Blasi J, Freeman R, Kruse D.
“Do Broad-based Employee Ownership, Profit Sharing, and Stock Options Help the Best Firms Do Even Better?”. British Journal of Industrial Relations . 2016;54 (1) :55-82.
Publisher's VersionAbstractThis paper analyzes the linkages among group incentive methods of compensation
(broad-based employee ownership, profit sharing, and stock options), labor practices, worker
assessments of workplace culture, turnover, and firm performance in firms that applied to the
“100 Best Companies to Work For in America” competition from 2005 to 2007. Although
employers with good labor practices self-select into the 100 Best Companies firms sample,
which should bias the analysis against finding strong associations among modes of
compensation, labor policies, and outcomes, we find that employees in the firms that use group
incentive pay more extensively participate more in decisions, have greater information sharing,
trust supervisors more, and report a more positive workplace culture than in other companies.
The combination of group incentive pay with policies that empower employees and create a
positive workplace culture reduces voluntary turnover and increases employee intent to stay and
raises return on equity.
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do_broad-based_ee-profit-sharing-so_help_best_firms_do_even_better_bjir-final-ms_5-10-15.pdf Barth E, Bryson A, Davis JC, Freeman RB.
It’s Where You Work: Increases in the Dispersion of Earnings across Establishments and Individuals in the United States. Journal of Labor Economics, Special Issue dedicated to Edward Lazear. 2016;34 (S2) :S67-S97.
Publisher's VersionAbstractThis paper analyzes the role of establishments in the upward trend in dispersion of earnings that has become a central topic in economic analysis and policy debate. It decomposes changes in the variance of log earnings among individuals into the part due to changes in earnings among establishments and the part due to changes in earnings within establishments. The main finding is that much of the 1970s–2010s increase in earnings inequality results from increased dispersion of the earnings among the establishments where individuals work. Our results direct attention to the role of establishment-level pay setting and economic adjustments in earnings inequality.
wp_20447_-_its_where_you_work_2015.pdf