利潤配分制度의 雇傭效果에 관한 考察 = On the Employment Effects of Profit Sharing System

다국어 초록 (Multilingual Abstract)

In profit sharing system, employees receive bonuses that are in aggregate tied to firm profits. Profit sharing is known to have the effects of productivity enhancement, employment stability, and excess demand for labor. Therefore, it was proposed as a means of cure for the stagflation.
The purpose of this paper is to analyze the employment effects of profit sharing.
The conversion from the fixed wage to the profit sharing scheme lowers the marginal cost of labor, thereby increases the demand for labor. But if the degree of productivity enhancement is small or null, increase in employment level will lower the average wage of incumbent workers. Thus, incumbent workers may make a deal with the firm not to hire new workers, while compensating the firm for the profits forgone. If average revenue function is concave, it is possible to sign this employment-restraining agreement. This result implies that the hypothesis of excess demand for labor might be unfeasible, and the effects of profit sharing system on the employment must be investigated together with analysis of productivity effects.