Profit sharing and relative consumption

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 118
Issue: 1
Pages: 167-169

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Mandatory profit sharing can represent a Pareto-improvement if labour supply is excessive due to relative consumption effects. Profit sharing reduces wages. If the rise in profit income keeps total income constant, there will only be a Pareto-improving substitution effect.

Technical Details

RePEc Handle
repec:eee:ecolet:v:118:y:2013:i:1:p:167-169
Journal Field
General
Author Count
1
Added to Database
2026-01-25