Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data

Richard J. Long () and Tony Fang
Additional contact information
Richard J. Long: University of Saskatchewan

No 6749, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using panel data from a large sample of Canadian establishments, this paper examines whether employee earnings increase, decrease, or do not change in the period subsequent to adoption of profit sharing, relative to establishments that do not adopt profit sharing. Our research contributes to knowledge by utilizing longitudinal analysis to assess the effects of profit sharing adoption on employee earnings growth within a carefully constructed sample of Canadian establishments, and by assessing both cash real earnings growth and total real earnings growth, while controlling for a wide array of variables that may affect these results. On average, employees in Canadian establishments that adopted profit sharing during 1999-2001 appeared to benefit from the introduction of profit sharing, in terms of both their cash real earnings growth and total real earnings growth, in the five-year span following introduction of profit sharing. This advantage was both statistically and practically significant, adding about 15 percentage points to real employee earnings growth over the five-year period, a period during which employee earnings growth was generally modest.

Keywords: firm-worker linked survey; employee earnings; profit sharing plans; Canada (search for similar items in EconPapers)
JEL-codes: J31 J33 J38 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2012-07
New Economics Papers: this item is included in nep-bec and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Published - published in: Industrial and Labor Relations Review, 2012, 65 (4), 899-927

Downloads: (external link)
https://docs.iza.org/dp6749.pdf (application/pdf)

Related works:
Journal Article: Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data (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:iza:izadps:dp6749

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().