Interesting!
We now exclusively use shredded paper in the henhouse (not just the nestboxes). Hens' feet are tough, and I don't think paper cuts are an issue. Our coop has a droppings tray underneath the perches, so the deal is that the paper goes in the bottom of the coop to begin with, and then gets scooped up to the droppings tray,

ed on, and then scooped out of a side door, straight onto the compost heap / muck pile.
I finally got round to using the contents of the muck pile a few weeks ago, and it had all rotted down to lovely soil-like soft muck. You could actually see the line where we switched from wood shavings to shredded office paper, and I'd say the paper muck was better looking TBH. (oh dear, did I really just type that?).
BTW, a word to the wise - the muck we removed did have numerous little plastic bits in it, which I now realise were the shredded windows from junk mail envelopes. These clearly aren't compostable, so from now on I'll be ripping the windows out and binning them before shredding.
HTH!