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Where does profit sharing work best? A meta-analysis on the role of unions, culture and values

Author

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  • Chris (hristos) Doucouliagos
  • Patrice Laroche

    (ISAM-IAE - Institut supérieur d'Administration et de Management [Nancy] - UL - Université de Lorraine, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)

  • Douglas L Kruse
  • T.D. Stanley

Abstract

In this article we re-examine the relationship between group-based profit sharing and productivity. Our meta-regression analysis of 313 estimates from 56 studies controls for publication selection and misspecification biases and investigates the impact of firm level unionisation and national differences in values and culture. Profit sharing is positively related to productivity on average, with a stronger relationship where there is higher unionisation and in countries where honesty is less highly valued and there are higher levels of individualism. The latter two results suggest profit sharing works best in settings where cooperation does not naturally occur. The positive effect of profit sharing on productivity is larger in cooperative firms and in transition economies.
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Suggested Citation

  • Chris (hristos) Doucouliagos & Patrice Laroche & Douglas L Kruse & T.D. Stanley, 2018. "Where does profit sharing work best? A meta-analysis on the role of unions, culture and values," Post-Print hal-02976899, HAL.
    • Handle: RePEc:hal:journl:hal-02976899
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    1. Balima, Hippolyte W. & Sokolova, Anna, 2021. "IMF programs and economic growth: A meta-analysis," Journal of Development Economics, Elsevier, vol. 153(C).

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    More about this item

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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