Attitudes, Expectations and Sharing

27 Pages Posted: 23 Dec 2005

See all articles by Sarah Brown

Sarah Brown

University of Sheffield - Department of Economics; IZA Institute of Labor Economics

John G. Sessions

University of Bath; IZA Institute of Labor Economics

Abstract

We explore the relationship between performance-related pay and the attitudes and expectations of a representative sample of British workers. Our results suggest that employees who participate in productivity-linked bonus schemes, discretionary bonus schemes, share ownership or profit sharing are more optimistic about future employment and pay and are generally more satisfied with their work environment. However, employees participating specifically in profit-sharing schemes are less likely to work as hard as they can, ceteris paribus. This is an intriguing finding, insinuating as it does that group-sharing schemes are unable to rout the temptation to free ride and thereby ensure a first best cooperative equilibrium.

Suggested Citation

Brown, Sarah and Sessions, John G., Attitudes, Expectations and Sharing. Labour, Vol. 17, No. 4, pp. 543-569, December 2003. Available at SSRN: https://ssrn.com/abstract=857687 or http://dx.doi.org/10.1111/j.1121-7081.2003.00252.x

Sarah Brown (Contact Author)

University of Sheffield - Department of Economics

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

John G. Sessions

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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