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Profitability and Profit-Sharing
The Journal of Industrial Economics, 1986Claims 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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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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Kirsten Madden, Joseph Persky
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Codetermination and Profit-Sharing
1987The 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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Profit, productivity, and profit-sharing
Journal of Economics and Finance, 1993This 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, 2018PurposeThis 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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