Managerial Quality and Productivity Dynamics
This study combines two years of daily, line-level production data from a large Indian garment firm with rich survey data on line managers
Abstract
Which managerial skills, traits, and practices matter most for productivity? How appropriately are these features priced into wages? Combining two years of daily, line-level production data from a large Indian garment firm with rich survey data on line managers, we find that several key dimensions of managerial quality, like attention, autonomy, and control, are important for learning-by-doing as well as for overall productivity, but are not commensurately rewarded in pay. Counterfactual simulations of our structural model show large gains from screening potential hires via psychometric measurement and training to improve managerial practices.
This work is part of the Private Enterprise Development in Low Income Countries (PEDL) programme
Citation
Adhvaryu, A., Nyshadham, A., and Tamayo, J. (2019) “Managerial quality and productivity dynamics”, Working Paper