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Getting along with Colleagues - Does Profit Sharing Help or Hurt?

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Author Info
John S. Heywood
Uwe Jirjahn
Georgi Tsertsvadze

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Abstract

Theory presents two channels through which profit sharing can cause workers to increase their coworkers' productivity: greater cooperation and increased peer pressure. This paper argues that these generate opposite influences on coworker relations, and that which dominates varies according to circumstances and type of worker. Using German data, we show that, for non-supervisory men, profit sharing increases cooperation, but that for those who highly value success on the job, it has no influence on cooperation, and for supervisors it reduces cooperation. Moreover, the findings show striking gender differences in the effect of profit sharing. We contend these patterns fit with underlying theoretical expectations. Copyright 2005 Blackwell Publishing Ltd..

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.0023-5962.2005.00302.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Kyklos.

Volume (Year): 58 (2005)
Issue (Month): 4 (November)
Pages: 557-573
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:kyklos:v:58:y:2005:i:4:p:557-573

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

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  1. Michelle Brown & John Heywood, 2009. "Helpless in Finance: The Cost of Helping Effort Among Bank Employees," Journal of Labor Research, Springer, vol. 30(2), pages 176-195, June. [Downloadable!] (restricted)
    Other versions:
  2. Douglas Kruse & Richard Freeman & Joseph Blasi, 2008. "Do Workers Gain by Sharing? Employee Outcomes under Employee Ownership, Profit Sharing, and Broad-based Stock Options," NBER Working Papers 14233, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. John S Heywood & Colin Green, 2007. "Does profit sharing increase training by reducing turnover?," Working Papers 005113, Lancaster University Management School, Economics Department. [Downloadable!]
  4. John S Heywood & Colin Green, 2007. "Performance pay, sorting and the dimensions of job satisfaction," Working Papers 004731, Lancaster University Management School, Economics Department. [Downloadable!]
  5. John S Heywood & Colin Green, 2008. "Profit Sharing and the Quality of Relations with the Boss," Working Papers 005698, Lancaster University Management School, Economics Department. [Downloadable!]
  6. John Heywood & Uwe Jirjahn & Georgi Tsertsvadze, 2005. "Does profit sharing reduce conflict with the boss? Evidence from Germany," International Economic Journal, Korean International Economic Association, vol. 19(2), pages 235-250, June. [Downloadable!] (restricted)
  7. Kvaløy, Ola & Olsen, Trond E., 2007. "Cooperation in knowledge-intensive firms," Discussion Papers 2007/27, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
    Other versions:
  8. Robert Dur & Joeri Sol, 2008. "Social Interaction, Co-Worker Altruism, and Incentives," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
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