Profit sharing, employment stability, and wage growth.
The authors conjecture that profit-sharing reduces turnover and thus increases expected returns to firm-specific human capital investments, so that the optimal levels of skill acquisition and investment in firm-specific skills rise and ultimately increase productivity. Empirical evidence from NLSY data on white men in nonunion jobs between 1988 and 1994 supports this hypothesis. Employees participating in profit-sharing plans were less likely than non-participants to separate from their jobs. They also received training more frequently and for longer durations. Finally, the authors show that profit-sharing was related to higher wage growth, indicating a faster rate of skill accumulation. (Author's abstract.)
Year of publication: |
2001
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Authors: | Azfar, Omar ; Danninger, Stephan |
Published in: |
Industrial and Labor Relations Review. - School of Industrial & Labor Relations, ISSN 0019-7939. - Vol. 54.2001, 3, p. 619-630
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Publisher: |
School of Industrial & Labor Relations |
Saved in:
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