Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/65848
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dc.contributor.authorGoerke, Laszloen_US
dc.date.accessioned2012-11-01en_US
dc.date.accessioned2012-11-02T17:10:51Z-
dc.date.available2012-11-02T17:10:51Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/65848-
dc.description.abstractTraditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to relative consumption effects. Mandatory profit sharing reduces wages. If the rise in profit income keeps total income constant, profit sharing will have no income but only a substitution effect. Since labour supply is excessive, profit sharing constitutes a Pareto-improvement.en_US
dc.language.isoengen_US
dc.publisher|aCenter for Economic Studies and Ifo Institute (CESifo) |cMunichen_US
dc.relation.ispartofseries|aCESifo Working Paper: Labour Markets |x3970en_US
dc.subject.jelD62en_US
dc.subject.jelJ22en_US
dc.subject.jelJ33en_US
dc.subject.ddc330en_US
dc.subject.keywordlabour supplyen_US
dc.subject.keywordprofit sharingen_US
dc.subject.keywordrelative consumptionen_US
dc.subject.keywordstatus concernsen_US
dc.titleProfit sharing and relative consumptionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn729069249en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US

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