Profit sharing in British industry, 1865–1913

This paper examines the history of profit sharing in Britain between 1865 and 1913. Some 300 schemes were introduced during the period and these were intended both to raise labour productivity and to improve industrial relations, in the firms concerned. These schemes appear to have added significantly to the wages of eligible workers but were frequently given up after a period of experiment. Analysis of the survival rate of schemes indicates an important role for the type of scheme (by method of payment and the size of firm) but suggests that the probability of abandonment increased with the duration of the scheme. © 1988.