The aim of this paper is to examine rent sharing under a heterogeneous workforce using linked employer-employee Finnish data in 1987-1998 located in Statistics Finland. It is shown that rent sharing moderates firm-level wages and that the highly educated workers are the main targets. In...

We analyze how features of performance-related pay (PRP) schemes affect their perceived motivational effects using a Finnish survey from 1999. The results show that the following features are important for a successful PRP scheme: (i) the employees have to feel they are able to affect the...

The aim of this paper is to examine profit sharing using Finnish linked employer-employee data in 1996-2000. The use of profit sharing is predicted by the share of the highly educated, R&D and capital intensity, business risk, firm size and the desire to have some stability in the skilled...

We analyze how features of performance-related pay (PRP) schemes affect their perceived motivational effects using a Finnish survey for upper white-collar employees from 1999. The results show that the following features are important for a successful PRP scheme: (i) the employees have to feel...