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Profit Sharing: Does It Make a Difference?

By Douglas L. Kruse

Abstract

Kruse details the reasons profit sharing plans are implemented and the systemic factors within firms, particularly in relation to unions, that influence whether or not they are successful. He presents evidence based on a unique database developed from 500 public U.S. firms - matched to firm performance over the period of 1979-1991 - on the two central theories related to profit sharing: 1) The Productivity Theory, and 2) the Stability Theory.profit sharing, productivity, productivity theory, stability theory

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