Profit Sharing and Company Performance

Marija Ugarkovic examines whether financial participation can contribute to a more equitable distribution of income and wealth, whether it can increase employment and lead to improved company performance. The author uses a large-scale German establishment panel thus proving the beneficial impact on productivity and employment. In addition, she shows that profit sharing does not lead to a reduction of base wages but is paid in addition to regular wages. It becomes evident that profit sharing has more positive effects for large firms than for small and medium-sized companies.

Dr. Marija Ugarkovic promovierte bei Prof. Dr. Kornelius Kraft am Lehrstuhl für Wirtschaftspolitik der Universität Dortmund. Sie ist als Unternehmensberaterin bei Simon-Kucher & Partners tätig.