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CEP discussion paper

How Does Innovation Affect Worker Well-being?


We explore the effects of management innovations on worker well-being using private sector linked employer-employee data for Britain. We find management innovations are associated with lower worker well-being and lower job satisfaction, an effect which becomes more pronounced when we account for the endogeneity of innovation. This is the case for three different count measures of innovation – a global measure of innovation and measures for labour innovations and capital innovations. The effects are ameliorated when workers are covered by a collective bargaining agreement.


Erling Barth, Alex Bryson and Harald Dale-Olsen

October 2009     Paper Number CEPDP0953

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This CEP discussion paper is published under the centre's Labour markets programme.