Doctoral Dissertation Research: An Experimental Investigation of Workplace Democracy

University Of Massachusetts Amherst, Amherst MA

Investigators

Abstract

This award funds doctoral dissertation research that uses lab experiments to study the effect of a simple kind of workplace democracy on worker productivity. In theory, democratic governance structures within a firm will result in workers identifying more strongly with the firm. In addition, workers will find their work more rewarding by virtue of having increased control over both processes and outcomes regarding their engagement with work. The end result is higher productivity. Because participatory industrial relations found in practice vastly differ both in form and content across firms and industries, collecting data on the effects of workplace democracy is quite difficult. This project employs a controlled laboratory experiment to directly examine if and how democratically made decisions by workers on a meaningful issue-- the compensation scheme for workers -- affects the behavior of workers. Previous research has highlighted how cooperation, trust, and reciprocity contribute to better firm performance, but little is known about whether or not workplace democracy also leads to better performance. Labor costs account for at least 70% of production costs in the U.S., implying that small increases in labor productivity can have a massive influence on economic outcomes. If expanded workplace democracy does improve worker performance, then the result could be higher firm productivity, which in turn would result in higher levels of investment, lower unemployment, and economic growth. Expanding democracy in the workplace could potentially give voice to historically disadvantaged individuals and groups in the workplace.