How Does Innovation Affect Worker Well-being?

Date Added: Oct 2009
Format: PDF

The authors explore the effects of management innovations on worker well-being using private sector linked employer-employee data for Britain. They find management innovations are associated with lower worker well-being and lower job satisfaction, an effect which becomes more pronounced when they account for the endogeneity of innovation. This is the case for three different count measures of innovation - a global measure of innovation and measures for labour innovations and capital innovations. The effects are ameliorated when workers are covered by a collective bargaining agreement.