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Forms of Profit Sharing and Firm Performance: Theoretical Foundations and Empirical Problems

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  • FitzRoy, Felix R
  • Kraft, Kornelius

Abstract

Explicit profit sharing and rent-seeking as a form of efficiency wage are theoretically closely related though their respective literatures have made little contact. A number of theoretical models provide good foundations for both kinds of sharing. Attempts to quantify the "effects" of sharing, though almost unanimous in finding a positive productivity relationship, are less convincing on various methodological grounds. In particular, selection bias has been neglected, but suggests that adoption of profit sharing (without flanking measures) by firms that have not chosen to do so hitherto might be less advantageous than existing schemes. Copyright 1992 by WWZ and Helbing & Lichtenhahn Verlag AG

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 45 (1992)
Issue (Month): 2 ()
Pages: 209-25

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Handle: RePEc:bla:kyklos:v:45:y:1992:i:2:p:209-25

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962

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Cited by:
  1. Pull, Kerstin, 1999. "What is the fair wage? A model of as-if-co-operation," Quint-Essenzen 58, Institute for Labour Law and Industrial Relations in the European Community (IAAEG), University of Trier.
  2. Tim Jenkinson & Sandeep Bhargava, 1996. "Partage explicite ou implicite du profit dans la détermination des salaires," Économie et Prévision, Programme National Persée, vol. 126(5), pages 19-29.
  3. Möller, Iris, 2000. "Produktivitätswirkung von Mitarbeiterbeteiligungen (Productivity effect of employee participation in asset formation)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(4), pages 565-582.
  4. repec:iab:iabmit:v:29:i:4:p:607-615 is not listed on IDEAS
  5. Thomas Cornelissen & John S. Heywood & Uwe Jirjahn, 2010. "Profit Sharing and Reciprocity: Theory and Survey Evidence," SOEPpapers on Multidisciplinary Panel Data Research 292, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Pull, Kerstin, 1996. "Übertarifliche Entlohnung : ein Ergebnis vorweggenommener Verhandlungen (Wages above the collectively agreed level: a result of anticipated negotiations)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 29(4), pages 607-615.
  7. Amess, Kevin & Roberts, Barbara M., 2007. "The productivity effects of privatization: The case of Polish cooperatives," International Review of Financial Analysis, Elsevier, vol. 16(4), pages 354-366.

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