The relationship between profit-sharing schemes and wages: Evidence from French firms

International audienceThe article tackles the impact of profit sharing plans (PS) on compensation policies in the French context. Using a sample of 1,143 firms from surveys of the Ministry of Labour, the authors draw up a typology based on a mix of PS plans including cashbased PS, deferred PS and the intensity of deferred plans (additional employer and employee contributions). Our results indicate that profit sharing does not seem to be considered as a way to reduce wages. Cash-based PS-oriented and high-deferred PS policies are not significantly linked to lower wages; but only firms with high-deferred PS policies are related to significantly higher wages