If worker-representatives have appropriate mechanisms for sharing information with the workforce, could increase productivity and innovation by improving information flow within firms.
A study of French firms found no significant difference in productivity between labor-managed and conventional firms.
German codetermination improved labor productivity (value-added per employee) by 16 - 21%.
There is apparently consistent support for the view that worker participation in management causes higher productivity. This result is supported by a variety of methodological approaches, using diverse data and for disparate time periods.”
Theoretical arguments suggest that codetermination has scope for real efficiency gains in terms of both productivity & job satisfaction, but the latter is difficult to measure, while the former is mostly likely to show up in long-run data sets that are difficult to acquire.
Data from 1972-76 and 1981-85 find codetermination had a small positive effect on productivity following the 1976 strengthening of codetermination laws.
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Voice at Work
Codetermination and Enterprise Performance: Empirical Evidence from West Germany
NIT Picking: The macroeconomic effects of a negative income tax
The Economic Costs of Childhood Poverty in the US
Do Financial Concerns Make Workers Less Productive?
UBI in the US and Advanced Countries
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Michael A. Gurdon
Greg J. Duncan
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