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Where Does Profit Sharing Work Best? A Meta-Analysis on the Role of Unions, Culture, and Values

Chris Doucouliagos (), Patrice Laroche, Douglas Kruse () and T. Stanley ()

No 11617, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this article we re-examine the relationship between group-based profit sharing and productivity. Our meta-regression analysis of 313 estimates from 56 studies controls for publication selection and misspecification biases and investigates the impact of firm level unionisation and national differences in values and culture. Profit sharing is positively related to productivity on average, with a stronger relationship where there is higher unionisation and in countries where honesty is less highly valued and there are higher levels of individualism. The latter two results suggest profit sharing works best in settings where cooperation does not naturally occur. The positive effect of profit sharing on productivity is larger in cooperative firms and in transition economies.

Keywords: profit sharing; productivity; meta-regression analysis; unions; tax evasion; individualism (search for similar items in EconPapers)
JEL-codes: J33 J51 J54 M52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-hrm and nep-lma
Date: 2018-06
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