Productivity Puzzles - should employee participation be an issue?

Bjørne Grimsrud and Torunn Kvinge
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Bjørne Grimsrud: Fafo Institute for Labour and Social Research
Torunn Kvinge: Fafo Institute for Labour and Social Research

Nordic Journal of Political Economy, 2006, vol. 32, 139-167

Abstract: In this paper we review econometric efforts aiming to identify whether employee participation adds to productivity growth. The overall picture is mixed. Participation may lead to significant but not substantial higher productivity. The theoretical predictions, pointing to the importance of institutional setting and a need to establish quality cooperation and long-term commitment from both management and workers, seem to be supported by the empirical results. An emerging hypothesis is that both the intensity of involvement and a combination of involvement, economic rewards and participation in decisions significantly influence productivity.

Keywords: productivity; cooperation; participation (search for similar items in EconPapers)
JEL-codes: J5 L23 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:noj:journl:v:32:y:2006:p:139-167

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