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GOVERNMENT SUPPORT FOR PROFIT SHARING, GAINSHARING, ESOPs, AND TQM
Author(s) -
KAUFMAN ROGER T.,
RUSSELL RAYMOND
Publication year - 1995
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1995.tb00741.x
Subject(s) - profit sharing , externality , business , productivity , profit (economics) , government (linguistics) , economic interventionism , public economics , economics , finance , microeconomics , economic growth , law , political science , linguistics , philosophy , politics
Empirical evidence suggests that profit sharing, gainsharing, employee ownership, worker participation, and Total Quality Management (TQM) may increase productivity and firm performance. Nevertheless, one needs to ground the case for government intervention in support of each of these programs on arguments concerning externalities or merit goods. This paper argues that no one yet has offered a convincing case of this nature. It also discusses the U.S. government's support for ESOPs and suggests reasons for its disappointing results in the hope that future policy experiments will not repeat these mistakes.