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The relationship between profit-sharing schemes and wages: Evidence from French firms

Mathieu Floquet, Loris Guery, Chloé Guillot-Soulez, Patrice Laroche and Anne Stévenot

management revue. Socio-economic Studies, 2016, vol. 27, issue 4, 219-233

Abstract: The article tackles the impact of profit sharing plans (PS) on compensation policies in the French context. Using a sample of 1,143 firms from surveys of the Ministry of Labour, the authors draw up a typology based on a mix of PS plans including cash-based PS, deferred PS and the intensity of deferred plans (additional employer and employee contributions). Our results indicate that profit sharing does not seem to be considered as a way to reduce wages. Cash-based PS-oriented and high-deferred PS policies are not significantly linked to lower wages; but only firms with high-deferred PS policies are related to significantly higher wages.

Keywords: profit sharing; compensation; wages; France (search for similar items in EconPapers)
JEL-codes: J31 J33 J41 M52 (search for similar items in EconPapers)
Date: 2016
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