Incentives? The effect of profit sharing plans offered by previous employers on current wages
AbstractIn this paper, I investigate the relationship between wages and the use of profit sharing plans by both current and past employers. Using data from the National Longitudinal Survey of Youth, I find that when I control for the number of years on profit sharing plans prior to the current job, the wage effect of those previous plans is both economically and statistically significant while the wage effect of current plans is markedly reduced, if not completely eliminated. This result sheds doubt on a simple incentive-for-effort explanation for the wage/productivity impact previously measured and suggests that an alternative mechanism based on skill acquisition is likely to play a role. Dans cette Ã©tude, j'examine le lien entre la rÃ©munÃ©ration versÃ©e aux travailleurs et l'utilisation de programmes de partage de profits (Â«profit sharingÂ») par l'employeur actuel ainsi que les employeurs prÃ©cÃ©dents. Avec des donnÃ©es du National Longitudinal Survey of Youth, je trouve que l'effet des programmes de partage de profits dont ont bÃ©nÃ©ficiÃ© les travailleurs dans leurs emplois antÃ©rieurs Ã leur emploi actuel est Ã©conomiquement et statistiquement significatif. De fait, tenir compte de ces programmes dans une Ã©quation de gains standard rÃ©duit de faÃ§on trÃ¨s substantielle ou mÃªme totalement l'effet de programmes similaires offerts par l'employeur actuel. Ce dernier rÃ©sultat laisse planer un doute sÃ©rieux sur une explication standard (quoique problÃ©matique) donnÃ©e pour justifier l'existence de l'effet positif des programmes de partage de profits, Ã savoir un effet incitatif Ã l'effort. Les rÃ©sultats sont davantage cohÃ©rents avec le fait que les travailleurs bÃ©nÃ©ficiant de tels programmes acquiÃ¨rent des habiletÃ©s transfÃ©rables d'un employeur Ã un autre.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 83 (2004)
Issue (Month): 1 (April)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Daniel Parent, 2002. "Incentives? The Effect of Profit Sharing Plans Offered by Previous Employers on Current Wages," CIRANO Working Papers 2002s-54, CIRANO.
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