)

(0.01)

(0.146)

(0.16)

(0.159)

(0.03)

(0.165)

(0.01)

(0.164)

(0.01)

System St2 (Meetings and Job Rotation and Teamwork)

0.462***

1.20

0.580***

0.76

0.522***

1.04

0.530***

0.16

0.563***

0.21

χ2-test S0 = S2
(p-value)

(0.123)

(0.27)
2.74
(0.09)

(0.147)

(0.39)

3.04
(0.08)

(0.160)

(0.30)
2.41
(0.12)

(0.157)

(0.66)

4.02
(0.04)

(0.155)

(0.65)
3.82
(0.05)

System S11 (S and Ft-Iines Training)

-0.065

(0.048)

-0.061

(0.048)

System S2 (S2 and Ft-Iines Training)

-0.081

-0.079

(0.073)

(0.075)

N=533

Non Manufacturing Sector

System S0 (No Employee Involvement Practices)

0.341*               0.323                0.332                 0.210

0.211

(0.197)                (0.220)                (0.239)                (0.232)

(0.215)

System ∣S∣ (Meetings or Job Rotation, or Teamwork

0.274      0.35      0.354**    0.06      0.358*     0.04      0.296      0.46

0.298      0.44

used as individual practices or in pairs)

(0.177)     (0.55)     (0.179)     (0.71)     (0.213)     (0.81)     (0.210)     (0.49)

(0.204)     (0.50)

Systβm St2 ( Meetings and Job Rotation and Teamwork)

0.376**    2.43      0.433**    1.30      0.447*     1.63      0.464**    1.84

0.478**    1.86

(0.187)     (0.12)     (0.197)     (0.30)     (0.243)     (0.20)     (0.246)     (0.17)

(0.231)     (0.17)

χ2-test S0 = S2

0.11                  0.75                  0.69                  2.20

2.24

(p-value)

(0.74)                  (0.80)                  (0.40)                  (0.13)

(0.13)

System S11 (S and Ft-Iines Training)

-0.176**

-0.147*

(0.069)

(0.088)

System S2 (S2 and Ft-Iines Training)

-0.234**

-0.223**

(0.149)

(0.138)

N=191____________________________

a-The dependent variable is the log of the average wage ratio for managers and production workers. Standard errors computed using the White correction.
b-Includes the value of the firm’s capital stock, new equipment, labor and other costs, equipment age, industry, firm-size and union dummies.



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