The Effects of Profit-Sharing on Employment, Wages, Stock Returns and Productivity: Evidence from UK Micro-data

Sushil Wadhwani and Martin Wall ()

Economic Journal, 1990, vol. 100, issue 399, 1-17

Abstract: This paper provides evidence based on U.K. firm-level data that: (1) the authors cannot reject the view that profit-sharing firms view the total level of remuneration as the marginal cost of labor, which is contrary to much of Weitzman's analysis; (2) there is some support for the popular view that profit sharing raises total remuneration and can, therefore, be inflationary; and (3) the introduction of profit sharing does lead to higher productivity, but, this combined with the employment-reducing consequences of (2) leads the authors to conclude that the net employment effect is small and uncertain. Copyright 1990 by Royal Economic Society.

Date: 1990
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Working Paper: THE EFFECTS OF PROFIT-SHARING ON EMPLOYMENT, WAGES, STOCK RETURNS AND PRODUCTIVITY: EVIDENCE FROM UK MICRO-DATA (1988)
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