Advanced Technologies and Worker Voice

Economica

Economica

69 Pages Posted: 17 Jan 2022 Last revised: 6 Sep 2022

See all articles by Filippo Belloc

Filippo Belloc

University of Siena - Department of Economics and Statistics

Gabriel Burdin

University of Leeds - Faculty of Business; IZA Institute of Labor Economics

Fabio Landini

University of Parma

Date Written: January 14, 2022

Abstract

The interplay between labor institutions and firm-level adoption of new technologies such as robotics and other advanced digital tools remains poorly understood. Using a cross-sectional sample of more than 20000 European establishments, this paper documents a positive association between shop-floor employee representation (ER) and the utilization of these emerging technologies. We dig into the mechanisms driving this correlation by exploiting rich information on the role played by ER in relation to well-defined decision areas of management, such as work organization, dismissals, training and working time. In addition, we conduct a quantitative case study using a panel of Italian firms and exploiting size-contingent policy rules governing the operation of ER bodies in the context of a local-randomization regression discontinuity design. The analysis suggests a positive effect of ER on investments in advanced technologies around the firm size cutoff, although the results are sensitive to the type of technology and specification choices. We also document positive effects on training and process innovation and no evidence of changes in the composition of employment. Altogether, our findings cast doubts on the idea that ER discourages technology adoption. Rather, ER seems to influence workplace practices that enhance the complementary between labor and new advanced technologies.

Keywords: Automation, Robots, Digitalization, Unions, Employee Representation, Labor Market Institutions

JEL Classification: J50, O32, O33

Suggested Citation

Belloc, Filippo and Burdin, Gabriel and Landini, Fabio, Advanced Technologies and Worker Voice (January 14, 2022). Economica, Economica, Available at SSRN: https://ssrn.com/abstract=4009136 or http://dx.doi.org/10.2139/ssrn.4009136

Filippo Belloc

University of Siena - Department of Economics and Statistics ( email )

Piazza San Francesco 7
Siena, Siena 53100
Italy

Gabriel Burdin (Contact Author)

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Fabio Landini

University of Parma ( email )

Parma
Italy

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