Profit-Sharing and Meade's Discriminating Labour-Capital Partnerships: A Review Article

Sushil Wadhwani

Oxford Economic Papers, 1987, vol. 39, issue 3, pages 421-42

Abstract: Professor Meade has argued that the discriminating labor-capital pa rtnerships (DLCPs) might not only help cure stagflation, but are to be preferred to Weitzman-type profit-sharing schemes. This paper argu es that: (1) Once we endogenize wages, DLCPs might not affect unemplo yment; (2) the multitier pay structure implied by DLCPs may not be op timal from the perspective of either firms or workers; (3) the effect of DLCPs on productivity is ambiguous; and (4) the case for subsidiz ing DLCPs is far from conclusive, especially given the possibility th at greater decentralization of wage decisions can make an economy mor e prone to stagflation. Copyright 1987 by Royal Economic Society.

Date: 1987

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819870 ... 0.CO%3B2-I&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:oup:oxecpp:v:39:y:1987:i:3:p:421-42

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press
Address: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Series data maintained by Christopher F. Baum ().