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Profit Sharing and Workplace Productivity: Does Teamwork Play a Role?

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Author Info

  • Long, Richard J.

    ()
    (University of Saskatchewan)

  • Fang, Tony

    ()
    (Monash University)

Abstract

The conditions under which profit sharing affects workplace productivity have never been fully understood. Using panel data, this paper examines whether there is any link between adoption of an employee profit sharing plan and subsequent productivity growth in Canadian establishments, and whether this relationship is affected by various contextual factors, particularly use of work teams. In so doing, we use both three and five-year panels. Overall, we find a significant link between adoption of a profit sharing program and subsequent productivity growth in both panels, but only among establishments that utilize employee work teams.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7869.

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Length: 37 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7869

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Keywords: profit sharing plans; workplace productivity; teamwork; firm-worker linked survey; Canada;

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