Profit sharing, separation and training

Green, C and Heywood, John (2011) Profit sharing, separation and training. British Journal of Industrial Relations, 49 (4). pp. 623-642. ISSN 0007-1080

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Theory presents two broad channels through which profit sharing can increase worker training. First, it directly increases training by alleviating hold-up problems and/or by encouraging co-workers to provide training. Second, it indirectly increases training by reducing worker separation and increasing training investments' amortization period. This article provides the first attempt at separately identifying these two channels. We confirm a strong direct effect, but also identify a weaker, more tenuous indirect effect. This suggests that profit sharing's influence on training is unlikely to operate primarily through its reduction on separations while simultaneously presenting the first evidence confirming the prediction of an indirect causation.

Item Type:
Journal Article
Journal or Publication Title:
British Journal of Industrial Relations
Uncontrolled Keywords:
?? economicsbusiness, management and accounting(all)organizational behavior and human resource managementmanagement of technology and innovationhb economic theory ??
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Deposited On:
07 Jan 2010 17:00
Last Modified:
11 Apr 2024 00:16