
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. (JEL E32, J24, J53, J63, M54)
productivity, firm survival, capital intensity, ddc:330, J54, corporate governance, L22, wages, J0, separations, exit-voice theory, worker representation, job separation, codetermination, industrial relations, J50, J30, J63, job quality, J53, G30
productivity, firm survival, capital intensity, ddc:330, J54, corporate governance, L22, wages, J0, separations, exit-voice theory, worker representation, job separation, codetermination, industrial relations, J50, J30, J63, job quality, J53, G30
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