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The impact of financial participation on workers' compensation (Der Einfluss von finanzieller Mitarbeiterbeteiligung auf die Entlohnung der Arbeitnehmer)

Author

Listed:
  • Andrews, Martyn

    (University of Manchester)

  • Bellmann, Lutz

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Schank, Thorsten

    (Universität Erlangen-Nürnberg)

  • Upward, Richard

    (University of Nottingham)

Abstract

"We investigate the impact of financial participation (profit-sharing and share ownership) on workers' total compensation. Some workers' representatives have argued against the introduction of profit-sharing because they fear that profit-sharing would be a way for firms to reduce the marginal cost of hiring workers, while at the same time transferring some of the risk of variable profits from firms to workers. We find that workers in plants which operate financial participation schemes earn significantly more: 25% in the case of profit-sharing and 18% in the case of share ownership. However, econometric models which deal with selection by plants and workers into profit-sharing schemes suggest that the effect on total compensation is much smaller: between 4% (from a difference-in-differences regression) and 2.5% (from a comparison of matched pairs). We find no evidence that high-skilled white-collar workers benefit more strongly from profit-sharing schemes." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Andrews, Martyn & Bellmann, Lutz & Schank, Thorsten & Upward, Richard, 2010. "The impact of financial participation on workers' compensation (Der Einfluss von finanzieller Mitarbeiterbeteiligung auf die Entlohnung der Arbeitnehmer)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 43(1), pages 72-89.
    • Handle: RePEc:iab:iabzaf:v:43:i:1:p:072-089
    DOI: 10.1007/s12651-010-0032-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Gewinnbeteiligung ; IAB-Betriebspanel ; Kapitalbeteiligung ; Lohnhöhe ; Qualifikationsniveau ; 2000-2007;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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