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Productivity Puzzles - should employee participation be an issue?

Author

Listed:
  • Bjørne Grimsrud

    (Fafo Institute for Labour and Social Research)

  • Torunn Kvinge

    (Fafo Institute for Labour and Social Research)

Abstract

In this paper we review econometric efforts aiming to identify whether employee participation adds to productivity growth. The overall picture is mixed. Participation may lead to significant but not substantial higher productivity. The theoretical predictions, pointing to the importance of institutional setting and a need to establish quality cooperation and long-term commitment from both management and workers, seem to be supported by the empirical results. An emerging hypothesis is that both the intensity of involvement and a combination of involvement, economic rewards and participation in decisions significantly influence productivity.

Suggested Citation

  • Bjørne Grimsrud & Torunn Kvinge, 2006. "Productivity Puzzles - should employee participation be an issue?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 32, pages 139-167.
    • Handle: RePEc:noj:journl:v:32:y:2006:p:139-167
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    More about this item

    Keywords

    productivity; cooperation; participation;
    All these keywords.

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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