Profit Sharing: Does It Make a Difference?: The Productivity and Stability Effects of Employee Profit-Sharing Plans

Authors

Douglas L. Kruse, Rutgers University

Publication Date

1-1-1993

DOI

10.17848/9780585261614

Abstract

Kruse details the reasons profit sharing plans are implemented and the systemic factors within firms, particularly in relation to unions, that influence whether or not they are successful. Presented is evidence based on a unique database developed from 500 public U.S. firms - matched to firm performance over the period of 1979-1991 - on the two central theories related to profit sharing: 1) The Productivity Theory, and 2) the Stability Theory

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Contents

1. Introduction, Trends, and Data Description
2. Prediction of Profit Sharing
3. The Productivity Theory
4. The Stability Theory
5. Summary, Conclusions, and Policy Implications

Appendix 1-Construction of Dataset and Analysis of Response

Appendix 2-Econometric Specification of Prediction Equations

Appendix 3-Econometric Specification and Selection Corrections

Appendix 4-Stability Theory and Econometric Specifications

ISBN

97780880991384 (cloth) ; 9780880991377 (pbk.) ; 9780585261614 (ebook)

Subject Areas

LABOR MARKET ISSUES; Job security and unemployment dynamics; Wages, health insurance and other benefits