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Using interview and survey data they gathered in 1995-97 from managers and employees in 45 establishments, the authors investigate how high-performance work practices, such as self-directed teams and offline teams, affected workers' earnings in the apparel, steel, and medical electronics industries. An analysis with extensive controls for personal characteristics and other variables shows a positive relationship between high-performance practices and earnings in the apparel and steel industries. In medical electronics, the same statistically significant association disappears when a control variable for education is added, suggesting that there is a strong relationship between formal education and high-performance systems in that industry.
Bailey et al. (Thu,) studied this question.