Profit Sharing and Productivity: Further Evidence from the Chemicals Industry

Profit sharing potentially augments productivity by affecting motivational variables that promote group norms favoring effort. A factor augmentation model of production is developed to measure the impact of profit sharing on productivity using a test industry in U.S. manufacturing. The model is appl...

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Bibliographic Details
Published inIndustrial relations (Berkeley) Vol. 33; no. 4; pp. 452 - 466
Main Author SHEPARD III, EDWARD M.
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.10.1994
Wiley Subscription Services, Inc
Subjects
Chemical industry
Compensation
Cooperation
Impacts
Incentive plans
Manufacturing
Motivation
Production functions
Productivity
Profit sharing
Profit sharing plans
Profits
Revenue sharing
Studies
Workers
United States > US
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Summary:Profit sharing potentially augments productivity by affecting motivational variables that promote group norms favoring effort. A factor augmentation model of production is developed to measure the impact of profit sharing on productivity using a test industry in U.S. manufacturing. The model is applied using alternative exogenous and endogenous specifications for the profit‐sharing incentive variable. The results are consistent with those obtained in other recent studies and suggest that profit sharing results in improvements in productivity.
Bibliography:ArticleID:IREL452
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istex:D54BAC842D142715A9D8FFCE14810AA2B4162593
Department of Economics, Le Moyne College. The author would like to thank Professors Barry Bluestone, Donald Richtar, David Belsley, and Joseph Quinn for their helpful comments on the research design and earlier versions of this paper. Professors Douglas Kruse, Thomas Clifton, and Paul Blackley provided helpful comments on later versions.
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ISSN:0019-8676
1468-232X
DOI:10.1111/j.1468-232X.1994.tb00351.x