Chapter 0: What is Personnel Economics?

... and why is it Important?

Good HR practices can raise both productivity and wages


Bloom, Nicholas, Scott W. Ohlmacher, Cristina J. Tello-Trillo, and Melanie Wallskog (2021) Pay, Productivity, and Management NBER working paper no. 29377.

This paper uses confidential U.S. Census matched employer-employee earnings data to show that firms’ management practices matter for both productivity and wages: Firms with more structured management practices, and more-productive firms pay their workers more at every level of the organization, and especially at higher levels.