Getting along with Colleagues - Does Profit Sharing Help or Hurt?
John S. Heywood
University of Wisconsin at Milwaukee
University of Trier - Faculty of Economics
Leibniz Universität Hannover - Institute of Quantitative Economic Research
Kyklos, Vol. 58, No. 4, pp. 557-573, November 2005
Theory presents two channels through which profit sharing can cause workers to increase their coworkers' productivity: greater cooperation and increased peer pressure. This paper argues that these generate opposite influences on coworker relations, and that which dominates varies according to circumstances and type of worker. Using German data, we show that, for non-supervisory men, profit sharing increases cooperation, but that for those who highly value success on the job, it has no influence on cooperation, and for supervisors it reduces cooperation. Moreover, the findings show striking gender differences in the effect of profit sharing. We contend these patterns fit with underlying theoretical expectations.
Number of Pages in PDF File: 17
Date posted: December 23, 2005