Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185077 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11617
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
profit sharing
productivity
meta-regression analysis
unions
tax evasion
individualism
JEL: 
J33
J51
J54
M52
Document Type: 
Working Paper

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