Voice at Work

63 Pages Posted: 8 Mar 2021 Last revised: 29 Nov 2021

See all articles by Jarkko Harju

Jarkko Harju

Government of the Republic of Finland - VATT Institute for Economic Research; CESifo (Center for Economic Studies and Ifo Institute)

Simon Jäger

Massachusetts Institute of Technology (MIT)

Benjamin Schoefer

University of California, Berkeley

Multiple version iconThere are 4 versions of this paper

Date Written: March 2021

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, designed primarily to facilitate workforce-management communication. The reform only affected firms with at least 150 employees, permitting a difference-in-differences design to analyze its causal effects. Consistent with information sharing theories, worker voice slightly raised labor productivity, firm survival, and capital intensity. In contrast to the exit-voice theory, we find 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). A 2008 introduction of shop-floor representation had similarly limited effects.

Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Suggested Citation

Harju, Jarkko and Jäger, Simon and Schoefer, Benjamin, Voice at Work (March 2021). Available at SSRN: https://ssrn.com/abstract=3799813

Jarkko Harju (Contact Author)

Government of the Republic of Finland - VATT Institute for Economic Research ( email )

Arkadiankatu 7
P.O Box 1279
Helsinki, FIN-00531
Finland

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Simon Jäger

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Benjamin Schoefer

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
79
PlumX Metrics