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Published in:
2008 | OriginalPaper | Chapter
Profit Sharing: Supplement or Substitute?
Published in: Profit Sharing and Company Performance
Publisher: Gabler
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In their theoretical model, Kraft and Ugarkovic (2005) assume that profit sharing is a supplementary payment that induces higher worker productivity. The results we presented so far could, however, also be the result of lower wages or slower wage growth. We therefore investigate in the following an important question that has been the focus of only very few studies presented in Chapter 3.2.3, namely the question how profit sharing affects wages and hence the question how employees fare when a profit sharing scheme is implemented.