Arbeitspapier
Profit sharing and unemployment: An approach with bargaining and efficiency wage effects
We offer a unified framework to analyze the determination of employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks. We apply a generalized Nash bargaining solution, which extends the wage bargaining literature by incorporating efficiency wage considerations, profit sharing and exogenous capital structure. The profit sharing instrument is demonstrated to have positive effort-enhancing and wage-moderating effects, which exactly offset the negative dilution effect in equilibrium. We show that introduction of profit sharing decreases equilibrium unemployment if the benefit replacement ratio is high enough, whereas the reverse holds if the benefit replacement ratio is below this threshold.
- Sprache
-
Englisch
- Erschienen in
-
Series: ETLA Discussion Papers ; No. 863
- Klassifikation
-
Wirtschaft
Trade Unions: Objectives, Structure, and Effects
Labor Contracts
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Thema
-
Tarifliche Gewinnbeteiligung
Arbeitslosigkeit
Effizienzlohn
Schwedisch-Finnland
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Koskela, Erkki
Stenbacka, Rune
- Ereignis
-
Veröffentlichung
- (wer)
-
The Research Institute of the Finnish Economy (ETLA)
- (wo)
-
Helsinki
- (wann)
-
2003
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Koskela, Erkki
- Stenbacka, Rune
- The Research Institute of the Finnish Economy (ETLA)
Entstanden
- 2003