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Profit Sharing and Workplace Productivity: Does Teamwork Play a Role?

Author

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  • Long, Richard J.

    (University of Saskatchewan)

  • Fang, Tony

    (Memorial University of Newfoundland)

Abstract

The conditions under which profit sharing affects workplace productivity have never been fully understood. Using panel data, this paper examines whether there is any link between adoption of an employee profit sharing plan and subsequent productivity growth in Canadian establishments, and whether this relationship is affected by various contextual factors, particularly use of work teams. In so doing, we use both three and five-year panels. Overall, we find a significant link between adoption of a profit sharing program and subsequent productivity growth in both panels, but only among establishments that utilize employee work teams.

Suggested Citation

  • Long, Richard J. & Fang, Tony, 2013. "Profit Sharing and Workplace Productivity: Does Teamwork Play a Role?," IZA Discussion Papers 7869, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7869
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Tony Fang, 2016. "Profit sharing: Consequences for workers," IZA World of Labor, Institute of Labor Economics (IZA), pages 225-225, January.
    3. Marco A. Barrenechea-Mendez & Sara Martinez-de-Morentin, 2021. "Profit Sharing, Interconnected Autonomous Teams, and Employee Productivity," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 2107, Departamento de Economía - Universidad Pública de Navarra.
    4. Galashin Mikhail & Popov Sergey V., 2016. "Teamwork Efficiency and Company Size," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 16(1), pages 337-366, January.

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    More about this item

    Keywords

    profit sharing plans; workplace productivity; teamwork; firm-worker linked survey; Canada;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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