Article Abstract:
Research on the disincentives for quitting under employer-sponsored pension plans have limited generalizability as tests of the implicit contract thesis because of the way that job changing, pension back-loading, and plausible alternative explanations for pension effects have been operationalized. Using a unique data set that addresses some of these concerns, I find that pension back-loading and insecurity about the viability of a long-term employment contract are quantitatively the most significant determinants of job search intentions, followed by other seniority related benefits, such as vacation pay and shared investments in firm-specific training. No support for pension information, wage tilt, or efficiency wage arguments is found. Males and the better educated are also more likely to intend to search. Implications for theory, policy and future research are discussed. (Reprinted by permission of the publisher.)
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Article Abstract:
Prior research shows that stock price responds favorably to managerial incentive schemes which lower costs and stimulate growth. This article analyzes the consequence for shareholders of introducing profit sharing in unionized firms. Positive abnormal returns were associated with the announcement of collective agreements incorporating risk-sharing components, especially when the firm was experiencing preexisting financial distress. The realized gains generally exceeded that which could be attributed to strike activity or negotiated wage reductions. However, there was no indication that profit sharing decreased the perceived risk of investing in the firm. (Reprinted by permission of the publication.)
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Article Abstract:
Although there is ample evidence that profit-sharing plans increase productivity, little is known about how such plans affect profitability. Using a data set of 198 U.S. firms, I examined the relationship between profit sharing and profits. Results suggest that profit sharing has a significant effect on profits in a single-equation setting. But the significance disappeared in a simultaneous-equations framework because of interdependence between the two variables. In an auxiliary regression, profit sharing is found to increase labor costs. This result partially explains why profit sharing has an insignificant effect on profitability. (Reprinted by permission of the publisher.)
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