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British Evidence on The Employment Effects of Profit Sharing
Author(s) -
JONES DEREK C.,
PLISKIN JEFFREY
Publication year - 1989
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.1468-232x.1989.tb00869.x
Subject(s) - profit sharing , profit (economics) , sample (material) , economics , econometrics , business , structural equation modeling , labour economics , microeconomics , demographic economics , statistics , finance , mathematics , chemistry , chromatography
A sample of British firms with diverse sharing arrangements is used to investigate the effects of profit sharing on employment levels. Employment effects are sometimes significant, but this depends upon the measure of profit sharing, how the dynamics are modeled, and whether measures of employee participation in decision making are included in the estimating equation. Using a continuous measure of profit sharing, employment effects, which typically range from ‐6 per cent to 6 per cent, are much more modest than those obtained by some other researchers. Most findings are not dramatically affected by estimating the specifications separately for discrete time periods, for individual industries, or for larger firms.