Advanced Technologies and Worker Voice. (19th October 2022)

• Record Type: Journal Article
• Authors: Belloc, Filippo; Burdin, Gabriel; Landini, Fabio
• Is Part Of: Economica. Volume 90:Number 357(2023)
• Page Start: 1
• Page End: 38
• Publication Date: 2022-10-19
• Subjects: Economics -- Periodicals; 330.05
• DOI: 10.1111/ecca.12446
• Languages: English
• ISSNs: 0013-0427

Abstract

Abstract : The interplay between labour institutions and firm‐level adoption of new technologies such as robotics and other advanced digital tools remains poorly understood. Using a cross‐sectional sample of more than 20, 000 European establishments, we document a positive association between shop‐floor employee representation (ER) and utilization of emerging technologies. We explore mechanisms driving this correlation by exploiting rich information on the role played by ER in relation to well‐defined decision areas of management, such as work organization, dismissals, training and working time. In addition, we conduct a quantitative case study using a panel of Italian firms and exploiting size‐contingent policy rules governing the operation of ER bodies in the context of a local‐randomization regression discontinuity design. The analysis suggests a positive effect of ER on investments in advanced technologies around the firm size cut‐off, although results are sensitive to type of technology and specification choices. We also document positive effects on training and process innovation, and no evidence of changes in composition of employment. Our findings cast doubt on the idea that ER discourages technology adoption. Rather, ER seems to influence workplace practices that enhance the complementarity between labour and new advanced technologies.