When I've put wood chips from the chicken coop directly on the ground, nothing grows there for a long time even though the chickens scratch in it and scatter it. It seems to burn the ground. I don't know the chemistry that explains that.
		
		
	 
Wood chips make great mulch because they last a relatively long time and nothing really grows in the wood chips mulch itself. Well, it will, after a year or so, but the chips block out most weeds from poking through. I don't think it burns the ground, but it blocks out the sun and prevents the weeds from growing.
	
		
	
	
		
		
			when I put shredded paper from the coop on the ground, it breaks down quickly into a usable compost. So IMO, the paper is better.
		
		
	 
That is one of the benefits I expect to see from my shreds this year. I dumped out the paper shreds into the chicken run this spring when I cleaned my coop after a long winter.
I have not yet checked that area, but I suspect those paper shreds might already be turned into compost. Currently, those coop paper shreds are covered with about 6 inches of grass clippings.
	
		
	
	
		
		
			Of course, I live in an isolated setting and I don't mind the appearance. I did build a containment box out of pallets recently which helps. It's open at the top and the chickens still hop in and scratch for bugs, but it only consists of chicken poop and paper. It's breaking down very quickly and I'm very happy with it.
		
		
	 
Sounds like a good system. I dump all my grass clippings and leaves in the chicken run, so they all get mixed together with the paper shreds. The grass clippings and leaves really bulk up the amount of compost I make. It's really a win-win for me because as I clean up the yard and toss all the grass clippings and leaves into the chicken run, I get a nicer looking lawn and the chickens get more organic material to scratch and peck through all day long. Also, I don't have to haul any organic material to the landfill, which saves me both time and money in that respect.

 I wonder, if I just used paper shreds and chicken poo in my compost mix, would the shreds turn into a paper Mache glob after a good rain? Mixing it with grass clippings, leaves, and wood chips works well for me, where I live, but maybe it's not needed if your climate allows just paper and chicken poo.
Anyways, I'll be using paper shreds again this coming winter. It just worked out too well for me last year. IMHO, paper shreds as coop bedding/litter have some benefits over wood chips that really worked out well for me. I still have a big pile of free wood chips at my house, but I'm just using the wood chips as mulch for now. Wood chips mulch is still much better looking that paper shreds mulch.