Bonus sharing in Soviet economic reforms

Revenue sharing, i.e. workers' remuneration according to enterprise performance, has been advocated as a means against labour shortage (in socialist economies) and also as a solution to unemployment problems (in capitalist economies), with reference to the effects of revenue sharing upon workers' incentives and macro-economic conditions respectively. Compared to existing models of Soviet bonus schemes of 1965, 1986 and 1987 inclusion of these two features changes the conclusions concerning optimum factor inputs. The 1987 enterprise law may stimulate more effort as well as less employment