Profit Sharing in the British Retail Trade Sector: The Relative Performance of the John Lewis Partnership

Keith Bradley and Saul Estrin

Journal of Industrial Economics, 1992, vol. 40, issue 3, 291-304

Abstract: This paper investigates the effects of profit-sharing on wages and employment by comparing the labor market behavior of the John Lewis Partnership with that of four main competitors. The John Lewis Partnership employs around 30,000 workers, who since 1970 have been paid between 13 and 24 percent of workers' income in the form of a profit-related bonus. The empirical work suggests that profit-sharing in the John Lewis Partnership may be associated with greater levels of employment but does not significantly affect the level of remuneration. Copyright 1992 by Blackwell Publishing Ltd.

Date: 1992
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