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Research Paper Lancaster University Management School Working Paper 2007/031

Does profit sharing increase training by reducing turnover?

Authors

Publication date

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

Human Capital, Training: Labour Market, and Labour Economics

Links

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

Notes

working paper

#512338


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