This paper studies the effect of ownership structure on workers' incentives for investing in firm-specific human capital. Particularly, we analyse such incentivers and monitoring under employee ownership and capitalist ownership. In our model, the employee-owned firm is a firm bought by its...

The paper provides empirical evidence how promotion incentives and performance pay are related to nonverifiable human capital acquisition contingent on its grade of firm specificity. Consistent with Prendergast (1993), I document that promotion incentives are positively related to nonverifiable...

The importance of human capital in building and maintaining competitive advantage is undisputed, and ensuring that employees invest in their human capital has thus become of utmost importance to firms. Despite this, management control research has not dedicated much attention to the personnel...

What effect does employment protection through severance payments have on the behaviour of employed workers? We analyse this issue within a stochastic two-period framework where workers decide on human capital investments and find two competing effects: severance payments imply higher job...

External certification of workplace skills obtained through on-the-job training is widespread in many countries. This may indicate that training is financed by workers, and certification serves to assure the quality of the training offered by the firm. However, other evidence shows that general...

The Employment Protection Legislation (EPL) has been at the heart of many analyses with regard to its macroeconomic impact on the labor market outcomes. However, some more recent literature studies the effects of the EPL, specially concerning the individual dismissal, on the behavior of economic...