Arbeitspapier

Do employees profit from profit sharing? Evidence from Canadian panel data

Using panel data from a large sample of Canadian establishments, this paper examines whether employee earnings increase, decrease, or do not change in the period subsequent to adoption of profit sharing, relative to establishments that do not adopt profit sharing. Our research contributes to knowledge by utilizing longitudinal analysis to assess the effects of profit sharing adoption on employee earnings growth within a carefully constructed sample of Canadian establishments, and by assessing both cash real earnings growth and total real earnings growth, while controlling for a wide array of variables that may affect these results. On average, employees in Canadian establishments that adopted profit sharing during 1999-2001 appeared to benefit from the introduction of profit sharing, in terms of both their cash real earnings growth and total real earnings growth, in the five-year span following introduction of profit sharing. This advantage was both statistically and practically significant, adding about 15 percentage points to real employee earnings growth over the five-year period, a period during which employee earnings growth was generally modest.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 6749

Klassifikation
Wirtschaft
Compensation Packages; Payment Methods
Wage Level and Structure; Wage Differentials
Wages, Compensation, and Labor Costs: Public Policy
Thema
profit sharing plans
employee earnings
firm-worker linked survey
Canada
Erfolgsbeteiligung
Arbeitskräfte
Einkommen
Schätzung
Dänemark

Ereignis
Geistige Schöpfung
(wer)
Long, Richard J.
Fang, Tony
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Long, Richard J.
  • Fang, Tony
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2012

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