Research Associate, University of Chicago
In Norway, workers at codetermined firms have higher wages and less earnings risk, though the causal mechanism appears to be the size and unionization of codetermined firms, rather than worker representation.
In Norway, workers moving into firms with codetermination experience a 4% increase in wages relative to former co-workers moving into firms without codetermination.
In Norway, workers moving *out* of codetermined firms experience a 3% drop in wages compared to their former co-workers moving between codetermined firms.
During recessions in Norway, workers at codetermined firms only experience wage decreases of 0.2%, compared with 0.9% for workers at non-codetermined firms.
In Norway, there is no evidence that adopting codetermination caused any change in wages.
Do Employees Benefit From Worker Representation on Corporate Boards?