Profit Sharing in Portugal: Why Higher Productivity?

Luis Ramos

LABOUR, 2002, vol. 16, issue 1, 157-175

Abstract: The paper studies some characteristics of Portuguese profit‐sharing (PS) firms based on a sample of 192 manufacturing firms. Some issues are examined that could help explain observed productivity differences such as the performance contingency of PS payments and the complementary or substitution nature of these payments regarding wages. The higher productivity found for PS firms seems to be more related to higher total remuneration in these firms than to the specific PS pay formula. The issues of why, how and by whom PS payments are determined could clarify the exact nature of our findings.

Date: 2002
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