Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Firm Investment and Innovation: Empirical Studies C24-V2
We study the determinants of the use of profit sharing schemes (PSS) by exploiting two datasets for Germany and the United Kingdom. Our results replicate studies for the U.S. which report a positive correlation between R&D activity and PSS use. For Germany, Granger-causality tests support a causal interpretation. Similarly to U.S.-based studies, we also find that a firm's turnover is strongly associated with PSS use whereas this does not hold for the age of a firm and its organizational characteristics.