Voice at Work

Jarkko Harju, Simon Jäger and Benjamin Schoefer

American Economic Journal: Applied Economics, 2025, vol. 17, issue 3, 271-309

Abstract: We estimate the effects of worker voice on productivity, job quality, and separations. We study the 1991 introduction of a right to worker representation on boards or advisory councils in Finnish firms with at least 150 employees, designed to facilitate workforce-management communication. Consistent with information-sharing theories, our difference-in-differences design reveals that worker voice raised labor productivity. In contrast to exit-voice theory, we find no effects on voluntary job separations. However, treated firms reduce involuntary separations (during our recessionary sample period). A 2008 introduction of shop-floor representation, another worker voice institution preexisting in our main firm sample, had more limited effects.

JEL-codes: E32 J24 J53 J63 M54 (search for similar items in EconPapers)
Date: 2025
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Related works:
Working Paper: Voice at Work (2021)
Working Paper: Voice at Work (2021)
Working Paper: Voice at Work (2021)
Working Paper: Voice at Work (2021)
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DOI: 10.1257/app.20220451

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