This paper reports productivity differentials of 3-8 percent in favor of profit-sharing firms in the U.K. engineering industry. The estimates come from equations in which profit sharing interacts with factor input levels and the firms' technological, organizational, and labor-force...

New estimates for West Germany indicate overall productivity differentials of 20-30 percent in favor of firms practicing profit sharing. These compare with estimates of 3-8 percent for comparable British firms reported in a recent issue. Like the U.K. results, they reveal important interactions...