Examining the link between health measures, management practices and establishment performance

We examine the relationship between establishment-level health measures, Anglo-Saxon management practices and labor productivity, as well as median wages. Based on the observation that management practices are positively associated with establishment outcomes, we test whether health measures have a distinct effect on their own, or if they are already comprised in management practices. Using representative survey data from the German Management and Organizational Practices Survey, we find a strong increase in the use of health measures from 2008 to 2013, predominantly in large establishments. Fixed effects regressions confirm that management practices significantly increase labor productivity, however, health measures do not. The reverse is true for median wages, such that health measures are positively associated with median wages, but management practices are not.