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Voice at Work

Author

Listed:
  • Jarkko Harju
  • Simon Jäger
  • Benjamin Schoefer

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.

Suggested Citation

  • Jarkko Harju & Simon Jäger & Benjamin Schoefer, 2025. "Voice at Work," American Economic Journal: Applied Economics, American Economic Association, vol. 17(3), pages 271-309, July.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:3:p:271-309
    DOI: 10.1257/app.20220451
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    Citations

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    Cited by:

    1. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).
    2. Simon Jäger & Shakked Noy & Benjamin Schoefer, 2022. "What Does Codetermination Do?," ILR Review, Cornell University, ILR School, vol. 75(4), pages 857-890, August.
    3. Amanda M. Grittner & Matthew S. Johnson, 2021. "When Labor Enforcement and Immigration Enforcement Collide: Deterring Worker Complaints Worsens Workplace Safety," Upjohn Working Papers 21-353, W.E. Upjohn Institute for Employment Research.
    4. Roth, Christopher & Hager, Anselm & , & Stegmann, Andreas, 2021. "Voice and Political Engagement: Evidence From a Natural Field Experiment," CEPR Discussion Papers 16839, C.E.P.R. Discussion Papers.
    5. Kraft, Kornelius & Lammers, Alexander, 2021. "Bargaining Power and the Labor Share - a Structural Break Approach," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242342, Verein für Socialpolitik / German Economic Association.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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