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Profit sharing in practice: its prevalence and influence on job satisfaction controlling for workplace amenities

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  • Christos A. Makridis

Abstract

This paper explores the relationship between profit sharing and employee engagement using new data from a large-scale PayScale survey from 2020 to 2023. First, I document new em- pirical patterns: although profit sharing respondents are only 4% of the sample, it is more prevalent in technical and managerial occupations, industries like manufacturing and con- struction, and higher income workers. Second, using variation within the same occupation and industry, controlling for a wide array of demographics and workplace amenities, I find that profit sharing is associated with increases in job satisfaction and declines in turnover. Incentive effects account for 16% of the overall impact. These results underscore the signifi- cance of non-pecuniary benefits in shaping corporate culture and employee retention.

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  • Christos A. Makridis, 2025. "Profit sharing in practice: its prevalence and influence on job satisfaction controlling for workplace amenities," International Review of Applied Economics, Taylor & Francis Journals, vol. 39(2-3), pages 277-292, March.
    • Handle: RePEc:taf:irapec:v:39:y:2025:i:2-3:p:277-292
    DOI: 10.1080/02692171.2024.2433456
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