Voice at Work

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-manage ment 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 invol untary separations (during our recessionary sample period). A 2008 introduction of shop-floor representation, another worker voice insti tution preexisting in our main firm sample, had more limited effects.