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CEP discussion paper
How Does Innovation Affect Worker Well-being?
Erling Barth, Alex Bryson and Harald Dale-Olsen
October 2009
Paper No' CEPDP0953:
Full Paper (pdf)

JEL Classification: J28; J51; J81; L23; O31

Tags: innovation; well-being; job satisfaction; trade unions

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.