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Title: Profit Sharing and the Demand for Low-Skill Workers
Resulting in 1 citation.
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Kruse, Douglas L. |
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Profit Sharing and the Demand for Low-Skill Workers In: Generating Jobs: How to Increase Demand for Less-Skilled Workers. R. Freeman and P. Gottschalk, eds., New York: Russell Sage Foundation, 1998: 105-153 Cohort(s): NLSY79 Publisher: Rural Sociological Society Keyword(s): Benefits; Earnings; Educational Returns; Job Skills; Job Training; Job Turnover; Layoffs; Skilled Workers; Unemployment Permission to reprint the abstract has not been received from the publisher. Difficulty in finding and keeping jobs is an important part of the earnings problems of low-skill workers. Profit sharing has been proposed as a means to increase demand for workers. To examine the potential role of profit sharing in the employment of low-skill workers, this study uses recent longitudinal data from young employees to examine: 1) the prevalence of profit sharing by personal and job characteristics, including the skill requirements of jobs; 2) its relationship to pay and other benefits; and 3) its association with the disposition of a job over a five-year period, focusing on the risk of layoff. Key findings are that profit sharing is more common among the highly-educated, and for jobs requiring more schooling, but is not generally associated with training requirements of jobs. Pay levels and other benefits are generally higher for profit-sharers and for those moving into profit-sharing jobs, but pay levels are equivalent between profit-sharers and non-sharers with equivalent benefits. Finally, profit sharing is associated with lower layoff risks for both existing jobs and new jobs, although the apparent lack of substitution with fixed pay raises the question of whether profit sharing is affecting labor demand as predicted by theory. The profit-sharing estimates do not appear to vary systematically with skill requirements of jobs, indicating that if current forms of profit sharing do increase demand for workers, they do so across all skill levels. |
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Bibliography Citation
Kruse, Douglas L. "Profit Sharing and the Demand for Low-Skill Workers" In: Generating Jobs: How to Increase Demand for Less-Skilled Workers. R. Freeman and P. Gottschalk, eds., New York: Russell Sage Foundation, 1998: 105-153
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