Profit-sharing and Employment: Claims and Overclaims

Domenico Mario Nuti ()
Additional contact information
Domenico Mario Nuti: University of Rome

Chapter 16 in Collected Works of Domenico Mario Nuti, Volume II, 2023, pp 369-385 from Palgrave Macmillan

Abstract: Abstract It has long been argued that pay formulas containing an element of profit-sharing have noninflationary employment promotion properties (Vanek 1965), except in self-managed enterprises (e.g., Vanek 1970). Recently Weitzman (1983, 1984, 1985a,b,c) has promoted economy-wide profit-sharing, combined with workers’ strict exclusion from employment decisions, as a scheme guaranteed to achieve a blissful state of noninflationary excess demand for labor, absorbing all or part of possible deflationary shocks. Weitzman’s proposal is reminiscent of the set-up in Catch-22, where a wheeler-dealer retrades and speculates with army supplies originally meant for the soldiers, who are supposed to benefit instead from their share in the profit of his operations; everybody has a share, nobody has a say, and the main beneficiary of the scheme is its proposer.

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:stuchp:978-3-031-23167-4_16

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031231674

DOI: 10.1007/978-3-031-23167-4_16

Access Statistics for this chapter

More chapters in Studies in Economic Transition from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().