Boss Competence and Worker Well-being

Produced by: 
Institute for the Study of Labor (IZA)
Available from: 
October 2014
Paper author(s): 
Benjamin Artz (University of Wisconsin at Oshkosh)
Amanda H. Goodall (Cass Business School, City University London and IZA)
Andrew J. Oswald (University of Warwick, CAGE and IZA)
Topic: 
Labor
Year: 
2014

Nearly all workers have a supervisor or 'boss'. Yet there is almost no published research by economists into how bosses affect the quality of employees' lives. This study offers some of the first formal evidence. First, it is shown that a boss's technical competence is the single strongest predictor of a worker's well-being. Second, we examine equivalent instrumental-variable results. Third, we demonstrate longitudinally that even if a worker stays in the same job and workplace then a newly competent supervisor greatly improves the worker's well-being. Finally, we discuss analytical possibilities, and consider necessary future research.

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