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Where Does Profit Sharing Work Best? A Meta-Analysis on the Role of Unions, Culture, and Values

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  • Doucouliagos, Chris

    (Deakin University)

  • Laroche, Patrice

    (University of Lorraine)

  • Kruse, Douglas L.

    (Rutgers University)

  • Stanley, T. D.

    (Deakin University)

Abstract

In this article we re-examine the relationship between group-based profit sharing and productivity. Our meta-regression analysis of 313 estimates from 56 studies controls for publication selection and misspecification biases and investigates the impact of firm level unionisation and national differences in values and culture. Profit sharing is positively related to productivity on average, with a stronger relationship where there is higher unionisation and in countries where honesty is less highly valued and there are higher levels of individualism. The latter two results suggest profit sharing works best in settings where cooperation does not naturally occur. The positive effect of profit sharing on productivity is larger in cooperative firms and in transition economies.

Suggested Citation

  • Doucouliagos, Chris & Laroche, Patrice & Kruse, Douglas L. & Stanley, T. D., 2018. "Where Does Profit Sharing Work Best? A Meta-Analysis on the Role of Unions, Culture, and Values," IZA Discussion Papers 11617, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11617
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    More about this item

    Keywords

    profit sharing; productivity; meta-regression analysis; unions; tax evasion; individualism;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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