English, Article, Journal or magazine article edition: Profit-Sharing as Tax Saving and Incentive Device Chau, Minh; Contensou, François

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Bookmark: http://trove.nla.gov.au/version/169912
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Profit-Sharing as Tax Saving and Incentive Device
Author
  • Chau, Minh
  • Contensou, François
Physical Description
  • preprint
Notes
  • The theory of labor contract with worker’s chosen effort level mainly rests upon the principal-agent paradigm. In many labor markets however, the principal is not as free as assumed in the standard theory, but is submitted to some binding institutional constraints. It is requested in particular to post a wage level, i.e. a non random component of compensation to which high rates of social contribution may apply. The proposed model adapts the standard analysis to situations in which tax rules and possibly predetermined profit-sharing patterns interfere with free contracting. It formalizes the two-faced aspect of profit sharing having an impact on the firm’s objective through tax saving effect and incentive effect.
  • Profit-sharing; Incentives; Tax evasion
  • RePEc:ebg:essewp:dr-04012
Language
  • English
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