(This abstract was borrowed from another version of this item.)"> (This abstract was borrowed from another version of this item.)">
[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/anp/en2016/87.html
   My bibliography  Save this paper

Macroeconomic Performance Under Evolutionary Dynamics Of Employee Profit Sharing

Author

Listed:
  • GILBERTO TADEU LIMA
  • JAYLSON JAIR DA SILVEIRA
Abstract
This paper investigates the impact on capacity utilization and economic growth as variables driven by effective demand of income distribution featuring the possibility of profit-sharing with workers. Firms choose to compensate workers with either a base wage or a share of profits on top of this base wage. In accordance with robust empirical evidence, workers in sharing firms have higher productivity than workers in non-sharing firms. The distribution of employee compensation strategies and labor productivity across firms is evolutionarily time-varying. Two major results carrying relevant theoretical and policy implications are obtained. First, heterogeneity in employee compensation strategies across firms (and therefore earnings inequality across workers) may emerge as a long-run equilibrium outcome. Second, beyond the short run, a higher fraction of profit-sharing firms may result in either higher or lower rates of capacity utilization and economic growth.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gilberto Tadeu Lima & Jaylson Jair Da Silveira, 2018. "Macroeconomic Performance Under Evolutionary Dynamics Of Employee Profit Sharing," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 87, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2016:87
    as

    Download full text from publisher

    File URL: https://www.anpec.org.br/encontro/2016/submissao/files_I/i6-2d61be2bb160611977e425321cef6a39.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Douglas L. Kruse & Richard B. Freeman & Joseph R. Blasi, 2010. "Do Workers Gain by Sharing? Employee Outcomes under Employee Ownership, Profit Sharing, and Broad-Based Stock Options," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 257-289, National Bureau of Economic Research, Inc.
    2. Chris Doucouliagos, 1995. "Worker Participation and Productivity in Labor-Managed and Participatory Capitalist Firms: A Meta-Analysis," ILR Review, Cornell University, ILR School, vol. 49(1), pages 58-77, October.
    3. Mark Setterfield (ed.), 2010. "Handbook of Alternative Theories of Economic Growth," Books, Edward Elgar Publishing, number 12814.
    4. Paul M. Sweezy, 1939. "Demand Under Conditions of Oligopoly," Journal of Political Economy, University of Chicago Press, vol. 47(4), pages 568-568.
    5. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    6. Farebrother, R W, 1973. "Simplified Samuelson Conditions for Cubic and Quartic Equations," The Manchester School of Economic & Social Studies, University of Manchester, vol. 41(4), pages 396-400, December.
    7. R. L. Hall & C. J. Hitch, 1939. "Price Theory And Business Behaviour," Oxford Economic Papers, Oxford University Press, vol. 0(1), pages 12-45.
    8. Kruse, Douglas L. & Freeman, Richard B. & Blasi, Joseph R. (ed.), 2010. "Shared Capitalism at Work," National Bureau of Economic Research Books, University of Chicago Press, number 9780226056951, September.
    9. Gilberto Tadeu Lima, 2010. "Profit Sharing, Capacity Utilization and Growth in a Post-Keynesian Macromodel," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 17, Edward Elgar Publishing.
    10. Joseph R. Blasi & Douglas L. Kruse & Richard B. Freeman, 2010. "Epilogue (and Prologue)," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 377-386, National Bureau of Economic Research, Inc.
    11. Weitzman, Martin L, 1985. "The Simple Macroeconomics of Profit Sharing," American Economic Review, American Economic Association, vol. 75(5), pages 937-953, December.
    12. Gilberto Tadeu Lima, 2012. "A Neo‐Kaleckian Model Of Profit Sharing, Capacity Utilization And Economic Growth," Metroeconomica, Wiley Blackwell, vol. 63(1), pages 92-108, February.
    13. Kurt W. Rothschild, 1986. "Is There a Weitzman Miracle?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(2), pages 198-211, December.
    14. Douglas L. Kruse & Richard B. Freeman & Joseph R. Blasi, 2010. "Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options," NBER Books, National Bureau of Economic Research, Inc, number krus08-1.
    15. Alex Bryson & Richard B. Freeman, 2010. "How Does Shared Capitalism Affect Economic Performance in the United Kingdom?," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 201-224, National Bureau of Economic Research, Inc.
    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. Gilberto Tadeu Lima & Jaylson Jair Silveira, 2014. "Macroeconomic Performance under an Evolutionary Dynamics of Profit Sharing," Working Papers, Department of Economics 2014_27, University of São Paulo (FEA-USP).
    2. Jaylson Jair da Silveira & Gilberto Tadeu Lima, 2017. "Employee Profit-sharing and Labor Extraction in a Classical Model of Distribution and Growth," Review of Political Economy, Taylor & Francis Journals, vol. 29(4), pages 613-635, October.
    3. Gilberto Tadeu Lima & Jaylson Jair da Silveira, 2018. "Macrodynamic Implications of Employee Profit Sharing as Effort Elicitation Device," Working Papers, Department of Economics 2018_02, University of São Paulo (FEA-USP).
    4. Gilberto Tadeu Lima & Jaylson Jair Silveira, 2021. "Evolutionary microdynamics of employee profit sharing as productivity-enhancing device," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 417-449, April.
    5. 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.
    6. Douglas L. Kruse & Joseph R. Blasi & Richard B. Freeman, 2012. "Does Linking Worker Pay to Firm Performance Help the Best Firms Do Even Better?," NBER Working Papers 17745, National Bureau of Economic Research, Inc.
    7. Geert Braam & Erik Poutsma, 2015. "Broad-Based Financial Participation Plans and Their Impact on Financial Performance: Evidence from a Dutch Longitudinal Panel," De Economist, Springer, vol. 163(2), pages 177-202, June.
    8. Kato, Takao & Kauhanen, Antti, 2013. "Performance Pay and Enterprise Productivity: The Details Matter," ETLA Working Papers 21, The Research Institute of the Finnish Economy.
    9. Noélie Delahaie & Richard Duhautois, 2013. "L'impact des dispositifs collectifs de partage des bénéfices sur les rémunérations en France. Une analyse empirique sur la période 1999-2007," Working Papers halshs-00967479, HAL.
    10. Patrice Laroche & Mathieu Floquet & Loris Guery & Chloé Guillot-Soulez & Anne Stévenot, 2013. "Les relations entre épargne salariale et rémunérations : une analyse des stratégies et de la cohérence des pratiques," Post-Print halshs-00863544, HAL.
    11. 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.
    12. Paul E. M. Ligthart & Erik Poutsma & Chris Brewster, 2022. "The development of financial participation in Europe," British Journal of Industrial Relations, London School of Economics, vol. 60(3), pages 479-510, September.
    13. Hiroaki Sasaki, 2016. "Profit sharing and its effect on income distribution and output: a Kaleckian approach," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(2), pages 469-489.
    14. Petr Petera & Jana Fibírová, 2015. "Basic Approaches to Profit-Sharing and Ideas for Utilization [Základní přístupy k "profit-sharingu" a náměty na další využití]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(3), pages 97-117.
    15. Green, Colin P. & Heywood, John S., 2010. "Profit sharing and the quality of relations with the boss," Labour Economics, Elsevier, vol. 17(5), pages 859-867, October.
    16. Samir Shrivastava & Robert Jones & Christopher Selvarajah & Bernadine Gramberg, 2016. "Organisational Justice: A Senian Perspective," Journal of Business Ethics, Springer, vol. 135(1), pages 99-116, April.
    17. FitzRoy, Felix & Nolan, Michael A., 2020. "Towards Economic Democracy and Social Justice: Profit Sharing, Co-Determination, and Employee Ownership," IZA Discussion Papers 13238, Institute of Labor Economics (IZA).
    18. Joseph Blasi & Richard Freeman & Douglas Kruse, 2016. "Do Broad-based Employee Ownership, Profit Sharing and Stock Options Help the Best Firms Do Even Better?," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 55-82, March.
    19. Gabriel Burdín, 2014. "Are Worker-Managed Firms More Likely to Fail Than Conventional Enterprises? Evidence from Uruguay," ILR Review, Cornell University, ILR School, vol. 67(1), pages 202-238, January.
    20. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2013. "Wages and Labour Productivity: the role of performance-related pay in Italian firms," Quaderni del Dipartimento di Economia, Finanza e Statistica 124/2013, Università di Perugia, Dipartimento Economia.

    More about this item

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:anp:en2016:87. 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: Rodrigo Zadra Armond (email available below). General contact details of provider: https://edirc.repec.org/data/anpecea.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.