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.