In an influential study, Bender et al. [Bender S, Bloom N, Card D, Van Reenen J, Wolter S (2018) Management practices, workforce selection, and productivity. J. Labor Econom. 36(S1):S371-S409] document consistent relationships between management practices, productivity, and workforce composition using administrative data from German firms matched to ratings of their practices from theWorldManagement Survey.We replicate and extend their analysis using comparable data from Brazil. The main conclusions from their study are supported in ours, strengthening the view thatmore structured practices affect organizational performance through workforce selection across different institutional settings. However, we find that more structured management practices are linked to greater wage inequality in Brazil, relative to greater wage compression in Germany, suggesting that some of the consequences of adopting structured practices are tied to the local context. © 2021 INFORMS Inst.for Operations Res.and the Management Sciences. All rights reserved.
Christopher Cornwell, Ian M. Schmutte and Daniela Scur
1 December 2021
Management Science 67(12) , pp.7308-7321, 2021
DOI: 10.1287/mnsc.2021.3960
https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2021.3960
This work is published under POID and the CEP's Growth programme.