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Profitability and Profit-Sharing

The Journal of Industrial Economics, 1986
Claims that profit-sharing is a purely distributive "wealth confiscation scheme" without incentive effects (due to free-rider problems) are based on neglect of cooperation and interaction in the workforce. When these activities are difficult to monitor directly, group incentives such as profit-sharing can increase efficiency and maintain a superior ...
FitzRoy, Felix R, Kraft, Kornelius
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Profit, productivity, and profit-sharing

Journal of Economics and Finance, 1993
This study is an investigation of the effect of profit-sharing on labor productivity. When monitoring labor performance is costly for management, a regular wage/salary contract is insufficient to induce profit-maximizing behavior from the worker. The authors demonstrate that when this profit-maximizing behavior can be induced only through profit ...
Chun-Hao Chang, David J. Bjornstad
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Profit sharing and firm profitability

Journal of Participation and Employee Ownership, 2018
PurposeThis purpose of this paper to examine how profit sharing depends on the underlying profitability of firms. More precisely, motivated by theoretical research on fair wages and unionized labor markets, profit sharing is estimated for six different profitability categories: positive, increasing, positive and increasing, negative, decreasing and ...
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Codetermination and Profit-Sharing

1987
The contract regulating labour employment by capitalist firms usually embodies three basic elements: a fixed money wage rate per unit of time, the subjection of workers to the employer’s authority in the workplace and the short-term nature of the hiring commitment.
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Why Share? Owners’ Motives for Profit-Sharing and Firm Profit

Academy of Management Proceedings, 2020
We examine the relationship between the owner-manager’s motive for utilizing a profit-sharing plan and firm performance in China.
Jinyun Sun, Jiwen Song, Zheng Tianyi
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Profit sharing

Abstract In its weak form, the argument for profit sharing offers a reform to lessen the conflict between capital and labor. In its strong form it offers an alternative transition mechanism to the cooperative commonwealth. Starting with Charles Babbage, advocates emphasize its ability to raise productivity.
Kirsten Madden, Joseph Persky
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PROFIT SHARING—CAN IT WORK?

Oxford Economic Papers, 1987
The paper surveys the theoretical and empirical literature on the economic effects of profit sharing between workers and firms. It is critical of the case for government subsidization of such sharing schemes. Copyright 1987 by Royal Economic Society.
Blanchflower, David, Oswald, Andrew J
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