Profit Sharing and Gainsharing: A Review of Theory, Incidence, and Effects
The slowdown in productivity growth since the 1970s has led to increased interest in alternative compensation schemes—such as profit sharing and gainsharing—that might raise worker productivity and reduce turnover. In this working paper, Jones, Kato, and Pliskin summarize the rise in popularity of profit sharing (PS) and gainsharing (GS) plans; review existing theoretical and empirical work on PS and GS; and highlight findings that relate the effectiveness of such programs at raising productivity and enhancing employment stability. They also note that some existing studies contain some econometric problems relating to plan and model variables; there are measurement problems as well. Their paper primarily focuses on PS plans.
|Date of creation:||11 Mar 1999|
|Date of revision:|
|Note:||Type of Document - Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 32; figures: included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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.:
- Roger T. Kaufman, 1992. "The Effects of Improshare on Productivity," ILR Review, Cornell University, ILR School, vol. 45(2), pages 311-322, January.
- Kandel, Eugene & Lazear, Edward P, 1992.
"Peer Pressure and Partnerships,"
Journal of Political Economy,
University of Chicago Press, vol. 100(4), pages 801-17, August.
- Kumbhakar, Subal C. & Dunbar, Amy E., 1993. "The elusive ESOP--productivity link : evidence from U.S. firm-level data," Journal of Public Economics, Elsevier, vol. 52(2), pages 273-283, September.
- Blanchflower, David G & Oswald, Andrew J, 1987. "Profit Sharing--Can It Work?," Oxford Economic Papers, Oxford University Press, vol. 39(1), pages 1-19, March.
- Edward P. Lazear, 1991. "Labor Economics and the Psychology of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 89-110, Spring.
- Alchian, Armen A & Demsetz, Harold, 1972.
"Production , Information Costs, and Economic Organization,"
American Economic Review,
American Economic Association, vol. 62(5), pages 777-95, December.
- Armen A. Alchian & Harold Demsetz, 1971. "Production, Information Costs and Economic Organizations," UCLA Economics Working Papers 10A, UCLA Department of Economics.
- Derek C. Jones & Takao Kato, 1993. "The Scope, Nature, and Effects of Employee Stock Ownership Plans in Japan," ILR Review, Cornell University, ILR School, vol. 46(2), pages 352-367, January.
- 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.
- Takatoshi Ito, 1991. "The Japanese Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262090295, March.
- Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, Junio.
- Brunello, G., 1989. "Bonuses, Wages And Performance In Japan: Evidence From Micro Data," Papers 359, London School of Economics - Centre for Labour Economics.
- Jensen, Michael C & Meckling, William H, 1979. "Rights and Production Functions: An Application to Labor-managed Firms and Codetermination," The Journal of Business, University of Chicago Press, vol. 52(4), pages 469-506, October.
- FitzRoy, Felix R & Kraft, Kornelius, 1986. "Profitability and Profit-Sharing," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 113-30, December.
- Tracy, Joseph, 1986. "Unions and the share economy," Journal of Comparative Economics, Elsevier, vol. 10(4), pages 433-437, December.
- 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.
- repec:sae:ilrrev:v:43:y:1990:i:3:p:256-273 is not listed on IDEAS
- S Estrin & D Jones, 1992. "The Determinants of Investment in Employee Owned Firms: Evidence from France," CEP Discussion Papers dp0087, Centre for Economic Performance, LSE.
- Douglas L. Kruse, 1991. "Profit-Sharing and Employment Variability: Microeconomic Evidence on the Weitzman Theory," ILR Review, Cornell University, ILR School, vol. 44(3), pages 437-453, April.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:9903010. 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: (EconWPA)
If references are entirely missing, you can add them using this form.