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

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Koskela, Erkki
  • Stenbacka, Rune
  • The Research Institute of the Finnish Economy (ETLA)

Entstanden

  • 2003

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