We measure the effect of profit-sharing incentive schemes on productivity in the banking sector. We use data collected from the payroll records of different (and autonomous) branches of a Québec financial cooperative. Beginning in 1994, some of these branches introduced profit-sharing compensation systems. We estimate a production function for this institution, allowing for the presence of profit-sharing. Our results suggest that branches with profit-sharing had 10% higher productivity than those without. Not all of this increase can be attributed to profit-sharing, however, since we lack information on the presence of other human-resource practices that were introduced into these firms.

View the document

Center for Interuniversity Research and Analysis of Organizations
1130 rue Sherbrooke Ouest, suite 1400
Montréal, Québec (Canada) H3A 2M8
(514) 985-4000
(514) 985-4039

© 2019 CIRANO. All rights reserved.

Partner of :

Website Security Test