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Abstract for:

Building a Productive Workforce: The Role of Structured Management Practices

Christopher  Cornwell,  Ian M.  Schmutte,  Daniela  Scur,  August 2019
Paper No' CEPDP1644: | Full paper (pdf)
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Keywords: labor allocation, managers, management practices, productivity

JEL Classification: D22; M11; J31

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: CEP Discussion Papers
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Firms’ hiring and firing decisions affect the entire labor market. Managers often make these decisions, yet the effects of management on labor allocation remains largely unexplored. To study the relationship between a firm’s management practices and how it recruits, retains and dismisses its employees, we link a survey of firm-level management practices to production and employee records from Brazil. We find that firms using structured management practices consistently hire and retain better workers, and fire more selectively. Good production workers match with firms using structured personnel management practices. By contrast, better managers match with firms using structured operations management practices.