Has Profit Sharing Led to Fewer Separations?
Abstract
This study examines the eect 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 esti-mates 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
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