The Effects of Worker Participation, Employee Ownership and Profit Sharing on Economics Performance: A Partial Review

Levy Economics Institute Working Paper No. 13

34 Pages Posted: 27 Oct 1999

See all articles by Derek C. Jones

Derek C. Jones

Hamilton College - Economics Department

Jeffrey L. Pliskin

Hamilton College; The Levy Economics Institute

Date Written: November 1988

Abstract

For alternative sharing arrangements, we review theory on the economic effects on employment, productivity, investment, income and wealth distribution, and life cycle and survival. We find that predictions are often ambiguous and that sometimes the nature and size of the specific effect is determined in part by the particular institutional arrangements. Next recent econometric work is studied. We review studies using aggregate and industry level time series data for Japan as well as studies that use enterprise and establishment level data for firms in North America and Western Europe. Worker participation, employee share ownership and profit sharing schemes are often found to affect that studies obtained conflicting results. However, available evidence is strongly suggestive that for employee ownership schemes to have a strong positive impact they need to be accompanied by provision for worker participation in decision making.

JEL Classification: J53, J54

Suggested Citation

Jones, Derek C. and Pliskin, Jeffrey L., The Effects of Worker Participation, Employee Ownership and Profit Sharing on Economics Performance: A Partial Review (November 1988). Levy Economics Institute Working Paper No. 13. Available at SSRN: https://ssrn.com/abstract=191169 or http://dx.doi.org/10.2139/ssrn.191169

Derek C. Jones (Contact Author)

Hamilton College - Economics Department ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4381 (Phone)
315-859-4477 (Fax)

Jeffrey L. Pliskin

Hamilton College ( email )

198 College Hill Road
Clinton, NY 13323
United States
315-859-4143 (Phone)

The Levy Economics Institute

Blithewood
Annandale-on-Hudson, NY 12504
United States

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