Technical Report Do “boss effects” exist in Japanese companies? Evidence from employee-supervisor matched panel data

Ye, Yuwei  ,  Matsushige, Hisakazu  ,  Okajima, Yuko

DP-2016-E-003pp.1 - 17 , 2016-03-07 , Osaka School of International Public Policy
This paper investigates whether bosses can significantly enhance their subordinates’ performance using an eight-wave panel dataset from a medium-sized Japanese firm comprising approximately 500 employees. The dataset is of all regular employees working in one manufacturing company including in both blue-collar and white-collar occupations of various division: Product, Sales, R&D, Planning, and Admin. About 40 supervisors were matched to their subordinates, and the evaluation outcomes were used to evaluate the workers’ performance. The results showed that ‘boss effects’ were heterogeneous, displayed a one-year lag, and lasted for 2 years. It was also found that these effects remained significant, even when employees were assigned new/different supervisors.

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