Profit Sharing and Public Policy: Insights for the United States

Abstract

Nations differ in their approach to profit sharing, with policies ranging from nonintervention to mandatory sharing. Mounting evidence that profit sharing has a positive impact on employment and productivity has spurred some American legislators and economists to propose additional tax incentives. While this option has been effective in increasing the number of plans, a more prudent response would be the creation of a national tripartite body to accelerate and enhance the quality of profit‐sharing research.