Jarkko Harju, Simon Jäger, Benjamin Schoefer, 19 June 2021

Many continental European countries give workers a formal right to voice via board-level or shop-floor elected representation, but evidence on the effects of these arrangements is scarce. This column examines reforms in Finland that introduced or expanded workers’ rights to voice institutions. Overall, the reforms had non-existent or small positive effects on turnover, job quality, firm survival, productivity, and capital intensity. It may be that Finnish worker voice institutions operate through information sharing and cooperation, which do not substantially improve worker outcomes but also do not harm firm performance.

Anna Stansbury, Lawrence H. Summers, 02 June 2020

Since the early 1980s, the US has seen a falling labour share and slow wage growth for typical workers, while measures of corporate valuations and measured markups have increased. A number of papers have argued that increasing monopoly or monopsony power can explain these trends. This column argues instead that the decline in worker power in the US economy is a more compelling explanation for recent macro trends than a broad-based rise in monopoly power.

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