Lump-Sum Payments and Profit-Sharing Plans in the Union Sector of the United States Economy
Lump-sum payments and profit-sharing plans became increasingly prevalent in union contracts in the U.S. economy in the 1980s. This paper analyzes the relationship between lump-sums, profit sharing, labor costs and employment, in firm-level panel data for the union sector of the U.S. economy. In general, the firm-level data suggest that profit sharing has a statistically significant effect of lowering labor cost growth. Profit sharing also appears to increase employment growth and reduce employment variability, but these results are not statistically significant. This evidence is generally consistent with hypotheses regarding the introduction of performance-related pay (Weitzman, 1984 and 1985). The effects of lump-sums, on the other hand, are not consistent with hypotheses regarding performance-related pay. Lump-sums do not appear to lower labor cost growth or increase employment growth, and increase rather than decrease employment variability. Copyright 1993 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 103 (1993)
Issue (Month): 418 (May)
|Contact details of provider:|| Postal: |
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|
When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:103:y:1993:i:418:p:602-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.