Profit sharing and relative consumption

Laszlo Goerke

Economics Letters, 2013, vol. 118, issue 1, 167-169

Abstract: Mandatory profit sharing can represent a Pareto-improvement if labour supply is excessive due to relative consumption effects. Profit sharing reduces wages. If the rise in profit income keeps total income constant, there will only be a Pareto-improving substitution effect.

Keywords: Labour supply; Profit sharing; Relative consumption; Status concerns (search for similar items in EconPapers)
JEL-codes: D J (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176512005551
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Profit Sharing and Relative Consumption (2012)
Working Paper: Profit Sharing and Relative Consumption (2012)
Working Paper: Profit Sharing and Relative Consumption (2012)
Working Paper: Profit Sharing and Relative Consumption (2012)
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:eee:ecolet:v:118:y:2013:i:1:p:167-169

DOI: 10.1016/j.econlet.2012.10.012

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().