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Who Benefits from Worker Representation on Corporate Boards?

Author

Listed:
  • Christine Blandhol
  • Magne Mogstad
  • Peter Nilsson
  • Ola L. Vestad

Abstract

We study a size-contingent law in Norway that grants workers the right to board representation in firms with 30 or more employees. To analyze the impact of the law, we embed the regulation into an equilibrium model of the labor market. We show how to use behavioral responses to the regulation to identify (i) the direct effects of the policy on regulated firms and workers, (ii) the distortions from firms adjusting their size to avoid the regulation, and (iii) the equilibrium effects in the labor market. We evaluate these effects on firm profits and production, as well as on worker compensation, including both wages and non-wage amenities.

Suggested Citation

  • Christine Blandhol & Magne Mogstad & Peter Nilsson & Ola L. Vestad, 2020. "Who Benefits from Worker Representation on Corporate Boards?," NBER Working Papers 28269, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28269
    Note: CF LS
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    Citations

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    Cited by:

    1. Jose Garcia-Louzao & Ruben Perez-Sanz, 2024. "Women’s Voice at Work and Family-Friendly Firms," CESifo Working Paper Series 10982, CESifo.
    2. Vladimir Pecheu, 2021. "Profit Sharing as a Bargaining Weapon Against Unions," Working Papers halshs-03247551, HAL.
    3. Simon Jäger & Shakked Noy & Benjamin Schoefer, 2022. "What Does Codetermination Do?," ILR Review, Cornell University, ILR School, vol. 75(4), pages 857-890, August.
    4. Chyz, James A. & Eulerich, Marc & Fligge, Benjamin & Romney, Miles A., 2023. "Codetermination and aggressive reporting: Audit committee employee representation, tax aggressiveness, and earnings management," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    5. Viola Corradini & Lorenzo Lagos & Garima Sharma, 2022. "Collective Bargaining for Women: How Unions Can Create Female-Friendly Jobs," Working Papers 2022-005, Brown University, Department of Economics.
    6. Samuel Dodini & Anna Stansbury & Alexander Willén & Alexander L.P. Willén, 2023. "How Do Firms Respond to Unions?," CESifo Working Paper Series 10873, CESifo.
    7. Cumming, Douglas & Lu, Fanyu & Xu, Limin & Yu, Chia-Feng (Jeffrey), 2025. "Does stakeholder orientation mitigate shareholder-employee conflicts? Evidence from a quasi-natural experiment," Journal of Corporate Finance, Elsevier, vol. 91(C).
    8. Vladimir Pecheu, 2021. "Profit Sharing as a Bargaining Weapon Against Unions," AMSE Working Papers 2135, Aix-Marseille School of Economics, France.

    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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