This paper shows that firm profits (and losses), and value added, are strongly related to individual hourly basic wages for most employees, as well as to the total earnings measures used previously but correlated with working time. Capital intensity is independently important without reducing...

This paper uses an unbalanced panel of 129 French firms over the period 1981–1991 to test the effects of two participatory schemes – profit sharing and employee share ownership – on voluntary quits. The effects of sharing schemes on productivity are well documented and most studies show...