PROFIT-SHARING AND PRODUCTIVITY: AN ANALYSIS OF UK ENGINEERING FIRMS

John R. Cable and Nicholas Wilson

No 268335, Economic Research Papers from University of Warwick - Department of Economics

Abstract: The paper reports productivity differentials of 3-8% in favour of profit-sharing firms in the UK engineering industry. The estimates come from equations in which profit-sharing interacts with factor input levels and/or the firms' technological, organisational and labour-force characteristics, and imply more than a simple incentive effect on work effort, or more 'cooperative' behaviour in given circumstances. Model-selection tests reveal that these models dominate those used in previous work, where profit-sharing enters as a disembodied, Nicks-neutral shift in the production surface. A technological labour relations interpretation of the origin of the gains is suggested, which are found to be asymmetrically distributed. The results question policy measures to encourage profit-sharing which do not take account of its significance in the process of organisational design.

Keywords: Industrial Organization; Productivity Analysis (search for similar items in EconPapers)
Pages: 28
Date: 1988-08-08
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Related works:
Journal Article: Profit-Sharing and Productivity: An Analysis of UK Engineering Firms (1989)
Working Paper: PROFIT-SHARING AND PRODUCTIVITY: AN ANALYSIS OF UK ENGINEERING FIRMS (1988)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:268335

DOI: 10.22004/ag.econ.268335

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