Profit-Sharing and Wages: An Empirical Analysis Using French Data Between 2000 and 2007
Résumé
Economic theory presents two main views on the effect of profit-sharing on wages. First, profitsharing
may substitute for base wages and have a neutral effect on total compensation. Second, it
may be interpreted as an “efficiency wage” that increases total compensation. Existing empirical
literature does not allow a determination of which of these two arguments is valid. This paper
attempts to tackle this issue in the case of France for the 2000-2007 period. Based on a differencein-differences
selection model, our results suggest that profit-sharing has a neutral effect on total
compensation. Several years after its implementation within firms, profit-sharing lowers base
wages, which are offset by profit-sharing bonuses.
Domaines
Economies et finances
Origine : Fichiers produits par l'(les) auteur(s)
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