Using a National Bureau of Economic Research dataset of employees of 14 United States companies with shared capitalism practices, we compare two prominent explanations of employee ownership's influence on pro-organizational behaviors - psychological ownership and alignment of financial interests...

This paper studies the use of domestic outsourcing to circumvent labor benefits and its consequences for firms and workers. Drawing on longitudinal establishment data and employer-employee data from Mexico, we provide evidence that many firms were outsourcing their entire workforce to avoid...

Establishing a partnership necessitates agreeing on how to divide future profits or losses. We consider parties who wish to contract on the division of uncertain future profits. We propose to divide profits according to the Raiffa-Kalai-Smorodinsky (K-S) solution, which is the intersection point...

Working from home reduces real-time visibility of employees within the physical space of the workplace. This makes it difficult to monitor employees' work behavior. Employers may instead monitor employees' outputs and provide incentives through performance pay. The crucial question is what type...

Managers frequently offer unconditional bonuses and profit-sharing payments to their employees. The isolated effects of the former payment type on job satisfaction, in particular, have received little empirical attention. This study uses German panel data and shows that, even when total income...

Working from home reduces real-time visibility of employees within the physical space of the workplace. This makes it difficult to monitor employees' work behavior. Employers may instead monitor employees' outputs and provide incentives through performance pay. The crucial question is what type...

While studies on individual-based and collective payment schemes are largely unconnected, there appears to be a widely held belief that individual-based schemes have a stronger influence on firm performance than collective ones. This also applies to an index of best management practices...

While studies on individual-based and collective payment schemes are largely unconnected, there appears to be a widely held belief that individual-based schemes have a stronger influence on firm performance than collective ones. This also applies to an index of best management practices...

Using a National Bureau of Economic Research dataset of employees of 14 United States companies with shared capitalism practices, we compare two prominent explanations of employee ownership's influence on pro-organizational behaviors–psychological ownership and alignment of financial...

We use the removal of public bank guarantees in Germany as a quasi-natural experiment to estimate the gender bargaining power gap. Using comprehensive wage data from the universe of banking employees, combined with bank-level financial information, we find that women have approximately...

This paper analyzes the possibility of creating worker cooperatives in which members are paid not through wages but through dividends calculated on the organization's residual income, as stipulated by the economic theory of the labor-managed firm. It is shown how dividends paid to members can be...

Firms differ in the extent to which they use variable pay. Using U.S. employeeemployer matched data on variable pay from Glassdoor, we document such dispersion and find workers are exposed to firm-level shocks through variable pay. Credit rating downgrades from investment to speculative grade,...

We investigate profit-share auctions in a procurement context,comparing them with traditional cash auctions to identify which mechanism yields lower expenses for buyers. We also explore whether specifying a high project value in profit-share auction contracts influences supplier bidding...

We investigate profit-share auctions in a procurement context, comparing them with traditional cash auctions to identify which mechanism yields lower expenses for buyers. We also explore whether specifying a high project value in profit-share auction contracts influences supplier bidding...

This paper presents an analytical economic democracy-shared capitalism framework to better understanding of the nature and firm-level drivers of employee ownership, in particular the purpose of the firm. This framework allows us to answer the question: to what extent and how does firm purpose...

Establishing a partnership necessitates agreeing on how to divide future profits or losses. We consider parties who wish to contract on the division of uncertain future profits. We propose to divide profits according to the Raiffa-Kalai-Smorodinsky (K-S) solution, which is the intersection point...

There appears to be a widely held belief that individual‐based performance pay has a stronger influence on firm performance than collective performance pay. This also applies to an index of best management practices that has been used by Bloom and Van Reenen in a series of influential...

Utilising matched employer-employee data from Vietnamese small and medium enterprises (SMEs) surveys spanning the time frame of 2007-2015, we investigate the extent to which firms share economic rents with their employees through wage adjustments. Our analysis reveals rent-sharing elasticity of...

Employee ownership has attracted growing attention for its potential to improve economic outcomes for companies, workers, and the economy in general, and help reduce inequality. Over 100 studies across many countries indicate that employee ownership is generally linked to better productivity,...

Nowadays, rating systems play a crucial role in the attraction of customers to different services. However, as it is difficult to detect a fake rating, fraudulent users can potentially unfairly impact the rating's aggregated score. This fraudulent behavior can negatively affect customers and...

Working from home reduces real-time visibility of employees within the physical space of the workplace. This makes it difficult to monitor employees' work behavior. Employers may instead monitor employees' outputs and provide incentives through performance pay. The crucial question is what type...

Managers frequently offer unconditional bonuses and profit-sharing payments to their employees. The isolated effects of the former payment type on job satisfaction, in particular, have received little empirical attention. This study uses German panel data and shows that, even when total income...

Working from home reduces real-time visibility of employees within the physical space of the workplace. This makes it difficult to monitor employees' work behavior. Employers may instead monitor employees' outputs and provide incentives through performance pay. The crucial question is what type...

The post-pandemic surge in inflation was accompanied by a surge in the corporate share of profits. As a result, several economists and policy makers have given to it names such as "profit-led inflation" or "sellers' inflation." The present paper discusses the extent to which profit-led...

I develop a general framework for markup and markdown estimation that allows for profit sharing along value chains without making assumptions on conduct between vertically related firms. I derive the conditions under which the markup and markdown estimates relate to the firms' equilibrium...

Do employees fare better in firms they partly own? Examining workers' reviews of their employers on Glassdoor, we compare employee satisfaction between firms in which workers own company shares through an employee stock ownership plan (ESOP) and conventional firms in which they do not. Focusing...

A small literature has shown that individual wellbeing varies with the price of company stock, but it is unclear whether this is due to wealth effects among those holding stock, or more general effects on sentiment, with individuals taking rising stock prices as an indicator of improvements in...

While studies on individual-based and collective payment schemes are largely unconnected, there appears to be a widely held belief that individual-based schemes have a stronger influence on firm performance than collective ones. This also applies to an index of best management practices...

While studies on individual-based and collective payment schemes are largely unconnected, there appears to be a widely held belief that individual-based schemes have a stronger influence on firm performance than collective ones. This also applies to an index of best management practices...

This paper examines the profit testing of life insurance companies that issue participating policies, type B and type A universal life policies, and variable annuities with guaranteed minimum maturity and death benefits, when investment returns are stochastic and modeled by normal or variance...

Since 1967, all French firms with more than 100 employees are required to share a fraction of their excess-profits with their employees. Through this scheme, firms with excess-profits distribute on average 10.5\% of their pre-tax income to workers. In 1990, the eligibility threshold was reduced...

From its early days, the sharing economy was celebrated in utopian terms, as a platform for creating and sharing wealth across social divides. Sharing, it is often argued, facilitates improved wealth redistribution and a decentralized, equitable and sustainable economy, by providing a...

This paper discusses, theoretically and empirically, the relationship between two indicators: the profit share in value added and markups. While many commentators simply interpret the profit share as a proxy for markup, we show that with a production function with two inputs (i.e. labour and...