Goerke, Laszlo - Institut für Arbeitsrecht und Arbeitsbeziehungen in … - 2012
Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal … labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a … Pareto-improvement if labour supply is excessive due to relative consumption effects. Mandatory profit sharing reduces wages …