Is Profit Sharing Productive? A Meta-Regression Analysis

In this article, we re-examine the relationship between group-based profit sharing and productivity. Our meta-regression analysis of 355 estimates from 56 studies controls for publication selection and misspecification biases and investigates the impact of firm-level unionisation. Profit sharing is positively related to productivity on average, with a stronger relationship where there is higher unionisation. The positive effect of profit sharing on productivity is larger in cooperative firms and in transition economies. Separate meta-analysis of interactions suggests that profit sharing works better in combination with capital investment and employee participation in decisions.