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Unpublished Paper
Worker Attitudes Towards Employee Ownership, Profit Sharing and Variable Pay
Economics Department Working Paper Series (2011)
  • Fidan A Kurtulus, University of Massachusetts - Amherst
  • Douglas Kruse
  • Joseph Blasi
Abstract

Using the NBER Shared Capitalism Database comprised of over 40,000 employee surveys from 14 firms, we investigate worker attitudes towards 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 coworkers 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 co-workers and management.

Keywords
  • Employee Ownership,
  • Profit Sharing,
  • Variable Pay,
  • Worker Preferences,
  • Residual Control,
  • Risk Aversion,
  • Perceptions of Co-Workers and Management
Disciplines
Publication Date
March 21, 2011
Citation Information
Fidan A Kurtulus, Douglas Kruse and Joseph Blasi. "Worker Attitudes Towards Employee Ownership, Profit Sharing and Variable Pay" Economics Department Working Paper Series (2011)
Available at: http://works.bepress.com/fidan_kurtulus/7/