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Theory presents two channels through which profit sharing can cause workers to increase their coworkers' productivity: greater cooperation and increased peer pressure. This paper argues that these generate opposite influences on coworker relations, and that which dominates varies according to circumstances and type of worker. Using German data, we show that, for non-supervisory men, profit sharing increases cooperation, but that for those who highly value success on the job, it has no influence on cooperation, and for supervisors it reduces cooperation. Moreover, the findings show striking gender differences in the effect of profit sharing. We contend these patterns fit with underlying theoretical expectations. [ABSTRACT FROM AUTHOR]

Many countries suffer from persistently high unemployment rates. The scope for labour market reforms is often limited to measures that hurt neither shareholders nor workers. This paper develops a policy proposal, which allows the government to reduce wage costs without changing the income positions as determined in the process of wage negotiations. It is shown that the introduction of public profit sharing, i.e., substituting profit shares for social security contributions, can boost employment both in the short run and the long run. Calibrating the model and comparing the results with recent empirical findings about the impact of labour taxation confirm the theoretical findings. [ABSTRACT FROM AUTHOR]

The purpose of the present article is to examine the macroeconomic[2] effects of such a fund, i.e., the effects upon the marginal productivity of capital, disposable-income distribution, the propensity to save national output, and the real wage rate. What would be a suitable theoretical framework for such an examination? From the purposes of the fund it follows that our model should be capable of accommodating growth and inflation, and that its capitalists should be stockholders rather than bondholders. [ABSTRACT FROM AUTHOR]

Focuses on the theory and practice of profit sharing and its association with productivity. Kinds of theoretical model; Summary of several theories that predicts incentive effects from profit sharing; Discussion of some empirical work on profit sharing that focus on problems of econometric specification; Results that illustrate the inherent quantification of the effects of profit sharing; Information about employment, growth and other performance indicators.

Investigates participation and profit sharing decisions using individual level data and examines various types of wages and non-wages. Related information on profit sharing; Data and methodologies used in the study; Results of the study and its interpretation; Recommendations; Conclusions.

Examines the effects of profit sharing on entrepreneurial risk taking. The disadvantages of profit sharing as seen in a review of Grubel's argument; Two systems of profit sharing may increase as proposed; The counteracting factors which will modify or reverse Grubel's conclusions; List of the findings of authors that profit sharing type plans are more common and more effective in firms.

Opinion. Presents the author's reply to the note of Pietra Rivoli on the issue about capitalism needs risk-, not profit sharing. Two sets of reasons why profit sharing schemes can increase the supply of entrepreneurial risk taking; Acceptance of the author on the empirical evidence on the correlation between profit sharing and firm's performance; The basic issue about profit sharing according to the author.