Does profit sharing increase training by reducing turnover?

Publication type

Research Paper

Series Number

2007/031

Series

Lancaster University Management School Working Paper

Authors

Publication date

June 1, 2007

Abstract:

We test the theoretical prediction that profit sharing reduces worker separations and by doing so increases the incidence of training. Using individual level UK data, we confirm that profit sharing is a robust determinant of lower separation rates and of greater training incidence. Critically, we cannot confirm the predicted link between separations and training. Instead, the evidence supports alternative theories suggesting a direct link between profit sharing and training. Our results suggest that profit sharing changes employer-worker relations in a way that leads to greater formal and informal investment in worker skills but that this is independent of its influence on reducing separations.

Subjects

Link

- http://eprints.lancs.ac.uk/6925/

Notes

working paper

#512338

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