How Workers Fare When Employers Innovate


Sandra E. Black

Anya Krivelyova

Lisa M. Lynch

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2003-22 | February 1, 2003

Complementing existing work on firm organizational structure and productivity, this paper examines the impact of organizational change on workers. We find evidence that employers do appear to compensate at least some of their workers for engaging in high performance workplace practices. We also find a significant association between high performance workplace practices and increased wage inequality. Finally, we examine the relationship between organizational structure and employment changes and find that some practices, such as self-managed teams, are associated with greater employment reductions, while other practices, such as the percentage of workers involved in job rotation, are associated with lower employment reductions.

Article Citation

Krivelyova, Anya, Lisa M. Lynch, and Sandra E. Black. 2003. “How Workers Fare When Employers Innovate,” Federal Reserve Bank of San Francisco Working Paper 2003-22. Available at