Get access

Workplace Innovations and Employee Outcomes: Evidence from Finland

Authors

  • PANU KALMI,

    1. Department of Economics, Helsinki School of Economics; HECER; and The Academy of Finland
    Search for more papers by this author
    • * 

      The authors’ affiliations are: Kalmi: Department of Economics, Helsinki School of Economics; HECER; and The Academy of Finland; Kauhanen: Department of Economics, Helsinki School of Economics; HECER; and The Research Institute of the Finnish Economy. E-mails: panu.kalmi@hse.fi and antti.kauhanen@hse.fi. We thank Pekka Ilmakunnas for suggesting the use of these data for our research and for useful comments. Trond Pedersen (the editor), three anonymous reviewers, Boyd Black, Petri Böckerman, Ari Hyytinen, Derek Jones, Erik Poutsma, and participants of the 3rd Performance and Reward Conference in Manchester, April 7, 2005, and of the 58th LERA Annual Meeting in Boston, January 6–8, 2006 also provided valuable comments on earlier versions of this paper. This research is supported by the Academy of Finland (Project No. 206027) and The Finnish Work Environment Fund (Grant No. 103313). The usual disclaimer applies.

  • ANTTI KAUHANEN

    1. Department of Economics, Helsinki School of Economics; HECER; and The Research Institute of the Finnish Economy
    Search for more papers by this author

Abstract

In the recent literature on workplace innovations, two competing views stand out. One strand of literature emphasizes positive outcomes for employees in the form of increased discretion, improved job security, and enhanced job satisfaction. In turn, critics argue that workplace innovations lead to increased job intensity and mental strain, and compromise job security. We address these issues by using a representative data set on individual employees from Finland. Our results indicate that workplace innovations are mainly associated with beneficial outcomes for employees. They are consistent with the view that institutional features of the Finnish labor market may mediate the outcomes.

Ancillary