Profit Sharing and Firm Profitability: The Differential Impact of Underlying Firm Profitability on the Wage-Profit Elasticity
Purpose This purpose of this paper to examine how profit sharing depends on the underlying profitability of firms. More precisely, motivated by theoretical research on fair wages and unionized labor markets, profit sharing is estimated for six different profitability categories: positive, increasing, positive and increasing, negative, decreasing and negative or decreasing. Design/methodology/approach The paper exploits … Read More