Profit Sharing, Capital Formation and the NAIRU
This paper reconsiders the impact of different remuneration systems on aggregate employment. Contrary to common wisdom on this topic, the authors show that the switch from a fixed wage economy to a share economy results in lower aggregate unemployment. An additional innovation of this paper is the endogeneity of the capital stock decision of the firm, which enables them to assess and reject the common 'disincentive-to-invest' criticism of a share economy. Copyright 1999 by The editors of the Scandinavian Journal of Economics.
Volume (Year): 101 (1999)
Issue (Month): 2 (June)
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