ESRI Discussion Paper Series No.352
Management Practices Meet Labor Market Outcomes

Ryo Kambayashi
Hitotsubashi University, Institute of Economic Research
Taisuke Kameda
Cabinet Office of Japan
Takuma Kawamoto
Cabinet Office of Japan
Shigeru Sugihara
Nihon University, College of Economics
Mari Tanaka
Hitotsubashi University, Graduate School of Economics


There has been a longstanding interest in explaining labor market outcomes by firm management practices. However, direct empirical evidence of the link between them remains limited. We combine a large scale management survey of Japanese establishments covering two periods with the corresponding employee data on wages and working hours. We obtain two main findings. First, workers become more likely to work more than moderate hours of overtime in establishments that introduce more structured bonuses and promotion practices. However, workers become less likely to work excessively long overtime hours in establishments that adopt structured monitoring and targeting practices. Second, there is a reduction in the hourly wage gap by tenure, especially among long-tenured male and short-tenured female workers, in those establishments more inclined to quickly dismiss or reassign underperforming workers. Overall, we find that the adoption of structured management practices is associated with the narrowing of disparities in working hours and wages within establishments.

Structure of the whole text(PDF-Format 1 File)

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  2. page1
    1 Introduction
  3. page3
    2 Related literature
  4. page4
    3 Data
  5. page9
    4 Overtime work and management practices
  6. page16
    5 Wages and Management Practices
  7. page18
    6 Inequality of hours and wages within establishments
  8. page19
    7 Concluding remarks
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