Worker Attitudes Towards Employee Owernship, Profit Sharing and Variable Pay

Advances in the Economic Analysis of Participatory and Labor Managed Firms, Vol. 12, pp. 143-168, 2011

30 Pages Posted: 14 Mar 2012

See all articles by Fidan Ana Kurtulus

Fidan Ana Kurtulus

University of Massachusetts Amherst

Douglas L. Kruse

Rutgers University

Joseph Blasi

Rutgers School of Management and Labor Relations - New Brunswick

Date Written: March 21, 2011

Abstract

Using the NBER Shared Capitalism Database comprised of over 40,000 employee surveys from 14 firms, we investigate worker attitudes towards employee ownership, profit sharing, and variable pay. Specifically, our study uses detailed survey questions on preferences over profit sharing, forms of employee ownership like company stock and stock option ownership, as well as preferences over variable pay in general, to explore how preferences for these different types of output-contingent pay vary with worker risk aversion, residual control, and views of co-workers and management. Our key results show that, on average, workers want at least a part of their compensation to be performance-related, with stronger preferences for output-contingent pay schemes among workers who have lower levels of risk aversion, greater residual control over the work process, and greater trust of co-workers and management.

Keywords: Employee Ownership, Profit Sharing, Variable Pay, Worker Preferences, Residual Control, Risk Aversion, Perceptions of Co-Workers and Management

JEL Classification: J54, J33, M52

Suggested Citation

Kurtulus, Fidan Ana and Kruse, Douglas L. and Blasi, Joseph R., Worker Attitudes Towards Employee Owernship, Profit Sharing and Variable Pay (March 21, 2011). Advances in the Economic Analysis of Participatory and Labor Managed Firms, Vol. 12, pp. 143-168, 2011. Available at SSRN: https://ssrn.com/abstract=2021563

Fidan Ana Kurtulus (Contact Author)

University of Massachusetts Amherst ( email )

Department of Operations and Information Managemen
Amherst, MA 01003
United States

Douglas L. Kruse

Rutgers University ( email )

Piscataway, NJ 08854
United States
908-445-5991 (Phone)
908-445-2830 (Fax)

Joseph R. Blasi

Rutgers School of Management and Labor Relations - New Brunswick ( email )

Piscataway, NJ 08854
United States
732-445-5444 (Phone)
732-445-2830 (Fax)

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