Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/65848 
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dc.contributor.authorGoerke, Laszloen
dc.date.accessioned2012-11-01-
dc.date.accessioned2012-11-02T17:10:51Z-
dc.date.available2012-11-02T17:10:51Z-
dc.date.issued2012-
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
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x3970en
dc.subject.jelD62en
dc.subject.jelJ22en
dc.subject.jelJ33en
dc.subject.ddc330en
dc.subject.keywordlabour supplyen
dc.subject.keywordprofit sharingen
dc.subject.keywordrelative consumptionen
dc.subject.keywordstatus concernsen
dc.titleProfit sharing and relative consumption-
dc.typeWorking Paperen
dc.identifier.ppn729069249en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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