Complementarity of Shared Compensation and Decision-Making Systems: Evidence from the American Labor Market  - CLEO Skip to main content


In the 1990s an increasing proportion of US firms moved toward compensation systems that made part of pay depend on the economic performance of work-groups or the firm. They gave profit-sharing bonuses, paid group incentive schemes (gain-sharing), developed employee contribution pension plans which put considerable assets in the stock of the firm. Over the same period, firms introduced teams, total quality management, quality circles, employee involvement committees, and other structures that gave employee a greater role in decision-making.

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