PROFIT-SHARING AND PRODUCTIVITY: SOME FURTHER EVIDENCE.

In a recent issue of this JOURNAL we reported estimates of the relationship between productivity and profit-sharing for a sample of firms in the UK engineering industry (Cable and Wilson, 1989). This note presents comparative results for a sample of West German firms. New estimates for West Germany indicate overall productivity differentials of 20-30% in favour of firms practising profit-sharing. These compare with estimates of 3-8 % for comparable British firms which we reported in an earlier paper. Like the UK results, they reveal evidence of important interactions between profit-sharing and other aspects of the firms' organisation and operation. [ABSTRACT FROM AUTHOR]