The Effect of Participative Work Systems on Employee Earnings

In the last 20 years wage inequality in the United States has grown significantly. At the same time, the increased popularity of employee involvement or the so-called high-performance work practices seems to offer opportunities for more skilled, autonomous, and participatory work. For many, this is a positive alternative to low-wage jobs, though others suggest that such jobs may raise skill requirements sufficiently to leave many workers behind and thereby contribute to growing inequality. Yet others are more critical and view participatory work systems as merely a method of work intensification. This paper examines the impact of participative work systems on workers’ wages and generally finds modest evidence of significant effects.