Koskela, Erkki; Stenbacka, Rune - Suomen Pankki - 2003
wages and profit shares are determined through collective bargaining. The negotiated profit share depends positively on the … relative bargaining power of the trade union and has effort-enhancing and wage-moderating effects. We show that higher profit … sufficiently high benefit- replacement ratios and relative bargaining powers of trade unions. Conversely, profit sharing seems to …