TY - CHAP
T1 - Worker attitudes toward employee ownership, profit sharing and variable pay
AU - Kurtulus, Fidan Ana
AU - Kruse, Douglas
AU - Blasi, Joseph
PY - 2011
Y1 - 2011
N2 - Using the NBER Shared Capitalism Database comprised of over 40,000 employee surveys from 14 firms, we investigate worker attitudes toward employee ownership, profit sharing, and variable pay. Specifically, our study uses detailed survey questions on preferences over profit sharing, forms of employee ownership like company stock and stock option ownership, as well as preferences over variable pay in general, to explore how preferences for these different types of output-contingent pay vary with worker risk aversion, residual control, and views of co-workers and management. Our key results show that, on average, workers want at least a part of their compensation to be performance-related, with stronger preferences for output-contingent pay schemes among workers who have lower levels of risk aversion, greater residual control over the work process, and greater trust of coworkers and management.
AB - Using the NBER Shared Capitalism Database comprised of over 40,000 employee surveys from 14 firms, we investigate worker attitudes toward employee ownership, profit sharing, and variable pay. Specifically, our study uses detailed survey questions on preferences over profit sharing, forms of employee ownership like company stock and stock option ownership, as well as preferences over variable pay in general, to explore how preferences for these different types of output-contingent pay vary with worker risk aversion, residual control, and views of co-workers and management. Our key results show that, on average, workers want at least a part of their compensation to be performance-related, with stronger preferences for output-contingent pay schemes among workers who have lower levels of risk aversion, greater residual control over the work process, and greater trust of coworkers and management.
KW - Employee ownership
KW - Perceptions of co-workers and management
KW - Profit sharing
KW - Residual control
KW - Risk aversion
KW - Variable pay
KW - Worker preferences
UR - http://www.scopus.com/inward/record.url?scp=84886503863&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84886503863&partnerID=8YFLogxK
U2 - 10.1108/S0885-3339(2011)0000012010
DO - 10.1108/S0885-3339(2011)0000012010
M3 - Chapter
SN - 9780857247599
T3 - Advances in the Economic Analysis of Participatory and Labor-Managed Firms
SP - 143
EP - 168
BT - Advances in the Economic Analysis of Participatory and Labor-Managed Firms
A2 - DeVaro, Jed
ER -