Arbeitspapier

Voice at Work

We estimate the effects of worker voice on job quality and separations. We leverage the 1991 introduction of worker representation on boards of Finnish firms with at least 150 employees. In contrast to exit-voice theory, our difference-in-differences design reveals no effects on voluntary job separations, and at most small positive effects on other measures of job quality (job security, health, subjective job quality, and wages). Worker voice slightly raised firm survival, productivity, and capital intensity. A 2008 introduction of shop-floor representation had similarly limited effects. Interviews and surveys indicate that worker representation facilitates information sharing rather than boosting labor’s power.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 8936

Classification
Wirtschaft
Corporate Finance and Governance: General
Wages, Compensation, and Labor Costs: General
Labor-Management Relations, Trade Unions, and Collective Bargaining: General
Labor Turnover; Vacancies; Layoffs
Firm Organization and Market Structure
Subject
worker representation
job separation
job quality
wages
firm survival
productivity
capital intensity

Event
Geistige Schöpfung
(who)
Harju, Jarkko
Jäger, Simon
Schoefer, Benjamin
Event
Veröffentlichung
(who)
Center for Economic Studies and Ifo Institute (CESifo)
(where)
Munich
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Harju, Jarkko
  • Jäger, Simon
  • Schoefer, Benjamin
  • Center for Economic Studies and Ifo Institute (CESifo)

Time of origin

  • 2021

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