PROFIT-SHARING AND PRODUCTIVITY: AN INTERNATIONAL COMPARISON

John Cable and Nicholas Wilson

No 268336, Economic Research Papers from University of Warwick - Department of Economics

Abstract: using a common estimating framework and comparable, primary data for two samples of firms in the British and West German engineering industries, the paper reports productivity differentials of 20-30% in favour of firms practising profit-sharing in West Germany, and 3-8% in Britain. Model selection procedures reveal important interactions between profit-sharing and other firm characteristics in both cases. We infer (a) that the observed differentials therefore capture the joint effects of a set of organisational choices of which profit-sharing is one element, and (b) that from a policy viewpoint, profit-sharing must be seen as part of a more general, organisational design process, rather than as an optional, add-on extra, as in some previous work and policy discussion. However, the characteristics of British and West German profit-sharers turn out to be quite different, indicating that there is evidently no single, stereotype formula for the effective use of profit-sharing.

Keywords: Industrial Organization; Productivity Analysis (search for similar items in EconPapers)
Pages: 37
Date: 1988-09-09
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Citations: View citations in EconPapers (2)

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Working Paper: PROFIT-SHARING AND PRODUCTIVITY: AN INTERNATIONAL COMPARISON (1988)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:268336

DOI: 10.22004/ag.econ.268336

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