Do French firms use financial participation to transfer more risk to their workers?
Several papers report a positive effect of financial participation (profit-sharing, employee share ownership) on firms’ economic performance. This increase can be obtained in two main ways: by increasing the effort (extrinsic, intrinsic or commitment) of workers, directly or indirectly through worker selection; or by transferring more risk to the workers. The question is of course not neutral. Indeed if the risk transfer story is true then it means that the increase of economic performance is obtained at the expense of workers, who support more risks. The question is especially important in France where financial participation is associated with tax exemption for firms and where it is forbidden by law to substitute base wage and profit sharing. The purpose of our paper is to use three French data sets (an employer-employee data set- and two employer panel data sets), to answer the question of whether financial participation schemes are mainly designed as a risk transfer (from firms to workers) device.
|Date of creation:||Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: 4, bld Francois Mitterand, 91025 Evry Cedex|
Phone: +33 1 69 47 71 77
Fax: +33 1 69 47 70 50
Web page: http://epee.univ-evry.fr
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Felix R. FitzRoy & Kornelius Kraft, 1987. "Cooperation, Productivity, and Profit Sharing," The Quarterly Journal of Economics, Oxford University Press, vol. 102(1), pages 23-35.
- Bhargava, Sandeep, 1994. "Profit-Sharing and the Financial Performance of Companies: Evidence from U.K. Panel Data," Economic Journal, Royal Economic Society, vol. 104(426), pages 1044-56, September.
- McNabb, Robert & Whitfield, Keith, 1998. "The Impact of Financial Participation and Employee Involvement on Financial Performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(2), pages 171-87, May.
- Sandra E Black & Lisa M Lynch, 2002.
"What's Driving the New Economy? The Benefits of Workplace Innovation,"
02-03, Center for Economic Studies, U.S. Census Bureau.
- Sandra E. Black & Lisa M. Lynch, 2004. "What's driving the new economy?: the benefits of workplace innovation," Economic Journal, Royal Economic Society, vol. 114(493), pages F97-F116, 02.
- Sandra E. Black & Lisa M. Lynch, 2000. "What's Driving the New Economy: The Benefits of Workplace Innovation," NBER Working Papers 7479, National Bureau of Economic Research, Inc.
- Sandra E. Black & Lisa M. Lynch, 2001. "What's driving the new economy? The benefits of workplace innovation," Staff Reports 118, Federal Reserve Bank of New York.
- Sandra E. Black & Lisa M. Lynch, 2003. "What's driving the new economy?: the benefits of workplace innovation," Working Paper Series 2003-23, Federal Reserve Bank of San Francisco.
- Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
- Omar Azfar & Stephan Danninger, 2001. "Profit-Sharing, Employment Stability, and Wage Growth," ILR Review, Cornell University, ILR School, vol. 54(3), pages 619-630, April.
- Wadhwani, Sushil & Wall, Martin, 1990.
"The Effects of Profit-Sharing on Employment, Wages, Stock Returns and Productivity: Evidence from UK Micro-data,"
Royal Economic Society, vol. 100(399), pages 1-17, March.
- Wadhwani, S. & Wall, M., 1988. "The Effects Of Profit-Sharing On Employment, Wages, Stock Returns And Productivity: Evidence From Uk Micro-Data," Papers 311, London School of Economics - Centre for Labour Economics.
- Chris Doucouliagos, 1995. "Worker Participation and Productivity in Labor-Managed and Participatory Capitalist Firms: A Meta-Analysis," ILR Review, Cornell University, ILR School, vol. 49(1), pages 58-77, October.
- Bell, Linda A & Neumark, David, 1993. "Lump-Sum Payments and Profit-Sharing Plans in the Union Sector of the United States Economy," Economic Journal, Royal Economic Society, vol. 103(418), pages 602-19, May.
- Sylvie Mabile, 1998. "Intéressement et salaires : complémentarité ou substitution ?," Économie et Statistique, Programme National Persée, vol. 316(1), pages 45-61.
- Cahuc, P. & Dormont, B., 1992.
"Profit-Sharing: Does It Increase Productivity and Employment? A Theoretical Model and Empirical Evidence of French Micro Data,"
Papiers d'Economie MathÃ©matique et Applications
92.45, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Cahuc, Pierre & Dormont, Brigitte, 1997. "Profit-sharing: Does it increase productivity and employment? A theoretical model and empirical evidence on French micro data," Labour Economics, Elsevier, vol. 4(3), pages 293-319, September.
- Alex Bryson & Richard Freeman, 2008.
"How does shared capitalism affect economic performance in the UK?,"
LSE Research Online Documents on Economics
51596, London School of Economics and Political Science, LSE Library.
- Alex Bryson & Richard Freeman, 2008. "How Does Shared Capitalism Affect Economic Performance in the UK?," CEP Discussion Papers dp0885, Centre for Economic Performance, LSE.
- Alex Bryson & Richard Freeman, 2008. "How Does Shared Capitalism Affect Economic Performance in the UK?," NBER Working Papers 14235, National Bureau of Economic Research, Inc.
- Ichino, Andrea, 1994. "Flexible labor compensation, risk sharing and company leverage," European Economic Review, Elsevier, vol. 38(7), pages 1411-1421, August.
- Sarah Brown & Fathi Fakhfakh & John G. Sessions, 1999. "Absenteeism and Employee Sharing: An Empirical Analysis Based on French Panel Data, 1981â€“1991," ILR Review, Cornell University, ILR School, vol. 52(2), pages 234-251, January.
- Juin-Jen Chang, 2006. "Profit Sharing, Risk Sharing, and Firm Size: Implications of Efficiency Wages," Small Business Economics, Springer, vol. 27(2), pages 261-273, October.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Kraft, Kornelius & Ugarkovic, Marija, 2006. "Profit sharing and the financial performance of firms: Evidence from Germany," Economics Letters, Elsevier, vol. 92(3), pages 333-338, September.
- Andrew M. Robinson & Nicholas Wilson, 2006. "Employee Financial Participation and Productivity: An Empirical Reappraisal," British Journal of Industrial Relations, London School of Economics, vol. 44(1), pages 31-50, 03.
- Addison, John T & Belfield, Clive R, 2000. "The Impact of Financial Participation and Employee Involvement on Financial Performance: A Re-estimation Using the 1998 WERS," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(5), pages 571-83, November.
- G.S. Maddala & Forrest D. Nelson, 1975. "Specification Errors in Limited Dependent Variable Models," NBER Working Papers 0096, National Bureau of Economic Research, Inc.
- Andrew Pendleton & Andrew Robinson, 2010. "Employee Stock Ownership, Involvement, and Productivity: An Interaction-Based Approach," ILR Review, Cornell University, ILR School, vol. 64(1), pages 3-29, October.
- Cooper, Russell, 1986. "Share contracts and macroeconomic externalities," Journal of Comparative Economics, Elsevier, vol. 10(4), pages 421-426, December.
When requesting a correction, please mention this item's handle: RePEc:eve:wpaper:12-10. 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: (Samuel Nosel)
If references are entirely missing, you can add them using this form.