Performance Pay, Training and Labor Mobility

A. C. Gielen

Research output: Working paperDiscussion paperOther research output

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Abstract

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 °exibility 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.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages28
Volume2007-48
Publication statusPublished - 2007

Publication series

NameCentER Discussion Paper
Volume2007-48

Fingerprint

Performance pay
Labour mobility
Profit sharing
Productivity
Wages
Market imperfections
Workers
Profit
Older workers
Employability
Remuneration

Keywords

  • profit-related pay
  • training
  • labor productivity
  • labor mobility

Cite this

Gielen, A. C. (2007). Performance Pay, Training and Labor Mobility. (CentER Discussion Paper; Vol. 2007-48). Tilburg: Macroeconomics.
Gielen, A. C. / Performance Pay, Training and Labor Mobility. Tilburg : Macroeconomics, 2007. (CentER Discussion Paper).
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Gielen, AC 2007 'Performance Pay, Training and Labor Mobility' CentER Discussion Paper, vol. 2007-48, Macroeconomics, Tilburg.

Performance Pay, Training and Labor Mobility. / Gielen, A. C.

Tilburg : Macroeconomics, 2007. (CentER Discussion Paper; Vol. 2007-48).

Research output: Working paperDiscussion paperOther research output

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AB - 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 °exibility 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.

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KW - labor mobility

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ER -

Gielen AC. Performance Pay, Training and Labor Mobility. Tilburg: Macroeconomics. 2007. (CentER Discussion Paper).