YES, LABOR MARKETS ARE FLAWED— BUT SO IS THE ECONOMIC CASE FOR MANDATING EMPLOYEE VOICE IN CORPORATE GOVERNANCE.
An essay is presented on the flaws in the economic theory of employee voice in corporate governance in the U.S. It notes the significant role of union voice on corporate boards. It is observed that employee voice in corporate governance over-targets and mis-targets the flaws. However, it points out that it will not reveal primary flaws such as manufacturing decline in wage and short-term corporate thinking.