Lump-Sums, Profit Sharing, and the Labor Costs in the Union Sector
This paper documents the increase in the use of lump-sum payments and profit sharing plans in union contracts in the 1980s, and evaluates the extent to which these innovations may have contributed to moderation in the growth of labor costs, and increased pay flexibility. We find evidence that lump-sum and profit sharing arrangements reduced labor cost growth at both the aggregate and firm level. But the evidence linking these plans to labor cost flexibility is mixed; although the evidence suggests that profit sharing plans may be associated with greater flexibility at the firm level, there is no evidence that lump-sum plans increase flexibility at either the firm or aggregate level.
|Date of creation:||Feb 1991|
|Publication status:||published as Linda A. Bell and David Neumark. "Lump-sum Payments and Profit-sharing Plans in the Union Sector of the United States Economy" The Economic Journal, Vol. 103, No. 418 (May, 1993), pp. 602-619|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
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.:
- Richard B. Freeman & Martin L. Weitzman, 1986.
"Bonuses and Employment in Japan,"
NBER Working Papers
1878, National Bureau of Economic Research, Inc.
- Freeman, Richard B. & Weitzman, Martin L., 1987. "Bonuses and employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 1(2), pages 168-194, June.
- Weitzman, Martin L, 1985.
"The Simple Macroeconomics of Profit Sharing,"
American Economic Review,
American Economic Association, vol. 75(5), pages 937-953, December.
- Robert J. Gordon, 1988. "U.S. Inflation, Labor's Share, and the Natural Rate of Unemployment," NBER Working Papers 2585, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:3630. 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: ()
If references are entirely missing, you can add them using this form.