Abstract

http://ssrn.com/abstract=258866
 
 

Citations



 


 



Profit Sharing, Employment Stability, and Wage Growth


Omar Azfar


University of Maryland - Center on Institutional Reform and the Informal Sector (IRIS)

Stephan Danninger


International Monetary Fund (Research Department)


Industrial and Labor Relations Review, April 2001

Abstract:     
The authors conjecture that profit-sharing reduces turnover and thus increases expected returns to firm-specific human capital investments, so that the optimal levels of skill acquisition and investment in firm-specific skills rise and ultimately increase productivity. Empirical evidence from NLSY data on white men in nonunion jobs between 1988 and 1994 supports this hypothesis. Employees participating in profit-sharing plans were less likely than non-participants to separate from their jobs. They also received training more frequently and for longer durations. Finally, the authors show that profit-sharing was related to higher wage growth, indicating a faster rate of skill accumulation.

Accepted Paper Series


Not Available For Download

Date posted: September 23, 2001  

Suggested Citation

Azfar, Omar and Danninger, Stephan, Profit Sharing, Employment Stability, and Wage Growth. Industrial and Labor Relations Review, April 2001. Available at SSRN: http://ssrn.com/abstract=258866

Contact Information

Omar Azfar (Contact Author)
University of Maryland - Center on Institutional Reform and the Informal Sector (IRIS) ( email )
2105 Morrill Hall
College Park, MD 20742
United States
Stephan Danninger
International Monetary Fund (Research Department) ( email )
700 19th Street, NW
Washington, DC 20431
United States
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