Rayton, Bruce A.; Seaton, Jonathan S. - EconWPA - 1996
and file employees and the performance of their firms. We find that a doubling of firm value increases employee pay in … these firms by approximately 14 percent. Firms with explicit profit- sharing arrangements have a performance elasticity of … approximately 0.32, while firms without explicit profit-sharing arrangements have a performance elasticity of only 0.11. This …