Has Profit Sharing Led to Fewer Separations?
Abstract
This study examines the e ect of profit sharing on the employee turnover in firms. The existence of a profit sharing programme (or performance related pay) in a firm is in general associated with a reduction in the probability of separation for salaried employees by 1–2 percentage points for the average employee. It is doubtful whether there is a reduction in the turnover for wage earners. The estimates indicate that more firm-specific human capital relative to general human capital is associated with a lower probability of separation.
- ISSN: 1457-2923
- ISBN: 952-5071-78-2
- Publication in PDF-format
