Profit Sharing and Productivity: Microeconomic Evidence from the United States

Douglas Kruse

Economic Journal, 1992, vol. 102, issue 410, 24-36

Abstract: Profit sharing has often been suggested as a potential solution to principal/agent problems in the workplace. The relationship between productivity and profit sharing is examined using a panel dataset drawn from 2,976 publicly-held companies over the 1971-85 period. Alternatively using firm-intercept and first-difference specifications, the regression results indicate that the adoption of profit sharing is associated with a 2.5-4.2 percent increase in productivity. In addition, the size of the effect increases with the proportion of employees participating in profit sharing. These results hold under a variety of specifications and do not appear to be explained by accompanying changes in management or personnel policies. Copyright 1992 by Royal Economic Society.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (100)

Downloads: (external link)
http://links.jstor.org/sici?sici=0013-0133%2819920 ... CO%3B2-%23&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecj:econjl:v:102:y:1992:i:410:p:24-36

Ordering information: This journal article can be ordered from
http://www.blackwell ... al.asp?ref=0013-0133

Access Statistics for this article

Economic Journal is currently edited by Martin Cripps, Steve Machin, Woulter den Haan, Andrea Galeotti, Rachel Griffith and Frederic Vermeulen

More articles in Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().