In the first study using British data, we show that the average wage advantage of holding a performance pay job is greater for minorities than that for Whites. This generates a smaller ethnic wage gap among performance pay jobs than among time rate jobs. Yet, this pattern is driven by those...

This paper examines the relationship between firm-specific training and product market competition. A canonical Cournot competition model shows that the profitability of training investments increases as the number of competitors decreases. Empirical evidence from British establishments in 1998,...

We examine the relationship between firm-sponsored training and the sensitivity of product demand to product quality. A quality-adjusted model of monopolistic competition shows the conditions under which the intensity of training increases as product demand becomes more sensitive to quality....