TY  - RPRT
        AU  - Gielen, Anne C.
        TI  - Performance Pay, Training and Labor Mobility
        PY  - 2007/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2932
        UR  - https://www.iza.org/publications/dp2932
        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 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.
        KW  - profit-related pay
KW  - training
KW  - labor productivity
KW  - labor mobility
        ER  -