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

Hristos Doucouliagos (1) , Patrice Laroche (2) , Douglas L Kruse (3) , T D Stanley (4)

1 Deakin University [Burwood]
2 CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises
3 RU - Rutgers, The State University of New Jersey [New Brunswick]
4 Hendrix College

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.

Domaines: Sciences de l'Homme et Société; Economies et finances

Hristos Doucouliagos, Patrice Laroche, Douglas L Kruse, T D Stanley. Where does profit sharing work best? A meta-analysis on the role of unions, culture, and values. 2018. ⟨hal-03048678⟩