published in: Indian Economic Review, 2004, 39 (1), 55-79
This study investigates the role of factors that determine individual employees’ and firms’
participation in profit sharing schemes. Using a large panel data of Finnish employees for the
period 1996-2000 we analyse individual and workplace characteristics that make firms
employ profit sharing schemes and workers susceptible of receiving profit sharing bonuses.
In particular two links between profit sharing schemes and workers performance have been
analysed. First, in looking at profit sharing as an incentive device the results show a positive
link between firm size and monitoring costs. Second, we find that younger individuals with
higher mean salary and capacity to bear risk are more susceptible to profit sharing schemes.
The industrial sector in which the individual is employed is also an important determinant
factor.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.