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The Effects Of Profit Sharing And Employee Share Ownership On Quits: Evidence From A Panel Of French Firms

In: Employee Participation, Firm Performance and Survival

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  • Fathi Fakhfakh

Abstract

This paper uses an unbalanced panel of 129 French firms over the period 1981–1991 to test the effects of two participatory schemes – profit sharing and employee share ownership – on voluntary quits. The effects of sharing schemes on productivity are well documented and most studies show positive and significant effects on productivity but their effects on quits have been less studied. This paper is the first French study looking at the effects of profit sharing and employee share ownership on quits. Our empirical investigation shows that employee share ownership reduces voluntary quits significantly whereas pure profit sharing has no significant effect.

Suggested Citation

  • Fathi Fakhfakh, 2004. "The Effects Of Profit Sharing And Employee Share Ownership On Quits: Evidence From A Panel Of French Firms," Advances in the Economic Analysis of Participatory & Labor-Managed Firms, in: Employee Participation, Firm Performance and Survival, pages 129-147, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aeapzz:s0885-3339(04)08006-8
    DOI: 10.1016/S0885-3339(04)08006-8
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    Cited by:

    1. Fathi Fakhfakh & Andrew Robinson & Aguibou Tall, 2019. "Financial Participation and Collective Conflicts: Evidence from French Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 674-703, October.
    2. Fakhfakh F. & Perotin V. & Gago M., 2009. "Productivity, Capital and Labor in Labor-Managed and Conventional Firms," Working Papers ERMES 0910, ERMES, University Paris 2.
    3. Fathi Fakhfakh & Virginie Pérotin & MÓnica Gago, 2012. "Productivity, Capital, and Labor in Labor-Managed and Conventional Firms: An Investigation on French Data," ILR Review, Cornell University, ILR School, vol. 65(4), pages 847-879, October.

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