Profit-Sharing and Productivity: Some Further Evidence

John Cable and Nicholas Wilson

Economic Journal, 1990, vol. 100, issue 401, 550-55

Abstract: New estimates for West Germany indicate overall productivity differentials of 20-30 percent in favor of firms practicing profit sharing. These compare with estimates of 3-8 percent for comparable British firms reported in a recent issue. Like the U.K. results, they reveal important interactions between profit sharing and other firm-specific characteristics, reinforcing the view that profit sharing be regarded as an integral element of overall organizational design. But the fact that in Germany profit sharing is apparently used in a different way than in the United Kingdom by different kinds of firms, suggests that there is no single, uniquely appropriate context and role for profit sharing. Copyright 1990 by Royal Economic Society.

Date: 1990
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