Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/10226
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Profit-Related Pay: Prose Discovered?
Authors: Blanchflower, David
Oswald, Andrew J
Contact Email: david.blanchflower@stir.ac.uk
Issue Date: Sep-1988
Publisher: Wiley-Blackwell
Citation: Blanchflower D & Oswald AJ (1988) Profit-Related Pay: Prose Discovered?, Economic Journal, 98 (392), pp. 720-730.
Abstract: First paragraph: The case for profit sharing has attracted much recent attention, and the UK Spring Budget of I987 offered tax relief on 'profit-related pay'. Nevertheless, economic research on the issue has been predominantly theoretical (Blanchflower and Oswald (I987 b) and Estrin et al. (I987) provide surveys). Weitzman (I983; I984; I987) and Meade (I986) have been especially influential. The object of this paper is threefold. First, in Section I the Workplace Industrial Relations Surveys (WIRS) of I980 and I984 are used to calculate the extent of income-sharing schemes in Great Britain. Second, Section II attempts to test the hypothesis that profit-related pay produces greater company prosperity. As claimed in a recent Green Paper: Profit Related Pay schemes should lead to a closer identification of employees with the companies in which they work ... The most important consequence ... is likely to be enhanced competitiveness and better business performance. (Profit Related Pay, I986, Cmnd. 9835, p. 3) Section III examines tabulated evidence on the growth rate of, and quality of industrial relations within, sharing and non-sharing establishments. This was simulated by, inter alia, the following sentence taken from the Green Paper: The Government believes that the spread of Profit Related Pay would be beneficial ... for industrial relations, for productivity, for growth and for employment. (Profit Related Pay, I986, Cmnd. 9835, p. 7) Section IV summarises the paper's findings.
Type: Journal Article
URI: http://hdl.handle.net/1893/10226
URL: http://www.jstor.org/stable/2233910
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: Economics
London School of Economics

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