IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v13y1995i2p38-48.html
   My bibliography  Save this article

GOVERNMENT SUPPORT FOR PROFIT SHARING, GAINSHARING, ESOPs, AND TQM

Author

Listed:
  • ROGER T. KAUFMAN
  • RAYMOND RUSSELL

Abstract

Empirical evidence suggests that profit sharing, gainsharing, employee ownership, worker participation, and Total Quality Management (TQM) may increase productivity and firm performance. Nevertheless, one needs to ground the case for government intervention in support of each of these programs on arguments concerning externalities or merit goods. This paper argues that no one yet has offered a convincing case of this nature. It also discusses the U.S. government's support for ESOPs and suggests reasons for its disappointing results in the hope that future policy experiments will not repeat these mistakes.

Suggested Citation

  • Roger T. Kaufman & Raymond Russell, 1995. "GOVERNMENT SUPPORT FOR PROFIT SHARING, GAINSHARING, ESOPs, AND TQM," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 38-48, April.
  • Handle: RePEc:bla:coecpo:v:13:y:1995:i:2:p:38-48
    DOI: 10.1111/j.1465-7287.1995.tb00741.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1995.tb00741.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1465-7287.1995.tb00741.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Felix R. FitzRoy & Kornelius Kraft, 1987. "Cooperation, Productivity, and Profit Sharing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(1), pages 23-35.
    2. Robert A. Hart & Olaf Hübler, 1991. "Are Profit Shares and Wages Substitute or Complementary Forms of Compensation?," Kyklos, Wiley Blackwell, vol. 44(2), pages 221-231, May.
    3. David I. Levine & Susan Helper, 1995. "A Quality Policy For America," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 26-37, April.
    4. Michael A.Conte & Douglas Kruse, 1991. "ESOPs and Profit - Sharing Plans: Do They Link Employee Pay to Company Performance?," Financial Management, Financial Management Association, vol. 20(4), Winter.
    5. repec:bla:kyklos:v:44:y:1991:i:2:p:221-31 is not listed on IDEAS
    6. Wadhwani, Sushil & Wall, Martin, 1990. "The Effects of Profit-Sharing on Employment, Wages, Stock Returns and Productivity: Evidence from UK Micro-data," Economic Journal, Royal Economic Society, vol. 100(399), pages 1-17, March.
    7. Douglas L. Kruse, 1993. "Profit Sharing: Does It Make a Difference?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ps, November.
    8. Derek C. Jones & Takao Kato, 1993. "The Scope, Nature, and Effects of Employee Stock Ownership Plans in Japan," ILR Review, Cornell University, ILR School, vol. 46(2), pages 352-367, January.
    9. Roger T. Kaufman, 1992. "The Effects of Improshare on Productivity," ILR Review, Cornell University, ILR School, vol. 45(2), pages 311-322, January.
    10. Daniel J. B. Mitchell, 1995. "Profit Sharing And Employee Ownership: Policy Implications," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 16-25, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noélie Delahaie & Richard Duhautois, 2019. "Profit‐Sharing and Wages: An Empirical Analysis Using French Data between 2000 and 2007," British Journal of Industrial Relations, London School of Economics, vol. 57(1), pages 107-142, March.
    2. Douglas L. Kruse, 1996. "Why Do Firms Adopt Profit-Sharing and Employee Ownership Plans?," British Journal of Industrial Relations, London School of Economics, vol. 34(4), pages 515-538, December.
    3. Leila Baghdadi & Rihab Bellakhal & Marc-Arthur Diaye, 2016. "Financial Participation: Does the Risk Transfer Story Hold in France?," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 3-29, March.
    4. Möller, Iris, 2000. "Produktivitätswirkung von Mitarbeiterbeteiligungen (Productivity effect of employee participation in asset formation)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(4), pages 565-582.
    5. Yao, Shujie, 1997. "Profit Sharing, Bonus Payment, and Productivity: A Case Study of Chinese State-Owned Enterprises," Journal of Comparative Economics, Elsevier, vol. 24(3), pages 281-296, June.
    6. Takao Kato & Ju Ho Lee & Jang-Soo Ryu, 2010. "The productivity effects of profit sharing, employee ownership, stock option and team incentive plans: evidence from Korean panel data," Advances in the Economic Analysis of Participatory & Labor-Managed Firms, in: Advances in the Economic Analysis of Participatory & Labor-Managed Firms, pages 111-135, Emerald Group Publishing Limited.
    7. Frank Scharr, 2005. "Tarifbindung, Rententeilung und Konzessionsverträge als Einflussgrößen der Lohnhöhe in Unternehmen : eine Untersuchung mit Mikrodaten für thüringische Firmen," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39.
    8. Douglas L. Kruse, 1993. "Does Profit Sharing Affect Productivity?," NBER Working Papers 4542, National Bureau of Economic Research, Inc.
    9. Sarah Brown & John G. Sessions, 2003. "Attitudes, Expectations and Sharing," LABOUR, CEIS, vol. 17(4), pages 543-569, December.
    10. Richard J. Long & Tony Fang, 2012. "Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data," ILR Review, Cornell University, ILR School, vol. 65(4), pages 899-927, October.
    11. Leonardo Fernando Cruz Basso & Edilson Gonçalves Teixeira & Diógenes Manoel Leiva Martin, 2005. "Factors That Influence Operating Performance Through The Use Of Earnings Or Gainsharing Plans: Evidence In Brazil'S Chemical Industry," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 4(1), pages 13-100, Marzo 200.
    12. Pablo González, 2002. "Profit Sharing Reconsidered: Efficiency Wages and Renegotiation Costs," Documentos de Trabajo 151, Centro de Economía Aplicada, Universidad de Chile.
    13. Derek C. Jones & Takao Kato & Jeffrey Pliskin, 1994. "Profit Sharing and Gainsharing: A Review of Theory, Incidence, and Effects," Economics Working Paper Archive wp_125, Levy Economics Institute.
    14. Takao Kato, "undated". "Cooperate to Compete, Employee Participation and Productivity: Evidence from a New Survey of Japanese Firms," Economics Public Policy Brief Archive ppb_19, Levy Economics Institute.
    15. Möller, Iris, 2000. "Produktivitätswirkung von Mitarbeiterbeteiligungen (Productivity effect of employee participation in asset formation)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(4), pages 565-582.
    16. Mauro Mastrogiacomo & Rob Euwals & Raun van Ooijen, 2010. "Private wealth and planned early retirement: A panel data analysis for the Netherlands 1994-2009," CPB Discussion Paper 160.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    17. Morton, Peter J., 1998. "Annual bonuses, employment and productivity change in Taiwan's manufacturing sector," Journal of Economic Behavior & Organization, Elsevier, vol. 37(4), pages 481-507, December.
    18. Andrews, Martyn & Bellmann, Lutz & Schank, Thorsten & Upward, Richard, 2010. "The impact of financial participation on workers' compensation (Der Einfluss von finanzieller Mitarbeiterbeteiligung auf die Entlohnung der Arbeitnehmer)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 43(1), pages 72-89.
    19. Park, Rhokeun, 2012. "Cognitive and affective approaches to employee participation: Integration of the two approaches," Journal of World Business, Elsevier, vol. 47(3), pages 450-458.
    20. Kauhanen, Antti & Piekkola, Hannu, 2002. "Profit Sharing in Finland: Earnings and Productivity Effects," Discussion Papers 817, The Research Institute of the Finnish Economy.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:13:y:1995:i:2:p:38-48. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.