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Getting along with Colleagues - Does Profit Sharing Help or Hurt?

17 Pages Posted: 23 Dec 2005  

John S. Heywood

University of Wisconsin at Milwaukee

Uwe Jirjahn

University of Trier - Faculty of Economics

Georgi Tsertsvadze

Leibniz Universit├Ąt Hannover - Institute of Quantitative Economic Research

Abstract

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.

Suggested Citation

Heywood, John S. and Jirjahn, Uwe and Tsertsvadze, Georgi, Getting along with Colleagues - Does Profit Sharing Help or Hurt?. Kyklos, Vol. 58, No. 4, pp. 557-573, November 2005. Available at SSRN: https://ssrn.com/abstract=857678 or http://dx.doi.org/10.1111/j.0023-5962.2005.00302.x

John S. Heywood (Contact Author)

University of Wisconsin at Milwaukee ( email )

3210 N. Maryland Avenue, Bolton Hall 802
Bolton Hall 802
Milwaukee, WI 53211
United States
414-229-4437 (Phone)
414-229-3860 (Fax)

Uwe Jirjahn

University of Trier - Faculty of Economics ( email )

Trier, 54286
Germany

Georgi Tsertsvadze

Leibniz Universit├Ąt Hannover - Institute of Quantitative Economic Research ( email )

30167 Hannover
Germany

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