The fixed wage puzzle: Why profit sharing is so hard to implement
AbstractProfit sharing arrangements Pareto-dominate fixed wage contracts, but are (far) less than ubiquitous. We account for this fixed wage puzzle by adopting a perspective of bounded rationality. Specifically, plausible share arrangements are not generally acceptable to both firms and unions.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 110 (2011)
Issue (Month): 2 (February)
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Web page: http://www.elsevier.com/locate/ecolet
Profit sharing Share economy Remuneration systems;
Other versions of this item:
- Jürgen Jerger & Jochen Michaelis, 2010. "The Fixed Wage Puzzle: Why Profit Sharing Is So Hard to Implement," MAGKS Papers on Economics 201013, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Jürgen Jerger & Jochen Michaelis, 2010. "The Fixed Wage Puzzle : Why Profit Sharing Is So Hard to Implement," Working Papers 283, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Jerger , Jürgen & Michaelis, Jochen, 2010. "The Fixed Wage Puzzle: Why Profit Sharing Is So Hard to Implement," University of Regensburg Working Papers in Business, Economics and Management Information Systems 441, University of Regensburg, Department of Economics.
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
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