We use survey data and field research to investigate the effects of employee involvement
practices on outcomes for blue-collar workers in the auto supply industry. We find these practices
raise wages by 3-5%. The causal mechanism linking involvement and wages appears to be most
consistent with efficiency wage theories, and least consistent with compensating differences. We
find no evidence that employee involvement affects plants? survival or employment growth.
MIT International Motor Vehicle Program and the Case
Western Reserve University Center for Regional Economic Issues