Abstract
Compared to other European countries, profit sharing is more developed in France. This can be explained by a policy that promotes financial participation with tax advantages. Nevertheless, not all companies use profit-sharing mechanisms to the same degree. Using the French Workplace Industrial Relations Survey (REPONSE 2011), we investigate the determinants of profit sharing and its impact on wage levels. Our results show that profit sharing is more developed in large, profitable and listed firms with growing activity and no particularly difficulty in forecasting. Moreover, wage levels are higher in firms with profit-sharing schemes. Finally, profit-sharing practices in France may be considered as a way to motivate and retain highly qualified employees rather than a mechanism of wage flexibility or cost reduction
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
