Profit Sharing and Training

22 Pages Posted: 22 Nov 2013

See all articles by Kornelius Kraft

Kornelius Kraft

University of Dortmund - Department of Economics; IZA Institute of Labor Economics

Julia Lang

Technical University of Dortmund

Multiple version iconThere are 2 versions of this paper

Date Written: December 2013


We analyze the impact of profit sharing on training intensity. Profit sharing may affect training because it is a credible commitment by firms to reward firm‐specific skills, may reduce turnover and leads to peer group pressure to participate in training courses. To eliminate possible selectivity effects, we combine matching with difference‐in‐differences. We identify the proportion of employees participating in profits and differentiate profit sharing according to the percentage of the workers covered. Using German establishment data we find that profit sharing only has a significant effect on training intensity if the majority of the workforce benefits from it.

JEL Classification: C14, J33, M52, J24

Suggested Citation

Kraft, Kornelius and Lang, Julia, Profit Sharing and Training (December 2013). Oxford Bulletin of Economics and Statistics, Vol. 75, Issue 6, pp. 940-961, 2013, Available at SSRN: or

Kornelius Kraft (Contact Author)

University of Dortmund - Department of Economics ( email )

D-44221 Dortmund
+49 231 755-3152 (Phone)
+49 231 755-3155 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

Julia Lang

Technical University of Dortmund ( email )

Emil-Figge-Straße 50
Dortmund, 44227

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