Performance Pay, Training and Labor Mobility
نویسنده
چکیده
Performance Pay, Training and Labor Mobility Market imperfections may cause firms and workers to under-invest in specific training. This paper shows that profit sharing may be a suitable instrument to enhance specific training investments, either by enhancing wage flexibility or by increasing the returns to training. As a result, profit sharing not only increases productivity by means of an effort effect, but also by increased training investments. Furthermore, the results suggest that older workers' employability can be improved if a profit-related remuneration is paid. JEL Classification: M52, M53, J24, J62
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